International Q1 Sales, Orders Fall on Customer Caution
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International Motors’ sales and orders tumbled in the first quarter of 2025 as a result of economic uncertainty due to Trump administration tariffs and a weak U.S. freight market.
Profit at parent company Traton Group slumped on the back of North American headwinds and ongoing softness in European truck demand. International sold 13,702 trucks in Q1, a 27% decrease compared with 17,512 trucks in the year-ago period, Traton said April 28. Truck and bus orders at the Lisle, Ill.-based original equipment manufacturer slumped 30% to 12,285 vehicles from 17,512 vehicles in the same period 12 months earlier. Traton said International sold 16,889 trucks and buses in Q1, a 12% decrease compared with 19,280 vehicles a year earlier.
International’s sales revenue in the most recent quarter totaled $2.472 billion, down 10.6% compared with $2.765 billion. The division achieved an adjusted operating return on sales of 2.3% in Q1, less than half the year-ago period’s 5%. Traton reports earnings in euros, and currency conversions were correct as of April 28.
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Overall, Traton’s North American truck sales in Q1 fell 27% to 14,115 from 19,246 in the year-ago period, with U.S. and Canadian truck sales declining 22% to 12,489 from 15,945. Traton said this was due in part to customer caution in an uncertain economic environment. The company’s North American truck orders slumped 35% to 9,584 from 14,727 a year earlier, of which U.S. and Canadian truck orders decreased 34% to 8,017 from 12,233. Traton said uncertainty surrounding U.S. tariff policy hurt orders alongside the contraction in the freight market.
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Globally, Traton’s truck and bus sales in Q1 fell 10% year over year to 73,090 from 81,148 vehicles. The company’s truck sales fell 16% to 57,566 vehicles in the most recent quarter from 68,772 trucks in the year-ago period. Traton’s Q1 orders totaled 74,307 trucks and buses, up 12% compared with 66,434 vehicles in the year-ago period.
Traton reported a profit of $529.9 million, down 38% compared with $855 million in the year-ago period.
Sales revenue decreased 10% to 10.6 billion euros from 11.8 billion euros a year earlier.
Traton said it had expected a slow start to 2025, noting buyers were very cautious in the uncertain economic environment, but the company is forecasting an improved business performance in the second half of the year due to an increase in orders.
Levin
“Despite a significant level of uncertainty, looking ahead, I am cautiously optimistic. Incoming orders are rising again, up by 12% in the first quarter year on year and by a remarkable 56% in Europe,” CEO Christian Levin said.
“Once again, in the first quarter, we benefited from our cross-brand collaboration and strong international presence,” Chief Financial Officer Michael Jackstein said. “Nonetheless, given the uncertainty on the market, it would be premature to call out a fundamental turnaround in Europe despite a positive order momentum in the first quarter.”
Jackstein added: “We are closely monitoring current geopolitical developments. However, we remain confident for the second half of the year and maintain our full-year outlook for 2025.”
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