Daimler Truck shares surge as 2023 profits smash forecasts

Daimler Truck's share price hit a record high on Friday after the world's largest commercial vehicle maker hiked its dividend on the back of stronger-than-expected annual profits.

The Leinfelden-Echterdingen-based company, which was spun off from Daimler AG in late-2021, reported adjusted earnings before interest and tax of €5.5bn for 2023, 39% higher than 2022 and comfortably ahead of €5.2bn expected by the market.

The stock was up 16.4% at an all-time high of €43.99 by 1251 in Frankfurt.

Revenues rose 10% over the year to €55.9bn, as unit sales increased 1% to 526,053. The company said that zero-emission vehicles comprised 3,443 of the total, 277% higher than in 2022.

The company, which employs more than 104,000 people, said free cash flow from the Industrial Business was 61% higher year-on-year at €2.8bn. It also proposed a dividend for 2023 of €1.9, up from €1.3 the year before, and said it would start a €2bn share buyback programme.

Looking ahead, Daimler Truck guided to unit sales of 490,000 to 510,000 for 2024.