TRATON Group reports 30% rise in incoming orders and improved H1 profitability

TRATON Group increased incoming orders by 30% and improved profitability during the first half of 2026, as recovering demand in key global markets offset a still-challenging trading environment.

The commercial vehicle manufacturer reported incoming orders of 181,944 vehicles during the first six months of the year, up from 139,599 in the same period of 2025, while adjusted operating profit rose 12% year-on-year to €1.54 billion.

Sales revenue remained broadly stable at €22.0 billion compared with €21.9 billion a year earlier, despite unit sales slipping 1% to 151,529 vehicles. The Group’s adjusted operating return on sales improved from 6.3% to 7.0%.

The company said profitability also benefited from additional tariff-related receivables recognised by its US brand, International Motors, during the second quarter.

Demand strengthened across most of TRATON’s core markets, with truck order intake in Europe (EU27+3) increasing by 10%, although Germany recorded an 8% decline. North America saw the strongest improvement, with truck orders rising 141% as demand for heavy-duty Class 8 trucks recovered and previously delayed orders returned to the market.

Truck orders also increased by 22% in South America, supported by Brazil’s government-backed Move Brasil credit programme, while Asia-Pacific recorded a 63% rise following Scania’s launch of its NEXT ERA product range for the region.

Bus demand also remained strong, with order intake increasing by 14%.

TRATON’s book-to-bill ratio improved to 1.2 from 0.9 a year earlier, reflecting orders continuing to outpace deliveries and signalling a recovery in the commercial vehicle market.

The Group also continued to expand its battery-electric vehicle business. Sales of electric trucks more than doubled to 887 units from 400 a year earlier, while electric bus deliveries increased to 1,020 units from 838.

Among the Group’s brands, Scania improved its adjusted operating return on sales to 11.3%, supported by lower overhead and product costs alongside a favourable product mix.

MAN Truck & Bus increased its adjusted operating margin to 7.0%, benefiting from higher revenue, improved pricing and stronger cost absorption.

International Motors saw its adjusted operating return on sales decline to 1.1% from 1.9%, with tariff costs and lower volumes impacting profitability despite favourable currency movements and lower fixed costs.

Volkswagen Truck & Bus reported an adjusted operating return on sales of 10.5%, down from 12.9%, primarily due to adverse currency effects.

“The market environment remained challenging in the first half of 2026, but we saw a clear upward trend in the second quarter. Our strong customer focus and the continued strength of our Vehicle Services business enabled us to deliver a solid performance while continuing to execute on our strategic priorities.”

He highlighted the company’s continued investment in technology, including the unveiling of TRATON ONE OS, a new software platform developed with Applied Intuition that will enable over-the-air updates and reduced vehicle downtime when it is introduced on new trucks from 2028.

Levin also pointed to continued progress in digitalisation and electrification: “Volkswagen Truck & Bus is further advancing automation in its production network. Our US brand International introduced ‘My International’, a connected digital ecosystem that can help reduce downtime. At the same time, we remain firmly committed to the ramp-up of battery-electric trucks and buses toward the sustainable transport of the future.”

MAN has extended its electric truck range with the new 16-tonne eTGM, and Scania announcing a €70 million investment to expand electric truck production at its Angers plant in France.

“The TRATON GROUP continues to execute its strategy while strengthening its commitment to sustainable transportation. To this end, in the first half of the year, we placed our first green bond and our first green loan under our group-wide Green Finance Framework, totalling €850 million. The proceeds will be used to fund investments in battery-electric commercial vehicles. We continue to invest in key future technologies such as battery-electric vehicles, while remaining disciplined on cost.”

He noted that TRATON had issued its first green bond and first green loan under its new Green Finance Framework, raising a combined €850 million to fund investments in battery-electric commercial vehicles.

Reflecting the stronger-than-expected performance during the first half, the Group narrowed its full-year guidance towards the upper end of its previous ranges. TRATON now expects unit sales and sales revenue to increase by between 0% and 7% during 2026, with an adjusted operating return on sales of between 6.3% and 7.3%. The company also expects stronger cash generation during the second half of the year in line with normal seasonal trends.