Traton’s second quarter at a glance:
- The Group announced July 25 its global sales revenue fell 6% to €21.9 billion in the first half of 2025, driven by lower unit sales and an uncertain market.
- North American business was not shielded from the first-half struggles. International’s adjusted operating result declined to 2.8% and reduced production at its Mexico truck plant.
- CEO Christian Levin believes the Group’s streamlining of R&D operations, announced earlier this month, will provide key efficiency to support production flexibility and continued push toward sustainable products.
Traton Group announced a decrease in global sales revenue of 6% in the first half of 2025, falling to €21.9 billion from €23.4 billion last year.
The company cites lower unit sales in an uncertain market environment for the slip.
“Although we are currently operating in a difficult and uncertain market environment, we are proactively addressing these challenges with cost consciousness, production flexibility and focus on services. At the same time, we never lose sight of our goal: the transformation to sustainable transportation. The Traton Group has laid the groundwork for the more efficient collaboration between the brands and thus for a successful future, and July 1, 2025 marked the beginning of a new era thanks to the joint Group research and development organization,” says Christian Levin, CEO.
“By leveraging the collective technical expertise of 12,000 talented and committed employees, we are enhancing our effectiveness resulting in first-class products. I am proud of this outstanding team performance, which will put us in the fast lane as we move toward the sustainable transportation of the future. In a year-on-year comparison, we more than doubled the number of all-electric vehicles sold in the first half of 2025.”
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Global sales weaken operating result and return
Overall sales, however, were down 4% to 153,100 vehicles, with truck sales down by 8% to 121,308 units. Adjusted operating result declined by €750 million to €1.4 billion (H1 2024: €2.1 billion), and adjusted operating return on sales fell to 6.3% (H1 2024: 9.1%).
The company references the decline in sales revenue combined with a lower capacity utilization in truck production for the regression. Moreover, currency effects, especially the appreciation of the Swedish krona, affected the operating result and the operating return on sales, the company adds.
Traton fared better in its financial services division, where revenue was up 15% from 2024. The company also saw orders rise by 11% to 139,599, up from 125,416 in 2024.
International stumbles due to North American market softening
At International Motors, the adjusted operating result declined to 2.8% (H1 2024: 3.9%), driven by the unfavorable product mix in the current difficult North American market environment. Traton notes lower service revenues in the Vehicle Services business and other operations also affected the result. Finally, the decreasing truck volume led to reduced capacity utilization and lower fixed cost absorption.
“In the first half of 2025, our brands delivered a solid performance despite some challenging conditions. In light of the ongoing market uncertainty, customers are adopting a cautious approach,” says Dr. Michael Jackstein, Traton CFO and CHRO.
“The Traton Group brands are adapting accordingly. Responding to the weak demand, International Motors has removed the second shift in its Mexico production plant, where Class 8 trucks are produced. Scania has further reduced its global production capacities. Traton’s Executive Board has therefore decided to adjust its outlook for fiscal year 2025 to the current market situation.”
Group amends future revenue projections amid tumult
For 2025, the Group now expects a range of -10% to 0% (previously -5% to +5%) for unit sales and sales revenue. The adjusted operating return on sales is now forecast between 6% and 7% (previously 7.5% and 8.5%).
The Net cash flow of Traton operations is now expected to come in between €1 billion and €1.5 billion (previously €2.2 billion and €2.7 billion).
The company adds the outlook remains subject to the effects of the U.S. trade policies, and its impact on the business of the Traton Group.
