Daimler Truck Holding Ag Stock Earnings Reports

Daimler Truck reported a soft Q1 driven by very low volumes in North America and tariff headwinds but maintained a solid balance sheet and reiterated full-year guidance. Group revenue was EUR 10.0bn, adjusted EBIT ~EUR 500m and net profit EUR 149m. Net industrial liquidity remained strong at EUR 7.1bn. Industrial business revenue fell 14% y/y to EUR 9.1bn and adjusted EBIT fell 55% to EUR 460m, mainly due to Trucks North America (revenues down 29% y/y; unit sales down ~25%). Incoming orders were a bright spot: overall order intake rose ~50% to 114,000 units (book-to-bill 166%), giving management confidence for H2. Zero-emission vehicle deliveries were ~700 BEVs (+26% y/y) and Daimler led the European heavy-duty ZEV segment (33% share). Strategic moves: completion of the ARCHION transaction (Mitsubishi Fuso and Hino) with planned gradual reduction of Daimler Truck ownership to 25% and expected cash inflow of EUR 1.5–2.0bn; Toyota joining cellcentric alongside Daimler Truck and Volvo; and a decision to defer/scale back near-term cell-capacity build with Amplify Cell Technologies, which triggered a non-cash EUR 200m partial impairment but reduces planned cash contributions (positive cash flow effect). Tariff headwinds in the U.S. (Section 232 and others) created a low triple-digit million-euro impact in Q1; management has applied for tariff relief under the U.S. content program but timing and outcome are uncertain, so guidance assumes a conservative tariff outcome. Guidance and outlook: group and segment guidance unchanged for 2026; North American heavy-duty market expected 250k–290k units with a pickup in H2; EU30 market 290k–330k units; management expects Q2 North America unit sales ~50% above Q1 and to reach the upper end of the 6–8% adjusted return-on-sales corridor for the full year (assuming conservative tariff assumptions). R&D spending was lower in Q1 but expected to rise, with R&D peaking this year and next. Free cash flow of the Industrial Business was around negative EUR 400m in Q1 but Daimler expects to be at the upper end of its full-year FCF guidance partly due to lower cash injections into Amplify.