The Stuttgart-based company entered 2025 facing headwinds. In the first quarter, group-wide sales fell by 8% to just under 100,000 units. The decline was particularly sharp in two key regions: sales dropped by 16% in North America and 18% in Europe. The weakening market and political uncertainty – including tighter US tariffs – have now forced the company to revise its annual outlook.
“In view of growing economic uncertainty and the resulting pressure on demand in the US, we have reduced our sales expectations for the full year,” said Eva Scherer, CFO of Daimler Truck.
Sales decline affects industrial revenues and outlook
Instead of the previously anticipated 460,000 to 480,000 vehicles, Daimler Truck now expects annual sales of between 430,000 and 460,000 units. Revenue from the industrial business is projected to be between €48 billion and €51 billion – around €3 billion less than previously forecast. Daimler Truck is also more cautious regarding adjusted Group EBIT, which is now expected to be between minus 5% and plus 5% year-on-year (previously: plus 5% to 15%).
Overall, the Group continues to expect stable operating results in 2025 compared to 2024, with an adjusted return on sales of between 8% and 10% in the industrial business, the company said in a mandatory statement.
Strong margin despite weak markets
Despite the decline in sales, profitability remains stable. The adjusted return on sales in the industrial segment rose to 9.6% in the first quarter, driven primarily by the North American business. Trucks North America achieved an operating margin of 14.4% on sales of just under 39,000 units. While sales were down 16%, results still surpassed the prior-year period.
Daimler Truck remains optimistic about the full year in North America. Despite a reduced sales forecast of 155,000 to 175,000 units (previously: 180,000 to 200,000), the margin is expected to remain between 11% and 13% – a sign of the resilience of the company’s business model in the US.
Mercedes-Benz Trucks and e-mobility under pressure
The quarter was less positive for the European brand Mercedes-Benz Trucks. Sales dropped by 18% to 33,446 units (previous year: 40,838), while the adjusted return on sales fell to 5.4% (previous year: 8.0%). The company also stagnated in electromobility: the number of battery-electric trucks and buses sold dipped slightly to 759. However, incoming orders for zero-emission vehicles rose to 1,266 units.
Efficiency measures are beginning to take effect
To remain competitive over the long term, the Group is working to improve its cost structure. The “Cost Down Europe” programme aims to achieve annual savings of over €1 billion by 2030. An agreement to this effect has already been reached with the General Works Council. The aim is to make Mercedes-Benz Trucks more profitable while safeguarding the future of its German sites.
