Investing.com -- Daimler Truck Holding (ETR:DTGGe) lowered its 2025 earnings guidance on Tuesday due to elevated demand uncertainty.
The company’s shares fell less than 1% after the market open on Wednesday.
Daimler (OTC:MBGAF) Truck now expects adjusted EBIT to grow between -5% and 5%, a notable downgrade from the previously anticipated 5% to 15% range.
The German truck and bus manufacturer also trimmed its expectations for the North American heavy-duty Class 8 truck market. It now sees total market sales between 260,000 and 290,000 units, compared to a prior range of 280,000 to 320,000 units.
For the Trucks North America division, Daimler Truck is forecasting sales of 155,000 to 175,000 units, down from the earlier estimate of 180,000 to 200,000.
The company said the revised outlook “assumes increasing customer confidence and order behavior from current low levels.”
Despite the lower sales volumes, margin expectations for the North American trucks (TNA) unit remain unchanged, with full-year profitability still seen in the 11% to 13% range.
Daimler Truck also cut its revenue forecast for the Industrial Business (IB) unit, now projecting between 48 billion and 51 billion euros, down from 52 billion to 54 billion euros.
The adjusted EBIT and free cash flow (FCF) outlook for the IB unit was unchanged.
The company noted that the outlook remains sensitive to broader economic and geopolitical conditions.
In the first quarter, Daimler Truck Group posted adjusted EBIT of 1.16 billion euros. Revenue for the Industrial Business segment came in at 11.56 billion euros.
Commenting on the report, Jefferies analysts said the outlook update was "better than feared."
"The cut to group EBIT driven by N. America was largely anticipated with ’25 consensus EBIT -3% YoY vs new guide -5% to +5%," they noted.
"2Q comments are likely to point to softer margins in N. America with lower volumes, however, order momentum continues in MB & in particular Europe," the analysts added.
Separately, RBC Capital Markets analysts said their view after the print is "positive overall."
"The margin performance was remarkably good, most notably in TNA, with the updated outlook remaining relatively upbeat about the group’s ability to sustain decent margins in challenging conditions," they said.