Daimler Truck Q1 Profit Plunges 80% as North American Weakness Hits Sales
Daimler Truck reports an 80% fall in first-quarter profit to €149 million, with revenue down 13% to €9.98 billion amid North American weakness and falling deliveries.
First-quarter shock: profit and revenue slide
Daimler Truck posted an 80 percent drop in consolidated net income for the first quarter, from €749 million a year earlier to €149 million, the company reported. Revenue fell 13 percent to €9.98 billion, while operating profit (EBIT) plunged by 71 percent to €292 million. The manufacturer also recorded a 9 percent decline in shipments, selling 68,849 trucks and buses worldwide in the quarter.
North America weighs on margins
Company officials attributed the weaker financials primarily to reduced profitability in North America, which remains Daimler Truck’s most important market. A combination of softer demand and cost pressure in the region cut into margins and offset healthier trends elsewhere. The result was a material impact on global profitability despite areas of positive momentum in order intake.
Orders rebound but earnings lag
Daimler Truck said incoming orders rose sharply, with order intake up 50 percent compared with the same quarter last year, signaling improving demand conditions. Management emphasized that the pipeline of orders has strengthened particularly in the United States, suggesting future production and revenue gains if the momentum continues. However, the company cautioned that the recovery in orders had not yet translated fully into improved near-term profits.
Management response and outlook
CEO Karin Rådström described the company as “well positioned” to drive improvements through the remainder of the year and pointed to the stronger order book in the U.S. as a source of future revenue growth. She said the recent order dynamics should support the business in coming quarters, but acknowledged that the first quarter presented a challenging starting point for 2026. The company’s statement stressed a cautious optimism while noting headwinds that will need management attention.
Cost-cutting plan and jobs at stake
To restore competitiveness, Daimler Truck has launched a cost reduction program that aims to lower ongoing European costs by more than €1 billion by 2030. As part of that effort, the company has indicated that roughly 5,000 positions in Germany could be eliminated, with the Mercedes‑Benz truck brand among those affected. Additional savings measures are also being explored in North America as the group seeks to realign its cost base with current market conditions.
Recent performance and external pressures
The first-quarter results follow a difficult 2025, when Daimler Truck’s full-year profit dropped about 34 percent as the company grappled with weak demand and disruptions tied to trade measures and market shifts. U.S. tariffs and softer North American markets were named among the factors that undermined sales and revenue last year. The latest quarterly figures highlight the persistence of those pressures even as order flows show signs of recovery.
Implications for investors and supply chains
Investors will be watching whether the stronger order intake converts into higher deliveries and margins over the coming quarters, and whether the cost program can deliver the targeted savings without materially disrupting operations. Suppliers and production sites in Europe and Germany face uncertainty as the company implements efficiency measures and workforce reductions. Analysts are likely to focus on North American performance and how quickly Daimler Truck can stabilize margins there.
Daimler Truck’s early-2026 results underscore a company at a turning point: a deeper-than-expected earnings setback driven by regional profitability swings, counterbalanced by a substantial uptick in orders and a clear plan to reduce costs and reshape operations.
