Daimler Truck Holding AG

Overview Key strengths Key risks Strong positions in the most profitable markets globally (Class 8 trucks, in terms of units sold), with a No. 1 position in North America (38% of market share), No. 2 in South America (22%), and No. 3 in Europe (18%). S&P Global Ratings-adjusted EBITDA that is still below that of benchmark peers and a less agile cost structure, despite a significant profitability improvement in 2022. The company is therefore more exposed to demand swings in a downturn. Balanced geographical revenue diversification--with 44% of 2022 consolidated sales generated in North America, 30% in Europe, 13% in Asia, 9% in South America--and a diversified footprint, with more than 40 production sites across the globe. Operations in a

...After Daimler Truck posted solid results in the first half of 2023, S&P Global Ratings expects that the aging of the fleet, vehicle replacement needs, and higher list prices will continue to support topline growth. Despite incoming orders declining by about 12% in the first half of 2023 to 219,871 units, Daimler Truck continued to post solid results into the first half of 2023. Total vehicle sales increased by about 12% to 257,060 units versus 230,247 units for the same period last year, thanks to strong pent up-demand and improving supply chain conditions. With demand for trucks continuing to hold up across regions and segments, industrial business revenues increased significantly by 18% to about 25.8 billion versus 21.9 billion for the same period in 2022. Under our revised base case, we now anticipate that the company's industrial business sales could increase by 12%-14% in 2023 to 54.0 billion-56.0 billion, strongly supported by favorable pricing effects and a strong backlog. We expect...

Full Report