Daimler Truck under Pressure: Profits Plummet – Kassel Plant Spared for Now

Daimler Truck started the year with significantly weaker quarterly figures. Profit, revenue, and operating result all dropped sharply in the first quarter. The Kassel site, where Daimler Truck is the largest industrial employer in the city with its axle plant according to the company, seems to be less directly affected for now: The plant is more closely tied to the European business – and this has recently developed more stably.

Quarterly Figures and Results

The commercial vehicle manufacturer reported an 80 percent drop in profit for the first quarter. Group profit fell from 749 million to 149 million euros compared to the same quarter last year. Revenue declined by 13 percent to 9.98 billion euros. The operating result (Ebit) fell by 71 percent to 292 million euros.

• Profit drop of 80 percent: from 749 to 149 million euros
• Revenue decline of 13 percent to 9.98 billion euros
• Operating result (Ebit) minus 71 percent to 292 million euros

Weak US Business and Tariffs Weigh on the Quarter

Daimler Truck cites a significantly weaker business in the USA and additional burdens from tariffs in the low three-digit million range as the main drivers of the weakness. CFO Eva Scherer put the decline into perspective: The main reason does not lie in Germany. Especially in the USA, Daimler Truck sold significantly fewer vehicles – remarkable also because the group is positioned there as market leader with Freightliner.

Ebit Margin in Industry Comparison

A look at the operating earning power shows how much pressure there is now on profitability. The benchmark for this is the Ebit margin – that is, the share of operating profit in revenue that remains after ongoing operating costs have been covered. In comparison, the gap to the competition is clear: Volvo achieved a margin of 11 percent in the first quarter of 2026, Daimler Truck just under 5 percent. A year earlier, Daimler Truck was still at 9.6 percent.

Industry Overview

The industry overview underlines that Daimler Truck is not alone in this situation: Other manufacturers are also selling fewer new vehicles. The US group Paccar also weakened in the new vehicle business in the first quarter, but earned strongly from service and spare parts – an indication of how important stable, less cyclical revenues become when new truck sales decline.

Review of 2025

The review of 2025 also shows that the burdens have not only been present since this quarter. All in all, Daimler Truck earned around two billion euros in 2025, 34 percent less than the year before. Factors already included US tariffs and weak demand in North America; in addition, revenue and sales also declined in 2025.

Kassel Has So Far Benefited from Stronger European Business

For Kassel, the picture so far is different than for the North American business. Around 2,700 people work in the axle plant. Mainly components for Mercedes-Benz Trucks are produced – and thus for a business that is more strongly supported by the European market. In addition, there are orders for the car manufacturer Mercedes-Benz.

Plant manager Hauke Schuler referred to the development at Mercedes-Benz Trucks: 34,500 vehicles were sold in the first quarter, about 13 percent more than the previous year. The increase was "essentially due to the positive development of demand in Europe." Accordingly, higher capacity utilization was also recorded at the Kassel site.

Group CEO Karin Rådström also pointed to a worldwide increase in demand "by 50 percent compared to the previous year, driven by a significant recovery in the USA." Taken together, this shows: The situation within the group is not uniform. While the quarter as a whole was characterized by weakness in North America and tariff costs, individual regions and brands – currently especially Europe and the capacity utilization at Mercedes-Benz Trucks – are supporting certain locations.

Cost Reductions and Margin Pressure Shape the Outlook

In parallel with the weak quarterly figures, Daimler Truck is pushing ahead with its savings program "Cost Down Europe." At the annual general meeting, Karin Rådström quantified the effects achieved so far:

• 2025: 100 million euros saved
• By the end of 2026: 250 million euros
• By 2030: more than one billion euros annually

The cuts are mainly to affect the German plants of the Mercedes-Benz Trucks brand.

• Reduction of around 5,000 jobs, mainly in administration
• No compulsory redundancies until 2035 due to works agreement
• Implementation through natural fluctuation, early retirement, and internal transfers

The message for Kassel recently was that only a few areas would be affected. As an example of savings measures, a spokeswoman mentioned, among other things, new energy-saving LED lighting in the plant.

Personnel Change

Labor Director Jürgen Hartwig will leave Daimler Truck on October 1, 2026. His successor will be Yvonne Bettkober, most recently Chief Transformation Officer at Audi.

Outlook

The quarterly figures clearly show the pressure on Daimler Truck's results – and at the same time show how differently the burdens affect the group internally. While the North American business and tariffs are dragging down the overall picture, the European business is currently supporting capacity utilization in Kassel. The decisive factor will be whether Daimler Truck succeeds in stabilizing the operating margin again – and whether the cost program takes effect without weakening performance at the European sites.