Daimler Truck AG has released its interim management report for the second quarter and first half of 2025, highlighting the pressures facing the global truck market amid economic uncertainty, while underscoring growth in zero-emission sales and surprising resilience in select regions such as Asia and Latin America.
Daimler Truck posted an adjusted Group EBIT of €1,118 million in Q2 2025, broadly in line with last year, and €2,282 million for the first half. However, reported EBIT dropped sharply by 54% year-on-year to €494 million due to restructuring expenses tied to its “Cost Down Europe” programme and the discontinuation of certain development projects.
Revenue from the Industrial Business reached €11.8 billion in Q2 and €23.3 billion in the half-year, slightly below the prior-year levels. Free cash flow painted a mixed picture: €20 million in the quarter (well above 2024’s levels), but €53 million in the half-year (significantly below).
The Group has now revised its full-year guidance: adjusted EBIT is expected in the €3.6–4.1 billion range, unit sales between 410,000 and 440,000, and Industrial Business free cash flow of €1.5–2.0 billion.
Eva Scherer, CFO of Daimler Truck: “After a strong first half in North America, recent months have shown a clear slowdown in order levels, reflecting ongoing market uncertainty. In response, we have adjusted our capacity and lowered our market guidance and volume outlook accordingly.
“Despite significantly lower volumes, we expect to achieve 10 to 12% profitability for 2025 in Trucks North America, highlighting the resilience of our business. With all other segments performing steadily, we remain committed to delivering another solid result in 2025, targeting an adjusted return on sales of 7 to 9% in our Industrial Business. At the same time, we are focused on strong cash generation through year-end. The launch of our new share buyback program in Q3 underscores our confidence in Daimler Truck’s continued performance.”
Truck Market Trends: Demand Weakens in Key Regions
The global truck market has entered a softer phase, with demand falling across North America and Europe.
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North America (Class 8 trucks): Market volume fell 5% in Q2 and 7% in H1 versus 2024, weighed down by tariff policies and slowing US economic growth. Daimler’s sales dropped 20% in Q2 to 38,580 units and 18% in H1 to 77,572.
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EU30 (Europe + UK, Switzerland, Norway): Registrations fell 14% in Q2 and 15% in H1. Daimler sold 38,294 trucks in Q2 (flat year-on-year) but remained 10% down for the half-year at 71,740.
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Latin America: A standout, with sales rising 10% in Q2 (9,889 units) and 14% in H1 (17,313 units), driven by strong demand in Brazil and Argentina.
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Asia: Trucks Asia sales grew significantly — up 13% in Q2 (26,443 units) and 14% in H1 (51,215 units) — thanks to recovering demand in Indonesia and other regional markets.
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India & Japan: India grew modestly in Q2 (5,403 units), though H1 was down 5%. Japan contracted slightly in Q2 (-7%).
Mercedes-Benz Trucks held steady in Q2 (38,294 units), though H1 was down 10%. Daimler Buses also showed strength, with 7,027 units sold in Q2 (+5%) and 13,233 in H1 (+8%), buoyed by Europe and Brazil.
Zero-Emission Vehicles: Strong Growth from a Small Base
A bright spot in Daimler Truck’s report is the sharp rise in zero-emission vehicle (ZEV) deliveries.
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Q2 2025: 1,232 units, up 90% year-on-year.
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H1 2025: 1,991 units, up 36% year-on-year.
Though still a fraction of total sales, the momentum underscores growing demand for electric and hydrogen-powered trucks, particularly as regulatory and customer pressures to decarbonise fleets intensify.
Strategic Moves: Fuso–Hino Integration
A major milestone in Q2 was the June 10 signing of definitive agreements to integrate Mitsubishi Fuso Truck and Bus Corporation (Mitsubishi Fuso) with Hino Motors Ltd., alongside Toyota Motor Corporation. The move, already approved by Daimler Truck’s supervisory boards, aims to consolidate operations in Asia and streamline development. Both Fuso and Hino are now classified as “discontinued operations” on Daimler Truck’s balance sheet.
The transaction, still subject to regulatory and shareholder approvals, is expected to reshape Daimler Truck’s presence in Asia and strengthen its partnership ecosystem with Toyota.
Macro-Economic Backdrop
Global economic stability in H1 2025 was clouded by tariffs and trade policy uncertainty, particularly in the US, where GDP growth slowed to 2% in Q2 and inflation crept up to 2.7%. The Federal Reserve has held rates steady at 4.25–4.50%.
The eurozone fared slightly better, with GDP growing 1.4% in Q2 and inflation stabilising at 2.0%, supported by the European Central Bank’s 2% deposit rate.
Still, these trade and inflation dynamics have directly fed into truck market demand, especially in North America and Europe.
Investment and R&D: Transformation Costs Bite
Daimler Truck invested €166 million in property, plant, and equipment in Q2 and €351 million in H1, both below last year. However, R&D expenditure rose to €617 million in Q2 and €1,194 million in H1, reflecting the company’s push into electrification and digitalisation.
This does not include a special €218 million non-cash charge from derecognising capitalised development costs, reflecting slower-than-expected transformation timelines in certain projects.
Middle East Angle: Opportunities Amid Global Pressures
While Daimler Truck grapples with weaker demand in North America and Europe, the Middle East offers a different story. Fleet operators in the GCC are expanding capacity to meet the demands of mega-projects such as NEOM, the Red Sea development, and major logistics hubs in Saudi Arabia and the UAE.
Despite a disappointing pick up in demand during 2025, as some of those projects stalled, they will likely generate demand for heavy-duty trucks and buses, particularly in construction, logistics, and industrial transport for years to come.
Mercedes-Benz Trucks has traditionally held a strong presence in the region, with models like the Actros and Arocs forming the backbone of many Gulf fleets. The global slowdown in Western markets could encourage Daimler Truck to sharpen its focus on high-growth regions like the Middle East, where infrastructure and industrial expansion remain central to government visions.
The rise of zero-emission trucks is also relevant to regional strategies. Both Saudi Arabia and the UAE have set ambitious decarbonisation goals under Vision 2030 and Net Zero 2050 respectively. As Daimler Truck scales up its ZEV production, the Middle East could emerge as a testbed for heavy-duty EV and hydrogen trucks, supported by investments in green hydrogen and charging infrastructure.
However, it could also prove to be one of the biggest casualties of the wave of Chinese imports into the market. This is not a unique challenge for Daimler Truck, but when you are at the top there is only one place to go.
Outlook: A Year of Adjustment
Daimler Truck’s 2025 trajectory reflects a transition year. The company is wrestling with softer global demand, higher transformation costs, and restructuring in Europe, even as it grows its foothold in Asia, Latin America, and zero-emission vehicles.
The revised guidance acknowledges these pressures but still suggests resilience, particularly with a robust pipeline in electrification and the upcoming synergies from the Fuso–Hino integration.
One of the big takeaways is the group’s success in Asia. For instance, its recovery in Indonesia could be easily missed among the numbers, but this is a big win, even as the Global Times reports that Indonesian coachbuilders, for instance, are warning that duty-free Chinese truck imports are eroding market share and threatening local manufacturing.
For Middle East fleet operators, the report highlights two key takeaways: the near-term challenges in global supply may affect availability and pricing, but long-term, Daimler Truck’s pivot to zero-emission technology and its continued strength in construction and logistics vehicles should align directly with the region’s industrial and sustainability ambitions.
