📢 Daimler Truck launches massive buyback!

Daimler Truck Holding $DTG.DE, one of the global leaders in truck and commercial vehicle manufacturing, has announced a new share buyback of up to €2 billion. The program is scheduled to start in the second half of 2025 and run for up to two years.

💶 The company believes in its undervalued valuation and has enough cash to return capital to shareholders. Moreover, buybacks automatically increase earnings per share (EPS) and often support share price growth.

At the same time, the company faces structural challenges in the domestic market. The company plans to eliminate approximately 5000 jobs in Germany by 2030. The company says that most of the departures will be handled naturally (e.g. retirement), but does not rule out targeted layoffs.

📍 The automotive sector is undergoing a major transformation: electrification, decarbonisation, new regulatory requirements and pressure on margins at the same time. Manufacturers are seeking a balance between investing in the future and the need to optimise current costs.

Shares are up more than 13% since the beginning of the year!

What do you think about buybacks and Daimler Truck?