Daimler Truck's profit jumps 73%, but weaker North America orders weigh

By Amir Orusov

Nov 6 (Reuters) - Daimler Truck reported a 73% jump in its third-quarter profit on Friday, but weaker orders and concerns over 2027 margin growth in its key North American market weighed on the truckmaker's shares.

Shares in the company, one of the world's biggest truck manufacturers, fell as much as 8.3% in early trading. They were down around 2% by 0937 GMT.

Third-quarter order intake missed Visible Alpha consensus expectations by 9% at group level, including a 16% shortfall in North America, the company's biggest market by revenue.

Beyond the weaker orders, analysts focused on early indications for North American profitability in 2027.

"I still expect a double-digit run rate around 10% operationally as we enter next year," finance chief Eva Scherer told analysts, adding the figure represented the margin at which the business was exiting 2026 and should not be interpreted as guidance for 2027.

Bernstein analyst Harry Martin said the margin exit rate in North America "would leave a lot of growth needed next year to hit consensus numbers of 11.5%".

RECOVERY IN NORTH AMERICA

Daimler Truck CEO Karin Radstrom said the 2027 outlook for the truck market was "quite positive" and that demand had improved throughout the year despite elevated inflation, interest rates and diesel prices.

Adjusted operating profit came in at €1.12 billion ($1.25 billion), up from €648 million a year ago and slightly above the €1.10 billion forecast in a company-compiled consensus.

The results were driven by a sharp recovery at Trucks North America. The unit's adjusted operating margin rose to 12.1% from 6.4% a year ago, while operating profit jumped 169% to €691 million.

The results mark a sharp turnaround from the same period last year, when weak freight activity and uncertainty surrounding US import tariffs weighed on truck orders.

($1 = 0.8930 euros)

(Reporting by Amir Orusov in Gdansk and Ilona Wissenbach in Frankfurt, editing by Anna Pruchnicka)