Investing.com -- Shares of Daimler (OTC: MBGAF ) Truck (ETR: DTGGe ) rose 1.5% in European trading after the company presented updated 2030 targets at its Cleveland capital markets day (CMD), including a more ambitious profitability goal and detailed plans to improve structural efficiency.

The update was initially met with a modest pullback, but the stock has since gained as investors reassessed the long-term upside.

The company now expects to reach an adjusted industrial EBIT margin of over 12% by fiscal 2030 (FY30), up from its previous target of 10–11%.

“The >12% margin target is underpinned by structural efficiencies,” Morgan Stanley analysts said, adding that more than 200bps of improvement relates to cost savings and the Fuso/Hino integration.

They added that these long-term structural changes could help Daimler Truck “narrow the margin and valuation gap to peers Volvo (OTC: VLVLY ) and PACCAR (NASDAQ: PCAR ).”

The ambitious margin target comes despite a significant cut to revenue growth ambitions, with FY24–30 revenue compound annual growth rate (CAGR) now guided at 3–5%, compared to the prior goal of 50% revenue growth between FY25–30.

One of the cornerstones of the strategy is the “Cost Down Europe” program, which aims to shift production out of Germany to lower-cost countries and deliver over €1 billion in savings by 2030.

Daimler Truck also plans to reduce its German headcount by around 5,000 employees. Management estimates the cost difference per truck between Germany and best-cost locations at approximately €3,000.

While the FY25 guidance remains unchanged for now, the truckmaker acknowledged that “North America demand needs to improve in order to meet the guide.” Daimler did not refer to any near-term target revisions amid continued demand weakness.

The company reaffirmed its commitment to shareholder returns with a new €2 billion buyback and a continued 40–60% dividend payout policy. Analysts noted that this implies a total shareholder return of 7–8%, in line with peers.

The updated plan also includes a strategic recalibration of capital spending, with decarbonization investments tapering off in the U.S. market. The company expects peak capex in 2026–27 before it gradually declines toward 2030.