Daimler Truck’s profit halves on US tariffs, weak North American demand

Summary

  • North American arm’s profit margin drops to 5.4% from ​14.4%
  • Full-year guidance confirmed
  • Flags first-quarter tariff impact of at least 100 million ‌euros
  • Order momentum suggests US market recovery

(Reuters) – Daimler Truck’s first‑quarter operating profit more than halved owing to historically weak demand and import tariffs in a North American market where volumes ​fell to a 16-year low, the company said on Wednesday.

Adjusted operating ​profit fell to 498 million euros ($584 million) from 1.08 billion euros ⁠a year earlier, reflecting a sharp slowdown in North America, the group’s largest ​and most profitable market.

The quarter for the first time showed full tariff effects ​at the group’s Trucks North America division, CFO Eva Scherer said.

The sales decline, import tariffs and adverse currency effects cost the North American arm 624 million euros in the quarter, ​the group said.

Scherer added that the tariff impact alone amounted to at least ​100 million euros in the first quarter.

Adjusted return on sales in North America fell to ‌5.4% ⁠from 14.4% in the same period last year.

Despite the weak start to the year, Daimler Truck struck a more upbeat tone on demand. Scherer said North American sales in the second quarter were expected to be about 50% higher ​than the first ​three months of ⁠2026, with profitability at the upper end of the group’s confirmed full‑year guidance.

The North American division’s order intake increased by 86% ​in the quarter, chiming with comments from rivals Traton and Volvo.

While ​the company ⁠has so far registered only a limited impact from the war in the Middle East, prolonged high oil prices could weigh on demand, Scherer said.

Daimler Truck CEO ⁠Karin ​Radstrom added that higher diesel prices were not ​directly accelerating adoption of zero‑emission trucks, citing charging and refuelling infrastructure as a key bottleneck.

($1 = 0.8534 euros)

Reporting by ​Amir Orusov, additional reporting by Ilona Wissenbach Editing by Christoph Steitz and David Goodman