Here's what you need to know
- Sales were down in Daimler Truck's North American segment, but orders saw an 85% jump year over year.
- Q1 revenue was off 29% in North America as the market wobbles toward recovery.
- Daimler's forecast held steady from its year-end 2025 report.
Daimler Truck saw an 85% jump in North American orders, year over year, in the first quarter, the company says in its earnings report released Tuesday.
"We are well positioned for continued improvement over the course of the year, even against the backdrop of a challenging first quarter," says Karin Radstrom, president and CEO. "Global order intake increased by 50% year over year, fueled by a strong recovery in the U.S., and this momentum will benefit our performance in the quarters ahead."
Daimler Trucks North America
While orders were looking up, lower profitability in North America did affect revenue in Q1, Daimler says. Revenue was $4.47 billion, down 29% from $5.4 billion. Unit sales were lower, too, down 25% year over year to 29,432 units.
"While Trucks North America operated in a historically low demand environment over the past year, the business continues to face tariff headwinds, with full tariff effects reflected in Q1 for the first time," says Eva Scherer, CFO. "Against this backdrop, underlying operational performance has remained resilient and is supported by strong order momentum."
Daimler says negatives in the North American market were lower unit sales, the unfavorable effect of Amplify, higher material and manufacturing costs, tariffs, and unfavorable effects from warranty and policy. Positives included improved pricing and lower administrative and selling expenses.
Daimler Financial Services
Financial services managed $2.59 billion in new financing and leasing contracts in the first quarter, down 5% year over year. The decline is primarily attributable to North American headwinds, the company says, but was offset by positive currency effects for the final 5% total.
Financial services revenue dropped 6% in the quarter to $986 million. However, the sector saw a huge jump in investments in property, plants and equipment, up 221% to $3 million.
First quarter highlights
Detroit, Daimler Truck North America's powertrain brand, introduced its new Gen 6 heavy duty engine line in the first quarter. The engine is compliant with the U.S. EPA 2027 emissions standard and will be available for Western Star and Freightliner trucks. The DD13 and DD15 models will start production in January with the DD16 coming in 2028.
[RELATED: Freightliner announces new safety capabilities for Detroit Assurance]
Toyota also joined Daimler Truck, Volvo and cellcentric at the end of March in a fuel cell system joint venture. Cellcentric will combine Daimler and Volvo's commercial vehicle expertise with Toyota's experience in fuel cell development.
Mitsubishi Fuso and Hino Motors
The transaction to integrate Mitsubishi Fuso Truck and Bus with Hino Motors, along with the commencement of operations and the listing on the Tokyo Stock Exchange of the new holding company, Archion, were completed April 1. Daimler Truck and Toyota each intend to hold a 25% stake in the new company.
Daimler's outlook
Daimler expects the overall U.S. economy to grow 2%, but it's also assuming it will continue to operate as it presently does under the United States-Mexico-Canada Agreement (USMCA) and with an uncertain tariff forecast. It's also basing its forecasting on a "near-term, temporary disruption" of supply chains due to the Iran conflict.
"Lower disposable income due to rising consumer prices and volatile capital markets could dampen private consumption," Daimler says in its Q1 report. "We anticipate an average inflation rate of around 3.5% for 2026."
It predicts 250,000-290,000 trucks will be sold in North America this year, of which 150,000-170,000 will be made by Daimler. That forecast is unchanged from its 2025 year-end report.
