FULLTEXT DEL 1 AV 7
Årsredovisning 2025
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COMMITTED
Annual Report
2025
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In a challenging environment, the TRATON GROUP
remains committed to its purpose: Transforming
Transportation Together. For a sustainable world.
Together with our partners and employees worldwide,
we are staying on track – with an unwavering focus
on the needs of our customers and on sustainable
transport solutions.
The contents of this annual report are
also available online as a user-friendly
full HTML version, including an interactive
key figure calculator, some in-depth
articles on current topics in the
TRATON GROUP, and a video featuring
the highlights of 2025.
Learn more
COMMITTED
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AT A GLANCE
Incoming orders
(units)
Operating return on sales
(adjusted)
Sales revenue
(€ million)
Active workforce
44,052
107,454
281,325
6.3%
3 TRATON GROUP 2025 Annual Report
To Our
Shareholders
Combined
Management Report
Consolidated
Financial Statements
Responsibility Statement
and Independent
Auditor’s Reports
Sustainability
Report
Further
Information
Responsibility Statement and
Independent Auditor’s Reports
Responsibility Statement 260
Independent Auditor’s Report 261
Assurance Report of the Independent Public Auditor on a Limited Assurance Engagement 274
Sustainability Report
General Information 278
Environmental 298
Social 323
Governance 350
Notes to the Sustainability Report 365
Further Information
Remuneration Report 377
Independent Auditor’s Report 412
Financial Calendar 414
Glossary 415
Five-Year Overview 417
4 TRATON GROUP 2025 Annual Report
To Our
Shareholders
Combined
Management Report
Consolidated
Financial Statements
Responsibility Statement
and Independent
Auditor’s Reports
Sustainability
Report
Further
Information
At a Glance
2025 2024 Change
Order situation (units)
Incoming orders 281,325 263,575 7%
Unit sales 305,486 334,215 –9%
Trucks 239,783 278,130 –14%
Buses 34,359 28,413 21%
MAN TGE vans 31,344 27,672 13%
BEV unit sales ratio (excluding MAN TGE vans, in %) 1.2 0.5 0.6 pp
TRATON GROUP
Sales revenue (€ million) 44,052 47,473 –7%
Operating result (adjusted) (€ million) 2,773 4,384 –1,611
Operating return on sales (adjusted) (in %) 6.3 9.2 –2.9 pp
Earnings per share (€) 3.09 5.61 –2.52
Active workforce1 107,454 105,541 1,913
TRATON Operations
Sales revenue (€ million) 42,536 46,182 –8%
Operating result (adjusted) (€ million) 3,092 4,776 –1,684
Operating return on sales (adjusted) (in %) 7.3 10.3 –3.0 pp
Net cash flow (€ million) 1,643 2,834 –1,191
Primary R&D costs (€ million)2 2,731 2,456 11%
Capex (€ million) 1,555 1,751 –11%
TRATON Financial Services
Sales revenue (€ million) 2,188 1,932 13%
Earnings before tax (€ million) 172 212 –40
Equity (€ million)1 2,275 2,052 223
Return on equity (in %) 8.0 10.8 –2.8 pp
1 As of December 31
2 The previous year’s figure was adjusted to the current presentation, see the Combined Management Report
section Financial management.
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CONTENTS
TO OUR SHAREHOLDERS
To Our Shareholders 6
Executive Board 8
Report of the Supervisory Board 9
TRATON on the Capital Markets 17
TRATON Way Forward 23
Highlights 2025 26
RESPONSIBILITY STATEMENT
AND INDEPENDENT AUDITOR’S
REPORTS
Responsibility Statement 267
Independent auditor’s report 268
Assurance report of the independent
German public auditor on a limited
assurance engagement 282
SUSTAINABILITY REPORT
General Information 287
Environmental 308
Social 334
Governance 361
Notes to the Sustainability Report 376
FURTHER INFORMATION
Remuneration Report 389
Independent Auditor’s Report 424
Financial Calendar 426
Glossary 427
Five-Year Overview 429
Disclaimer 432
Publication Details 432
COMBINED
MANAGEMENT REPORT
Key Information about the TRATON GROUP 29
Report on Economic Position 39
TRATON SE (German GAAP, condensed) 70
Report on Expected Developments,
Opportunities, and Risks 74
Nonfinancial Group Statement 95
Supplemental Information on
Fiscal Year 2025 107
CONSOLIDATED
FINANCIAL STATEMENTS
Income Statement 139
Statement of Comprehensive Income 140
Balance Sheet 142
Statement of Changes in Equity 144
Statement of Cash Flows 146
Notes to the Consolidated
Financial Statements 148
1 2 3
4 5 6
4 TRATON GROUP 2025 Annual Report
To Our
Shareholders
Combined
Management Report
Consolidated
Financial Statements
Responsibility Statement
and Independent
Auditor’s Reports
Sustainability
Report
Further
Information
At a Glance
2025 2024 Change
Order situation (units)
Incoming orders 281,325 263,575 7%
Unit sales 305,486 334,215 –9%
Trucks 239,783 278,130 –14%
Buses 34,359 28,413 21%
MAN TGE vans 31,344 27,672 13%
BEV unit sales ratio (excluding MAN TGE vans, in %) 1.2 0.5 0.6 pp
TRATON GROUP
Sales revenue (€ million) 44,052 47,473 –7%
Operating result (adjusted) (€ million) 2,773 4,384 –1,611
Operating return on sales (adjusted) (in %) 6.3 9.2 –2.9 pp
Earnings per share (€) 3.09 5.61 –2.52
Active workforce1 107,454 105,541 1,913
TRATON Operations
Sales revenue (€ million) 42,536 46,182 –8%
Operating result (adjusted) (€ million) 3,092 4,776 –1,684
Operating return on sales (adjusted) (in %) 7.3 10.3 –3.0 pp
Net cash flow (€ million) 1,643 2,834 –1,191
Primary R&D costs (€ million)2 2,731 2,456 11%
Capex (€ million) 1,555 1,751 –11%
TRATON Financial Services
Sales revenue (€ million) 2,188 1,932 13%
Earnings before tax (€ million) 172 212 –40
Equity (€ million)1 2,275 2,052 223
Return on equity (in %) 8.0 10.8 –2.8 pp
1 As of December 31
2 The previous year’s figure was adjusted to the current presentation, see the Combined Management Report
section Financial management.
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TO OUR
SHAREHOLDERS
1
To Our Shareholders 6
Executive Board 8
Report of the Supervisory Board 9
TRATON on the Capital Markets 17
TRATON Way Forward 23
Highlights 2025 26
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6 TRATON GROUP 2025 Annual Report
To Our
Shareholders
Combined
Management Report
Consolidated
Financial Statements
Responsibility Statement
and Independent
Auditor’s Reports
Sustainability
Report
Further
Information
TO OUR SHAREHOLDERS
Dear shareholders,
2025 was a challenging year for the TRATON GROUP and our customers due to a volatile macroeconomic environment. Nevertheless, we can proudly look
back on the many challenges we have tackled together while defending our market share. We delivered on a key milestone, the establishment of a TRATON
GROUP R&D on July 1, 2025. The team of 9,000 engineers now jointly develop products for customers of all our brands and conti nue to contribute to our
main competitive advantage: the TRATON Modular System (TMS). Stand ardized interfaces will ensure that the product offering fits our customers’ needs
globally. The work with the TRATON Modular System is not done. It is a complex task to implement it in all four brands, each with their unique competence
and history. Overcoming this challenge will lead us to become stronger as a Group.
Another key milestone that I want to highlight is the bold steps we have taken in China, the world’s largest truck market. We have succeeded in establishing
an industrial hub in Rugao. Then the TRATON GROUP unveiled NEXT ERA, an ‘In China, with China’ trac tor product range. Local production in Rugao and
the evolution of the TMS allow for a further extension of our product and service portfolio and business models to better fit the Chinese long-haul market,
and to drive change towards a more sustainable transport system.
Finally, we continue to push ourselves and our industry when it comes to our sustainability promise. At COP30 in Belém, Volkswagen Truck & Bus, together
with a coalition of logistics companies, infrastructure providers, and the Brazilian government, presented the e -Dutra project, one of the largest private -
sector collaborations to decarbonize freight in Brazil’s transportation industry. By aggre gating demand and aligning stakeholders, the initiative aims to
reduce the risk of investment in charging infrastructure and accelerate the deployment of zero-emission trucks.
The TRATON leadership team has been very stable throughout the year. There have been no changes in the TRATON Executive Board. Karl Bernqvist joined
us in the function of Chief Procurement Officer (CPO) at TRATON and CPO at MAN. He brings impressive experience from almost all the TRATON brands and
many years in procurement.
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7 TRATON GROUP 2025 Annual Report
To Our
Shareholders
Combined
Management Report
Consolidated
Financial Statements
Responsibility Statement
and Independent
Auditor’s Reports
Sustainability
Report
Further
Information
The TRATON GROUP responded to the demanding economic and political environment in 2025 with adaptations in our roadmap, such as a slower ramp-up
of electrification in North America. Furthermore, we have put cost control in focus while continuing to invest sensibly in areas that are vital for the future of
the Group. Sadly, we had to say goodbye to some very talented colleagues whom I sincerely thank for their commitment to our mission. Despite headwind
from the markets, this enabled us to mitigate the decline of financial key performance indicators. The TRATON GROUP’s unit sales totaled 305,500 vehicles
in 2025, 9% below the prior -year level. Sales revenue decreased by 7% to €44. 1 billion. Adjusted operating result came in at around €2. 8 billion, down 37%
year-on-year. At 6.3%, operating return on sales was within the forecast range of 6.0 to 7.0%. This achievement would not have been possible without the
commitment of every one of our 107,000 employees around the world.
As our shareholders, our performance benefited you in two ways. In May 2025, we paid out a dividend of €1.70 per share for th e very successful fiscal year
2024, €0.20 more than the previous year. Along with the positive share price performance, this led to a total shareholder return of 15.2% in 2025, based on
the Xetra listing. Our dividend policy is clear. It is based on a payout ratio of 30 to 40% of the Group's consolidated earni ngs after tax. Therefore, we are
proposing to the Annual General Meeting 2026 that a dividend of €0.93 be paid out per share for this fiscal year.
I trust that we can continue to count on your support as our shareholders.
Kind regards
Christian Levin
CEO of TRATON SE
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ANTONIO ROBERTO CORTES
Member of the Executive Board of
TRATON SE, Chief Executive Officer
of Volkswagen Truck & Bus
ALEXANDER VLASKAMP
Member of the Executive Board of
TRATON SE, Chief Executive Officer
of MAN
MATHIAS CARLBAUM
Member of the Executive Board of
TRATON SE, Chief Executive Officer
and President of International
NIKLAS KLINGENBERG
Member of the Executive Board of
TRATON SE, responsible for Group
Research & Development
CHRISTIAN LEVIN
Chairman of the Executive Board and
Chief Executive Officer of TRATON SE,
President and Chief Executive Officer
Scania AB/Scania CV AB
CATHARINA MODAHL NILSSON
Member of the Executive Board of
TRATON SE, responsible for Group
Product Management
Executive Board
DR. MICHAEL JACKSTEIN
Member of the Executive Board of
TRATON SE, responsible for Finance,
Business Development, and Human
Resources
8 TRATON GROUP 2025 Annual Report
To Our
Shareholders
Combined
Management Report
Consolidated
Financial Statements
Responsibility Statement
and Independent
Auditor’s Reports
Sustainability
Report
Further
Information
Executive Board
Christian Levin
Chairman of the Executive Board and
Chief Executive Officer of TRATON SE,
President and Chief Executive Officer
Scania AB/Scania CV AB
Dr. Michael Jackstein
Member of the Executive Board of
TRATON SE, responsible for Finance,
Business Development, and Human
Resources
Catharina Modahl Nilsson
Member of the Executive Board of
TRATON SE, responsible for Group
Product Management
Niklas Klingenberg
Member of the Executive Board of
TRATON SE, responsible for Group Re-
search & Development
Alexander Vlaskamp
Member of the Executive Board of
TRATON SE, Chief Executive Officer of
MAN
Mathias Carlbaum
Member of the Executive Board of
TRATON SE, Chief Executive Officer and
President of International
Antonio Roberto Cortes
Member of the Executive Board of
TRATON SE, Chief Executive Officer of
Volkswagen Truck & Bus
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9 TRATON GROUP 2025 Annual Report
To Our
Shareholders
Combined
Management Report
Consolidated
Financial Statements
Responsibility Statement
and Independent
Auditor’s Reports
Sustainability
Report
Further
Information
Report of the Supervisory Board1
Dear shareholders,
In fiscal year 2025, the Supervisory Board closely followed the development of the TRATON GROUP and worked with the Executive Board on key issues.
During the reporting period, the Supervisory Board performed all of its duties and obligations in accordance with the law, the Articles of Association, and
the Rules of Procedure. On the basis of written and oral reports from the Executive Board, we regularly and comprehensively r eviewed the position and
development of the Group, and monitored and advised the Exe cutive Board in its management of the Group. We were involved in an advisory capacity in
all matters and decisions of major importance for the TRATON GROUP and discussed them with the Executive Board. We also regularly discussed strategic
matters with the Executive Board.
The Executive Board provided us with regular, timely, and comprehensive information on all matters relevant to the TRATON GROUP, in particular on busi-
ness development, including the impact of geopolitical and economic developments on the TRATON GROUP, deve lopments in China, the progress and
implementation of the Group R&D carve-out project, the development of the TRATON Modular System (TMS), and relevant business events, corporate plan-
ning, and discrepancies between actual business performance and planning, along with their causes. The Executive Board also reported to the Supervisory
Board on the TRATON GROUP’s strategy and the implementation status of strategic projects, the TRATON GROUP’s risk position an d risk management, as
well as compliance issues. In preparation for the meetings and resolutions, the Supervisory Board members were provided with the relevant documents
and information in advance. We also received a detailed report on the current business situation from the Executive Board on defined dates. The Supervisory
Board also met regularly without the Executive Board.
In addition, regular discussions took place outside of Supervisory Board meetings between the Chairman of the Supervisory Board and the Chairman of the
Executive Board, as well as other members of the Executive Board, during which issues and topics relevant to the company were addressed, such as business
development, planning, strategic projects, and matters relating to the risk position, risk management, and compliance. This e nsured that the Supervisory
Board was informed at all times about the intended bu siness policy, corporate planning, including financial, investment, and HR planning, the company’s
profitability and the course of business, as well as the situation of the company and the Group. Where decisions or measures required the approval of the
Supervisory Board, the Supervisory Board approved them after careful review, in some cases following preparation by the committees.
1 In accordance with section 171 (2) of the Aktiengesetz (AktG ― German Stock Corporation Act)
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10 TRATON GROUP 2025 Annual Report
To Our
Shareholders
Combined
Management Report
Consolidated
Financial Statements
Responsibility Statement
and Independent
Auditor’s Reports
Sustainability
Report
Further
Information
The Supervisory Board held seven meetings in fiscal year 2025. Five of these meetings were in-person, two were video meetings. In addition, the Supervisory
Board attended a strategy day in Södertälje, Sweden, where it received extensive information on the topic of software-defined vehicles and gained an insight
into the latest developments and cooperation within the Group. We adopted resolutions on specific, especially urgent matters in writing. The attendance
rate of members at Supervisory Board meetings ( calculated for all meetings in the fiscal year and for all Supervisory Board members in office) was 94.96%
in fiscal year 2025. The individualized attendance of the members of the Supervisory Board at the meetings of the Supervisory Board and its committees is
shown in the following overview:
Supervisory Board Presiding Committee Audit Committee Nomination Committee
No. % No. % No. % No. %
Mr. Pötsch 7/7 100 6/6 100 0 0
Mr. Kerner 7/7 100 6/6 100
Ms. Andersson 7/7 100
Dr. Antlitz1 2/2 100
Mr. Bechstädt 7/7 100 4/4 100
Ms. Carlquist 7/7 100
Mr. Cavallo 6/7 86
Dr. Döss 6/7 86
Mr. Kilian2 4/4 100 3/3 100 0 0
Dr. Kirchmann 7/7 100
Dr. Kuhn-Piëch 7/7 100 4/4 100
Ms. Lorentzon3 3/4 75 2/2 100
Mr. Luthin 7/7 100
Mr. Lyngsie 6/7 86 6/6 100
Ms. Macpherson 7/7 100 4/4 100
Dr. Dr. Porsche 6/7 86 6/6 100 0 0
Dr. Schmid 7/7 100
Ms. Schnur 6/7 86 6/6 100 4/4 100
Mr. Sedlmaier4 7/7 100
Mr. Wansch 7/7 100
Mr. Widén5 3/3 100 2/2 100
Mr. Witter 6/7 86 4/4 100
1 Supervisory Board member since September 26, 2025
2 Supervisory Board member and member of the Presiding Committee and the Nomination Committee until July 16, 2025
3 Supervisory Board member and member of the Audit Committee until June 30, 2025
4 Supervisory Board member until December 31, 2025
5 Supervisory Board member since July 1, 2025, and member of the Audit Committee since September 22, 2025
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11 TRATON GROUP 2025 Annual Report
To Our
Shareholders
Combined
Management Report
Consolidated
Financial Statements
Responsibility Statement
and Independent
Auditor’s Reports
Sustainability
Report
Further
Information
Committee activities
To discharge its duties, the Supervisory Board has formed the Presiding Committee and the Audit Committee, on each of which shareholders and employees
are represented equally with three representatives each. The Nomination Committee, which consists solely of shareholder representatives, was also formed.
The main role of the committees is to prepare Supervisory Board resolutions. In some cases, the Supervisory Board’s decision-making powers or tasks are
transferred to committees. The task of the Nomination Committee is to identify suitable candidates for Supervisory Board positions and to propose suitable
persons to the Supervisory Board for its proposals for election to be submitted to the Annual General Meeting. It takes account of the targets defined by the
Supervisory Board for its composition and the diversity concept applied to the composition of the Supervisory Board. In addition, care is taken to ensure
that the skills and expertise profile for the entire body is met. In this function, the shareholder representatives on the Presiding Committee form the Nomi-
nation Committee.
Mr. Frank Witter was Chairman of the Audit Committee. I chaired the Presiding Committee in my capacity as Chairman of the Supervisory Board. At the
Supervisory Board meetings, the Chairman of the Audit Committee and I provided regular reports on the work of the committees. The composition of the
committees in fiscal year 2025 can be found in the Corporate Governance Statement.
The Presiding Committee of the Supervisory Board held six meetings in the year under review. Two of these meetings were held in person and four were
held as video conferences. At its meetings, the Presiding Committee carefully prepared the resolutions of the Supervisory Board and submitted recommen-
dations for resolutions to the Supervisory Board. The focus of Executive Board and personnel matters was on the ESG-related performance evaluation of the
Executive Board, the renewal of the Executive Board appointments of Dr. Jackstein and Catharina Modahl Nilsson, long-term succession planning for the
Executive Board, and the appointment of Karl Bernqvist as a member of the Executive Board of MAN Truck & Bus SE for Procurement and as Chief Purchas-
ing Officer of TRATON SE as of November 1, 2025. Other key areas of focus for the Presiding Committee included the planning round, which covers the pillars
of medium- and long-term financial planning and the associated investment program, as well as further progress in the realignment of the Group’s Research
and Development division, and the Australian Medium-Term Note program (AMTN program).
The Nomination Committee did not meet in the year under review.
The Audit Committee held a total of four meetings in the year under review. All four meetings were held as video conferences. The Audit Committee dealt
in detail with financial reporting, the 2024 Annual Financial Statements and Consolidated Financial Statements of TRATON SE, and the audit reports sub-
mitted by the auditor, EY GmbH & Co. KG Wirtschaftsprüfungsgesellschaft (EY). It also addressed the requirements of the Corporate Social Responsibility
Directive, the export control requirements applicable to the Group, and the corresponding internal organization.
The committee discussed the quarterly reports and the half-year financial report with the Executive Board prior to their publication. EY reviewed the TRATON
GROUP’s Half-Year Financial Report for the period ended June 30, 2025. The review did not lead to any objections. The committee discussed the findings of
the review with the auditors in detail.
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12 TRATON GROUP 2025 Annual Report
To Our
Shareholders
Combined
Management Report
Consolidated
Financial Statements
Responsibility Statement
and Independent
Auditor’s Reports
Sustainability
Report
Further
Information
The Audit Committee additionally discussed the engagement of the auditor to audit the 2025 Annual Financial Statements (including the areas of emphasis
of the 2025 audit). In addition, the committee regularly addressed the business performance in the TRATO N GROUP, the internal control system, risk man-
agement and the risk management system, and the TRATON GROUP’s impending and pending litigation, among other things. The Audi t Committee also
addressed compliance and internal audit issues, such as an assessment of geopolitical procurement principles from a risk management perspective, as well
as the TRATON GROUP’s internal audit system, the audit plans for the TRATON GROUP’s Internal Audit function, as well as the i mplementation status. The
head of Group Audit of the TRATON GROUP and the Chief Compliance Officer of the TRATON GROUP reported to the committee in person on a regular basis.
Regular reports were also provided on progress in sustainability reporting and export control. The Audit Committee regularly consulted with the auditors
without the Executive Board.
The members of the Supervisory Board are responsible for obtaining the education and training necessary for them to perform t heir duties, for example
with regard to changes in the legal environment. In addition, they are supported by the company (e.g., through training measures). In addition, topics
relating to the Group are regularly discussed in depth at Supervisory Board meetings. On the one hand, this related to the BE V strategy together with the
battery and cell strategy. On the other, further regulatory developments and requirements regarding sustainability reporting, more in -depth information
on software and software-defined vehicles, and anti-corruption issues in the context of sustainability reporting were relevant topics. In addition, the Super-
visory Board received several hours of training on the topic of cybersecurity, with a focus on its duties as a supervisory body. New Supervisory Board mem-
bers are additionally given the opportunity to receive in -depth training on specific topics relating to th e Supervisory Board of TRATON SE as part of their
onboarding process. This regularly includes information on key legal frameworks and corporate governance issues that are rele vant to the performance of
their duties.
Issues addressed by the Supervisory Board
Topics discussed regularly by the Supervisory Board included trends with respect to orders, sales revenue, earnings, and empl oyment within the TRATON
GROUP, in particular the impacts of the geopolitical and economic environment on the TRATON GROUP. We also regularly addressed key strategic matters
and projects, as well as programs for the future at subsidiaries of TRATON SE. In general, the shareholder and employee repre sentatives met for separate
preliminary discussions before each of the Supervisory Board meetings.
The following additional information relates to the Supervisory Board meetings held in 2025:
Supervisory Board meeting on February 11, 2025
At our meeting, we discussed the planned strategic partnership in the field of software -defined vehicles with US company Applied Intuition and approved
a corresponding cooperation agreement between TRATON SE and Applied Intuition, Inc.
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13 TRATON GROUP 2025 Annual Report
To Our
Shareholders
Combined
Management Report
Consolidated
Financial Statements
Responsibility Statement
and Independent
Auditor’s Reports
Sustainability
Report
Further
Information
Supervisory Board meeting on March 3, 2025
At this meeting, following detailed examination and discussion, we approved the Annual Financial Statements for TRATON SE and the Consolidated Finan-
cial Statements with the Combined Management Report, including the Nonfinancial Group Statement, for TRATON SE and the TRATON GROUP for fiscal
year 2024 prepared by the Executive Board. The Supervisory Board also prepared the remuneration report for fiscal year 2024. In addition, the Supervisory
Board examined the report on relationships with affiliated companie s (Dependent Company Report). On completion of our examination, we raised no ob-
jections to the Dependent Company Report. Additionally, the Supervisory Board resolved to issue the audit engagement letter f or the 2025 Annual and
Consolidated Financial Statements and to engage the auditors to review the TRATON GROUP’s Half -Year Financial Report for the period ended June 30,
2025, and the remuneration report for fiscal year 2025. Other items on the agenda included setting targets for Executive Boar d compensation, reviewing
the appropriateness of Executive Board remuneration, and the corporate governance statement with the Executive Board’s diversity concept and the inde-
pendence of Supervisory Board members. We also discussed the agenda for the 2025 Annual Genera l Meeting and approved the Supervisory Board’s pro-
posed resolutions for the 2025 Annual General Meeting. In addition, the Executive Board provided an update on the BEV strategy, which we discussed with
the Executive Board.
Supervisory Board meeting on April 25, 2025
During our meeting, the developments of the TRATON Modular System (TMS) were presented to us and discussed.
Supervisory Board meeting on May 12, 2025
At this meeting, regarding Executive Board and Supervisory Board matters, we discussed and decided on the appointment of Mats Gunnarson as the new
CEO of TRATON Financial Services AB and approved the replacement of the Member of the Executive Board respons ible for Production and Logistics at
VWTB. We also received information about the launch of an Australian Medium -Term Note Program (AMTN program) for TRATON SE. We also received a
comprehensive project update on the Group R&D carve-out project and re-examined the TMS and the progress of the project.
Supervisory Board meeting on September 22, 2025
At our meeting, regarding Executive Board and Supervisory Board matters, we discussed and decided on the Social subtarget as a criterion for the variable
remuneration of the Executive Board for fiscal year 2026. In addition, Christina Widén was elected as a new member of the Audit Committee, and the ap-
pointment of Karl Bernqvist as the new Executive Board member for Procurement at MAN Truck & Bus SE and Chief Procurement Officer at TRATON SE was
approved, among other things. We also received an update on the progress of the TMS project and discussed the annual planning round and the investment
program. Other focus areas included reporting on developments in the China business case and on the topic of battery strategy.
Supervisory Board meeting on November 21, 2025
At this meeting, among other things, we discussed and decided on the renewal of the appointments of Dr. Michael Jackstein and of Catharina Modahl
Nilsson as members of the Executive Board of the TRATON GROUP and discussed and resolved the allocation of working hours for individual members of
the Executive Board for activities in subsidiaries. In addition, the annual planning round and investment program were again presented and discussed. We
also adopted the Declaration of Conformity with the German Corpora te Governance Code and took note of and approved the Executive Board’s decision
with regard to the execution of the 2026 Annual General Meeting. We then received an update on the status of the EU truck cas es relating to MAN
Truck & Bus SE and Scania CV AB. Finally, we evaluated and discussed the results of the Supervisory Board’s self-assessment.
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14 TRATON GROUP 2025 Annual Report
To Our
Shareholders
Combined
Management Report
Consolidated
Financial Statements
Responsibility Statement
and Independent
Auditor’s Reports
Sustainability
Report
Further
Information
Supervisory Board meeting on December 19, 2025
At our meeting, we once again discussed the planning round and the investment program in detail and adopted them by means of a corresponding reso-
lution.
Resolutions adopted in writing
In addition to the topics referred to above, we approved a secondary activity for Ms. Modahl Nilsson, among other things, by means of resolutions adopted
in writing. In addition, a resolution was adopted to launch an Australian medium-term note program for TRATON SE, and the appointment of Gabriel Duarte-
Urrutia as the new member of the Executive Management of International Motors LLC. responsible for HR was approved.
Conflicts of interest
No conflicts of interest involving members of the Supervisory Board within the meaning of recommendation E.1 of the German Corporate Governance Code
were reported in the year under review.
Corporate Governance and Declaration of Conformity
Implementation of the GCGC recommendations and suggestions was on the agenda of the Supervisory Board meeting on November 21, 2025. We discussed
the requirements in detail and, together with the Executive Board, issued the annual declaration on the GCGC recommendations in accordance with section
161 of the Aktiengesetz (AktG — German Stock Corporation Act). The declarations are permanently available on TRATON SE’s website at https://ir.tra-
ton.com/en/corporate-governance. The departures from the recommendations of the German Corporate Governance Code are described in detail and sub-
stantiated in the Declarations of Compliance.
Further information on corporate governance at TRATON is available in the Supplemental Information on Fiscal Year 2025 section of this Annual Report
under Corporate Governance.
Audit of the Annual and Consolidated Financial Statements and of the Dependent Company Report
The Annual General Meeting of TRATON SE elected EY as the auditor of the Annual Financial Statements and the Consolidated Fin ancial Statements for
fiscal year 2025 on May 14, 2025. The Supervisory Board issued the concrete audit engagement letter to EY in line with the Audit Committee’s recommen-
dations and specified the areas of emphasis of the audit.
The auditor audited the 2025 Annual Financial Statements of TRATON SE and TRATON’s 2025 Consolidated Financial Statements, to gether with the Com-
bined Management Report, and in each case issued unqualified auditor reports. In addition, the auditor audited the remuneration report for fiscal year 2025
prepared jointly by the Executive Board and the Supervisory Board in accordance with section 162 of the Aktiengesetz (AktG — German Stock Corporation
Act).
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In addition, the auditor assessed the internal control system and the risk management system and concluded that the Executive Board had taken the
measures required by section 91 (2) of the AktG to identify at an early stage any risks that could endanger the Group’s continued existence.
The Executive Board of TRATON SE prepared a report on relationships with affiliated companies (Dependent Company Report) in a ccordance with section
312 of the AktG for fiscal year 2025. The auditor audited the Dependent Company Report and issued the following opinion:
“Based on our audit performed in accordance with professional standards and our professional judgment, we confirm that:
1. The factual statements contained in the report are correct.
2. The consideration paid by the company for the legal transactions stated in the report was not excessive or any disadvantages were offset.
3. There are no circumstances that would support a materially different assessment of the actions or omissions stated in the rep ort from that of the Exec-
utive Board.”
The Supervisory Board concurred with the result of the audit of the Dependent Company Report by the auditor.
The above-mentioned annual financial statements, including the dependent company report, the audit reports, and the Executive Board’s proposal for the
appropriation of net profit, were made available to the members of the Audit Committee and the Supervisor y Board in good time before the meetings of
these bodies dealing with the 2025 annual financial statements.
These documents were discussed in detail at the Audit Committee meeting on February 25, 2026, in the presence of the auditor. The auditors reported to
the Audit Committee in detail on the key findings of their audits and were available to provide additional information.
Based on the audit reports by the auditor and its discussion with the auditor, as well as its own findings, the Audit Committ ee prepared the Supervisory
Board’s examination of the Consolidated Financial Statements and the Annual Financial Statements of TRA TON SE, as well as the Combined Management
Report (including the Nonfinancial Group Statement) and the Dependent Company Report, and reported on them in the Supervisory Board meeting on
February 25, 2026.
We examined these documents in depth in the knowledge of, and taking into account, the report by the Audit Committee and the auditor’s report, and in
our discussions with them. We came to the conclusion that there were no objections to the Annual Financial Statements and Consolidated Financial State-
ments prepared by the Executive Board for fiscal year 2025, and that the assessments by the Executive Board of the position of the company and the Group
presented in the Combined Management Report correspond to those of the Supervisory Board.
In the meetings on February 25, 2026, we concurred with the results of the audit by the auditor in line with the Audit Committee’s recommendation and our
own examination and approved the Annual Financial Statements prepared by the Executive Board and the Consolidated Financial Statements. The Annual
Financial Statements are thus adopted.
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We examined the Executive Board’s proposal on the appropriation of net earnings after considering in particular the interests of the company and its share-
holders and concurred with the proposal.
On completion of our examination, we raise no objections to the declaration by the Executive Board at the end of the Dependent Company Report.
Changes to the composition of the Supervisory Board and the Executive Board
Niklas Klingenberg has been a member of the Executive Board of TRATON SE since January 1, 2025, responsible for Group Research & Development. Effective
the end of June 30, 2025, Lisa Lorentzon resigned from her position as employee representative on the Su pervisory Board and thus also left the Audit
Committee. Christina Widén succeeded her as a member of the Supervisory Board effective July 1, 2025, and was elected to the Audit Committee on Sep-
tember 22, 2025. On the shareholder side, Gunnar Kilian resigned from his position as a member of the Supervisory Board effective the end of July 16, 2025.
As a result, Mr. Kilian also left the Presiding Committee and the Nomination Committee. Dr. Arno Antlitz was appointed as a member of the Supervisory
Board by order of the Munich Local Court on September 16, 2025. In addition, Josef Sedlmaier resigned from his position as a member of the Supervisory
Board effective the end of December 31, 2025. D irk Fuhrig has been a member of the Supervisory Board since January 1, 2 026, when he succeeded Mr.
Sedlmaier. We would like to thank the outgoing members of the Supervisory Board for their cooperation and constructive suppor t for TRATON SE over the
past years.
We would like to thank the Executive Board, the Works Council, the management, all employees of TRATON SE, and the employees of its affiliated companies
for their work in 2025, and extend our special appreciation to them. 2025 was another year that brought many challenges, some of them considerable, that
had to be overcome. With their great personal dedication and high level of motivation, they all made a decisive contribution to the TRATON GROUP’s suc-
cessful performance in fiscal year 2025.
Munich, February 25, 2026
On behalf of the Supervisory Board,
Hans Dieter Pötsch
Chairman of the Supervisory Board
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TRATON on the Capital Markets
Open dialog with the capital markets in fiscal year 2025
TRATON continued its open and transparent dialog with the capital markets in fiscal year 2025. The Investor Relations department kept institutional inves-
tors, private investors, financial analysts, and rating agencies continuously updated on market develop ments and business performance, the TRATON
GROUP’s strategic focus, as well as current topics and significant events within the company. The main discussion topics over the course of 2025 were: US
tariffs, investments in a new production facility in China, the advantages of Group R&D and the corresponding effects on the TRATON Modular System (TMS),
as well as cost-cutting measures in response to declining market conditions.
In the run-up to the quiet period for the quarterly financial statements, TRATON organized pre-close calls throughout fiscal year 2025. To promote transpar-
ent dialog, the capital markets were once again provided with a current overview of the latest develo pments and statements by management, as well as
key messages for the quarter. To publish and present its financial results, TRATON hosted virtual analyst and investor confer ences via audio or video each
quarter, followed by a Q&A round. Following the publi cation of the annual and quarterly figures, the Investor Relations department organized roadshow
activities together with the Executive Board.
This was supplemented by ongoing dialog with the capital markets during the fiscal year in the form of investor conferences a nd one-on-one and group
meetings. These formats were implemented both in-person and virtually. A total of 19 conference and roadshow activities were held during fiscal year 2025,
including four events for investors in debt instruments. The in -person events focused on Europe and North America, in particular the financial centers
Frankfurt, Stockholm, London, Paris, and New York. All da tes for the publication of financial results, the Annual General Meeting, and investor relations
activities are announced in advance and continuously updated in the financial and event calendar on the Investor Relations we bsite at https://ir.tra-
ton.com/en/financial-dates-events.
TRATON is increasingly focusing on digital channels in addition to direct capital market dialog. The TRATON Investor Relation s website serves as a central
source of information and offers continuous relevant content over and above the obligatory disclosures. TRATON also uses social media to regularly publish
posts with a capital market and financial focus, thereby reaching out to a broad target group.
The Annual General Meeting of TRATON SE was held in Munich on May 14, 2025, without the physical presence of shareholders and their representatives.
Around 370 people followed the virtual shareholders’ meeting online, including approximately 70 shareholders who registered via the shareholder portal.
Positive equity market performance in 2025
The performance of the international equity markets was mixed in the reporting year, but positive overall. While stock markets in Europe initially performed
better than those in the United States, US trade policy in particular led to increased volatility and falling prices, following the imposition of import tariffs. The
equity markets recovered from their losses over the course of the year, with prices in the United States in particular rising sizably on the back of expectations
of further interest rate cuts and strong performance by technology stocks. Overall, interest rate cuts by the leading central banks, the Fed (US) and the ECB
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(Europe), progress in the global trade dispute, the ceasefire in the Middle East conflict, and news of peace negotiations for Ukraine supported the mood on
the stock markets over the course of the year.
At 24,611 points, the German Dax benchmark index reached a new all-time high on October 9, 2025, and closed the trading year at 24,490 points, an increase
of 23.0%. The MDax, which comprises the 50 most important companies in Germany below the Dax and where TRATON is listed, closed the year up 19.7% on
the previous year-end. The Stoxx Europe 600 Industrial Goods & Services (SXNP) index, whose members are the largest listed European companies i n the
industrial goods and services sector, including TRATON, rose by 21.8% in 2025.
TRATON share price sees increase
TRATON SE shares initially performed well at the beginning of the year, riding the wave of positive sentiment on the equity m arkets. However, the import
tariffs imposed by the US government weighed on the markets later in the year. The measures announced i n March and implemented at the beginning of
April led to a noticeable correction in the share price at the end of the first quarter and beginning of the second quarter. A migration of capital from the
United States to Europe as a result of US tariff policy supported a significant recovery in the share price in the following months. At the end of July, the
TRATON GROUP had to downgrade its outlook for full-year 2025 in an increasingly difficult operating market environment with lower-than-expected sales
figures. The additional US tariffs on medium -duty and heavy-duty trucks announced in September under Section 232 of the Trade Expansion Act of 1962
(Section 232) further dampened sentiment in the commercial vehicle sector at the end of the third quarter. As a result, TRATON shares initially lagged behind
the major benchmark indices, but performed overall in line with the European commercial vehicle sector. Subsequently, the share price stabilized again at
the end of the year and followed the largely positive capital market trends. Overall, TRATON shares recorded a positive performance in 2025.
TRATON shares were priced at €30.50 on Deutsche Börse’s Xetra trading system and 334.00 SEK on Nasdaq Stockholm on December 31, 2025. This resulted
in price increases of 9.1% and 4.7% compared with the end of 2024. Including the dividend of €1.70 distributed for 2024, the total return to our shareholders
was 15.2% and 10.5%, respectively.
As of the end of 2025, 23 financial analysts rated TRATON shares, of which 7 issued a positive recommendation (“buy” or “overweight”). 13 analysts rated the
shares as “neutral”. The median analyst target price at year-end was €30.50.
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TRATON share price performance in 2025 compared with selected indices since January 1, 2025 (indexed; January 1, 2025 = 100%)
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Indicators for TRATON shares
2025 2024
Earnings per share in € (diluted/basic) 3.09 5.61
Price-earnings ratio (PE ratio)1 9.9 5.0
Dividend per share (€)2 0.93 1.70
Dividend yield (in %)3 3.0 6.1
Payout ratio (in %) 30 30
Xetra (in €)
Year-end closing price 30.50 27.95
Annual average price 29.86 29.28
Annual high 38.30 35.45
Annual low 25.28 20.46
Nasdaq Stockholm (SEK)
Year-end closing price 334.00 319.00
Annual average price 330.80 335.08
Annual high 419.00 407.00
Annual low 283.40 230.00
Number of shares (million)4 500 500
Market capitalization (€ billion)4 15.3 14.0
1 Year-end closing Xetra price in relation to earnings per share
2 2025: proposed dividend, subject to approval by the 2026 Annual General Meeting
3 Dividend per share based on the year-end closing price of TRATON shares (Xetra trading)
4 As of December 31
Increase in the free float and trading volume of TRATON shares
Volkswagen International Luxemburg S.A., Strassen, Luxembourg, a Volkswagen Group company, reduced its equity interest in the TRATON SE on
March 19, 2025. A total of €360 million in shares were placed at a price of €32.75 per share. This reduced Volkswagen International Luxembourg S.A.’s interest
in the share capital by 2.2%, from 89.7% to 87.5%. The free float increased accordingly and stood at 12.5% at the end of 2025 , with the trading volume of
TRATON shares also growing. The free float shareholder base comprises both institutional investors and retail shareholders from countries including Swe-
den, Germany, the UK, and the US, and was further expanded by the share placement.
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Efficient use of the debt market
TRATON also expanded its activities in the debt market. Despite continued geopolitical tensions and weak economic growth, the debt market proved robust
and receptive to large issuance volumes in 2025. Declining ECB key interest rates and stable corporate data supported demand, while default rates remained
historically low. Record issuance activity in the fourth quarter was also absorbed well by the market. Overall, 2025 offered a sufficient number of time win-
dows to TRATON for placements.
TRATON was able to continue relying on its sound credit ratings, which are influenced by Volkswagen AG’s ratings, among other factors. TRATON SE has had
long-term issuer ratings from Moody’s Investors Service (Moody’s) and S&P Global Ratings (S&P) since Ju ne 17, 2020. Since September 12, 2023, it has also
had short-term ratings from both rating agencies. The outlook for TRATON’s ratings was downgraded by one notch in each case in the four th quarter of
2025.
Ratings (as of December 31, 2025)
Long-term rating Outlook Short-term rating
Standard & Poor’s BBB negative A-2
Moody’s Baa2 stable P-2
Expansion of the debt capital framework programs
The European Medium Term Notes program (EMTN program) launched on March 12, 2021, was updated on March 24, 2025, and increased from €12.0 billion
to €18.0 billion. In addition to TRATON SE, the company’s indirect subsidiary TRATON Finance Luxembourg S.A. can also issue bonds under this program.
The issuance program is used for general corporate purposes, with the capital raised being used as needed within the TRATON G ROUP. In 2025, public
bonds were again issued under the EMTN program in Swedish kronor and Swiss francs, in addition to bonds in euros. The bonds were issued by TRATON
Finance Luxembourg S.A. and are listed on the Regulated Market of the Luxembourg Stock Exchange or, for Swiss francs, on the Swiss Stock Exchange.
Outstanding bonds of TRATON Finance Luxembourg S.A.
Million EUR SEK GBP CHF
Outstanding bonds 12/31/2024 8,650 12,550 450 500
Issuances 2,850 8,350 – 160
Repayments –3,050 – – –
Outstanding bonds 12/31/2025 8,450 20,900 450 660
In addition, Scania CV AB, an indirect subsidiary of TRATON SE, continued to have bonds outstanding under its € 5 billion bond issuance program in 2025.
These mature at the end of the first quarter of 2027.
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Outstanding bonds of Scania CV AB
Million EUR SEK NOK
Outstanding bonds 12/31/2024 500 11,225 1,100
Issuances – – –
Repayments 500 8,375 800
Outstanding bonds 12/31/2025 – 2,850 300
To ensure further diversification, TRATON successfully launched an Australian Medium-Term Note program (AMTN program) with a volume of AUD 5.0 billion
(approximately €2.8 billion) in 2025. TRATON used this step to expand its financing strategy and opened up access to new investor groups in Australia, New
Zealand, Japan, Singapore, and Hong Kong. The AMTN program supplements the existing EMTN program. As of December 31, 2025, no bonds had been
issued under the new AMTN program.
In addition, as part of its sustainability strategy, the TRATON GROUP launched a Green Finance Framework in the fourth quarte r of 2025 that serves to
finance and refinance sustainable investments in battery-electric vehicles (BEVs) along its entire value chain. As of December 31, 2025, TRATON did not issue
any financing instruments with reference to the Green Finance Framework.
Regular financing under the Commercial Paper program
In addition to the aforementioned framework programs, TRATON regularly uses the commercial paper program (CP program) established in 2023 for short-
term funding with maturities of up to one year, which can be utilized with a total volume of €2. 5 billion. The issuers under the CP program are TRATON SE
and its indirect subsidiaries TRATON Finance Luxembourg S.A. and TRATON Treasury AB. Through the CP program, TRATON can issue bonds in various
currencies, and the funds raised are intended for general corporate purposes.
Further information about TRATON shares, outstanding bonds, and TRATON’s ratings, as well as financial news, financial report s, presentations, and infor-
mation about the Annual General Meeting can be found on our Investor Relations website at https://ir.traton.com/en/.
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TRATON Way Forward
Ongoing climate change, the growing importance of sustainability, decarbonization and geopolitical changes, and digital trans formation pose complex
challenges for TRATON, yet also present a large number of opportunities. The TRATON GROUP’s strategy, the TRATON Way Forward, is based on a long-term
vision that describes how TRATON will manage this environment and hence the resulting changes expected in the transportation and logistics industry. As
part of this strategy, TRATON has set itself the overarching goal of acting sustainably and responsibly at all times.
The TRATON Way Forward consists of three pillars, together with an additional focus on the systematic implementation and exec ution of the strategy. The
elements are: (1) Responsible Company; (2) Value Creation; (3) TRATON Accelerated!; and (4) Strategy Execution.
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1. Responsible Company
The TRATON GROUP intends to become even more responsible as a company in every respect. Decarbonization, circularity, and hum an rights play a key
role in this endeavor and are a top priority for the company. Together with our brands, we are working hard on our purpose of continuing to transform
transportation in a sustainable way. Our objective is to generate the greatest possible benefit for our customers and society as a whole across the entire life
cycle of our products. The TRATON GROUP has a strong focus on achieving its environmental objectives and fostering sustainable conduct toward people:
employees, customers, suppliers, and strategic partners. Being responsible has the highest priority and influences everything we do.
As part of its decarbonization strategy, the TRATON GROUP is focusing on battery -electric vehicles. A condition for this is the rapid development of the
conditions needed to achieve this, such as the corresponding charging infrastructure and relevant grid connections, as well a s a supportive regulatory
environment. It will also allow us to make a significant contribution to the decarbonization of the global transportation sector. One example of our stronger
sense of responsibility is the establishment of the Milence charging joint venture, which we operate together with Daimler Truck and the Volvo Group. Joint
investments of €500 million to build high-performance charging points along all major trans -European transportation networks in Europe are key factors
for expanding electric mobility.
Responsible Company also includes a corporate culture that focuses on people and diversity. Our understanding of the term goe s beyond the popular
notion of diversity. The TRATON GROUP will strengthen its actions to consciously bring together and secure the inclusion of people with different experi-
ences, educational backgrounds, and personalities. To be able to act responsibly, the company also continues to focus increasingly on ethical principles in
corporate governance.
2. Value Creation
For TRATON, customers are at the heart of value creation, which is why this is the second pillar of TRATON’s strategy. TRATON can only be successful as a
company and build a foundation for creating value for all TRATON GROUP stakeholders in the long term i f it can sustainably create value for its customers
and enhance their business success. Unlocking additional revenue streams and developing important markets are key elements of this strategy. The
TRATON GROUP has defined ambitious medium -term business performance targets. Adjusted operating return on sales is expected to be between 9 and
11% in 2029. Over the period from 2024 to 2029, the TRATON GROUP’s sales revenue is projected to grow between 20 and 40%. By the end of the decade,
TRATON also aims to completely eliminate net debt in the TRATON Operations business area, including Corporate Items. Making all TRATON brands even
stronger is another objective. Each brand has a clearly defined, brand-specific strategic target return and works to deliver on it.
TRATON’s entry into the North American market in 2021 strengthened its global footprint by giving it access to the world’s la rgest profit pool in the com-
mercial vehicle industry. International plays a key role in this regard and will be led to new strength s as part of our strategy. The measures for doing this
range from using the powerful component and technology setup within the TRATON GROUP and expanding the financial services bus iness, all the way to
even more effectively leveraging International’s dealer and service network, which is one of the largest independent networks in the North American mar-
ket. The development and launch of the new International S13 Powertrain on the basis of the Group-wide 13-liter Common Base Engine (CBE) diesel engine
was a key milestone.
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Moreover, as part of its global expansion, the TRATON GROUP will further strengthen its presence in Asia. In October 2025, Sc ania took a highly significant
step by inaugurating its new plant in Rugao, China. China is the world’s largest commercial vehicle market. Fleet customers in China are showing growing
interest in high-quality vehicles, which is why expectations for efficiency and safety are also continuing to rise. TRATON will continue to meet these require-
ments in the future with appropriate investments in the Asian region. In addition to the new, additional production capacity on site, the presence in China
also offers TRATON the opportunity to benefit from technological innovations in the Chinese market.
3. TRATON Accelerated!
The third element of the TRATON strategy is particularly forward -looking. In a world increasingly shaped by electrification, autonomous driving, and con-
nectivity, TRATON will create more added value for customers in the future by creating new business mode ls, solutions, and partnerships. The TRATON
GROUP is accordingly expanding its perspective on business potential beyond pure transportation. What matters here is develop ing the right capabilities
and partnerships in order to be able to help shape the trans formation of the industry. TRATON successfully launched commercial autonomous driving
operations with safety drivers in the US in 2025, meeting the milestone goal set. Further expansion of commercial routes in T exas, USA, is being prepared
for 2026 in collaboration with partner PlusAI, based in California, USA.
4. Strategy Execution
The fourth element is focused on executing the strategy. TRATON has set out the strategic framework for the coming years with the TRATON Way Forward.
The task now is to implement this strategy systematically. One core element is expanding the TRATON Modular System to concentrate development capa-
bilities and hence strengthen the overall competitiveness by and through closer organizational integration. We laid the corne rstone by establishing new
Group functions (Group Industrial Functions) for product management, research & development and by coordinating purchasing, production, and logistics
across the whole Group.
All four elements of the TRATON Way Forward are interconnected. Together, they form the strategy that makes it possible for the TRATON GROUP to create
an even more responsible company, add value, and pave the way toward a sustainable future.
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Highlights 2025
The TRATON GROUP made important decisions at Group level in 2025 to ensure its future success in the global commercial vehicle market.
The TRATON GROUP’s Group-wide research and development function started operating on July 1, 2025, marking a strategic milestone. Around 9,000 em-
ployees from the R&D departments of the TRATON brands Scania, MAN, International, and Volkswagen Truck & Bus moved to the new Group R&D depart-
ment, which was established at the beginning of 2025 and is headed by Niklas Klingenberg, member of the Executive Board responsible for Group Research
& Development. The employees in Group R&D will be working closely with approximately 3,000 colleagues in the R&D departments of the TRATON brands.
They ensure that work on brand-specific solutions is successfully continued in Brand Identity Development (BID).
In addition, TRATON Financial Services AB (TFS) completed the rollout of the framework agreement with Volkswagen Financial Services (VWFS) for the
rights to provide financial solutions in 14 strategic markets on June 30, 2025. In the second half of the year, TFS contin ued its multi -brand expansion by
entering the Czech Republic and Denmark. TFS now operates in more than 60 countries, with more than 20 markets serving multiple TRATON brands.
The Group made clear progress in implementing the TRATON Modular System in 2025. In October, for example, Scania broke ground on a new body factory
in Oskarshamn, Sweden, which will produce the cab as part of the TRATON Modular System. Looking ahead, MAN has decided to invest in the next genera-
tion of vehicles in Eastern Europe as well to support the TRATON Modular System.
At the end of November 2025, the TRATON SE’s Supervisory Board also made two important personnel decisions that will ensure t he Group continues on
its successful course. The contract of Dr. Michael Jackstein as Executive Board member responsible for Finance, Business Development, and Human Re-
sources was extended, as was the contract of Catharina Modahl Nilsson, who is the Executive Board member responsible for Group Product Management.
The TRATON GROUP brands reported numerous strategy and product highlights in fiscal year 2025:
Scania
Scania opened a new production facility in Rugao, China, on October 15, 2025. The plant is aligned with Scania’s global produ ction standards and incorpo-
rates the requirements of the TRATON GROUP’s Modular System. It will both serve the Chinese domestic mar ket and export products to Asia and Oceania.
Scania also presented its NEXT ERA product line, which is tailored to the Chinese market. It will complement the premium vehicles that Scania developed
to meet individual customer requirements.
Scania is pursuing the goal of contributing to sustainable transportation in the future through efficiency improvements in th e field of diesel engines. The
new Super 11 engine, which was introduced in mid-May 2025, will play an important role in supplementing the drive portfolio. This 11-liter engine is 85 kilo-
grams lighter than the Super 13 engine and achieves fuel savings of up to 7% compared with the 9-liter engines of the current generation.
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MAN
MAN started series production of battery -electric heavy-duty trucks at its original plant in Munich in June 2025. Electric and diesel trucks are now being
manufactured in series there on the same production line in a fully integrated mixed production process. With the Lion’s Coach E model, MAN was also the
first European manufacturer to launch an all-electric coach, which received the “Sustainable Bus of the Year 2026” award in October 2025.
In April 2025, MAN paved the way for future success by launching its own battery production in Nuremberg. The investment volu me for this large -scale
battery production amounted to around €25 0 million. This step will enable MAN to increase vertical integration at its Nuremberg site. This means that, in
addition to the packs consisting of several modules, the modules themselves, which combine several battery cells, will also be produced in Nuremberg for
the next generation of batteries.
Also at the Nuremberg plant, MAN started production of the efficient new 13 -liter MAN D30 diesel engine in February 2025, which is based on the Group -
wide Common Base Engine (CBE) drive, along with the eCoach. This is the largest standard engine in the brand portfolio and is installed in the 40-ton MAN
TGX and MAN TGS semitrailer tractors.
International
International has made significant progress in the development of self -driving trucks. In collaboration with PlusAI, a company that specializes in autono-
mous driving, International began conducting test drives with customer vehicles in September 2025. International has established a dedicated autonomous
driving hub in San Antonio, USA, to work with fleet customers and accelerate the adoption of autonomous technologies in logistics companies.
International is also making progress toward sustainable transportation in the field of diesel engines. International is also using the TRATON GROUP’s effi-
cient CBE drive platform in its S13 Integrated Powertrain. Its market penetration increased sharply i n 2025. In the Class 8 segment, which is important for
the USA, almost every second truck sold by International in 2025 was equipped with this state-of-the-art drive system. It reduces fuel consumption by up to
15% compared with its predecessor.
Volkswagen Truck & Bus
Volkswagen Truck & Bus (VWTB) consistently generates strong returns and cash flows even in difficult market conditions. VWTB has also been offering
financial services to customers in Mexico since April 2025 and in Brazil since July 2025 under the umbrella of TRATON Financi al Services. Banco TRATON
Brazil has been awarded an AAA rating by the local rating agency Moody’s.
VWTB battery-electric commercial vehicles exceeded the 3 million test kilometer mark in 2025. VWTB is currently conducting more than 50 tests for electric
vehicles. The new e-Volksbus 22L, for example, is already operating in São Paulo in cooperation with VWTB customers.
Together with Scania do Brasil and the TRATON GROUP, VWTB is supporting the e -Dutra Corridor, as the first Zero-Emission Corridor in Brazil. The e-Dutra
Corridor is part of the Global Green Road Corridors Initiative. VWTB completed the first trip of a battery-electric truck along the Corridor in November 2025
in collaboration with Scania, leveraging the existing infrastructure.
===== SIDA 28 =====
COMBINED
MANAGEMENT REPORT
Key Information about the
TRATON GROUP 29
Report on Economic Position 39
TRATON SE (German GAAP, condensed) 70
Report on Expected Developments,
Opportunities, and Risks 74
Nonfinancial Group Statement 95
Supplemental Information
on Fiscal Year 2025 107
2
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29 TRATON GROUP 2025 Annual Report
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Financial Statements
Responsibility Statement
and Independent
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Further
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COMBINED MANAGEMENT REPORT
All figures shown are rounded, so minor discrepancies may arise from addition of these amounts. Comparable prior -year figures are presented in brackets
alongside the figures for the fiscal year under review.
Key Information about the TRATON GROUP
1. Business activities and organization
With its four brands Scania, MAN, International, and Volkswagen Truck & Bus, the TRATON GROUP is one of the world’s leading manufacturers of commercial
vehicles. The portfolio consists of trucks, buses, and light-duty commercial vehicles, as well as the sale of spare parts and customer services. In addition, the
TRATON GROUP offers a large number of financial services to its customers.
The four brands of the TRATON GROUP are clearly positioned:
Scania is a proud leader in premium transportation solutions, specializing in heavy -duty trucks and offering an array of tailored services and applications.
Scania empowers business partners and customers to progress through strong and trusted collaboration and a firm commitment to guiding them through
the shift to fossil-free transportation. With a global footprint, Scania serves markets across Europe, North and South America, Asia, Africa, and Oceania.
MAN is a strong German heritage brand, operating internationally across Europe, Asia, the Middle East, Africa, and South America. MAN’s strength lies in its
extensive range of transportation solutions, from light commercial options to durable construction vehicles and heavy-duty trucks. What truly sets MAN
apart is its unwavering commitment to its customers, constantly striving to optimize their businesses and adapt to the dynami c changes in their require-
ments.
International’s roots in North America date back to the 1800s, when its predecessors pioneered mechanized harvesting. Today, International offers compre-
hensive mobility solutions in particular for North America. Among its key strengths are its vast dealer network, the deep industry expertise , and its excep-
tionally strong and loyal customer relationships.
Volkswagen Truck & Bus (VWTB) stands for unparalleled value-for-money solutions. Its core competence is vehicles that are robust, reliable, and efficient —
tailored to meet the unique conditions of emerging growth markets and the specialized applications required there. Its str ong presence in South America
and Mexico underlines its adaptability and commitment to meeting the specific needs of its customers in these dynamic regions.
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30 TRATON GROUP 2025 Annual Report
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The largest production sites of Scania and MAN are located in Europe. The original plants are located in Södertälje, Sweden, and Munich, Germany. Interna-
tional produces vehicles in the United States and Mexico. Scania and VWTB trucks and buses are also man ufactured in Brazil. Scania is expanding its pres-
ence in China and opened a new production facility in Rugao for this purpose in October 2025.
The TRATON Financial Services segment is a global, brand -neutral financial services provider. The services include financing options to cover demand for
new technologies and business models. With its own financial brands, the company offers financing, leas ing, insurance, and modular finance solutions in
more than 60 countries worldwide and supports vehicle sales and the Vehicle Services business in close cooperation with all brands of the TRATON GROUP.
The TRATON Financial Services segment focuses on a diversified financing strategy that targets efficient, sustainable growth. In the long term, its priorities
are to expand BEV financing, optimize the operating model, and create business models such as Transportation as a Service (TaaS).
The TRATON GROUP is committed to sustainably continuing to transform transportation. Among other things, compliance with emis sions and CO 2 stan-
dards for commercial vehicles in the European Union, North America, Brazil, and China, as well as the success of the TRATON GROUP’s transformation toward
sustainable transportation, depends on the relevant political conditions, such as an efficient, widesp read charging infrastructure, as well as developments
in trade and tariff policy.
The Executive Board of TRATON SE manages the company and steers the strategic focus of the TRATON GROUP. This board currently consists of seven
members. The experienced management team consists of the Chief Executive Officer (CEO), Chief Financial Officer (CFO), and Ch ief Human Resources
Officer (CHRO), as well as another Executive Board member responsible for TRATON GROUP Product Management, and the CEOs of Scania, MAN, In terna-
tional, and VWTB. As of January 1, 2025, the Executive Board team was expanded to include a member for the new Group R&D function. The Group’s research
and development activities are now pooled directly in the Executive Board. Around 9,000 employees from the R&D departments of the TRATON brands
have come together under the umbrella of Group R&D to collectively advance the TRATON Modular System.
At the end of 2025, the Group employed a total of 107,454 (105,541) people worldwide.
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31 TRATON GROUP 2025 Annual Report
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TRATON GROUP reporting structure
The TRATON GROUP’s reporting is based on the following presentation:
The TRATON GROUP’s activities are divided into the industrial business (TRATON Operations) and financial services (TRATON Fin ancial Services) business
areas. The TRATON Operations business area consists of the four segments Scania Vehicles & Services (brand name: Scania), MAN Truck & Bus (brand name:
MAN), International Motors (brand name: International), and Volkswagen Truck & Bus (brand name: Volkswagen Truck & Bus — VWTB). The centralized ac-
tivities of Group R&D are included in the TRATON Operations business area for accounting purposes.
Corporate Items contains the following items within the organizational structure and financial reporting:
– TRATON Holding (consisting of TRATON SE and its investees not allocated to specific segments),
– consolidation effects between the business areas as well as with TRATON Holding,
– and the effects of purchase price allocation from the acquisition of individual segments are summarized under Corporate Items.
2. Research & development
The TRATON GROUP aims to drive forward the transition to sustainable transportation with its investments in research & development. The TRATON Modular
System (TMS) plays a central role here. The TMS will also increasingly be a catalyst for commercial success because it supports efficiency and g lobal scala-
bility. This strategic approach ensures versatile, efficient solutions and enables the TRATON brands to deploy competitive innovative technologies. The heart
of this approach is the development of modular components with universal applicability across brands and applications. This approach reduces complexity,
streamlines product development and is thus a significant driver on the road to sustainable transportation solutions.
===== SIDA 32 =====
32 TRATON GROUP 2025 Annual Report
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The integration of significant parts of the R&D departments of the individual brands into a cross -brand organization was completed on June 30, 2025, with
the result that Group R&D was able to commence operations on July 1, 2025. This saw the TRATON GROUP r each a strategic milestone. Approximately
9,000 employees from the research and development departments of the TRATON brands Scania, MAN, International, and VWTB are now working under
the umbrella of Group R&D. As a result, there was a change in the Group management of the TRATON GROUP, which impacts segment reporting. This
change is described in detail in the Financial management section.
The TRATON GROUP not only focuses systematically on innovation, but also on harmonizing product modules and securing different performance steps. In
addition, the company is making substantial investments in forward -looking key areas, such as electrification and autonomous driving. In this context,
expenditures of more than €2.4 billion are planned for the years from 2026 to 2030.
Since July 1, 2025, Group R&D has focused its research and development activities on the TRATON Modular System and related components projects. These
include electric drives, the next generation of electrical/electronic architecture (E/E architecture), and compliance with future emissions legislation such as
the Euro 7 and EPA 2027 emissions standards for the Group-wide 13-liter powertrain. In addition, Group R&D and US software company Applied Intuition, a
vehicle software provider based in Silicon Valley, have started working together to build a software platform for all of the Group’s brands. The aims are to
develop software-defined vehicles and introduce digital innovations more quickly and efficiently.
Scania’s research and development activities in 2025 continued to focus on electric mobility. Scania also invested in the expansion of the R&D department
in China. In the future, vehicles will be offered that are specifically tailored to Chinese market con ditions and customer requirements. In November 2025,
Scania unveiled the new NEXT ERA series in China, a locally developed truck platform for long -haul transportation. AI-based systems have proven the per-
formance of self-driving trucks and demonstrated their precision and safety. In parallel, Scania is driving forward the introduction of autonomous solutions
for hub-to-hub transportation and mining — a crucial step towards more efficient and sustainable transportation solutions.
MAN’s research and development activities in 2025 focused on truck electrification, including the continued development, inte gration, and type approval
(homologation) of battery technology in production -ready battery-electric vehicles, as well as the 2028 model year for the next generation of trucks. Work
also continued on the TRATON Modular System and the development of the Euro 7 emissions standard for the D08 diesel engine.
International’s R&D expenditure in 2025 focused primarily on optimizing the Class 8 truck product range, more advanced safety systems, and connectivity
features. However, work on the electric regional transportation project was discontinued and development of the next generation of battery-electric vehicles
was terminated in order to align the future product portfolio with market requirements and regulatory conditions.
In South America, VWTB focused its research and development efforts in 2025 primarily on projects to meet statutory requireme nts and an expanded
technology package for the truck series.
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33 TRATON GROUP 2025 Annual Report
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Research & development in figures, TRATON Operations
€ million 2025 2024 Change
Primary R&D costs, TRATON Operations1 2,731 2,456 276
of which capitalized development costs1 1,215 976 239
Capitalization ratio (in %)1 44.5 39.7 4.8 pp
Amortization of, and impairment losses on,
capitalized development costs 620 530 91
Research & development costs recognized in
the income statement 2,137 2,010 127
Sales revenue, TRATON Operations 42,536 46,182 –3,646
R&D ratio (in %) 6.4 5.3 1.1 pp
R&D employees (as of 12/31) 12,411 12,527 –116
1 The previous year’s figure was adjusted to the current presentation, see the Combined Management Report section Financial management.
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34 TRATON GROUP 2025 Annual Report
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3. Financial management
Internal management process within the TRATON GROUP
The TRATON GROUP is included in the Volkswagen Group’s internal financial management process. The starting point for the TRAT ON GROUP’s internal
management is medium-term planning, which is prepared once per year over a period of five years. The core of th e planning includes the long -term unit
sales plan, the product program, and the capacity and utilization planning for the individual sites. The TRATON GROUP’s finan cial medium-term planning
comprises the income statement, cash flow and balance sheet planning, profitability and liquidity, as well as investments.
The first year of the medium-term planning period is then fixed and a budget drawn up for the individual months at the level of the operating cost centers.
The budget is reviewed each month to establish the degree to which the targets have been met. Import ant control tools are target/actual comparisons,
prior-year comparisons, variance analyses, and, if necessary, action plans to ensure budgetary targets are met. For the relevant cu rrent fiscal year, detailed
revolving forecasts for the full year are made b ased on the reporting in February, May, August, and October. These take into account current risks and
opportunities. The focus of intra-year internal management is on measures for quickly adapting operating activities. At the same time, the current forecast
serves as an ongoing, potential corrective to the medium-term and budget planning that follow on from it.
The merger of significant parts of the research and development departments of the individual brands into a cross -brand, Group-wide research and devel-
opment (Group R&D) organization was completed as of June 30, 2025. This required a change in the TRATON GROUP’s Group management, which impacts
segment reporting. The number and designations of the segments remain unchanged. The change impacts capitalized development c osts, expenses, and
intercompany income incurred and generated in cross-brand research and development.
Until June 30, 2025, cross-brand R&D projects were assigned to one segment and R&D expenses were recharged to the other segments that benefited from
this research and development in the usage phase by means of licenses. Since July 1, 2025, cross -brand R&D projects have been recorded primarily on a
centralized basis. Intercompany R&D expenses and income arising between Group R&D and the segments are now eliminated for seg ment reporting pur-
poses. R&D expenses and capitalized development costs in Group R&D tha t are not eliminated are allocated to the segments in the TRATON Operations
business area that benefit from the development project in accordance with predefined principles.
To ensure comparability, the corresponding prior -year figures for the individual segments were restated accordingly. The following table presents the re-
sulting impact on sales revenue, operating result (adjusted), operating return on sales (adjusted), and investments for the period January 1 to December 31,
2024. Note that the impact on the Scania Vehicles & Services segment is also attributable to the fact that this segment played a leading role in research and
development within the TRATON GROUP prior to the change. There is no impact on the TRATON Operations business area as a whole.
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35 TRATON GROUP 2025 Annual Report
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2024 comparative figures restated due to R&D reorganization
€ million
Scania Vehicles & Services MAN Truck & Bus International Motors Volkswagen Truck & Bus
2024 Change
2024
(adjusted) 2024 Change
2024
(adjusted) 2024 Change
2024
(adjusted) 2024 Change
2024
(adjusted)
Sales Revenue 18,907 – 18,907 13,732 –81 13,652 11,116 – 11,116 2,918 – 2,918
Operating result
(adjusted) 2,666 135 2,801 985 –66 919 791 –66 724 349 –3 346
Operating return on
sales (adjusted) (in %) 14.1 0.7 14.8 7.2 –0.4 6.7 7.1 –0.6 6.5 12.0 –0.1 11.9
Investments 1,487 –100 1,387 631 68 699 571 32 603 92 – 92
Most important key performance indicators of the TRATON GROUP
As in the previous year, the following most important key financial and nonfinancial performance indicators were defined for the TRATON GROUP and the
TRATON Operations and TRATON Financial Services business areas during fiscal year 2025:
2025
TRATON
GROUP
TRATON
Operations
TRATON
Financial
Services
Unit sales x x –
Sales revenue x x –
Operating return on sales (adjusted) x x –
Net cashflow – x –
Primary R&D costs – x –
Capex – x –
Return on equity – – x
In order to focus on the key control elements and reduce the complexity of our reporting, we have decided not to list the key performance indicators Primary
research and development costs and Capital expenditures as the most important key performance indic ators, but as additional performance indicators,
starting in fiscal year 2026. As a result, no forecast for fiscal year 2026 is provided for these performance indicators in the Report on Expected Developments.
Unit sales
Unit sales represent the number of vehicles sold by Scania, MAN, International, and VWTB. They reflect the demand for our pro ducts and are decisive for
the development of sales revenue.
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36 TRATON GROUP 2025 Annual Report
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Sales revenue
Sales revenue reflects our market performance in financial terms. For the segments within the TRATON Operations business area , it is based in particular
on unit sales of new and used vehicles and on sales of spare parts and customer services. Sales revenue is also generated by the rental and leasing business
and by interest from the financial services business in the TRATON Financial Services segment.
Operating return on sales (adjusted)
Operating return on sales (adjusted) is the ratio of operating result (adjusted) to sales revenue and expresses the economic performance of our business
activities after accounting for the use of resources. Operating return on sales (adjusted) measures the TRATON GROUP’s profitability.
Adjustments are made in order to ensure the greatest possible transparency of our business performance. The adjustments to op erating result concern
certain items in the financial statements that, in the opinion of the Executive Board, can be presented separately to enable a more appropriate assessment
of financial performance. They include, in particular, costs of restructurings and structural measures as well as one -time events with a material impact on
the TRATON GROUP’s earnings.
Net cash flow
Net cash flow in the TRATON Operations business area comprises net cash provided by/used in operating activities and net cash provided by/used in in-
vesting activities attributable to operating activities and indicates the excess funds from operating activities in the reporting period.
Primary R&D costs
Primary research & development costs in the TRATON Operations business area contain both capitalized development costs (excluding capitalized borrow-
ing costs) and research & development costs not eligible for capitalization. They represent expenditures ranging from futurology down to the market-ready
development of our products and services. Calculation of the primary research and development costs in the TRATON Operations business area was ad-
justed so that the capitalized development costs included are now recognized net of the capitalized borrowing costs. The prior-year figure was correspond-
ingly adjusted.
Capital expenditures
Capital expenditures in the TRATON Operations business area represent the TRATON GROUP’s investments in the future. They cons ist of the cash invest-
ments in property, plant, and equipment and in intangible assets (excluding capitalized development costs) that are reported in the statement of cash flows.
Return on equity
For the TRATON Financial Services business area, return on equity describes the profitability of the capital employed. It is calculated as the ratio of earnings
before tax to average equity. Average equity is calculated from the equity at the beginning and the end of the reporting year. If calculated during the year,
earnings before tax for the period in question are extrapolated to the full fiscal year on a straight-line basis.
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37 TRATON GROUP 2025 Annual Report
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Additional key performance indicators of the TRATON GROUP
In addition to the most important key performance indicators, the following additional performance indicators are defined for the TRATON GROUP or for
the individual business areas or segments:
Capitalization ratio
The capitalization ratio is defined as the ratio of capitalized development costs (excluding capitalized borrowing costs) to primary research & development
costs. It indicates which proportion of primary research & development costs is required to be capit alized. Calculation of the capitalization ratio in the
TRATON Operations business area was adjusted such that capitalized development costs are no longer included.
Incoming orders
Incoming orders are defined as legally effective, binding orders.
BEV unit sales ratio
The ratio of the number of battery-electric vehicles and fuel cell electric vehicles to the total number of vehicles sold, excluding the MAN TGE model.
Book-to-bill ratio
The ratio of incoming orders to unit sales.
Gross margin
The gross margin is calculated as the percentage ratio of gross profit to sales revenue for the period in question.
EBITDA (adjusted)
EBITDA (earnings before interest, taxes, depreciation, and amortization) reflects operating performance before interest, taxe s, depreciation, and amortiza-
tion, after accounting for the use of resources. Since depreciation and amortization may depend on the chosen accounting policies, the carrying amounts,
the capital structure, and the way in which an asset was acquired, EBITDA (adjusted) is used as a key performance indicator for peer group comparisons, in
particular. Adjustments to operating result are al so taken into account in determining EBITDA (adjusted). EBITDA (adjusted) is calculated for the TRATON
Operations business area including Corporate Items, as it is taken into account for the calculation of the net financial debt /EBITDA (adjusted) ratio for the
TRATON Operations business area including Corporate Items.
Equity ratio
The equity ratio indicates the ratio of total equity to total capital. For the TRATON Operations and TRATON Financial Services business areas, it is calculated
from the perspective of the business area in question.
R&D ratio
Ratio of primary R&D costs to sales revenue.
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38 TRATON GROUP 2025 Annual Report
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Net liquidity/net financial debt
Net liquidity or net financial debt is calculated as gross liquidity, meaning cash and cash equivalents, marketable securities, investment deposits, and loans
to affiliated companies (incl. restricted cash), less third-party borrowings (noncurrent and current financial liabilities). It reflects cash and cash equivalents,
marketable securities, investment deposits, and loans to affiliated companies not financed by third-party borrowings.
Net financial debt/EBITDA (adjusted) ratio
The net financial debt to EBITDA (adjusted) ratio is calculated by dividing net liquidity/net financial debt by EBITDA (adjus ted) for the past twelve months
and is determined for the TRATON Operations business area, including Corporate Items.
Operating result (adjusted)
Operating result (adjusted) is calculated to ensure the greatest possible transparency of our business performance by making adjustments to our operating
result. These adjustments concern certain items in the financial statements that, in the opinion of th e Executive Board, can be presented separately to
enable a more appropriate assessment of financial performance. They include, in particular, costs of restructurings and structural measures as well as one-
time events with a material impact on the TRATON GROUP’s earnings.
Capex ratio
The capex ratio indicates the ratio of capital expenditures to sales revenue and is calculated for the TRATON Operations business area.
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39 TRATON GROUP 2025 Annual Report
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Report on Economic Position
1. Macroeconomic environment
Developments in the global economy
The global economy continued to grow in 2025, at a similar pace to the previous year. In the context of this development, a s light increase in momentum
was observed in the emerging economies, whereas in the advanced economies it remained broadly unchanged from the previous year. Inflation rates
declined in many countries, but remained at elevated levels in some countries. Due to these differing conditions, not all cen tral banks reduced their key
interest rates to the same extent. Overall, geopolitical uncer tainties, particularly in connection with the economic policy stance of the US and the increase
in geoeconomic measures, weighed on the global economic environment.
Europe
The Western European economy recorded positive growth overall in the reporting period, above the previous year’s level. Developments varied in the indi-
vidual countries of Northern and Southern Europe. With inflation rates dropping, the European Central Bank cut its key interest rates in three steps starting
in June 2024.
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Economic growth: GDP change (in %)
In 2025, the economies of Central Europe recorded overall growth that was slightly higher on average than in the same period of the previous year, while
Eastern Europe experienced a smaller increase.
Germany
German gross domestic product stalled at the previous year’s level in 2025, after declining in each of the two preceding year s. Compared with 2024, the
unemployment rate rose somewhat on average over the year as a whole. The harmonized inflation rate in the reporting period was slightly below the previ-
ous year’s level.
North America
US gross domestic product grew at a somewhat slower rate in the reporting period than in the previous year. The US Federal Re serve had lowered its key
interest rates in several steps in the previous year, but interrupted this easing cycle during the report ing year due to the uncertain effects of the new US
administration’s economic policies, and did not resume monetary easing until September 2025. Canada and Mexico both recorded slightly lower economic
growth than a year earlier.
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South America
In Brazil, economic output grew at a slightly slower pace, while central bank interest rates rose. By contrast, economic grow th in Argentina increased dis-
tinctly after two consecutive years of negative development.
Asia/Pacific
Growth in Chinese economic output exceeded the global average and remained approximately at the previous year’s level in the reporting period.
2. Exchange rates
Significant foreign currencies
Average rate for the year Year-end closing rate
2025 2024 2025 2024
BRL/EUR 6.3077 5.8262 6.4350 6.4314
GBP/EUR 0.8567 0.8467 0.8731 0.8302
MXN/EUR 21.6764 19.8219 21.1008 21.5892
SEK/EUR 11.0640 11.4329 10.7997 11.4501
USD/EUR 1.1297 1.0820 1.1748 1.0410
The euro appreciated against the US dollar and sterling on average over the year in 2025. The euro depreciated slightly against the Swedish krona on average
over the year. Mexican pesos and Brazilian reais were weaker against the euro on average over the year than in 2024.
3. Market environment
The most important truck and bus markets (> 6t) for the TRATON GROUP are the EU27+3 region (European Union, the United Kingdom, Norway, Switzerland),
the North America region (the USA, Canada, and Mexico), and South America. In North America, the truck mar ket is divided into weight Classes ranging
from 1 through 8. The market relevant for International is the Class 6–8 segment. This corresponds approximately to weight class > 9t.
In 2025, the TRATON GROUP’s most important truck markets (> 6t) reported an overall noticeable decline in demand. Following a slight decline in 2024,
new truck registrations in the EU27+3 region fell noticeably year -on-year. The weakness of the construction sector and manufacturing industry continued
to be a key factor in the ongoing reluctance to spend. Most countries in this region saw a decline, although it varied from c ountry to country. For example,
the United Kingdom and France recorded a noticeable decline. In Germany, the market losses were even more pronounced than in most of its neighboring
countries. Conversely, a number of Eastern European EU countries recorded an increase in new registrations.
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There was also a significant decline in demand in North America in 2025. Demand for heavy trucks in particular was impacted b y the ongoing recession in
freight transportation and increasing uncertainties surrounding trade policy, especially the new tariffs . New truck registrations in the USA/Canada were
down significantly year-on-year, while the market in Mexico declined very sharply.
By contrast, the South American truck market continued its recovery from the previous year and grew slightly again in 2025. Whereas the economic situa-
tion in Brazil and thus also the truck market there weakened, the other countries in the region more than offset this decline.
The TRATON GROUP’s most important bus markets recorded noticeable growth compared with the previous year. In the EU27+3 regio n, new bus registra-
tions in 2025 were significantly higher than in the previous year, although the trend varied in the individual c ountries. The North American market grew
slightly year-on-year. The positive trend continued in South America, where the market grew noticeably.
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4. Results of operations
Incoming orders and unit sales
Incoming Orders and Unit Sales by Country, TRATON Operations
Units
Incoming orders Unit sales
2025 2024 Change 2025 2024 Change
Total 281,325 263,575 7% 305,486 334,215 –9%
of which all-electric vehicles 2,823 3,851 –27% 3,226 1,739 86%
BEV unit sales ratio (excluding MAN TGE vans, in %) – – – 1.2 0.5 0.6 pp
Trucks 224,243 208,519 8% 239,783 278,130 –14%
EU27+3 106,034 77,991 36% 103,870 104,521 –1%
of which in Germany 26,492 20,145 32% 26,816 26,904 0%
North America 37,098 48,193 –23% 50,937 82,198 –38%
in the USA/Canada 30,486 38,930 –22% 43,779 66,354 –34%
in Mexico 6,612 9,263 –29% 7,158 15,844 –55%
South America 53,575 59,086 –9% 57,767 62,257 –7%
of which in Brazil 40,047 49,152 –19% 44,071 52,300 –16%
Other regions 27,536 23,249 18% 27,209 29,154 –7%
Buses 27,932 32,235 –13% 34,359 28,413 21%
EU27+3 6,393 6,554 –2% 7,121 4,912 45%
of which in Germany 1,610 1,485 8% 1,689 895 89%
North America 10,211 14,281 –28% 15,180 12,874 18%
in the USA/Canada 9,158 11,357 –19% 13,606 9,711 40%
in Mexico 1,053 2,924 –64% 1,574 3,163 –50%
South America 8,113 8,567 –5% 8,922 7,899 13%
of which in Brazil 6,174 6,795 –9% 6,861 6,246 10%
Other regions 3,215 2,833 13% 3,136 2,728 15%
MAN TGE vans 29,150 22,821 28% 31,344 27,672 13%
EU27+3 28,390 22,400 27% 30,572 27,239 12%
of which in Germany 9,380 6,873 36% 10,552 8,369 26%
Other regions 758 421 80% 770 433 78%
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Incoming orders were up noticeably on the previous year in the reporting year. The TRATON GROUP recorded a very strong increa se in orders in the truck
business in the EU27+3 region, primarily as a result of replacement demand following the reduction in the strong order book in the previous years. Custom-
ers in North America were still holding back due to uncertainty about the impact of US tariff policy and in the wake of the persistent recession in the freight
market, which hurt incoming orders for trucks. The additional US tariffs on medium-duty and heavy-duty trucks, which came into force on November 1, 2025,
as part of the Section 232 order, put additional pressure on incoming orders. In South America, a slowdown in momentum was ob served in an increasingly
challenging economic environment, which originated in Brazil in particular and was reflected in lower truck incoming orders across the entire region in the
medium-duty and, above all, heavy-duty truck segments. Incoming orders for buses declined sizably, primarily in North America, mainly due to restrictive
order acceptance in the middle of the year caused by limited capacity and a general reluctance to buy. Demand for the MAN TGE van rose sharply, partly as
a result of the further expansion of the sales organization.
In a weak market environment characterized by uncertainty, unit sales were noticeably below the previous year’s level. In the EU27+3 region, unit sales were
only down slightly year -on-year. The pace of growth improved gradually over the four quarters of 20 25. For the reasons mentioned above, truck sales in
North America were down very sharply year -on-year. South America experienced a noticeable decline in truck sales, primarily due to a slowdown in the
Brazilian economy, rising interest rates, and high inflation. The bus business recorded a sharp increase in unit sales, after the previous year had been strongly
impacted by the delayed ramp-up of the new school bus model at International, among other factors.
The book-to-bill ratio in the reporting period was 0.9 (previous year: 0.8).
1,281 (previous year: 430) all-electric trucks, 1,923 (previous year: 1,190) all-electric buses, and 22 (previous year: 119) MAN eTGE vans were sold in the reporting
year.
Sales revenue
Sales revenue by product group
€ million 2025 2024 Change
TRATON GROUP 44,052 47,473 –7%
TRATON Operations 42,536 46,182 –8%
New Vehicles 28,941 32,202 –10%
Vehicle Services business1 8,742 8,751 0%
Others 4,853 5,230 –7%
TRATON Financial Services 2,188 1,932 13%
Corporate Items –672 –642 5%
1 Including genuine parts and workshop services
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The TRATON GROUP’s sales revenue in the reporting year declined by €3. 4 billion. This development is attributable primarily to the noticeable decline in
unit sales and sales revenue for new vehicles at the TRATON Operations business area. The Vehicle Services business reported stable growth. The share of
the Vehicle Services business in the sales revenue of the TRATON Operations business area rose from 18 to 21%. By contrast, the lower sales revenue for used
and third-party vehicles led to a significant decline in other sales revenue. Sales revenue in the TRATON Financial Services segment increased by €256 mil-
lion compared with the prior-year period. This was due primarily to an increase in portfolio volume, particularly in the wake of the expansion of the financial
services business at MAN, and Volkswagen Truck & Bus.
Profit and loss
Condensed Income Statement of the TRATON GROUP
€ million TRATON GROUP TRATON Operations
TRATON Financial
Services Corporate Items
2025 2024 2025 2024 2025 2024 2025 2024
Sales revenue 44,052 47,473 42,536 46,182 2,188 1,932 –672 –642
Cost of sales –35,630 –37,373 –34,678 –36,499 –1,491 –1,315 539 440
Gross profit 8,421 10,100 7,858 9,684 696 617 –133 –202
Distribution
expenses –3,835 –3,813 –3,282 –3,320 –311 –243 –242 –249
Administrative
expenses –1,645 –1,710 –1,484 –1,478 –30 –47 –130 –184
Other operating
result –515 –368 –347 –285 –188 –122 20 38
Operating
result 2,426 4,209 2,745 4,601 167 205 –486 –597
Operating
result
(adjusted) 2,773 4,384 3,092 4,776 167 205 –486 –597
Operating
return on sales
(adjusted) (in %) 6.3 9.2 7.3 10.3 7.6 10.6 – –
Financial result –402 –639 –126 –777 5 7 –282 130
Earnings
before tax 2,024 3,569 2,619 3,824 172 212 –768 –467
Income taxes –479 –766 –694 –732 –39 –57 254 23
Earnings after
tax 1,545 2,803 1,925 3,092 133 155 –514 –444
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Operating result
The TRATON GROUP recorded a €1. 7 billion or 17% decline in gross profit in the reporting year. Lower truck unit sales in the TRATON Operations business
area were the major factor behind this decrease in gross profit. Gross profit was additionally impacted by decreased capacity utilization due to lower pro-
duction volumes for heavy-duty trucks especially, expenses related to the termination of a development project in the USA as a result of delays in the pace
of transition to battery -electric vehicles, and cu rrency effects, primarily due to the appreciation of the Swedish kronor. Gross profit was also negatively
impacted by higher expenses in connection with the start of production at the new plant in China in October 2025, the impact of the tariffs increased by
the USA under Section 232, and effects related to the EU truck cases in individual countries. Gross margin decreased by 2.2 p ercentage points to 19.1%
(previous year: 21.3%) in the TRATON GROUP and by 2.5 percentage points to 18.5% (previous year: 21.0%) in the TRATON Operations business area.
The TRATON GROUP’s distribution and administrative expenses were reduced by 1% year -on-year. The increase in distribution expenses in the TRATON
Financial Services segment was primarily driven by new hires and largely offset by lower distribution expenses in the TRATON Operations business area.
The ratio of distribution and administrative expenses to sales revenue rose by 0.8 percentage points to 12.4% (previous year: 11.6%), primarily because of the
decline in sales revenue.
Other operating result decreased by €14 7 million compared with the prior-year level. The main drivers behind the decline were exchange rate losses, par-
ticularly from the valuation of foreign currency receivables, and higher expenses related to restructurings. Offsetting factors were currency gains, predom-
inantly from the valuation of foreign currency liabilities, as well as positive effects from the measurement of derivatives.
Operating result was reduced by expenses of €17 3 million (previous year: €16 2 million) for civil lawsuits against Scania Vehicles & Services and MAN
Truck & Bus in connection with the EU truck cases in individual countries, as well as restructuring expenses of €4 6 million (previous year: €14 million). In
addition, expenses of €128 million were incurred in the year under review in connection with the termination of a BEV development project at International
Motors. €100 million of this amount was attributable to the derecognition of capitalized development costs. Furthermore, US tariffs imposed under Section
232 had a €60 million negative impact on earnings.
Due to the effects described above, in particular because of the decrease in gross profit, the TRATON GROUP’s operating result in fiscal year 2025 decreased
by €1.8 billion or 42% compared with the previous year.
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Adjustments to operating result
Adjustments (€ million) 2025 2024
Scania Vehicles & Services 68 109
legal proceedings and related measures 26 101
restructuring measures 42 7
MAN Truck & Bus 151 66
legal proceedings and related measures 147 60
restructuring measures 4 6
International Motors 128 –
termination of a development project for battery-electric
vehicles 128 –
TRATON Operations 347 175
TRATON GROUP 347 175
Adjustments in the TRATON Operations business area in the reporting year amounted to €347 million (previous year: €175 million). They were composed of
the following items:
– Negative impact of €173 million (previous year: €162 million) in connection with civil lawsuits against Scania and MAN as a result of the EU truck cases
in individual countries. They were calculated based on an updated risk assessment and including foreign exchange effects.
– Expenses of €128 million (previous year: €– million) relating to the termination of a BEV development project at International Motors.
– Expenses of €42 million (previous year: €7 million) for severance payments in connection with the restructuring of central functions at Scania Vehicles
& Services. Expenses in the previous year related to the realignment of the Scania bus business.
– Expenses of €4 million (previous year: €6 million) for an internal reorganization at MAN Truck & Bus.
The TRATON GROUP’s operating result (adjusted) fell by €1.6 billion (37%) year-on-year. The TRATON GROUP’s operating return on sales (adjusted) declined
by 2.9 percentage points to 6.3% (previous year: 9.2%). In the TRATON Operations business area, operating return on sales (ad justed) decreased by 3.1 per-
centage points to 7.3% (previous year: 10.3%).
Financial result
The TRATON GROUP’s financial result improved by €237 million compared with the prior-year figure. The main factors driving this increase were the absence
of negative currency translation effects recorded in the previous year and lower interest expenses in the current reporting p eriod. The TRATON Operations
business area recorded a gain of €290 million from an adjustment of the ownership structure of the financial services business, although this was eliminated
at the level of the TRATON GROUP.
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Taxes
Income taxes decreased in 2025 by €287 million year-on-year, mainly due to earnings-related factors. The tax rate was up on the previous year, at 24% (pre-
vious year: 21%). Valuation allowances on tax loss carryforwards had a particularly negative impact on the tax rate. In the previous year, the tax rate had been
reduced primarily by higher tax-exempt income.
Earnings after tax
Earnings after tax declined by €1. 3 billion in the reporting year. For 2025, this resulted in a reduction in earnings per share by 45% to €3.09 (previous year:
€5.61) per share. Calculation of earnings per share was still based on an average of 500 million shares.
Segments of the TRATON GROUP
Scania Vehicles & Services
2025 2024 Change
Incoming orders (units) 92,351 81,012 14%
Sales (units) 94,073 102,069 –8%
of which trucks 87,588 96,443 –9%
of which buses 6,485 5,626 15%
Book-to-bill ratio 0.98 0.79 0.19
Sales revenue (€ million) 17,945 18,907 –5%
New Vehicles 11,696 12,883 –9%
Vehicle Services business1 4,020 3,839 5%
Others 2,230 2,185 2%
Operating result (adjusted) (€ million)2 1,926 2,801 –875
Operating return on sales (adjusted) (in %)2 10.7 14.8 –4.1 pp
1 Including genuine parts and workshop services
2 Prior-year figures adjusted, see the Financial management section
Scania Vehicles & Services recorded a significant year-over-year increase in incoming orders in 2025. A challenging environment in South America, especially
Brazil, with substantial lower incoming orders was more than offset by a very strong increase in the EU27+3 region supported by a stronger sales execution
in that region.
Truck unit sales fell noticeably compared to the good level of the previous year. In the EU27+3 region, the weak economic environment with a lack of growth
impetus led to a slight decline. In Brazil, Scania Vehicles & Services experienced a very sharp decl ine in unit sales in a difficult market environment charac-
terized by rising interest rates and high inflation. Bus unit sales rose substantially due to delayed deliveries in the previous year.
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The overall decline in truck unit sales was the main reason for the moderate reduction in sales revenue, which mainly affecte d the New Vehicles business.
This was only partially offset by the moderate growing Vehicle Services business.
The main driver of the decline in operating result (adjusted) was the volume -related decline in revenue. In addition, negative currency effects and higher
expenses for the ramp-up of the new Chinese production site had a negative impact on operating result (adjusted).
MAN Truck & Bus
2025 2024 Change
Incoming orders (units) 99,961 77,108 30%
Sales (units) 101,642 96,037 6%
of which trucks 63,296 63,655 –1%
of which buses 7,002 4,710 49%
of which MAN TGE vans 31,344 27,672 13%
Book-to-bill ratio 0.98 0.80 0.18
Sales revenue (€ million)1 14,095 13,652 3%
New Vehicles 8,783 8,383 5%
Vehicle Services business2 2,928 2,902 1%
Others1 2,384 2,367 1%
Operating result (adjusted) (€ million)1 904 919 –15
Operating return on sales (adjusted) (in %)1 6.4 6.7 –0.3 pp
1 Prior-year figures adjusted, see the Financial Management section
2 Including genuine parts and workshop services
MAN Truck & Bus recorded a very strong increase in incoming orders in 2025 compared with the prior-year figure. This was due in particular to a very strong
increase in demand for trucks in the EU27+3 region. At the same time, demand for the MAN TGE van rose sharply, which is attributable, among other things,
to the success of the business’s internationalization strategy.
Unit sales were up moderately year -on-year, primarily as a result of higher sales figures for buses and MAN TGE vans. Unit sales of trucks were marginally
below the previous year’s level, but posted a slight increase in the EU27+3 region.
Sales revenue was up slightly year-on-year on the back of higher unit sales of new vehicles. This also reflected a shift in the product mix toward buses and
the MAN TGE van. The Vehicle Services business delivered constant growth.
Operating result (adjusted) was slightly lower than in the previous year. The main reasons for this were a change in the product and regional mix and higher
production costs.
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International Motors
2025 2024 Change
Incoming orders (units) 46,177 56,616 –18%
Sales (units) 63,732 90,562 –30%
of which trucks 50,112 79,300 –37%
of which buses 13,620 11,262 21%
Book-to-bill ratio 0.72 0.63 0.10
Sales revenue (€ million) 8,169 11,116 –27%
New Vehicles 5,924 8,263 –28%
Vehicle Services business1 1,645 1,860 –12%
Others 599 994 –40%
Operating result (adjusted) (€ million)2 9 724 –715
Operating return on sales (adjusted) (in %)2 0.1 6.5 –6.4 pp
1 Including genuine parts
2 Prior-year figures adjusted, see the Financial management section
Demand in North America remained subdued in 2025, as tariff challenges and persistent weakness in the freight market led to a significant year over year
decline in incoming orders at International Motors.
As a result, truck unit sales fell very sharply. Weaker demand in Mexico also had a negative impact, following the prior year ’s temporary boost from Euro 5
prebuy effects. In contrast, bus sales increased compared with the previous year, as the first half of 2024 had been adversely affec ted by delays in ramping
up the new school bus model.
The combination of soft demand and declining unit volumes led to a strong decrease in new vehicle sales as well as a signific ant drop in vehicle service
revenues.
The negative earnings impact from lower unit sales on adjusted operating result could only be partially mitigated through red uctions in product and fixed
costs. Elevated tariff expenses further weighed on performance, resulting in only a slightly positive adjusted operating result.
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Volkswagen Truck & Bus
2025 2024 Change
Incoming orders (units) 42,988 48,865 –12%
Sales (units) 46,171 45,846 1%
of which trucks 38,862 39,018 0%
of which buses 7,309 6,828 7%
Book-to-bill ratio 0.93 1.07 –0.13
Sales revenue (€ million) 2,768 2,918 –5%
New Vehicles 2,549 2,698 –6%
Vehicle Services business1 173 179 –3%
Others 46 42 10%
Operating result (adjusted) (€ million)2 323 346 –23
Operating return on sales (adjusted) (in %)2 11.7 11.9 –0.2 pp
1 Including genuine parts and workshop services
2 Prior-year figures adjusted, see the Financial management section
In 2025, Volkswagen Truck & Bus recorded a significant year-on-year decline in incoming orders compared with the previous year's figure in a market envi-
ronment characterized by increased dealer inventories, high interest rates and inflationary pressure, especially in Brazil.
In 2025, truck unit sales were slightly above previous year's level. A decline in Mexico was fully offset by higher truck unit sales in markets such as Argentina,
Chile and Colombia. In the core market of Brazil, truck sales for the year as a whole were on a level with the previous year, despite a slowdown in the second
half of the year. Bus sales increased noticeably compared to the previous year.
Sales revenue was mainly impacted by currency effects and were moderately lower year-over-year.
This was also the main reason for the moderate decline in operating result (adjusted).
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TRATON Financial Services
2025 2024 Change
Sales revenue (€ million) 2,188 1,932 13%
Earnings before tax (€ million) 172 212 –40
Equity (€ million)1 2,275 2,052 223
Return on equity (in %) 8.0 10.8 –2.8 pp
1 As of December 31
After acquiring the rights to the future MAN financial services business in several countries in the previous year, TRATON Financial Services fully completed
its acquisition in the 1st half of 2025. As part of this expansion, the rights to the financial se rvices business for MAN and Volkswagen Truck & Bus were
acquired in additional countries, including Brazil, for a total purchase price of €72 million (previous year: €254 million).
In the TRATON Financial Services segment, sales revenue increased significantly, due to the continued growth in the portfolio. Portfolio expansion was
primarily driven by additional financing volumes of MAN and Volkswagen Truck & Bus.
The ramp-up of financing activities in several new markets led to higher costs in 2025 that could not be offset by higher interest income from the increased
portfolio volume. In addition, higher financing costs, impairments and derecognition of receivables, particularly in Brazil in the 4th quarter 2025, as well as
increased competitive pressure, had a negative impact on earnings before tax.
At the end of 2025, TRATON Financial Services' equity increased by €22 3 million year-on-year to €2.3 billion, reflecting the continued strengthening of the
capital base in line with portfolio growth. Intra -Group contributions of €16 1 million (previous year: €229 million) in the reporting period had an increasing
effect on equity. This was partly offset by the difference between the consideration transferred and net assets at book value after deferred taxes of €43 mil-
lion (previous year: €164 million), incurred in connection with the acquisition dates and offset against equity.
As a result of the lower earnings before tax during the ramp-up phase and the higher equity base, return on equity decreased.
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5. Financial position
Principles and goals of financial management
Financial management contributes to the value of the TRATON GROUP by optimizing the outcome of all financing measures, liquidity and capital structure,
and also by managing risks.
All external and internal financial transactions are solely generated to fulfill financing needs or to limit risks from an actual underlying business transaction
and therefore do not serve any speculative purpose. Strong dependencies on particular financia l partners are systematically avoided. All financial transac-
tions are concluded under standard market conditions.
Financial management has the duty to manage all financial transactions and financial risks in the TRATON GROUP with a focus o n achieving the following
objectives:
– Ensuring the solvency of all Group companies at all times as well as the financing of all Group business activities
– Limiting of market price risks (from interest rates, foreign currencies/exchange rates, commodity prices) and default risk of financial counterparties
– Optimization of costs from funding activities and returns on financial investments
– Securely processing financial and payment transactions and pooling group liquidity
Financing strategy
It is the TRATON GROUP’s goal to finance ongoing investment requirements of the TRATON Operations business area including Cor porate Items from op-
erating cash flow. For this reason, the TRATON Operations business area, including Corporate Items, should not report any net financial debt in a normal
business environment. Depending on the gearing ratio and the liquidity position, other capital spending projects, such as acq uisitions, should be financed
by a balanced mixture of equity and debt. The composition c an be adapted to reflect the relevant capital market environment. TRATON strives to reduce
net financial debt in the TRATON Operations business area, including Corporate Items, to zero by the end of the decade. In th e TRATON Financial Services
business area, it is ensured that leased or financed assets are financed at matching maturities.
As a general rule, the capital structure of the TRATON Operations business area including Corporate Items should correspond to an implied solid investment-
grade classification. The net financial debt/EBITDA (adjusted) ratio is a key performance indicator i n this context. If justified by extraordinary financing
requirements or special market circumstances, this target can be temporarily relaxed subject to certain conditions. TRATON SE has been awarded external
credit ratings by Moody’s and Standard & Poor’s (S&P) since June 2020. Moody’s is currently awarding a long-term rating of Baa2 (stable outlook), and S&P’s
rating is BBB (negative outlook). Both ratings are investment-grade range.
Financing mix
Financial liabilities are intended to comprise a balanced mix of capital market financing, bank liabilities, the asset -backed securities (ABS) portfolios of the
TRATON Financial Services segment, and other financing sources. No single source of financing s hould permanently exceed 60% of the total financing
volume. It is intended to use a wide range of financing instruments for current financial liabilities in particular.
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Liquidity
The TRATON GROUP strives to maintain adequate available liquidity from net cash flow in the TRATON Operations business area. In addition to TRATON’s
access to the debt market, liquidity is supplemented by the syndicated revolving credit line and by credit lines from Volkswagen AG and banks, among
others, to cover liquidity requirements at all times.
Maturity profile
The TRATON GROUP generally aims to achieve a balanced maturity profile for its liabilities so that it can cover amounts that fall due during the year from
net cash flow to the greatest extent possible. To reduce funding risk in the TRATON Financial Service s business area, the maturity profile should not be
considerably shorter than the portfolio of underlying customer contracts.
Dividends policy
The TRATON GROUP intends to pay a dividend of 30 to 40% of its annual consolidated earnings after tax. The resolution to pay out a dividend for a particular
fiscal year is adopted by the Annual General Meeting in the following year. The dividend is paid on ce a year. The proposal by the Executive Board and
Supervisory Board concerning the amount of the dividend generally considers business performance and other influencing factor s.
Risk management
TRATON operates an appropriate risk management system, including financial instruments such as derivatives, to hedge the Grou p’s financial risks, for
example exchange rate risks or commodity price risks. Order book and other probable future sales and purchase contracts are partly hedged within defined
limits. Commodity price risks are also partly hedged, while counterparty risks are closely monitored. Management of foreign c urrency, interest rate, and
commodity exposure is not central but at the discretion of each brand. The relevant requirements of each company are considered since different functional
currencies and business environments apply. The Group’s activities in the TRATON Financial Services business area are managed to largely match assets
and liabilities in order to minimize interest rate mismatches using appropriate methods to manage risks.
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Financing in 2025
Gross financial liabilities amounted to €27. 4 billion (previous year: €24. 3 billion) as of December 31, 2025. €17. 1 billion (previous year: €15. 3 billion) of this
amount was attributable to capital market instruments, €6. 4 billion (previous year: €5.4 billion) to bank funding, €2.6 billion (previous year: €2.4 billion) to
Volkswagen Group loans, and €1.3 billion (previous year: €1.2 billion) to lease liabilities.
Financial liabilities of the
TRATON GROUP
as of 12/31/2025 € billion
Carrying
amount
Nominal
value
Total Total Due 2026 Due 2027 Due 2028 Due 2029 Due 2030
Due 2031
or later
Bonds 15.5 15.6 4.2 3.5 2.9 2.4 1.3 1.3
of which for the financial services business 12.9 4.1 3.5 2.4 1.1 1.3 0.5
Commercial paper 1.2 1.2 1.2 – – – – –
of which for the financial services business 1.2 1.2 – – – – –
Liabilities to banks 6.4 6.4 3.3 1.5 0.6 0.2 0.7 –
of which for the financial services business 2.9 1.3 0.9 0.4 0.2 0.1 –
Schuldscheindarlehen 0.4 0.4 0.3 – 0.1 – – –
of which for the financial services business – – – – – – –
Volkswagen Group liabilities 2.6 2.6 1.2 0.7 0.7 – – –
of which for the financial services business 1.5 1.2 0.2 – – – –
Total financial liabilities (excluding lease liabilities) 26.1 26.2 10.3 5.7 4.3 2.6 2.0 1.3
of which for the financial services business 18.5 7.8 4.6 2.9 1.3 1.4 0.5
Lease liabilities¹ 1.3 1.3
Total financial liabilities 27.4 27.5
of which for the financial services business 18.5
1 The maturity structure of the lease liabilities (IFRS 16 Leases) is as follows: < 1 year: €267 million; 1–5 years: €725 million; > 5 years: €283 million.
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Financial liabilities of the
TRATON GROUP
as of 12/31/2024 € billion
Carrying
amount
Nominal
value
Total Total Due 2025 Due 2026 Due 2027 Due 2028 Due 2029
Due 2030
or later
Bonds 14.7 14.8 4.9 3.5 1.3 1.0 2.2 1.8
of which for the financial services business 10.9 3.8 3.3 1.3 0.5 1.0 1.0
Commercial paper 0.2 0.2 0.2 – – – – –
of which for the financial services business 0.2 0.2 – – – – –
Liabilities to banks 5.4 5.4 2.0 2.4 0.5 0.2 0.1 0.2
of which for the financial services business 2.5 1.3 0.5 0.4 0.2 0.1 –
Schuldscheindarlehen 0.4 0.4 – 0.3 – 0.1 – –
of which for the financial services business – – – – – – –
Volkswagen Group liabilities 2.4 2.4 0.9 0.6 0.6 0.3 – –
of which for the financial services business 1.5 0.7 0.6 0.2 – – –
Total financial liabilities (excluding lease liabilities) 23.1 23.2 7.9 6.8 2.5 1.7 2.3 2.0
of which for the financial services business 15.1 6.0 4.4 1.9 0.7 1.1 1.0
Lease liabilities1 1.2 1.2
Total financial liabilities 24.3 24.4
of which for the financial services business 15.1
1 The maturity structure of the lease liabilities (IFRS 16 Leases) is as follows: < 1 year: €254 million; 1–5 years: €698 million; > 5 years: €219 million.
Financing of the TRATON GROUP
The European Medium Term Notes program (EMTN program), which the TRATON GROUP has had since March 12, 2021, was updated on March 24, 2025, and
increased from €12.0 billion to €18.0 billion. In addition to TRATON SE, the company’s indirect subsidiary TRATON Finance Luxembourg S.A., Strassen, Lux-
embourg (TRATON Finance) can also issue bonds under this program. The total principal amount of bonds as of December 31, 2025, was €11.6 billion (previ-
ous year: €10. 8 billion), which were issued under the EMTN program by TRATON Finance. During the course of 2025, bonds with a principal amount of
€2.9 billion were issued in euros, €773 million were issued in Swedish kronor, and €172 million in Swiss francs. The bonds issued under the EMTN program
are hedged in part by interest rate derivatives. In addition, Scania is using a €5. 0 billion EMTN program, of which a total principal amount of €28 9 million
(previous year: €1. 6 billion) had been drawn down as of year -end 2025. Since August 2025, TRATON has had an Australian Med ium Term Notes program
(AMTN program) with a volume of AUD 5.0 billion or approximately €2.8 billion. No bonds were issued under this program in fiscal year 2025.
Bonds from the EMTN program in the principal amount of approximately €9.1 billion (previous year: €7.3 billion) were used for financial services transactions.
In addition, companies in the TRATON Financial Services segment issued bonds totaling €1.4 billion (previous year: €2.0 billion) as of December 31, 2025. In
2025, Scania Finance Southern Africa (Pty) Ltd., Johannesburg, South Africa, established a South African rand (ZAR) medium -term notes program with a
volume of ZAR 10. 0 billion, or approximately €51 5 million. Issuances under this program amounted to the equivalent of €28 8 million as of
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December 31, 2025. In addition, the TRATON Financial Services segment has bonds totaling €2.5 billion (previous year: €1.6 billion) from asset-backed secu-
rities transactions. The bonds, including asset-backed securities transactions for financial services transactions, increased by approximately €2.0 billion.
The TRATON GROUP’s drawdowns from the €2.5 billion commercial paper program (CP program) as of December 31, 2025, amounted to a principal amount
of €1. 2 billion (previous year: €18 9 million), which were issued by TRATON Finance and were used exclusively to finance the TRATON Financial Services
segment. In addition to TRATON Finance, TRATON SE and TRATON Treasury AB, Södertälje, Sweden (TRATON Treasury AB) can also issue commercial paper
under the CP program. The CP program covers the short-term financing requirements of the TRATON Financial Services segment. The short-term P-2 credit
rating assigned by Moody’s and the A-2 rating assigned by S&P correspond to TRATON SE’s long-term investment-grade ratings.
The TRATON GROUP also had bank liabilities of €6.4 billion (previous year: €5.4 billion) as of December 31, 2025. Of this amount, €2.3 billion (previous year:
€2.0 billion) were attributable to TRATON SE. TRATON SE repaid bank liabilities of €250 million prematurely over the course of 2025. In addition, €350 million
in loan liabilities of TRATON SE were prolonged. As its only new bank loan, TRATON SE entered into a bilateral loan agreement with the European Investment
Bank (EIB) on December 2, 2025, for up to €500 million to finance the costs of the TRATON Modular System project in the years 2025 to 2027. The entire loan
amount was disbursed on December 19, 2025, with a term of five years. The TRATON SE also has €467 million (previous year: €483 million) in unused uncon-
firmed credit lines from banks at its disposal in order to enhance flexibility in financing decisions. In addition, TRATON SE ’s financing using Schuldschein-
darlehen as of December 31, 2025, remained unchanged at €350 million (previous year: €350 million).
Via TRATON SE, the TRATON GROUP has access to revolving credit lines of €4.3 billion (previous year: €4.3 billion) from Volkswagen AG, of which €250 mil-
lion (previous year: €943 million) had been drawn down as of December 31, 2025, as well as a €68 1 million revolving credit line from Volkswagen Group of
America Finance, LLC, Reston, USA, to Navistar Financial Corporation, of which €344 million (previous year: €95 million) had been drawn down as of Decem-
ber 31, 2025. Further, Navistar Financial Corporation took out a one -year loan of €12 8 million in December 2025. In addition to the loan of €33 9 million
(previous year: €383 million) received in fiscal year 2024, International Motors took out a two -year loan of €12 7 million and a further three -year loan of
€467 million from Volkswagen Group of America Finance, LLC, Reston, USA. The two loans, financed by Volkswagen International Finance N.V., Amsterdam,
Netherlands in 2024 — one loan of €500 million with a term of two years and another loan of €191 million with a term of three years — remained unchanged
as of December 31, 2025.
The TRATON GROUP also has an unused confirmed credit line of €4. 5 billion (previous year: €4.5 billion) available as a liquidity reserve, which TRATON SE
agreed with a banking consortium of 23 banks. After exercising both extension options, the revolving credit line has a total term of seven years and expires
on December 16, 2028. The credit line serves general corporate purposes as well as to safeguard the TRATON GROUP’s liquidity.
In October 2025, the TRATON GROUP successfully introduced a Group-wide Green Finance Framework to support investments in battery-electric mobility.
The Framework forms the basis for a wide range of green financing instruments, including green bonds, loans, Schuldscheindarlehen, and asset-backed
securities. The TRATON GROUP received a second party opinion on this from S&P Global Ratings. The Framework was rated “Dark G reen,” the highest pos-
sible category.
The broad range of funding contracts entail interest rates in keeping with market conditions, which differ according to the respective financial instrument,
maturity, currency, funding purpose, volume, and region.
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Financial liabilities of the TRATON GROUP by currency
€ billion 12/31/2025 12/31/2024
EUR 15.1 14.4
SEK 3.1 2.8
USD 2.4 1.5
BRL 1.5 0.8
GBP 1.0 1.0
MXN 0.6 0.7
CHF 0.7 0.5
ZAR 0.4 0.4
Other currencies 1.4 0.8
Lease liabilities 1.3 1.2
Total financial liabilities 27.4 24.3
The TRATON GROUP’s credit facilities contain standard market change-of-control clauses. This means that the counterparty may demand early repayment
in the event of significant changes in ownership. Two loans of a subsidiary of the TRATON GROUP used to develop and construct production and assembly
facilities in China (China loans), with a total life of ten years each, include financial covenants. For loan liabilities wit h a carrying amount of €22 1 million
(previous year: €308 million) as of December 31, 2025, the ratio of total liabilities to total assets of the subsidiary may not exceed 90%. For the secon d loan,
which was refinanced in fiscal year 2025, the subsidiary’s net profit must be positive and the debt service coverage ratio may not fall below 1.2. The debt
service coverage ratio describes the ratio between the subsidiary’s net profit before interest expenses attributable to the China loans and depreciation and
amortization, to the principal amount, interest payments, and interest due on both China loans. The carrying amount of the loan as of December 31, 2025, is
€395 million (previous year: €– million).
Liquidity
Cash and cash equivalents amounted to €2. 8 billion (previous year: €2.5 billion) as of December 31, 2025. Cash and cash equivalents in certain countries
(e.g., Brazil, China, and Argentina) in the amount of €736 million (previous year: €834 million) are subject to exchange controls and are not available to the
Group for cross-border transactions without restriction. Such amounts are used locally to cover the financing needs of the operating business.
€103 million (previous year: €120 million) was reported in other financial assets as restricted cash as of December 31, 2025. This is mainly used as collateral
in asset-backed securities transactions. In the previous year, restricted cash included an additional €41 million for the gradual acquisition of key aspects of
the global financial services businesses of MAN and VWTB.
The TRATON GROUP’s financial management manages cash pool structures at brand level, wherever legally and economically appropriate and feasible. The
TRATON segments manage operational cash themselves. Excess cash in the TRATON segments is usually managed at TRATON SE level.
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Individual TRATON GROUP companies are also continuing to sell a limited volume of current receivables on a revolving basis as part of their receivables
management. This also involves selling trade receivables to TRATON Financial Services companies. In addi tion, certain companies use supplier finance
arrangements, in which suppliers, with the involvement of a bank or a third-party provider, can decide to receive payment of individual invoices before they
are due. The contractual terms (e.g., payment terms) do not change, or do not change materially, due to the involvement of the bank or third-party provider.
Accordingly, the payment obligations are recognized under trade payables and the cash outflow is recognized in net cash provi ded by/used in operating
activities.
Equity
Equity ratio
€ million
TRATON GROUP TRATON Operations TRATON Financial Services Corporate Items
12/31/2025 12/31/2024 12/31/2025 12/31/2024 12/31/2025 12/31/2024 12/31/2025 12/31/2024
Equity 18,636 17,844 14,738 11,728 2,275 2,052 1,624 4,064
Total assets 68,202 65,547 45,181 42,867 23,419 20,431 –398 2,249
Equity ratio (in %) 27.3 27.2 32.6 27.4 9.7 10.0 – –
The increase in equity in the TRATON Operations business area compared with the previous year is primarily attributable to th e merger of significant parts
of the research and development departments of the individual brands into a cross -brand, Group -wide r esearch and development organization, as de-
scribed in the Financial Management section. This also applies to the decrease in equity in Corporate Items compared with the previous year.
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Cash flow
Condensed statement of cash flows of the TRATON GROUP
€ million
TRATON GROUP TRATON Operations TRATON Financial Services Corporate Items
2025 2024 2025 2024 2025 2024 2025 2024
Cash and cash equivalents as of 01/01 2,542 1,730 6,715 4,256 394 246 –4,567 –2,772
Gross cash flow 3,983 5,654 4,267 5,809 539 512 –823 –666
Change in working capital –3,081 –3,315 80 –311 –3,592 –3,585 431 581
Net cash provided by/used in operating activities 902 2,340 4,347 5,498 –3,054 –3,073 –392 –85
Net cash provided by/used in investing activities
attributable to operating activities –2,748 –2,782 –2,704 –2,663 –60 –81 16 –38
Change in marketable securities, investment deposits, and loans 20 –29 –83 1,294 17 –25 86 –1,299
Net cash provided by/used in investing activities –2,728 –2,811 –2,787 –1,369 –43 –105 102 –1,337
Net cash provided by/used in financing activities 2,021 1,392 329 –1,579 3,264 3,337 –1,573 –366
Effect of exchange rate changes on cash and cash equivalents 70 –109 45 –91 –2 –11 27 –7
Change in cash and cash equivalents 264 812 1,935 2,459 165 148 –1,836 –1,795
Cash and cash equivalents as of 12/31 2,805 2,542 8,650 6,715 558 394 –6,403 –4,567
Gross cash flow 3,983 5,654 4,267 5,809 539 512 –823 –666
Change in working capital –3,081 –3,315 80 –311 –3,592 –3,585 431 581
Net cash provided by/used in investing activities
attributable to operating activities –2,748 –2,782 –2,704 –2,663 –60 –81 16 –38
Net cash flow –1,846 –442 1,643 2,834 –3,113 –3,154 –376 –123
The TRATON GROUP’s net cash provided by/used in operating activities fell by €1. 4 billion year-on-year to €902 million. This was a result primarily of the
€1.7 billion lower gross cash flow, which above all reflects the €1. 8 billion decrease in operating result. This was partly offset by a €23 3 million decrease in
working capital, which was due primarily to a €746 million reduction in financial services receivables, as reflected in the net cash flow of the TRATON Finan-
cial Services segment. There was also an improvement of €643 million due to the current reduction in inventories at the TRATON Operations business area,
in contrast to the increase in inventories in the previous year. Working capital was negatively impacted primarily at the TRATON Operations business area
by the €71 0 million increase in assets leased out and the €47 9 million effect of the current increase in receivables, compared with the decrease in the
previous year.
Cash tied up in working capital rose by a total of €3. 1 billion in the reporting period. The principal driver was the €2. 2 billion increase in financial services
receivables and reported in net cash flow in the TRATON Financial Services segment. The increase in products leased out of €1.2 billion and, conversely, the
decrease in inventories of €429 million, which occurred primarily within the TRATON Operations business area, also had an impact.
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The TRATON GROUP’s net cash used in investing activities attributable to operating activities declined by €34 million year-on-year to €–2.7 billion. This was
primarily attributable to a €18 7 million decrease in investments in property, plant, and equipment, and other intangible assets, as well as a €7 9 million
decrease in cash outflows from investments in subsidiaries and other investees. This was partially offset by a €242 million increase in addition to capitalized
development costs.
In the reporting period, net cash provided by/used in financing activities in the TRATON Operations business area was negatively impacted by dividend and
profit and loss transfer payments of €1.2 billion (previous year: €1.3 billion) to TRATON Holding companies, included in Corporate Items. Offsetting this, there
were positive effects from capital increases by TRATON Holding companies reported under Corporate Items to companies in the TRATON Operations busi-
ness area in the amount of €1.7 billion (previous year: €0 million). Further information on the capital increases within the TRATON Operations business area
can be found in the Equity section. The effects described in this paragraph were all eliminated at the level of the TRATON GROUP.
The TRATON GROUP’s net cash provided by/used in financing activities increased by €62 8 million year-on-year to €2.0 billion. It includes bond issuances
by the TRATON GROUP amounting to €5.6 billion (previous year: €5.4 billion), including €3.8 billion (previous year: €4.0 billion) issued by TRATON Finance
Luxembourg S.A., Strassen, Luxembourg (TRATON Finance), allocated to Corporate Items. These were partly offset by repayments in the total amount of
€4.9 billion (previous year: €2.6 billion). €3.1 billion (previous year: €1.5 billion) of this was predominantly attributable to TRATON Finance within Corporate
Items and €1.3 billion (previous year: €692 million) to Scania Vehicles & Services in the TRATON Operations business area. The bond issues and repayments
related primarily to the European Medium Term Notes programs (EMTN programs). Other bond issues and redemptions mainly relate to bonds from asset-
backed securities transactions used by companies in the TRATON Financial Services segment for financing purposes.
Commercial paper programs recorded inflows of €1.3 billion (previous year: €91 million) and, on the other hand, redemptions of €322 million (previous year:
€829 million). Commercial paper is mainly attributable to TRATON Finance within Corporate Items. In the previous year, Schuldscheindarlehen of €350 mil-
lion were also redeemed.
In addition, long-term loan liabilities to Volkswagen Group of America Finance, LLC, Reston, USA, amounting to €646 million (previous year: €367 million)
were incurred within the TRATON Operations business area, and short -term loans to Volkswagen Group of America Finance, LLC, by the TRATON Financial
Services segment of €258 million were incurred, in contrast to the previous year, when loans of €278 million were redeemed. By contrast, loan liabilities of
€693 million (previous year: €104 million) were repaid to Volkswagen AG. Further, miscellaneous financial liabilities increased by €1. 1 billion, in contrast to
the reduction of €268 million in the previous year, largely attributable to loan liabilities to banks. In the current fiscal year, it should be noted that TRATON
SE raised a €500 million loan liability with the European Investment Bank (EIB) , allocated to Corporate Items. In the previous year, long -term loans of
€692 million were taken out from Volkswagen International Finance N.V., Amsterdam, Netherlands, and of €250 million from Volkswagen AG.
Additionally, in May 2025, TRATON SE paid out a dividend of €850 million (previous year: €750 million) for fiscal year 2024.
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Net liquidity/net financial debt
Net liquidity/net financial debt of the TRATON GROUP
€ million
TRATON GROUP TRATON Operations TRATON Financial Services Corporate Items
12/31/2025 12/31/2024 12/31/2025 12/31/2024 12/31/2025 12/31/2024 12/31/2025 12/31/2024
Cash and cash equivalents 2,805 2,542 8,650 6,715 558 394 –6,403 –4,567
Marketable securities, investment deposits, and loans to
affiliated companies 127 201 178 102 97 154 –148 –54
Gross liquidity 2,933 2,743 8,828 6,817 656 547 –6,551 –4,621
Third-party borrowings –27,391 –24,277 –6,317 –6,901 –19,952 –17,178 –1,122 –197
thereof intra-group financing1 – – –2,686 –4,143 –12,620 –11,834 15,307 15,978
Net liquidity/net financial debt –24,458 –21,534 2,511 –85 –19,296 –16,631 –7,673 –4,818
1 Intragroup financing in the TRATON GROUP
Net financial debt rose by €2. 9 billion to €24.5 billion in the reporting period, driven mainly by the development of net cash flow and the dividend payout
amounting to €85 0 million (previous year: €75 0 million). More detailed information explaining changes in net cash flow can be found in the Cash flow
section.
The net financial debt/EBITDA (adjusted) ratio for the TRATON Operations business area including Corporate Items was –1.1 as of December 31, 2025, and
hence down on the prior -year comparative figure of –0.8 as of December 31, 2024 . This is attributable to an increase in net financial debt in the TRATON
Operations business area including Corporate Items to €5. 2 billion (previous year: €4.9 billion) and a decrease in EBITDA (adjusted) in the TRATON Opera-
tions business area including Corporate Items for the past ten months to €4.7 billion (previous year: €6.0 billion).
The following table shows the reconciliation of operating result to EBITDA (adjusted) for the TRATON Operations business area including Corporate Items
for the period January to December 2025.
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EBITDA (adjusted), TRATON Operations including Corporate Items
€ million 2025 2024
Operating result, TRATON Operations 2,745 4,601
Operating result, Corporate Items –486 –597
Operating result, TRATON Operations including Corporate Items 2,259 4,004
Adjustments 347 175
Operating result (adjusted), TRATON Operations including Corporate Items 2,606 4,179
plus share of earnings of equity-method investments 214 236
plus other financial result –204 –394
plus depreciation and amortization of, and impairment losses on, intangible assets, and property, plant, and
equipment, net of impairment reversals1 1,518 1,423
plus amortization of, and impairment losses on, capitalized development costs, net of impairment reversals 2 520 530
plus impairment losses on equity investments, net of impairment reversals 34 1
EBITDA (adjusted), TRATON Operations including Corporate Items 4,689 5,974
1 Adjusted for impairment losses in the adjustments to operating result amounting to €8 million (previous year: €– million)
2 Adjusted for impairment losses in the adjustments to operating result amounting to €100 million (previous year: €– million)
Investments
Investments by segment
€ million 2025 2024 Change
TRATON GROUP 2,861 2,884 –24
TRATON Operations 2,801 2,780 20
Scania Vehicles & Services1 1,417 1,387 30
MAN Truck & Bus1 687 699 –12
International Motors1 611 603 8
Volkswagen Truck & Bus1 85 92 –7
Reconciliation 2 0 1
TRATON Financial Services 66 68 –2
Corporate Items –6 36 –42
Investments, TRATON Operations 2,801 2,780 20
of which capex 1,555 1,751 –196
Capex ratio (in %) 3.7 3.8 –0.1 pp
Capitalized development costs 1,220 978 242
Other investees 25 51 –26
1 Prior-year figures adjusted, see the Financial management section
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Investments by Scania Vehicles & Services in 2025 were above the previous year’s figure. These were driven by work on the TRATON Modular System. A key
component of capital expenditures was the development of the production site in China. The plant in Rugao was officially opened on October 15, 2025, and
started producing Scania trucks in the same month. Delivery of the first vehicles for the new NEXT ERA product line, which is tailored to the Chinese market,
is also planned for March 2026.
Investments at MAN Truck & Bus declined year-on-year following the completion of the first expansion stage of the battery factory in Nuremberg and the
start of production in the first half of 2025, as well as the integration of the new D30 engine into the product range. Incre ased investment in the TRATON
Modular System and the new generation of the MAN TGE van are planned for the coming years.
International Motors’ investments in 2025 mainly focused on optimizing the Class 8 product range and investing in the S13 pow ertrain. Expansion invest-
ments in a new paint shop at the Escobedo site in Mexico declined. It is scheduled to go into operation at the beginning of 2026.
Volkswagen Truck & Bus invested primarily in meeting legal requirements in the reporting year 2025. It also invested in IT and the facility structure.
On December 15, 2021, the TRATON GROUP signed the contract to establish the Commercial Vehicle Charging Europe B.V, Amsterdam , Netherlands (Mi-
lence) charging infrastructure joint venture together with Daimler Truck and the Volvo Group, and undertook to invest a total amount of up to €167 million
in this joint venture. €40 million (previous year: €38 million) was paid into Milence’s equity in this context in the reporting year.
The TRATON GROUP’s off-balance sheet commitments
€ million 12/31/2025 12/31/2024 Change
TRATON GROUP
Contingent liabilities1 3,342 4,458 –1,116
Purchase order commitments for property,
plant, and equipment, and intangible assets 677 837 –160
Obligations under irrevocable credit
commitments1 631 725 –94
Off-balance sheet commitments under rental
and lease contracts 82 91 –10
Miscellaneous financial obligations 112 170 –59
1 Prior-year amount adjusted
Contingent liabilities included buyback guarantees of €1.7 billion (previous year: €2.5 billion) under which TRATON is obliged to buy back vehicles from the
financial services company in the event of default. The year-on-year decline relates to obligations arising from buyback guarantees in connection with the
acquisition of key aspects of the global financial services business of Volkswagen Financial Services for MAN by the TRATON Financial Services segment.
They also included guarantees by International of €247 million (previous year: €492 million). These are mostly default guarantees in favor of banks.
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Miscellaneous financial obligations were impacted by the obligations of the TRATON GROUP amounting to €4 5 million (previous year: €85 million) arising
from the agreement signed on December 15, 2021, to set up the Milence charging infrastructure joint venture together with Dai mler Truck and the Volvo
Group.
For information on contingent liabilities, refer to Note 31. Contingent liabilities and commitments. For all other off-balance sheet commitments, refer to Note
33. Other financial obligations.
6. Net assets
Balance sheet analysis
Condensed Balance Sheet of the TRATON GROUP
€ million
TRATON GROUP TRATON Operations TRATON Financial Services Corporate Items
12/31/2025 12/31/2024 12/31/2025 12/31/2024 12/31/2025 12/31/2024 12/31/2025 12/31/2024
Goodwill 5,967 6,154 387 365 – – 5,580 5,789
Intangible assets 7,664 7,389 5,633 4,898 21 20 2,011 2,471
Property, plant, and equipment 10,111 9,646 9,719 9,256 26 18 366 372
Assets leased out 5,316 5,168 5,173 5,021 1,436 1,057 –1,293 –911
Equity-method investments 1,770 1,641 410 387 8 6 1,352 1,247
Other equity investments 83 139 218 272 54 24 –190 –158
Deferred and current income taxes 3,126 3,027 2,978 3,127 345 274 –197 –374
Financial services receivables 17,906 15,984 0 0 17,887 15,986 19 –2
Inventories 7,016 7,532 6,987 7,529 – 3 29 0
Trade receivables 3,126 3,096 2,205 2,476 1,139 992 –218 –372
Other assets 3,289 3,183 2,799 2,806 1,943 1,623 –1,453 –1,247
Marketable securities and investment deposits 22 46 22 14 – 32 – –
Cash and cash equivalents 2,805 2,542 8,650 6,715 558 394 –6,403 –4,567
Total assets 68,202 65,547 45,181 42,867 23,419 20,431 –398 2,249
Equity 18,636 17,844 14,738 11,728 2,275 2,052 1,624 4,064
Financial liabilities 27,391 24,277 6,317 6,901 19,952 17,178 1,122 197
Provisions for pensions and other post-employment benefits 1,644 1,909 1,626 1,878 12 18 6 13
Deferred and current income taxes 864 1,219 604 948 157 150 102 121
Other provisions 3,989 3,835 3,921 3,722 16 18 52 95
Other liabilities 10,203 11,114 12,566 12,354 715 634 –3,078 –1,874
Trade payables 5,474 5,349 5,409 5,336 291 381 –225 –368
Total equity and liabilities 68,202 65,547 45,181 42,867 23,419 20,431 –398 2,249
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As of December 31, 2025, the TRATON GROUP’s total assets increased by approximately €2.7 billion compared with December 31, 2024. This was attributable
primarily to a €1. 9 billion rise in financial services receivables, the €46 5 million growth in property, plant, and equipment, the €27 5 million increase in in-
tangible assets, and the €264 million increase in cash and cash equivalents. This was offset by a €516 million decline in inventories and a €187 million decline
in goodwill. On the liabilities side of the balance sheet, financial liabilities increased by €3. 1 billion and equity increased by €79 3 million. This was partly
offset by the €911 million decline in other liabilities.
The decrease in goodwill is mainly attributable to negative effects from the translation of financial statements of foreign operations into euros. This reflected
in particular the negative development of the US dollar against the euro.
The increase in intangible assets primarily reflects increased investments in new developments.
Property, plant, and equipment increased by €465 million, due in particular to capital expenditures for the establishment of the production site in China.
Equity-method investments rose by €129 million. This was attributable primarily to the positive earnings contributions from Sinotruk (Hong Kong) Limited,
Hong Kong, China, (Sinotruk) and Rheinmetall MAN Military Vehicles GmbH, Munich, (RMMV) and to further investments in the Milence joint venture.
The main reason for the €1.9 billion increase in financial services receivables was primarily the €1.2 billion expansion of finance leasing activities in the MAN
and VWTB Financial Services business. In addition, customer financing rose by €949 million, mainly in Brazil. This was offset by a €226 million reduction in
dealer finance, primarily in Mexico.
Inventories decreased by €51 6 million compared with December 31, 2024. The decline is mainly due to lower production levels at International Motors,
Scania Vehicles & Services, and Volkswagen Truck & Bus.
The €264 million increase in cash and cash equivalents is mainly attributable to positive financing activities of €2.0 billion. This was largely offset by negative
net cash flow of around €1.8 billion (for further information, see the Cash flow section).
The TRATON GROUP’s equity as of December 31, 2025, rose to €18.6 billion. The main driver of the increase was the positive total comprehensive income of
€1.7 billion. This was the result of positive earnings after taxes of €1. 5 billion and positive other comprehensive income after tax of €14 4 million. This was
primarily due to income from pension plan remeasurements recognized in equity, net of tax, and from the fair value measurement of other investments and
marketable securities. Negative effects from tra nslating the financial statements of foreign operations were generally an offsetting factor. The dividend
payout of €850 million resulted in a corresponding reduction in equity. The equity ratio increased slightly year -on-year to 27.3% (previous year: 27.2%) (see
the Statement of Changes in Equity in the Consolidated Financial Statements).
Financial liabilities rose by €3.1 billion in the 2025 reporting year. This was mainly the result of the net recognition of further commercial paper liabilities by
TRATON Finance amounting to €99 3 million, the net recognition of bonds from asset -backed securities transactions amounting to €82 9 million, and the
net recognition of loan liabilities to Volkswagen Group of America Finance amounting to €799 million. Additionally, financial liabilities increased due to the
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67 TRATON GROUP 2025 Annual Report
To Our
Shareholders
Combined
Management Report
Consolidated
Financial Statements
Responsibility Statement
and Independent
Auditor’s Reports
Sustainability
Report
Further
Information
net recognition of €96 0 million in loans from banks, of which €50 0 million was from the European Investment Bank. This was largely offset by the repay-
ment of loan liabilities to Volkswagen AG in the amount of €693 million (for further information, see the Financial position section).
Provisions for pensions and other post -employment benefits decreased by €26 5 million due to various factors, including payments in the USA and the
higher discount rates in Germany and Sweden.
Other liabilities decreased by approximately €911 million. This is primarily attributable to lower fair values of derivative financial instruments, reduced liabil-
ities from buyback obligations as a result of the integration of the financial services business of Volkswagen Financial Serv ices, and lower liabilitie s from
wages and salaries.
Trade liabilities increased by €125 million. The increase is primarily attributable to the higher production level at MAN and the launch of production at Scania
in China. Conversely, trade payables at International Motors declined due to lower production volumes.
In addition to the assets recognized in the consolidated balance sheet, the TRATON GROUP also uses assets that are not eligib le for recognition, such as
individual brands, internally developed patents, and employee expertise. Expenditures on these assets are investments in the future that safeguard market
success in the coming years.
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68 TRATON GROUP 2025 Annual Report
To Our
Shareholders
Combined
Management Report
Consolidated
Financial Statements
Responsibility Statement
and Independent
Auditor’s Reports
Sustainability
Report
Further
Information
7. Target achievement in 2025 and summary of economic position
Actual 2024
Forecast for
2025
Forecast for
2025 Actual 2025
TRATON GROUP
Sales (units) 334,215 –5 – 5% –10 – 0% 305,486
Sales revenue (€ million) 47,473 –5 – 5% –10 – 0% 44,052
Operating return on sales (adjusted) (in %) 9.2 7.5 – 8.5 6.0 – 7.0 6.3
TRATON Operations
Sales revenue (€ million) 46,182 –5 – 5% –10 – 0% 42,536
Operating return on sales (adjusted) (in %) 10.3 8.5 – 9.5 7.0 – 8.0 7.3
Net cash flow (€ million) 2,834 2,200 – 2,700 1,000 – 1,500 1,643
Primary R&D costs (€ million)1 2,456 slight decrease slight increase 2,731
Capex (€ million)
1,751
noticeable
increase
noticeable
increase 1,555
TRATON Financial Services
Return on equity (in %) 10.8 8.0 – 11.0 8.0 – 11.0 8.0
1 Prior-year amount adjusted, see the Financial management section
Against the backdrop of numerous trade and geopolitical challenges that intensified over the course of the year, the Executive Board of TRATON SE consid-
ers the business performance in the 2025 reporting period to have been challenging. As a result, the forecast was adjusted upon publication of the half-year
financial report. Overall, the Executive Board is not satisfied with target achievement and has adopted further measures to strengthen the earnings situation.
In 2025, the TRATON GROUP’s most important t ruck markets (> 6 t) worldwide recorded a noticeable decline in new registrations, while the TRATON
GROUP’s most important bus markets recorded significant growth compared with the previous year. Overall, TRATON GROUP unit sales were down 9% year-
on-year, primarily as a result of the significant decline in truck sales, but still within the adjusted forecast range.
The TRATON GROUP’s sales revenue in the reporting period was also noticeably below the prior-year level. This was mainly due to the noticeable decline in
unit sales and a change in the market and product mix, among other factors. By contrast, the TRATON Fi nancial Services segment was able to increase its
sales revenue significantly compared with the level of the comparative period. The decline in sales revenue at the TRATON GROUP and the TRATON Opera-
tions business area was therefore within the adjusted forecast range, at –7% and –8%, respectively.
The TRATON GROUP’s operating return on sales (adjusted) amounted to 6.3% in the reporting period. It was therefore also withi n the adjusted forecast
range.
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69 TRATON GROUP 2025 Annual Report
To Our
Shareholders
Combined
Management Report
Consolidated
Financial Statements
Responsibility Statement
and Independent
Auditor’s Reports
Sustainability
Report
Further
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Primary R&D costs rose significantly in 2025 rather than increasing slightly, as indicated in the adjusted forecast. This development is attributable primarily
to higher investments in forward-looking technologies and compliance with regulatory requirements. Capital expenditure fell significantly in 2025 instead
of rising significantly, as forecast. This shortfall was a result of the postponement of investment projects.
Net cash flow for the TRATON Operations business area noticeably exceeded the upper end of the adjusted forecast range. This was primarily due to better-
than-expected working capital management and significantly lower capital expenditure. It was not possible to reach the original forecast due to the numer-
ous trade and geopolitical challenges described above, which intensified over the course of the year.
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70 TRATON GROUP 2025 Annual Report
To Our
Shareholders
Combined
Management Report
Consolidated
Financial Statements
Responsibility Statement
and Independent
Auditor’s Reports
Sustainability
Report
Further
Information
TRATON SE (German GAAP, condensed)
TRATON SE has its registered office in Munich and is the parent and holding company of the TRATON GROUP. TRATON SE is the (di rect or indirect) parent
company of Scania AB, Södertälje, Sweden (Scania AB), MAN Truck & Bus SE, Munich (MAN Truck & Bus SE), International Motors LLC, Lisle, Illinois, USA
(International), Volkswagen Truck & Bus Indústria e Comércio de Veículos Ltda., São Paulo, Brazil (Volkswagen Truck & Bus Ltda.), TRATON Financial Services
AB, Södertälje, Sweden (TRATON Financial Services AB), and a large number of other companies.
The performance of TRATON SE is strongly influenced by that of the TRATON GROUP, which is presented in detail in the Report on Economic Position
section. Profit and loss transfer agreements enable TRATON SE to participate in the operating results of individual subsidiar ies. In addition, TRATON SE
profits from dividend payouts. TRATON SE is integrated into the TRATON GROUP’s internal management process, and generally the same key performance
indicators apply as for the TRATON GROUP.
1. Results of operations
Income Statement of the TRATON SE
€ million 2025 2024 Change
Net investment income 559 381 178
Income from other securities and long-term loans 17 27 –9
Net interest expense –236 –289 53
Sales revenue 56 46 10
Cost of sales –49 –41 –8
Gross profit 7 5 2
General and administrative expenses –166 –158 –8
Other operating income 621 440 181
Other operating expenses –579 –537 –42
Income taxes –29 39 –68
Earnings after tax 195 –92 287
Net loss/profit 195 –92 287
Profit carried forward from the previous year 60 202 –142
Withdrawal from capital reserves 300 800 –500
Allocation to the statutory reserve –10 – –10
Net retained profit 546 910 –365
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71 TRATON GROUP 2025 Annual Report
To Our
Shareholders
Combined
Management Report
Consolidated
Financial Statements
Responsibility Statement
and Independent
Auditor’s Reports
Sustainability
Report
Further
Information
For fiscal year 2025, TRATON SE reported earnings after tax of €195 million (previous year: €–92 million). The €287 million increase was primarily attributable
to net investment income and higher other operating income. This was offset by the tax result and higher other operating expenses. As a result, net invest-
ment income did improve, as forecast in the previous year.
Net investment income predominantly includes income of €56 9 million (previous year: €361 million) from profit transfer agreements, investment income
of €54 million (previous year: €50 million), and expenses of €64 million (previous year: €31 million) from loss absorption. The €17 8 million improvement in
net investment income is mainly the result of the profit transfer from MAN Truck & Bus SE and the loss transfer from MAN Finance & Mobility Services GmbH,
Munich.
The interest result consists mainly of interest income and expenses on group internal receivables and liabilities as well as bank interest and commissions .
The change in the interest result is mainly due to the increase in interest rate hedges and interest rate currency hedges concluded for interest rate-sensitive
base transactions of TRATON Financial Services.
Sales revenue mainly comprises services and cost allocations charged to affiliated companies. These increased by €10 million to €56 million in 2025. General
and administrative expenses increased by € 8 million to €166 million. This is predominantly attributable to higher consulting costs in connection with the
implementation of the TRATON Way Forward strategy.
The changes in other operating income and other operating expenses resulted mainly from foreign currency translation and inco me and expenses from
financial instruments.
2. Assets and financial position
Balance sheet of TRATON SE
€ million 12/31/2025 12/31/2024 Change
Fixed assets 27,053 22,819 4,233
Receivables and other assets1 3,706 2,837 869
Bank balances 494 459 35
Total assets 31,253 26,115 5,137
Equity 13,279 13,934 –655
Liabilities to banks2 2,632 2,365 267
Miscellaneous provisions and liabilities1 15,341 9,816 5,525
Total equity and liabilities 31,253 26,115 5,137
1 Including accruals and deferrals
2 including Schuldscheindarlehen, for further explanations see Financial position, TRATON GROUP financing section in the Combined Management Report.
Total assets increased by €5.1 billion year-on-year to €31.3 billion.
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