Daimler Truck says higher orders, savings to offset tariffs
In North America, deliveries slumped by 27% in Q4
Daimler Truck Holding AG plans deeper cost cuts and is banking on stronger sales to counter rising tariff expenses, with the aim of keeping earnings roughly level with last year.
The German truckmaker expects adjusted EBIT of €3.2 billion ($3.7 billion) to €3.7 billion in 2026, it said Thursday. The second half of the year should be stronger than the first half as orders rise and savings measures take hold, Chief Financial Officer Eva Scherer said in a statement.
Daimler Truck is particularly exposed to tariffs. Its Freightliner brand leads the US heavy-duty truck market, selling about 90,000 vehicles annually. A significant share of US-bound Freightliner trucks are assembled in Mexico, including at plants in Santiago Tianguistenco and Saltillo, Coahuila, while parts distribution operations span Canada and Mexico.
In North America, operating earnings more than halved during the fourth quarter through December as deliveries slumped by 27%.
The company said it is factoring potential tariff-related costs and supply-chain volatility into its planning. Escalating tensions in the Middle East — notably the conflict involving Iran — have also heightened the risk of higher fuel prices, which can influence freight demand and fleet investment decisions in North America.
– By William Wilkes (Bloomberg)
