Daimler Truck's Q2 order miss weighs on shares despite US optimism

Daimler Truck saw its shares drop 4% on Friday after reporting second-quarter order intake that fell short of analyst expectations, overshadowing a more optimistic outlook for its North American business.

The company, which owns the Freightliner brand in the US, said orders rose 27% year-on-year to 74,448 units in the April-June period. However, this was below consensus estimates, with every business segment missing forecasts by a significant margin, according to Bernstein analysts.

North America recorded order intake of 35,379 vehicles, 17% below consensus, while Mercedes-Benz Trucks booked orders for 33,850 units, missing expectations by 21%.

Despite the soft order numbers, Daimler Truck projected improved profitability at its North American unit, expecting an adjusted return on sales of 11% to 13% in the third quarter. The unit reported an 8.4% adjusted return on sales for the second quarter.

Chief Financial Officer Eva Scherer said the company is emerging from a prolonged freight recession in the US. Freight rates have climbed about 30% since the start of the year, with volumes also rising modestly, and further improvement is expected in coming quarters.

The company also confirmed plans announced Thursday to build a new manufacturing facility in the US. It is evaluating potential locations, with construction expected to begin in late 2026 and production slated to start in 2029.

Daimler Truck confirmed its second-quarter financial results, which were pre-announced in July, and said it would launch the second tranche of its share buyback programme, worth up to €1.1 billion, by mid-September.