Traton SE's Stock Rises After Strong Q3 Earnings

Investing.com — Shares of Traton SE rose on Tuesday after the company posted its preliminary third-quarter earnings, surpassing market expectations.

At 5:35 am (0935 GMT), Traton SE was trading 4% higher at €31.60.

The German truck maker, which owns brands such as Scania, MAN, and Navistar (NYSE:NAV), reported earnings before interest and tax of €1.14 billion, up 11% from consensus estimates of €1.03 billion.

The stronger-than-expected results were primarily driven by strong pricing in its Scania division and improvements in its International operations, particularly Navistar.

As per analysts at Jefferies, the quarter represents one of the best for Traton since it acquired Navistar in 2021.

The jump in earnings is linked to solid price/mix strategies in Scania and higher-than-expected deliveries, especially in Brazil.

International operations, which had faced delivery delays earlier in the year, saw a rebound with a 41% increase in deliveries in the third quarter.

These gains, combined with pricing strength in Scania, helped lift Traton’s overall performance.

Jefferies analysts upgraded their EBIT forecasts for the company by 3% for the next three years, acknowledging the positive impact of pricing discipline and operational efficiency.

They noted that Scania’s pricing power in Europe has held steady, despite concerns over a softening truck market. Meanwhile, the roll-out of the S13 engine at Navistar is expected to drive future market share growth.

With Traton exceeding expectations, investors responded positively, propelling the stock higher. Jefferies maintains a "hold" rating on the stock, with a price target of €37, suggesting potential for further gains.

“The key during the conference will remain the truck outlook for 2025 across the different regions of NA, Europe, Latam and Asia,” said analysts at J.P. Morgan in a note.