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Unit Sales: Decreased by 6% to 68,600 units.

Sales Revenue: Declined by 4% to EUR10.2 billion.

Adjusted Return on Sales: 5.7%.

Order Intake: Increased by 18% to 87,800 units.

Book-to-Bill Ratio: Increased to 1.3.

Battery Electric Vehicle (BEV) Sales: Increased by 38% to 857 units.

BEV Order Intake: Increased by 45% to 1,252 units.

Adjusted Operating Result: Declined by 10%.

Unadjusted Operating Result: EUR60 million, with an operating return on sales of 0.6%.

Adjusted Operating Return on Sales by Brand: MAN at 7.2%, Scania at 11%, International at -4%, Volkswagen Truck & Bus at 10.2%.

Net Cash Flow: Negative EUR240 million.

Net Debt Reduction: EUR10 million.

Full Year Guidance: Unit sales and sales revenue expected between -5% and +7%; adjusted operating return on sales between 5.3% and 7.3%; net cash flow expected between EUR900 million and EUR1.7 billion.

Release Date: April 29, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Traton SE (TRATF) reported a significant increase in order intake by 18% to 87,800 units, indicating strong demand across core geographical regions.

The company’s services business showed good growth, helping to mitigate the decline in sales revenues, which fell by only 4% to EUR10.2 billion.

Traton SE (TRATF) is advancing its battery electric vehicle (BEV) transformation, with BEV unit sales rising by 38% and incoming orders increasing by 45% in Q1.

The company is making progress on strategic initiatives, such as the development of a unified software-defined vehicle platform and partnerships for autonomous truck pilots.

Traton Financial Services expanded into two new markets, Belgium and Lithuania, supporting the company’s geographical growth strategy.

Negative Points

Traton SE (TRATF) experienced a 6% decline in unit sales to 68,600, largely due to a difficult South American market and hesitation in US demand.

Operating profit and net cash flow declined overproportionately, with adjusted return on sales at the lower end of guidance at 5.7%.

The company faced significant tariff costs, with Section 232 and IEEPA tariffs totaling EUR110 million in Q1, impacting profitability.

Scania’s sales in Brazil declined, and the company faced challenges in North and South America, preventing a positive group top line performance.

The geopolitical situation, including the Iran war, presents ongoing uncertainty, affecting customer hesitancy and order intake in some regions.

Story Continues

Q & A Highlights

Q: Given the high orders in the US market, do you expect to return to positive earnings territory in Q2? Also, how long until you’re sold out for this year? A: (Michael Jackstein, CFO) It’s tough to say if we’ll see a positive margin in Q2, but we’re optimistic for the second half of the year due to strong order intake. (Christian Levin, CEO) We’re not sold out yet and are still taking orders for after summer, indicating good order momentum.

Q: With cost inflation being a theme, how much more pricing do you need to offset higher costs? A: (Michael Jackstein, CFO) We expect cost effects from mid-year, with a low triple-digit million impact from commodities. (Christian Levin, CEO) We’ve launched price increases in Europe and the US, and while it’s been tough, the current environment is more conducive to price adjustments.

Q: Can you provide an update on the centralized development costs and their impact? A: (Michael Jackstein, CFO) The centralized development is at an early stage, but we expect efficiency gains of roughly 25% from the Traton modular system. These efficiencies will be reinvested into areas like autonomous driving and electrification.

Q: How do you view the competition in Europe, especially with new entrants like Chinese companies? A: (Christian Levin, CEO) We expect Chinese entrants in Europe, bringing advanced technology and low costs. We must stay close to our customers and innovate. Our presence in China helps us stay competitive globally.

Q: Regarding tariff costs, can you split the EUR110 million between Section 232 and IEEPA, and should we expect this run rate in Q2? A: (Michael Jackstein, CFO) The EUR110 million includes both tariffs, with Section 232 being more significant. We expect similar impacts in Q2, but the situation is dynamic and subject to change.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.