Daimler Truck said on Wednesday that its adjusted operating profit in the first quarter fell to 498 million euros, down from 1.08 billion euros in the same period last year. The figure translates to roughly $583.56 million using the exchange rate cited by the company ($1 = 0.8534 euros).
The decline in profitability was concentrated in North America, where sales decreased by about a quarter to 29,432 units. Management attributed a substantial portion of the Q1 performance to historically weak demand in the region and to the impact of import tariffs imposed by the U.S. administration under Donald Trump.
"Trucks North America continues to face tariff headwinds, with full tariff effects reflected in Q1 for the first time," the group’s finance chief Eva Scherer said in a statement. The company reported that adjusted return on sales in North America dropped to 5.4% from 14.4% a year earlier, underscoring the magnitude of the margin pressure in that market.
Despite the quarter's headline weakness, Daimler Truck reiterated its full-year outlook. The company also highlighted a substantial uptick in incoming demand for its North American operations: incoming orders at Trucks North America grew by 86% compared to the previous year, a metric the group flagged while confirming its guidance.
The quarter therefore presents a mixed picture. On the one hand, profitability and unit sales in North America were materially weaker, weighing on consolidated results. On the other hand, order intake increased significantly, which the company notes as supportive for future activity and consistent with maintaining its full-year targets.
From a financial metrics perspective, the link between the tariff headwinds and the sharp fall in adjusted return on sales in North America is explicit in the company’s commentary. The combination of lower volumes and higher costs associated with import duties are identified as the primary drivers behind the drop from 14.4% to 5.4% in that region.
Management emphasis on preserving the full-year outlook highlights confidence in underlying demand recovery or in the ability to offset near-term tariff-related cost pressure. However, the figures in Q1 show tangible strain on profitability where tariff impacts were fully felt for the first time in a quarter.
Key metrics cited by the company:
- Adjusted operating profit: 498 million euros in Q1, versus 1.08 billion euros a year earlier.
- North American sales: down 25% to 29,432 units.
- Adjusted return on sales in North America: 5.4% in Q1, down from 14.4% last year.
- Incoming orders at Trucks North America: +86% year-on-year.