Here’s what you need to know:
- Traton reported Q1 revenue of €10.2 billion (down 4%) and unit sales of 68,600 vehicles (down 6%), primarily due to U.S. tariffs and a slow start to the fiscal year.
- Global orders surged 18% to 87,800 units, highlighted by an 81% increase at International Trucks and a 45% jump in battery electric vehicle (BEV) demand.
- International faced a -4.0% adjusted return as sales fell 21% to 13,300 units, yet its massive surge in Class 8 orders signals a strong North American rebound.
- Traton confirmed its full-year forecast, targeting an adjusted operating return on sales between 5.3% and 7.3% supported by strong order backlogs and cost discipline.
Traton Group, parent company of International Trucks, reported soft earnings for the first quarter of 2026 on Wednesday.
In announcing its financials, the company states it had expected a slow start to 2026 but anticipates improved business performance in the coming quarters due to an increase in incoming orders and confirms its full-year forecast.
For the period, Traton reported unit sales of 68,600 vehicles, down 6% from 74,300 in 2025. Revenue over the same period was down 4%, falling from €10.6 billion in 2025 to €10.2 billion over the same period in 2026. Orders, however, were up 18% to 87,800 vehicles globally. Adjusted operating profit during the period was €582 million, down from €646 million last year.
Traton again states the dip was expected, and cites high tariff costs in the United States that were not imposed in the prior-year quarter. Lower fixed costs helped offset this, but the adjusted operating return on sales decreased by 0.4 percentage points to 5.7%. In addition, the Traton Group’s operating result was impacted by charges of €521 million for certain items, which were adjusted.
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“Against the backdrop of a continued unfavorable economic and political situation, we performed well in the first quarter of 2026. Incoming orders are still increasing, which makes me optimistic for the coming quarters,” says Christian Levin, CEO of Traton Group. “Demand for heavy-duty trucks (Class 8) improved significantly on the U.S. market in the first quarter, with incoming orders at International a good 80% above the prior-year quarter. The demand for battery electric vehicles is also gaining pace: In the first quarter, we grew unit sales here by 38% and incoming orders by as much as 45%.”
MAN Truck & Bus posted the strongest year-over-year performance among Traton’s brands. The brand improved adjusted operating return on sales by 2.9% to 7.2% (4.3% in 2025), primarily due to the 8% increase in sales revenue to €3.3 billion (€3.1 billion in 2025) and better product and fixed costs. MAN Truck & Bus also achieved nearly stable year-over-year incoming order levels, despite lower truck incoming orders in Germany.
Scania Vehicles & Services also managed to keep adjusted operating return on sales stable, coming in at 11.0% (11.1% in 2025) in the first quarter. A 6% decline in unit sales was the main reason for the slight decline in sales revenue, the company reports, while incoming orders were up 10%.
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At International, adjusted operating return on sales were –4.0% in the quarter after being 1.6% in 2025. Traton says the adjusted operating result was negatively impacted by the volume-related decline in sales revenue and high tariff costs. Traton states this was partially offset by lower fixed costs. Weak demand and declining unit sales resulted in both a sharp decrease in new vehicle sales and a noticeable drop in vehicle service revenues. Fortunately, the company adds strong demand in the heavy-duty truck sector (Class 8) led to an increase of 81% in incoming orders against 2025.
At Volkswagen Truck & Bus, adjusted operating return on sales fell to 10.2% (13.0% in 2025). The company reports the decline in unit sales was also the main reason for the substantial decline in sales revenues. In addition, operating result (adjusted) was negatively impacted by currency effects. Compared with the weak prior-year period, incoming orders rose by 11%, the company says.
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“We are responding to the persistently difficult market situation by maintaining our strict cost discipline. We are closely monitoring geopolitical and economic developments. Nonetheless, we remain confident for the coming quarters, also due to the increase in incoming orders, and are thus confirming our full-year outlook for 2026,” says Michael Jackstein, CFO and CHRO. “We continue to expect a range of ‒5% to +7% for unit sales and sales revenue of the Traton Group. We still forecast an operating return on sales (adjusted) of between 5.3 and 7.3%.”
