Business

Daimler Truck Sets Ambitious Goal: 50% Free Cash Flow Surge by 2030 Amid Strategic Overhaul

Strategic Financial Goals Unveiled

Daimler Truck has announced a bold ambition to increase its free cash flow from the Industrial Business by 50% by 2030, compared to 2024 levels. This revelation comes as the company prepares for its Capital Market Day 2025, showcasing its refined strategic objectives aimed at enhancing profitability and operational resilience.

Profitability and Growth Targets

The automotive leader is now targeting an adjusted return on sales (ROS) exceeding 12%, with a projected cycle range of 9% to 13%. Additionally, Daimler anticipates an annual organic revenue growth of 3% to 5%. This growth is expected to be driven by its services sector, zero-emission vehicles in Europe, vocational trucks in North America, and expansion efforts in India and defense markets.

Commitment to Shareholders

Eva Scherer, CFO of Daimler Truck, emphasized the company's dedication to shareholder rewards, stating, "We reaffirm our dividend policy with a payout ratio of 40 to 60 percent and are launching a new share buyback program worth up to two billion euros."