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Earnings · Tariffs · Traton · Trucking
Traton, Volkswagen's truck unit, reported a substantial 39% decline in operating profit for the first nine months of 2025, falling to 2 billion euros from 3.3 billion euros year-over-year.
This significant drop is primarily attributed to lower revenue, unfavorable exchange rates, and the escalating impact of U.S. tariffs on imported goods. The company's U.S. division, International Motors, saw its adjusted operating profit margin contract sharply from 6.3% to 1.6%.
Tariff costs, which were $30 million in Q3, are projected to reach a mid double-digit million figure in Q4 2025 and potentially a triple-digit million range in 2026. Despite confirming full-year unit sales and revenue guidance, Traton narrowed its adjusted operating margin forecast to the lower end of the 6-7% range.
The European market also faces challenges, with no immediate positive effects from German fiscal stimulus, though the CFO remains cautiously optimistic for 2026.
Traton's Operating Profit Plunges 39% Amid Escalating US Tariffs and Weak Sales(current)
