Latest news with #TRATON
Yahoo
26-07-2025
- Automotive
- Yahoo
Traton SE (TRATF) Q2 2025 Earnings Call Highlights: Navigating Market Challenges with Strategic ...
Deliveries: Increased by 9% over Q1, but only 1% year-over-year. Sales Revenue: Declined by 2% year-over-year. Adjusted Return on Sales: Declined to 6.4% in Q2. Net Cash Flow: Positive development in Q2, slightly better than 2024. Incoming Orders: Up 11% overall, with a 27% increase in Europe year-over-year. Unit Sales in Europe: Up by 3% to 36,600 units in Q2. Order Intake in Europe: Increased by 27% to 31,400 units. Unit Sales in North America: Up by 5% to 18,200 vehicles in Q2. Order Intake in North America: Down by 15% to 9,300 units. Unit Sales in South America: Down 8% to 16,600 vehicles. Order Intake in South America: Down 7% to 16,300 units. Total Group Revenue: EUR11.3 billion, a 2% decline year-over-year. TRATON Financial Services Revenue: Increased by 14%. Scania Margin: 9%, impacted by negative volume and currency effects. MAN Adjusted Return on Sales: 7.9%, 3.3 percentage points higher over Q1. International Margin: 3.3% in Q2. Volkswagen Truck & Bus Adjusted Return on Sales: 12.9% in Q2. TRATON Financial Services Return on Equity: 8.4%. Gross Cash Flow: EUR2.0 billion in the first half of 2025. Net Debt: Increased by EUR1.2 billion. Adjusted Outlook for 2025: Lowered unit sales and revenue outlook, with a decline expected between -10% and 0%. Adjusted Return on Sales Outlook: 6% to 7% for TRATON Group, 7% to 8% for TRATON Operations. Net Cash Flow Guidance: Expected between EUR1 billion and EUR1.5 billion. Warning! GuruFocus has detected 4 Warning Signs with TRATF. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Traton SE (TRATF) saw a 9% increase in deliveries over Q1, indicating some recovery from a slow start to the year. The company reported a strong order intake in Europe, with a 27% year-over-year increase, despite a slowdown in momentum. Traton SE (TRATF) is advancing its electrification strategy, with Scania launching a high-capacity charging solution and MAN starting production of heavy-duty electric trucks. The company completed the rollout of its integrated financial services backbone in 14 strategic markets, enhancing support for commercial operations. Traton SE (TRATF) is making significant strides in its transformation efforts, including the operational start of a unified group research and development organization. Negative Points Traton SE (TRATF) faced a 2% drop in sales revenues year-over-year, reflecting ongoing market challenges and unfavorable mix effects. The company lowered its full-year outlook due to tough market conditions in North America and economic challenges in Brazil. Scania's adjusted return on sales declined to 6.4% in Q2, primarily due to volume effects and currency headwinds. The book-to-bill ratio dropped below 1, indicating a decline in order intake relative to sales. Traton SE (TRATF) is experiencing high dealer stocks and economic challenges in South America, particularly in Brazil, affecting sales performance. Q & A Highlights Q: Could you help us understand the assumptions behind the guidance on sales and revenue, specifically regarding volume and pricing? A: Michael Jackstein, CFO, explained that the volume decrease played a significant role in the first half, along with unfavorable mix effects. He noted that challenging market conditions often come with pricing pressure, but Traton believes in maintaining a solid pricing level due to their strong product offerings. He highlighted regional differences, with Europe seeing a slowdown in order momentum and North America experiencing significant lower intakes due to uncertainties. Q: Could you quantify the headwinds impacting Scania's margins this quarter, and do you expect a similar run rate for the remainder of the year? A: Christian Levin, CEO, stated that the main issues were declining volumes and currency effects, particularly in Latin America. Scania is facing a competitive environment in Brazil and Mexico, with high interest rates affecting customer financing. He noted that while pricing is maintained, mix effects and lower sales in profitable markets are impacting margins. He does not foresee significant changes within the year. Q: What is your outlook for North America, considering some peers are optimistic about a recovery? A: Christian Levin expressed a more cautious outlook, citing high inventory levels and customer hesitancy due to uncertainties like tariffs and EPA regulations. He mentioned that while pro-business policies could help, the expected EPA prebuy will not happen this year, and the tariff discussions are creating further uncertainty. Q: Can you discuss the differences in demand and production between Scania and MAN in Europe? A: Christian Levin explained that MAN is increasing production from a lower base, benefiting from stronger demand in Germany, while Scania is slightly reducing production due to a leveling out of order intake. He noted regional variations, with Central Europe showing some improvement, while the Nordics and Eastern markets are more hesitant. Q: Regarding the Section 232 tariffs, what would be the implications for Traton, and how might you mitigate the impact? A: Michael Jackstein stated that while they are considering various outcomes, they do not want to speculate on potential impacts. He emphasized that Traton is prepared to adjust to different scenarios but did not provide specific mitigation strategies. Q: How is the modular system development progressing, and what should we look for next? A: Christian Levin highlighted the integration of common components like the CD1 engine and the electric drivetrain between Scania and MAN. He mentioned future developments in electrical architecture and software, as well as plans to standardize interfaces for chassis and cabs, which will enhance product differentiation and efficiency. Q: Can you provide insights into the inventory levels in the US and how long the destocking process might last? A: Christian Levin noted that while Traton's industrial inventory is at reasonable levels, dealer inventories across the industry are high. He speculated that the destocking process could last until the end of the year, depending on demand changes. Q: What are your thoughts on the potential for improving demand in North America, given the current challenges? A: Christian Levin suggested that resolving tariff discussions could significantly boost demand, as the underlying US economy is strong, and there is a need for fleet renewal. He also mentioned that a decrease in interest rates could further stimulate investment. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
02-07-2025
- Automotive
- Yahoo
L&T Technology Services Chosen by TRATON GROUP as Strategic Engineering Partner in Global R&D Transformation
Multi-year collaboration in LTTS' Mobility segment to drive platform synergies, electrification, and innovation for TRATON GROUP SÖDERTÄLJE, Sweden & BANGALORE, India, July 02, 2025--(BUSINESS WIRE)--L&T Technology Services (BSE: 540115, NSE: LTTS), today announced that it has been chosen by the TRATON GROUP, one of the world's leading manufacturers of commercial vehicles, as a strategic engineering partner. This collaboration in LTTS' Mobility segment will support TRATON's roadmap to build a unified, future-ready product-development platform that delivers scale, speed, and sustainable mobility solutions worldwide. TRATON is reshaping its global R&D ecosystem to unlock cross-brand synergies while expanding the share of battery-electric vehicles in line with its 2029 profitability and sustainability targets. LTTS' selection will see the company provide engineering support, from mechanical and software engineering to digital systems integration - across key development hubs in Sweden, Germany, the United States, Poland, and India. The collaboration positions LTTS to deepen existing workstreams and pursue new programs across TRATON's brands, spanning software-defined vehicle architectures, electrified powertrains, autonomous & ADAS feature development, and advanced digital engineering toolchains. These capabilities align with LTTS' Mobility charter, leveraging its expertise in engineering intelligent and sustainable solutions to create safer, smarter, and more personalized mobility experiences for a global clientele. Alind Saxena, Executive Director & President - Mobility & Tech at L&T Technology Services, said, "Being selected by TRATON GROUP is a testament to LTTS' leadership in next-generation Mobility engineering. This collaboration underscores our commitment to delivering cutting-edge solutions that align with TRATON's vision of sustainable and intelligent transportation. With our proven track record in engineering transformation, we are excited to help TRATON achieve its ambitious goals of electrification, autonomy, and digital innovation while redefining the future of commercial mobility." About TRATON GROUP With its four brands Scania, MAN, International, and Volkswagen Truck & Bus, the TRATON GROUP is one of the world's leading manufacturers of commercial vehicles. The portfolio consists of trucks, buses, and light-duty commercial vehicles, as well as the sale of spare parts and customer services. In addition, the TRATON GROUP offers a broad range of financial services to its customers. "Transforming Transportation Together. For a sustainable world.": this intention underlines the Company's ambition to have a lasting and sustainable impact on the commercial vehicle business and on the Group's commercial growth. About L&T Technology Services Ltd L&T Technology Services (LTTS) is a global leader in engineering and technology services. A listed subsidiary of Larsen & Toubro (L&T), we offer design, development, testing, and sustenance services across products and processes. Purposeful. Agile. Innovation. is how we drive growth across the Mobility, Sustainability and Tech segments. Our customer base includes 69 Fortune 500 companies and 57 top ER&D companies across industrial products, medical devices, transportation, telecom & hi-tech, and process industries. Headquartered in India, we have over 24,250 employees across 23 global design centers, 30 global sales offices, and 108 innovation labs, as of March 31, 2025. For more information, please visit View source version on Contacts Media Contact: Aniruddha BasuL&T Technology Services LimitedE: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-07-2025
- Automotive
- Yahoo
L&T Technology Services Chosen by TRATON GROUP as Strategic Engineering Partner in Global R&D Transformation
Multi-year collaboration in LTTS' Mobility segment to drive platform synergies, electrification, and innovation for TRATON GROUP SÖDERTÄLJE, Sweden & BANGALORE, India, July 02, 2025--(BUSINESS WIRE)--L&T Technology Services (BSE: 540115, NSE: LTTS), today announced that it has been chosen by the TRATON GROUP, one of the world's leading manufacturers of commercial vehicles, as a strategic engineering partner. This collaboration in LTTS' Mobility segment will support TRATON's roadmap to build a unified, future-ready product-development platform that delivers scale, speed, and sustainable mobility solutions worldwide. TRATON is reshaping its global R&D ecosystem to unlock cross-brand synergies while expanding the share of battery-electric vehicles in line with its 2029 profitability and sustainability targets. LTTS' selection will see the company provide engineering support, from mechanical and software engineering to digital systems integration - across key development hubs in Sweden, Germany, the United States, Poland, and India. The collaboration positions LTTS to deepen existing workstreams and pursue new programs across TRATON's brands, spanning software-defined vehicle architectures, electrified powertrains, autonomous & ADAS feature development, and advanced digital engineering toolchains. These capabilities align with LTTS' Mobility charter, leveraging its expertise in engineering intelligent and sustainable solutions to create safer, smarter, and more personalized mobility experiences for a global clientele. Alind Saxena, Executive Director & President - Mobility & Tech at L&T Technology Services, said, "Being selected by TRATON GROUP is a testament to LTTS' leadership in next-generation Mobility engineering. This collaboration underscores our commitment to delivering cutting-edge solutions that align with TRATON's vision of sustainable and intelligent transportation. With our proven track record in engineering transformation, we are excited to help TRATON achieve its ambitious goals of electrification, autonomy, and digital innovation while redefining the future of commercial mobility." About TRATON GROUP With its four brands Scania, MAN, International, and Volkswagen Truck & Bus, the TRATON GROUP is one of the world's leading manufacturers of commercial vehicles. The portfolio consists of trucks, buses, and light-duty commercial vehicles, as well as the sale of spare parts and customer services. In addition, the TRATON GROUP offers a broad range of financial services to its customers. "Transforming Transportation Together. For a sustainable world.": this intention underlines the Company's ambition to have a lasting and sustainable impact on the commercial vehicle business and on the Group's commercial growth. About L&T Technology Services Ltd L&T Technology Services (LTTS) is a global leader in engineering and technology services. A listed subsidiary of Larsen & Toubro (L&T), we offer design, development, testing, and sustenance services across products and processes. Purposeful. Agile. Innovation. is how we drive growth across the Mobility, Sustainability and Tech segments. Our customer base includes 69 Fortune 500 companies and 57 top ER&D companies across industrial products, medical devices, transportation, telecom & hi-tech, and process industries. Headquartered in India, we have over 24,250 employees across 23 global design centers, 30 global sales offices, and 108 innovation labs, as of March 31, 2025. For more information, please visit View source version on Contacts Media Contact: Aniruddha BasuL&T Technology Services LimitedE: Sign in to access your portfolio
Business Standard
02-07-2025
- Automotive
- Business Standard
TRATON Group selects LTTS as a strategic engineering partner
L&T Technology Services announced that it has been chosen by the TRATON GROUP, one of the world's leading manufacturers of commercial vehicles, as a strategic engineering partner. This collaboration in LTTS' Mobility segment will support TRATON's roadmap to build a unified, future-ready product development platform that delivers scale, speed, and sustainable mobility solutions worldwide. TRATON is reshaping its global R&D ecosystem to unlock cross-brand synergies while expanding the share of battery-electric vehicles in line with its 2029 profitability and sustainability targets. LTTS' selection will see the company provide engineering support, from mechanical and software engineering to digital systems integration - across key development hubs in Sweden, Germany, the United States, Poland, and India. The collaboration positions LTTS to deepen existing workstreams and pursue new programs across TRATON's brands, spanning software-defined vehicle architectures, electrified powertrains, autonomous & ADAS feature development, and advanced digital engineering toolchains. These capabilities align with LTTS' Mobility charter, leveraging its expertise in engineering intelligent and sustainable solutions to create safer, smarter, and more personalized mobility experiences for a global clientele.
Business Wire
02-07-2025
- Automotive
- Business Wire
L&T Technology Services Chosen by TRATON GROUP as Strategic Engineering Partner in Global R&D Transformation
SÖDERTÄLJE, Sweden & BANGALORE, India--(BUSINESS WIRE)-- L&T Technology Services (BSE: 540115, NSE: LTTS), today announced that it has been chosen by the TRATON GROUP, one of the world's leading manufacturers of commercial vehicles, as a strategic engineering partner. This collaboration in LTTS' Mobility segment will support TRATON's roadmap to build a unified, future-ready product-development platform that delivers scale, speed, and sustainable mobility solutions worldwide. TRATON is reshaping its global R&D ecosystem to unlock cross-brand synergies while expanding the share of battery-electric vehicles in line with its 2029 profitability and sustainability targets. LTTS' selection will see the company provide engineering support, from mechanical and software engineering to digital systems integration - across key development hubs in Sweden, Germany, the United States, Poland, and India. The collaboration positions LTTS to deepen existing workstreams and pursue new programs across TRATON's brands, spanning software-defined vehicle architectures, electrified powertrains, autonomous & ADAS feature development, and advanced digital engineering toolchains. These capabilities align with LTTS' Mobility charter, leveraging its expertise in engineering intelligent and sustainable solutions to create safer, smarter, and more personalized mobility experiences for a global clientele. Alind Saxena, Executive Director & President - Mobility & Tech at L&T Technology Services, said, 'Being selected by TRATON GROUP is a testament to LTTS' leadership in next-generation Mobility engineering. This collaboration underscores our commitment to delivering cutting-edge solutions that align with TRATON's vision of sustainable and intelligent transportation. With our proven track record in engineering transformation, we are excited to help TRATON achieve its ambitious goals of electrification, autonomy, and digital innovation while redefining the future of commercial mobility.' About TRATON GROUP With its four brands Scania, MAN, International, and Volkswagen Truck & Bus, the TRATON GROUP is one of the world's leading manufacturers of commercial vehicles. The portfolio consists of trucks, buses, and light-duty commercial vehicles, as well as the sale of spare parts and customer services. In addition, the TRATON GROUP offers a broad range of financial services to its customers. 'Transforming Transportation Together. For a sustainable world.': this intention underlines the Company's ambition to have a lasting and sustainable impact on the commercial vehicle business and on the Group's commercial growth. About L&T Technology Services Ltd L&T Technology Services (LTTS) is a global leader in engineering and technology services. A listed subsidiary of Larsen & Toubro (L&T), we offer design, development, testing, and sustenance services across products and processes. Purposeful. Agile. Innovation. is how we drive growth across the Mobility, Sustainability and Tech segments. Our customer base includes 69 Fortune 500 companies and 57 top ER&D companies across industrial products, medical devices, transportation, telecom & hi-tech, and process industries. Headquartered in India, we have over 24,250 employees across 23 global design centers, 30 global sales offices, and 108 innovation labs, as of March 31, 2025. For more information, please visit
