International Motors’ parent company Traton Group announced its most recent earnings report this week.
The company reported a slow start to 2025 with a reduction in year-over-year sales but, overall, Traton still expects “an improved business performance in the second half of the year due to a renewed increase in incoming orders.”
Unit sales companywide were down 10% from 81,100 units to 73,100. At International, sales were down 12% at 16,900 units after 19,300 the previous year. Overall sales revenue also decreased by 10% to €10.6 billion (from €11.8 billion).
On the positive side, with a share of 21% (previously 19%) of total sales revenue, Traton states the Vehicle Services business made a considerable contribution to business performance. Incoming orders rose by 12% to 74,300 vehicles (2024 was 66,400 vehicles) in the first quarter. The book-to-bill ratio, or the ratio from incoming orders to unit sales, was 1.0 (up from 0.8).
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“Once again, in the first quarter, we benefited from our cross-brand collaboration and strong international presence. Nonetheless, given the uncertainty on the market, it would be premature to call out a fundamental turnaround in Europe despite a positive order momentum in the first quarter,” says Dr. Michael Jackstein, CFO of Traton Group. “We are closely monitoring current geopolitical developments. However, we remain confident for the second half of the year and maintain our full-year outlook for 2025.
He adds, “We continue to expect a range of ‒5% to +5% for unit sales and sales revenue of the Traton Group. The Traton Group's adjusted operating return on sales is forecast between 7.5% and 8.5%. Our outlook continues to be subject to geopolitical developments, particularly in the U.S., and their impact on the business of the Traton Group.”
Specifically in North America, International achieved an adjusted operating return on sales of 2.3% (compared to 5.0%) in the first quarter. Due to cautious buyers in an uncertain economic environment truck unit sales saw a significant decline; unit sales of buses increased, however. The decline in sales revenue was partly offset by a favorable product mix, the company says.
