Global commercial vehicle manufacturer Daimler Truck has reported resilient financial results for 2025 despite weakening demand in several markets, warning that geopolitical uncertainty—including the ongoing conflict in the Middle East—could weigh on the industry outlook.
The company said its forecast for 2026 does not yet account for potential supply chain disruptions or broader economic effects arising from the regional conflict. Escalating tensions in the Middle East have raised concerns about logistics routes, energy costs and supply chains that connect markets across Europe, Asia and Africa, factors that could influence truck demand and manufacturing operations.
Against this backdrop, Daimler Truck delivered financial results within its guidance range for 2025, supported by strong performances in several key regions. The company sold 422,510 trucks and buses worldwide during the year, down 8% from 460,409 units in 2024. Revenue from its industrial business declined 10% to €45.9 billion, while adjusted earnings before interest and tax (EBIT) fell 19% to €3.78 billion.
Despite the decline, the company maintained solid profitability with an adjusted return on sales of 7.8%. Free cash flow from the industrial business reached €1.82 billion, supported by strong cash generation in the fourth quarter. Incoming orders increased slightly by 2% to 425,458 units, with order intake rising sharply by 13% in the final quarter of the year.
Karin Rådström, president and CEO of Daimler Truck, said the results demonstrate improved operational performance in a difficult environment.
“Despite challenging market conditions, we delivered on our strategic ambitions,” Rådström said. “We remain market leaders in North America and Europe for medium- and heavy-duty trucks and achieved double-digit profitability in our bus business.”
Stronger sales in Middle East
Regional performance varied across the group’s major markets. North America maintained strong profitability despite tariff pressures and softer demand. In Europe, the Mercedes-Benz Trucks division delivered solid earnings supported by higher unit sales and progress under its Cost Down Europe efficiency programme. Meanwhile, the Trucks Asia segment posted robust results, helped by stronger sales in Indonesia and the Middle East.
The company also reported a record milestone in its bus division. Daimler Buses achieved double-digit profitability for the first time after a strong fourth-quarter performance.
Electrification remained a key growth area. Daimler Truck increased global sales of battery-electric trucks and buses by 67% to 6,726 units in 2025. In Europe, vehicles such as the Mercedes-Benz eActros 600 long-haul electric truck and the Mercedes-Benz eCitaro city bus continued to gain traction, helping the company secure a 35% share of the medium- and heavy-duty electric truck segment in the EU30 region.
Beyond Europe, Daimler Truck expanded its global footprint across several regions. In Latin America, the company introduced the new Mercedes-Benz Axor truck designed for loads of up to 68 tonnes, while in India it launched new heavy-duty models under the BharatBenz brand targeting the construction and mining sectors. In North America, the company began series production of the fifth-generation Freightliner Cascadia, the region’s most widely used Class 8 truck.
The manufacturer also secured major defence contracts in Europe, including an order for 7,000 Mercedes-Benz Zetros military trucks for the French army.
2026 outlook
Looking ahead, Daimler Truck expects global markets to remain volatile. The company forecasts North American Class 8 truck demand between 250,000 and 290,000 units in 2026, while the EU30 heavy-duty market is expected to range between 290,000 and 330,000 units.
A major strategic development is the planned integration of Mitsubishi Fuso Truck and Bus Corporation and Hino Motors into a new holding company, ARCHION, in partnership with Toyota Motor Corporation. The Tokyo-based entity is expected to begin operations in April 2026 and will combine operations across Asia to create greater scale and efficiency.
Daimler Truck said it remains focused on improving efficiency, expanding its global presence across Europe, Asia, Africa and the Americas, and accelerating the transition to zero-emission commercial vehicles while navigating a complex geopolitical environment.
