Daimler Truck Unveils Stronger 2030 Strategy with New Financial Goals and €2 Billion Share Buyback

Key Highlights:

• Daimler Truck targets over 12% return on sales in Industrial Business by 2030.
• A €2 billion share buyback will begin in the second half of 2025 and run for two years.
• Five-pillar strategy focuses on scale, services, balanced tech investment, and cost optimization.
• The Cost Down Europe program aims to cut €1 billion by 2030 through production shifts and workforce restructuring.
• Regional growth is led by North America’s strong vocational market performance and focus on zero-emission truck expansion.

Daimler Truck Holding AG revealed ambitious new financial goals and a €2 billion share buyback program at its Capital Market Day 2025. The event, hosted at its Cleveland, North Carolina, manufacturing facility, marked the company’s roadmap to 2030 under the theme “Stronger 2030.”

Profitability Target Raised

Daimler Truck now aims to achieve an adjusted return on sales (ROS) of over 12% in its Industrial Business by 2030. The through-cycle range has been set between 9% and 13%. The company believes this target is realistic based on its long-term performance plan and ongoing operational improvements.

€2 Billion Share Buyback Plan

A new share buyback program worth up to €2 billion was also announced. The buyback will run for two years and is expected to begin in the second half of 2025. This reflects Daimler Truck's confidence in its financial position and long-term growth prospects.

Five Pillars of Strategy

The company’s “Stronger 2030” strategy focuses on five core areas:

• Scale and Efficiency – Strengthening manufacturing and operational productivity.
• Customer-Centric Services – Becoming more solution-focused with expanded offerings.
• Balanced Tech Investment – Investing in both diesel and zero-emission vehicles.
• Service Revenue Growth – Growing aftermarket and service income, which reached €8 billion in 2024.
• Operational Resilience – Building flexibility in supply chains and production.

To support its service growth, Daimler Truck plans to improve parts availability and expand service and retail networks.

Cost Down Europe Program

At the centre of Daimler Truck’s restructuring is the Cost Down Europe initiative. The plan aims to cut costs by over €1 billion by 2030. Key measures include:

• Shifting production volumes to best-cost countries
• Optimizing the workforce in Germany through early retirement and natural attrition

Revenue and Growth Projections

By 2030, the company expects:

• 3–5% organic revenue growth annually
• 40–50% return on capital employed (ROCE)
• Major growth in zero-emission trucks, vocational segments in North America, India, and defense markets

Technology and Market Focus

Daimler Truck is tailoring its powertrain strategy to meet regional needs. In North America, where EV adoption is slower, it will continue developing clean diesel alongside electric models. The company also introduced Coretura, a software-defined vehicle joint venture with Volvo Group. As for hydrogen trucks, production plans have shifted to the early 2030s, citing delays in hydrogen infrastructure development.

Strong Regional Performance

In 2024, Daimler Truck North America delivered an adjusted ROS of 12.9%, beating its 2025 goal early. It now holds 24% of the heavy vocational truck market through smart pricing and product strategy. Meanwhile, Mercedes-Benz Trucks is undergoing restructuring to increase efficiency and is focusing on growth in electric vehicles, services, and defence.

Also Read: Daimler Truck Opens New Manufacturing Plant in Indonesia

Financial Outlook and Commitment

Daimler Truck reaffirmed its dividend policy of paying 40–60% of net profit. Free cash flow from the Industrial Business is expected to rise by 50% by 2030, compared to 2024 levels. “Our financial transformation is underway. With focused execution, we’ll deliver stronger results, higher cash flows, and long-term shareholder value,” said Eva Scherer, CFO of Daimler Truck.