Commercial vehicle manufacturer targets adjusted return on sales of more than 12% by 2030, launches €2 billion share buyback program.
09 Jul 2025 | 791 Views | By Shruti Shiraguppi
Daimler Truck Holding AG presented upgraded financial targets for 2030 and announced a new share buyback program during its Capital Market Day 2025 on July 8, 2025. The event, held at the company's truck manufacturing plant in Cleveland, North Carolina, outlined the firm's evolved group strategy under the theme "Stronger ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Daimler Truck Holding AG presented upgraded financial targets for 2030 and announced a new share buyback program during its Capital Market Day 2025 on July 8, 2025. The event, held at the company's truck manufacturing plant in Cleveland, North Carolina, outlined the firm's evolved group strategy under the theme "Stronger 2030."
The commercial vehicle manufacturer set an adjusted return on sales (ROS) target of more than 12% for its Industrial Business by 2030, with a through-cycle range of 9-13%. The company also announced a share buyback program valued at up to €2 billion over two years, expected to begin in the second half of 2025.
Daimler Truck's evolved group strategy centers on five strategic pillars designed to increase profitability and operational resilience. The framework focuses on unlocking growth potential through scale and efficiency, evolving into a customer-centric solutions provider, and transforming operations through balanced investments in both diesel and zero-emission technologies.
The company reported generating over €8 billion in service revenue within its Industrial Business in 2024. Plans include expanding service operations through improved parts availability and additional investments in retail and service networks to enhance customer proximity.
"At Daimler Truck, we are proud to work for all who keep the world moving. And we want to build the best truck and bus company - for our customers, our employees and our shareholders. We have the strategy in place, and we are establishing the performance culture to achieve this ambition. When we do it right, it brings us to a profitability of more than 12% return on sales by 2030," said Karin Rådström, President & CEO of Daimler Truck.
Central to the strategy is the "Cost Down Europe" efficiency program, designed to reduce costs by more than €1 billion by 2030 across European operations. The comprehensive restructuring plan covers six core cost reduction areas, including production volume shifts to best-cost countries and workforce optimization in Germany through natural attrition and early retirement programs.
The company projects organic revenue growth of 3-5% annually through 2030, driven by service expansion, zero-emission vehicle transformation in Europe, vocational trucks in North America, growth in India, and defense sector opportunities. Return on capital employed (ROCE) is targeted at 40-50% by the decade's end.
The company has adjusted its powertrain strategy in response to varying decarbonization speeds across markets, particularly in North America where zero-emission vehicle adoption has slowed.
The firm recently announced Coretura, a joint venture with Volvo Group, focused on developing software-defined vehicle platforms. For hydrogen powertrain development, the company has moved large-scale fuel cell industrialization and planned series production of hydrogen-powered trucks to the early 2030s due to slower-than-expected progress in hydrogen refueling infrastructure.
Daimler Truck North America (DTNA) exceeded its 2025 financial targets ahead of schedule, achieving a 12.9% adjusted return on sales in 2024. The division established a 24% market share in the heavy vocational market through disciplined value-based pricing and optimized product mix.
Mercedes-Benz Trucks focuses on restructuring for higher efficiency through the Cost Down Europe program, leveraging global scale with operations in India and China, and growing in zero-emission trucking, defense, and parts and services sectors.
The company confirmed its dividend policy of 40-60% payout ratio of net profit and projects free cash flow of the Industrial Business to increase by 50% by 2030 compared to 2024 levels.
"By consistently executing our new strategic priorities, we will deliver a step-change in financial performance, driven by our comprehensive Cost Down Europe efficiency program. The combination of resilient growth, disciplined capital allocation, and improved profitability will significantly elevate our strong cash generation," said Eva Scherer, CFO of Daimler Truck.