Commercial vehicle manufacturer Daimler Truck posted strong financial services growth in the first quarter of 2025, even as macroeconomic headwinds led to lower overall unit sales and revenue.
The company reported in its Q1 earnings statement released May 13:
- Total revenue of 11.6 billion euros ($13 billion) in Q1, down 7.4% year over year;
- Financial services revenue rose 14.1% YoY to $998.1 million;
- Financial services’ new business volume fell 17.8% YoY to $2.6 billion;
- North American unit sales totaled 38,992, down 15.7% YoY; and
- Total unit sales declined 8.4% YoY to 99,812.
To navigate ongoing uncertainty driven by tariffs, Daimler Truck is implementing cost-reduction measures, including the “Cost Down Europe” program, aiming to cut recurring costs by over $1 billion by 2030.
“Our focus remains on our measures to structurally improve our business, reduce volatility and enhance cash generation and return on capital,” Daimler Chief Financial Officer Eva Scherer stated in the earnings release. “Due to the growing economic uncertainty and the resulting pressure on demand in the U.S., we reduced our sales outlook for the full year, while keeping our margin guidance unchanged — both for North America and for our Industrial Business — a testament of our increased strength.”
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