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AUTOMOTIVE: Traton (TRAGR Baa2[P]/BBB/NR): CMD

AUTOMOTIVE
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Credit positive update. A Moody’s upgrade already looked baked in and further ratings momentum appears likely.

  • Traton outlines medium term targets (to 2029) at its CMD.
  • Targeting adj. EBIT margin of 9 to 11%. That’s up from 8.5% expected in 2024. Analyst expectations reflect expected margin expansion already – 9.4% consensus for 2026.
  • Aiming for 20-40% revenue growth, i.e. 5.4% CAGR at midpoint. With 3-6% expected in the years ahead that looks like a bullish projection.
  • It expects to be free of industrial net debt by 2029. That was €7.9bn at FY23 for 1.4x leverage, 1.7x including pensions.
  • Moody’s put Traton on outlook positive in March, mainly due to margin improvement. It already looked on track for an upgrade with leverage, margin and FCF targets already met. 
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Credit positive update. A Moody’s upgrade already looked baked in and further ratings momentum appears likely.

  • Traton outlines medium term targets (to 2029) at its CMD.
  • Targeting adj. EBIT margin of 9 to 11%. That’s up from 8.5% expected in 2024. Analyst expectations reflect expected margin expansion already – 9.4% consensus for 2026.
  • Aiming for 20-40% revenue growth, i.e. 5.4% CAGR at midpoint. With 3-6% expected in the years ahead that looks like a bullish projection.
  • It expects to be free of industrial net debt by 2029. That was €7.9bn at FY23 for 1.4x leverage, 1.7x including pensions.
  • Moody’s put Traton on outlook positive in March, mainly due to margin improvement. It already looked on track for an upgrade with leverage, margin and FCF targets already met.