International Motors Posts Q3 Loss on Sales Slump, eRH Exit
Q3 Truck Sales Dive 64%, Tariff Surcharges Jump
Key Takeaways:
- International posted an operating loss of $131.8 million in Q3 2025 after reporting an operating profit of $429.1 million in the year-ago period.
- International launched plans for the Class 8 battery-electric regional-haul eRH in April.
- The OEM's earnings in the most recent quarter included $149.3 million in expenses related to the termination of the eRH.
[Stay on top of transportation news: .]
International Motors posted an operating loss in the third quarter of 2025 as truck sales plummeted 64% year over year, and the truck and bus maker canceled plans for its eRH Series battery-electric tractor.
Lisle, Ill.-based International posted an operating loss of $131.8 million in the most recent quarter after reporting an operating profit of $429.1 million in the year-ago period, parent company . International posted an operating profit of $54.8 million in Q2 2025.
The quarterly loss is the first for the Traton division since the final quarter of 2021, according to parent company records.
Traton closed its purchase of then-Navistar in July 2021. The two agreed to merge in November 2020. Navistar rebranded as International Motors in September 2024.
Traton said International’s earnings in the most recent quarter included $149.3 million in expenses related to the termination of the eRH.
The International eRH battery-electric regional-haul tractor. Plans have been canceled for the vehicle. (International Motors)
International launched plans for the Class 8 battery-electric regional-haul tractor in April. At that point, the eMV medium-duty truck was International’s only battery-electric truck. Serial production of the eRH was scheduled to begin in the first half of 2026.
Since International unveiled the eRH tractor, sales of battery-electric trucks have underperformed existing manufacturers’ expectations, and the Trump administration has walked back federal government support for infrastructure buildout.
“Regulatory changes in the U.S. have impacted our sales in this region. And we cannot expect our ratio [of battery-electric to diesel trucks] to rise there soon,” said during the company’s Q3 earnings call.
As a result, International decided to discontinue development of the eRH.
“Demand simply isn’t there right now,” Levin told analysts. “But let me be crystal clear, we have not abandoned the market. We are convinced that total cost of ownership parity will come.”
Sales Tumble; 2026 Outlook Foggy
International’s truck sales fell 64% in the most recent three-month period to 9,753 units from 27,281 in Q3 2024. Sales also fell 33% from 14,628 in the second quarter of 2025.
Traton said North American sales were hurt by the ongoing freight rate recession and tariff uncertainty, while the year-over-year comparison was exacerbated by a jump in Q3 2024 sales after a mirror supply issue was resolved.
Looking forward, International’s Q3 truck orders fell 26% to 8,760 from 11,795 in the year-ago period.
Overall truck and bus orders at International fell 31% year over year to 10,674 from 15,396.
Traton said 2025 North American Classes 6-8 sales are expected to be down 10%-15%. Three months ago, the company expected sales to be down 7.5%-17.5%.
Through the first nine months of 2025, Traton said regionwide Class 8 sales were down 12% year on year at 200,000 trucks.
𱹾
“So there is quite some catching up needed before reaching [the] year-end,” Levin told analysts. “There is a still a high level of dealer inventory, which is expected to meet retail demand.”
The company said North American Classes 6-8 sales were down 11% in the first three quarters at 281,000.
“Prospects for 2026 in the North American truck market remain highly uncertain. While supportive business policies, such as deregulation and tax incentives could encourage growth, ongoing concerns around the impact of tariffs have a negative impact,” Levin said.
“The unclear scope and timeline of the EPA ’27 emissions regulations further adds uncertainty,” the company’s top executive said.
The Environmental Protection Agency is reassessing planned nitrogen oxide emissions limits for heavy-duty trucks.
Currently, the Biden-era 0.035 grams per horsepower-hour Heavy-Duty Nitrogen Oxide rule is due to enter effect Jan. 1, 2027.
Traton will provide its first outlook for 2026 sales expectations in March.
US Truck Prices to Rise
However, International’s trucks are set to be more expensive in the coming months. Chief Financial Officer Michael Jackstein said during the call that International’s heavy-duty tariff surcharge had been raised over the past couple of days to $9,500 from $3,200.
International’s Escobedo plant is its primary production facility for Class 8 trucks.
The company’s surcharge for medium-duty trucks was raised to $7,000 from $2,000. Jackstein also said more medium-duty and vocational truck production would be moved to the U.S.
International’s sales revenue totaled $2.12 billion in Q3, down 49% from $4.17 billion in the year-ago period.
Traton said this was due to the slump in truck sales, weaker revenue from its vehicle services unit, increasing tariff costs, low fixed cost absorption due to low capacity utilization, plus an unfavorable product and customer mix.
Overall, Traton’s profit in the most recent quarter fell 41% to $778.9 million from $1.33 billion in Q3 2024.
Munich-based Traton — the truck and bus arm of automaker Volkswagen — saw revenue total $12.22 billion in Q3, a decrease of 12% compared with $13.84 billion in the year-ago period.
The company’s operating profit fell 55% year over year to $542 million from $1.21 billion.
Vehicle sales globally fell 16% year over year to 71,429 trucks and buses from 85,274 in Q3 2024.
Orders in the most recent quarter totaled 62,512 trucks and buses, down 3% year over year from 64,353 vehicles in Q3 2024. Truck orders fell 1% year over year to 50,426 from 50,823 in the year-ago period.
Want more news? Listen to today's daily briefing belowor go here for more info:
