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1. Company Snapshot

1.a. Company Description

Daimler Truck Holding AG manufactures and sells medium- and heavy-duty trucks and buses in Europe, North America, Asia, Latin America, and internationally.It operates through five segments: Mercedes-Benz, Trucks North America, Trucks Asia, Daimler Buses, and Financial Services.The company offers light, medium, and heavy-duty trucks; city and intercity buses, touring coaches, and bus chassis; industrial engines; and special vehicles that are primarily used in municipal applications, as well as electric vehicles and used commercial vehicles.


It also provides various financial services, such as leasing, hire purchase, and insurance products under the Daimler Truck Financial Services brand name.In addition, the company offers connectivity solutions under the Detroit Connect, Fuso Connect, Mercedes-Benz Uptime, and Fleetboard brands; and aftersales services, such as maintenance and repair, as well as sells spare parts.It provides trucks and buses under the Mercedes-Benz, Freightliner, Western Star, FUSO, BharatBenz, Setra, and Thomas Built Buses brand names.


The company was founded in 1896 and is headquartered in Leinfelden-Echterdingen, Germany.

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1.b. Last Insights on DTG

Daimler Truck Holding AG's recent performance was driven by several factors. The company's Q2 2025 earnings beat expectations, with EPS surpassing estimates. However, revenue declined 6.0% to €11.7 billion due to market weakness in North America. The company targets 3-5% organic sales growth in its industrial business through 2030, with an adjusted return on sales of over 12%. Despite this, Daimler Truck cut its 2025 profit forecast due to North American market weakness and US trade tariffs, which may impact earnings. Additionally, the company plans to reduce around 5,000 jobs in Germany by 2030.

1.c. Company Highlights

2. Daimler Truck's Q3 2025 Results: A Mixed Bag

Daimler Truck's financial performance in Q3 2025 was marked by a revenue of EUR 10.6 billion, driven by 98,000 units sold, and an adjusted group EBIT of EUR 716 million. However, the earnings per share (EPS) came in at EUR 0.51, below estimates of EUR 0.979. The adjusted return on sales for the Industrial business was 6.3%. Free cash flow was EUR 24 million, and net industrial liquidity stood at EUR 5.9 billion.

Publication Date: Nov -11

📋 Highlights
  • Q3 Industrial Revenue & Profitability: Industrial revenue reached EUR 10.6B on 98,000 units sold, with adjusted group EBIT at EUR 716M and a 6.3% margin.
  • North American Market Decline: Class 8 market fell 20% YoY, yet Daimler maintained 40% market share, projecting 2025 HDT sales between 250,000–280,000 units.
  • Zero-Emission Growth: ZEV sales hit 3,800 units in H1 2025, up from 2,100 in H1 2024, with eActros 600 dominating 50% of Europe’s electric truck orders.
  • Tariff Impact: Net 2025 tariff costs expected in low triple-digit millions EUR, driven by US Section 232, with Q4 margin in low single digits despite mitigation efforts.
  • Free Cash Flow & Cost Efficiency: Free cash flow at EUR 24M, net liquidity EUR 5.9B, with EUR 100M+ savings expected in 2026 from European cost-down programs.

Regional Performance

The company's performance varied across regions, with North America experiencing a sharp downturn, while Europe saw a slow recovery. In North America, the Class 8 market declined 20% year-over-year, although Daimler's market share remained steady at 40%. In contrast, the European heavy-duty market declined 8% year-to-date but saw a 6% recovery in Q3, with Daimler's market share rising to 16.5% year-to-date and 19.1% in Q3.

Electrification and Tariffs

Daimler Truck's zero-emission vehicle sales were over 3,800 units in the first 9 months of 2025, up from 2,100 units in the same period last year. The company is also navigating the impact of tariffs, particularly Section 232, and is in discussions with the US administration to understand the tariff scheme better and discuss mitigation measures. The net tariff impact for the year is expected to be in a low triple-digit million amount.

Valuation and Outlook

With a P/E Ratio of 11.38 and an EV/EBITDA of 10.3, the market seems to be pricing in a moderate growth outlook for Daimler Truck. Analysts estimate next year's revenue growth at 4.0%. Given the current challenges, the company's ability to maintain its margin and grow its electrification business will be crucial. As CFO Eva Scherer noted, the order intake for electric trucks is strong, particularly for the eActros 600, which has over 50% market share in Europe.

Guidance and Future Prospects

Daimler Truck confirmed its guidance for 2025, expecting stronger new vehicle unit sales in Q4, but with profitability impacted by increased headwinds from FX and seasonal increases in R&D expenditure. The company expects a pickup in CapEx over the next two years and is working to achieve its industrial free cash flow target in Q4, mainly driven by inventory reduction at Mercedes-Benz Trucks.

3. NewsRoom

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Daimler Truck and Torc Robotics Select Innoviz Technologies as LiDAR Partner for Series Production of Level 4 Autonomous Trucks

Dec -02

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Auto & Transport Roundup: Market Talk

Dec -02

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Auto & Transport Roundup: Market Talk

Nov -26

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AEVA's Daimler Collaboration Deepens as Production Nears

Nov -19

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Daimler Truck Holding's (ETR:DTG) Soft Earnings Are Actually Better Than They Appear

Nov -16

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Top European Dividend Stocks To Consider In November 2025

Nov -11

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Why the Narrative Around Daimler Truck Is Shifting After Recent Analyst and Market Updates

Nov -08

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Daimler Truck posts 40% drop in quarterly profit, narrows guidance

Nov -07

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.37%)

6. Segments

Trucks North America

Expected Growth: 4.5%

Daimler Truck Holding AG's regional division for trucks in North America is driven by increasing e-commerce, infrastructure development and a rise in freight volumes, leading to a forecast CAGR of 4.5%.

Mercedez-Benz

Expected Growth: 4.3%

Increasing demand for premium transportation, expanding global megatrends, and Daimler Truck Holding AG's strong market position drive growth in luxury vehicles, buses, and coaches under the iconic Mercedes-Benz brand.

Trucks Asia

Expected Growth: 7.4%

Increasing urbanization and growing e-commerce industry drive demand for commercial vehicles in Asia, supported by government initiatives promoting infrastructure development and green transportation solutions.

Daimler Buses

Expected Growth: 7.5%

Increasing urbanization and government initiatives drive demand for efficient public transportation. Daimler Truck Holding AG’s strong brand portfolio, including Mercedes-Benz, Setra, and BharatBenz, positions the company for growth, driven by its focus on electric and autonomous vehicles.

Financial Services

Expected Growth: 10.5%

Daimler Truck Holding AG's growth is driven by increasing demand for electric trucks, rising adoption of autonomous driving technologies, and strategic partnerships to expand its global presence.

Reconciliation

Expected Growth: 5.2%

Daimler Truck Holding AG's Reconciliation segment is expected to grow, driven by increasing transaction volumes between the company and its subsidiaries, as well as the company's focus on digitalization and process efficiency.

7. Detailed Products

Mercedes-Benz Trucks

Heavy-duty trucks designed for long-haul transportation, construction, and distribution

Freightliner Trucks

Heavy-duty trucks designed for long-haul transportation, construction, and distribution in North America

Western Star Trucks

Heavy-duty trucks designed for vocational applications, such as construction, mining, and logging

Fuso Trucks and Buses

Light-duty trucks and buses designed for urban transportation and distribution

Thomas Built Buses

School buses and transit buses designed for student transportation and public transportation

Detroit Diesel Engines

Heavy-duty diesel engines designed for trucks, buses, and construction equipment

Alliance Truck Parts

Aftermarket parts and accessories for commercial vehicles

Daimler Truck Financial Services

Financial services and leasing solutions for commercial vehicles

8. Daimler Truck Holding AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Daimler Truck Holding AG is medium due to the presence of alternative modes of transportation such as buses and trains, but the high cost and limited availability of these alternatives reduce the threat.

Bargaining Power Of Customers

The bargaining power of customers for Daimler Truck Holding AG is low due to the company's strong brand reputation and the lack of price sensitivity among its customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Daimler Truck Holding AG is medium due to the presence of multiple suppliers and the company's ability to negotiate prices, but the high demand for raw materials and components increases the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants for Daimler Truck Holding AG is low due to the high barriers to entry, including the need for significant capital investment and the complexity of the manufacturing process.

Intensity Of Rivalry

The intensity of rivalry for Daimler Truck Holding AG is high due to the presence of several established competitors, including Volvo and Scania, and the high level of competition in the truck manufacturing industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.41%
Debt Cost 3.95%
Equity Weight 46.59%
Equity Cost 10.32%
WACC 6.92%
Leverage 114.64%

11. Quality Control: Daimler Truck Holding AG passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Vinci

A-Score: 6.6/10

Value: 6.3

Growth: 6.2

Quality: 4.6

Yield: 6.9

Momentum: 6.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Volvo

A-Score: 6.1/10

Value: 4.7

Growth: 6.4

Quality: 4.4

Yield: 9.4

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
PACCAR

A-Score: 6.0/10

Value: 3.7

Growth: 6.7

Quality: 6.1

Yield: 8.0

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
BAE Systems

A-Score: 5.7/10

Value: 2.4

Growth: 6.9

Quality: 4.8

Yield: 4.4

Momentum: 9.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Daimler Truck

A-Score: 5.0/10

Value: 6.2

Growth: 4.8

Quality: 3.1

Yield: 6.9

Momentum: 4.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Epiroc

A-Score: 4.6/10

Value: 1.8

Growth: 6.2

Quality: 7.0

Yield: 3.1

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

37.65$

Current Price

37.65$

Potential

-0.00%

Expected Cash-Flows