Volvo Group reports higher Q2 earnings, lifts truck market outlook

Volvo Group reported stronger second-quarter financial results, driven by higher profitability and robust truck order intake in North America despite continued external cost pressures.

Net sales in the second quarter of 2026 increased 3% year over year to SEK 126.3 billion, compared with SEK 122.9 billion in the same period last year.

Organic sales growth stood at 7%.

The company said adjusted operating income excluded negative effects totaling SEK 1.305 billion during the second quarter of 2026.

North America drives truck order growth

Volvo reported a 35% increase in second-quarter operating profit and said truck order intake in North America more than doubled after several years of subdued demand.

The company, one of the world's largest manufacturers of trucks, buses, and construction equipment, said reduced spending in areas such as research and development more than offset the impact of US tariffs and higher freight and material costs.

Overall truck order intake across the group rose 33% during the quarter.

Order intake in North America surged 122%, while Europe remained the company's largest market.

Chief Executive Officer Martin Lundstedt said, "(Truck) demand in Europe and South America continued to grow gradually, while it was exceptionally strong in North America."

Shares in Volvo were roughly unchanged in mid-morning trading.

European market outlook revised higher

Volvo said the recovery in North American orders follows several years of weak market conditions in the region, where slowing haulage activity had resulted in declining freight rates and excess truck capacity.

However, the company noted that stronger order activity has not yet translated into higher retail sales.

"Truck industry production levels, deliveries, and retail sales are expected to increase in the second half of the year," the company said regarding the North American market.

Volvo also raised its outlook for the European truck market, increasing its forecast for new truck registrations this year to 315,000 from the 310,000 projected in April.

The company maintained its North American retail sales forecast of 265,000 trucks for the year.

The company remains cautious about external risks

Second-quarter operating profit rose to SEK 13.5 billion from SEK 9.96 billion a year ago.

The result was broadly in line with the analyst forecast of SEK 13.6 billion in an LSEG poll.

In addition to trucks, Volvo manufactures buses, excavators, wheel loaders, haulers, and marine engines, while also developing self-driving truck technology.

CEO Martin Lundstedt said the company would continue to monitor global developments closely.

"This improvement was broad-based with vehicle sales growing 6% and service sales 7% organically," he said.

He added, "The second quarter of 2026 demonstrates the strength and adaptability of the Volvo Group."