In This Article:
Release Date: March 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Daimler Truck Holding AG (DTRUY) reported a solid year with an adjusted EBIT of 4.7 billion and a return on sales of 8.9%.
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The company achieved a strong free cash flow of 3.2 billion in the industrial business, resulting in a net industrial liquidity of 8.6 billion.
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Daimler Trucks North America and Daimler Buses continued to deliver very strong results, with North America maintaining a market leadership position.
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The company is actively pursuing a cost reduction program in Europe, aiming to reduce annual recurring costs by more than 1 billion by 2030.
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Daimler Truck Holding AG (DTRUY) is making progress in zero-emission vehicles, with sales of battery electric trucks and buses increasing by 17% year-over-year.
Negative Points
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The performance of Mercedes Benz Trucks in Europe was impacted by lower demand and challenges in adjusting the cost base to lower volumes.
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The company faced a 12% decrease in unit sales, with significant declines in the European market.
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Financial services impacted Group EBIT negatively by 79 million compared to 2023.
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The company is dealing with ongoing uncertainties related to tariffs and regulatory changes in North America, which could impact future performance.
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Daimler Truck Holding AG (DTRUY) is facing challenges with the infrastructure needed for zero-emission vehicles, particularly the lack of public charging stations in Europe.
Q & A Highlights
Q: In your key regions, North America and Europe, you've got the volumes essentially flat or slightly down, but industrial revenues are expected to increase by 2 to 3 billion. Can you just give us a bit more color on what's driving this increase in the revenue guidance? A: (Eva Scherger, CFO) In Europe, the market last year was impacted by delayed registrations, but we see backlogs normalizing. Orders have been recovering since the end of Q3 last year, which should help us recover some market shares. We expect the second half of the year to be stronger than the first. In North America, strong orders in Q4 will lead to a good Q1, and we anticipate a recovery of the on-highway business in the second half of the year.
Q: On the integration of the China trucks in India into Mercedes, how can we track the progress of Mercedes trucks in Europe going forward? A: (Kaan Rswim, CEO) We aim to be transparent about our performance in Europe. We will keep you informed and ensure that you can track our progress. We will update you on our cost down Europe program during the year, and more details will be shared at the Capital Market Day.