Daimler Truck: 2024 financial results and possible issues with the EPA revision in North America
In terms of sales, Daimler Truck made 12 percent less than in 2023, while electric units sold (including trucks and buses) increased by 17 percent to just over 4,000. The group worries about the possible dismantling of Biden's Clean Truck Plan, with resulting decrease in new energy truck sales in the U.S.
These are busy days for the Daimler Truck Group, between the release of its financial results for 2024 and the fall that took place yesterday (March 13) on the Frankfurt Stock Exchange due to the increasingly likely decision of the U.S. Environmental Protection Agency (EPA) on the revocation of the heavy vehicle emission standards decided by the Biden administration.
Let’s start with the latter issue: it does indeed appear that, in deference to the policy bandied about by newly elected President Donald Trump, the Biden-signed Clean Truck Plan will be dismantled or significantly depowered. This will most likely result in a decrease in sales of green heavy-duty vehicles in the United States (so much for sustainability). And Daimler Truck has precisely in the North American market the most important one for its business, along with Europe of course.
The group’s stock price on the Frankfurt Stock Exchange has understandably been affected: the heavy-duty transport decarbonization strategy of Daimler Truck and its brands is well known, and much investment has been made in this regard over the past few years. We have talked a lot about it regarding, for example, the North American market. In short, the regulations decided upon at the White House are considered by analysts to be critical if truck manufacturers who have focused on decarbonization and alternative traction are to achieve the sales goals they have set for themselves in the medium term.
Daimler Truck’s 2024 financial results
Coming to Daimler Truck’s financial results in 2024, the group closed with total revenue of 54.1 billion euros (55.9 in 2023), adjusted EBIT of 4.66 million, significantly lower than the previous year’s 5.48. The proposed dividend to shareholders is 1.90 euros per share, the same as in 2023. In terms of sales, Daimler Truck made 12 percent less than in 2023, while electric units sold (including trucks and buses) increased by 17 percent to just over 4,000.
Daimler Trucks seems to be quite happy with the North American market in 2024, as well as the bus segment. The Mercedes-Benz Trucks brand has suffered from declining demand in the European market. For 2025, Daimler Truck expects substantial stability, with demand expected to decline further in Europe.
“This makes 2024 another solid year – and I look at it from two sides. We are proud of what we have accomplished, and I would like to sincerely thank our global Daimler Truck team for their dedication and great work”, said Karin Rådström, CEO of Daimler Truck. “At the same time, 2024 varied across our segments. Trucks North America and Daimler Buses continued very strong. Mercedes-Benz Trucks did very well in Brazil but was affected by weak demand in its European core markets. Trucks Asia delivered solid operating results despite continued weak markets. In sum, we are convinced that we can do even better, and we are committed to unlocking even more of our potential.”
