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Daimler Truck Holding AG (DE:DTG)
:DTG
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Daimler Truck Holding AG
(XETRA:DTG)
Rating:64Neutral
Price Target:
€43.00
▲(8.37% Upside)
Positive Factors
Financial Performance
Daimler reported a large Q1 beat driven by a strong 14.4% margin in the North America business.
Order Performance
Mercedes-Benz posted orders that beat estimates and aligned with strong Q1 order intake in Europe.
Tariff Exclusion
The 25% tariff announcement seems to exclude heavy-duty trucks, which is a better than expected outcome for US trucks.
Negative Factors
Cost Disadvantage
Daimler could face a cost disadvantage compared to Volvo, with a potential 40 basis points impact due to assembly not being fully in the US.
Earnings Outlook
The FY outlook was cut by approximately 10% due to weakness in North America.
Order Challenges
Trucks North America missed order estimates, highlighting weak trucker sentiment in the region.
Daimler Truck Holding AG (DTG) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€31.42B
Dividend Yield4.86%
Average Volume (3M)1.31M
Price to Earnings (P/E)12.9
Beta (1Y)1.23
Revenue Growth-6.83%
EPS Growth-32.20%
CountryDE
Employees104,919
SectorIndustrials
Sector Strength84
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.36
Shares Outstanding791,868,300
10 Day Avg. Volume1,369,229
30 Day Avg. Volume1,309,452
Financial Highlights & Ratios
PEG Ratio-0.48
Price to Book (P/B)1.32
Price to Sales (P/S)0.54
P/FCF Ratio212.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€44.83Price Target Upside12.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
Daimler Truck Holding AG Business Overview & Revenue Model
Company DescriptionDaimler 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.
How the Company Makes MoneyDaimler Truck Holding AG generates revenue primarily through the sale of commercial vehicles, including trucks and buses, to customers around the world. The company also makes money by providing related services such as financing, leasing, and fleet management solutions. Additionally, DTG earns income from the sale of spare parts and aftermarket services, ensuring ongoing support and maintenance for their vehicles. Key revenue streams are diversified across various geographic markets, and strategic partnerships with suppliers and technology firms enhance their product offerings and market presence. The company’s focus on innovation and sustainable technologies also positions it to capitalize on the growing demand for eco-friendly transportation solutions.
Daimler Truck Holding AG Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: -7.55%|
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strategic achievements such as integration, new ventures, and market leadership in electric trucks, but also highlighted significant challenges in North America, declining order intakes for zero-emission vehicles, and increased costs due to restructuring.Q2-2025 Updates
Positive Updates
Integration of Mitsubishi Fuso and Hino
Daimler Truck finalized the definitive agreement to integrate Mitsubishi Fuso and Hino in June, forming a strong Japanese global company with a 25% equity stake.
Opening of Global Parts Center
Daimler Truck opened a new global parts center in Halberstadt with an investment of EUR 500 million, setting global standards for spare parts availability.
Strong Performance in Defense Sector
Secured a significant contract with the Bundeswehr, delivering a mid-3-digit number of logistics vehicles by May 2026, and a letter of intent for local assembly in Senegal.
Mercedes-Benz Trucks and Daimler Buses Performance
Mercedes-Benz Trucks, Daimler Buses, and Trucks Asia improved their profitability on adjusted levels compared to the previous year.
Market Leadership in Heavy-Duty Electric Trucks
Daimler Truck became the market share leader in the heavy-duty electric truck segment in Europe.
Negative Updates
Decline in North American Market
Sales in Trucks North America declined by 20%, and orders for Q2 were down by more than 50% due to economic uncertainty.
Challenges with ZEV Order Intake
Order intake for zero-emission vehicles declined from around 3,200 in 2024 to roughly 2,100 this year.
Increased Costs and Restructuring
The company recorded an impairment of EUR 218 million due to delayed transformation of battery electric vehicles in the U.S. and a EUR 339 million provision for restructuring measures in Europe.
Reduced Cash Flow Guidance
Free cash flow guidance was reduced to EUR 1.5 billion to EUR 2 billion, reflecting lower earnings expectations in North America.
Company Guidance
During the global conference call on Daimler Truck's Q2 2025 results, management provided comprehensive guidance by covering a range of metrics. The company reported a strong performance with an adjusted EBIT of EUR 1.1 billion and a 9.3% adjusted return on sales in the Industrial business, despite facing economic volatility and a 20% drop in unit sales in North America. Daimler Truck maintained a solid market position with a 41.1% Class 8 market share in North America, despite a 7% decline in the market to 135,000 units in the first half of 2025. In Europe, the heavy-duty truck market declined by 15% to 149,000 units, yet Daimler Truck improved its market share to 15.3%. Sales and orders at the group level declined by 5%, with Trucks North America experiencing a more than 50% drop in Q2 orders. However, the company's Mercedes-Benz Trucks division saw order growth exceeding 20%. For the rest of 2025, Daimler Truck anticipates headwinds but remains optimistic about maintaining industry-leading margins, with an updated full-year guidance of EUR 3.6 billion to EUR 4.1 billion in adjusted EBIT and a free cash flow expectation between EUR 1.5 billion and EUR 2 billion.Daimler Truck Holding AG Financial Statement Overview
Summary
Daimler Truck Holding AG shows strong financial performance with robust profitability and operational efficiency, as reflected in the income statement. The balance sheet is stable, though there is room to improve the equity ratio. Cash flow generation is healthy, but the conversion of earnings into free cash flow needs attention.Income Statement
The company's income statement shows robust performance. Despite a slight decline in total revenue from the previous year, Daimler Truck Holding AG maintains a strong gross profit margin of 20.76% TTM and a healthy net profit margin of 5.39% TTM. The EBIT and EBITDA margins are solid at 7.32% and 10.22% TTM, respectively, indicating efficient operational management. However, the revenue growth rate has been negative in recent periods, which could be a concern for long-term growth prospects.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio of 1.29 TTM, showing the company is not over-leveraged. The return on equity is impressive at 12.81% TTM, indicating strong profitability relative to shareholder equity. However, the equity ratio stands at 29.74% TTM, which could be improved to enhance financial stability. The company has been increasing its equity base, which is a positive sign of strengthening its capital structure.75
Positive
Cash Flow
The cash flow statement indicates positive trends with a strong operating cash flow to net income ratio of 0.70 TTM, suggesting good cash generation from operations. Free cash flow has seen significant growth, with a high increase of 18.12% from the previous period, although the free cash flow to net income ratio of 0.06 TTM is relatively low. The company needs to focus on improving its free cash flow conversion to enhance financial flexibility.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 51.61B | 54.08B | 55.89B | 50.95B | 39.76B | 36.01B |
| Gross Profit | 10.34B | 11.44B | 11.92B | 9.61B | 7.31B | 5.48B |
| EBITDA | 4.58B | 5.39B | 6.83B | 5.70B | 2.85B | 1.31B |
| Net Income | 2.40B | 2.90B | 3.77B | 2.67B | 2.35B | -143.00M |
Balance Sheet | ||||||
| Total Assets | 71.43B | 73.85B | 71.21B | 63.97B | 54.80B | 49.99B |
| Cash, Cash Equivalents and Short-Term Investments | 9.89B | 8.76B | 8.84B | 7.09B | 7.35B | 7.50B |
| Total Debt | 26.84B | 26.38B | 22.71B | 18.83B | 15.09B | 19.41B |
| Total Liabilities | 50.34B | 51.00B | 48.99B | 43.36B | 38.38B | 41.28B |
| Stockholders Equity | 20.49B | 22.20B | 21.61B | 6.67B | 2.71B | 9.70B |
Cash Flow | ||||||
| Free Cash Flow | 1.36B | 138.00M | -920.00M | -1.42B | 1.34B | 3.37B |
| Operating Cash Flow | 3.09B | 1.55B | 386.00M | -523.00M | 2.10B | 4.17B |
| Investing Cash Flow | -2.11B | -2.55B | -2.08B | -4.17B | 4.26B | -2.35B |
| Financing Cash Flow | -1.42B | 403.00M | 2.93B | 3.33B | -875.00M | -1.14B |
Daimler Truck Holding AG Technical Analysis
Neutral
39.68
Price Trends
39.79
Negative
37.44
Positive
37.23
Positive
Market Momentum
0.25
Positive
43.76
Neutral
8.91
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DTG, the sentiment is Neutral. The current price of 39.68 is below the 20-day moving average (MA) of 41.59, below the 50-day MA of 39.79, and above the 200-day MA of 37.23, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 43.76 is Neutral, neither overbought nor oversold. The STOCH value of 8.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:DTG.
Daimler Truck Holding AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ¥258.06B | 14.45 | 8.48% | 2.82% | 6.33% | 12.20% | |
64 Neutral | €31.42B | 12.92 | 11.21% | 4.86% | -6.83% | -32.20% | |
| ― | €48.75B | 8.22 | 6.28% | ― | ― | ― | |
| ― | €10.64B | 2.05 | 3.63% | ― | ― | ||
| ― | €45.98B | 5.42 | 5.01% | ― | ― | ― | |
| ― | €45.98B | 5.57 | 5.01% | ― | ― | ― | |
73 Outperform | €14.84B | 6.81 | 12.80% | 5.78% | -2.98% | -14.55% |
* Industrials Sector Average
Performance Comparison
DE:DTG
Daimler Truck Holding AG
39.68
7.85
24.66%
GB:0O0V
Bayerische Motoren Werke
78.30
8.38
11.99%
GB:0JHU
Porsche Automobil Holding
34.75
-1.92
-5.24%
GB:0P6O
Volkswagen
90.30
2.30
2.61%
GB:0P6N
Volkswagen
92.75
-3.01
-3.14%
DE:8TRA
TRATON SE
29.68
4.40
17.41%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.