Key facts
- Volvo Group's second-quarter profit rose 35% to 13.5 billion Swedish crowns.
- North America truck order intake more than doubled, contributing significantly to the profit increase.
- Overall truck order intake for the group increased by 33%.
- The company raised its European truck market outlook for the year.
- Volvo reiterated its North America market retail sales forecast.
Swedish truckmaker Volvo Group reported a 35% increase in second-quarter profit, reaching 13.5 billion Swedish crowns ($1.40 billion), surpassing the year-earlier profit of 9.96 billion crowns and narrowly missing analyst forecasts of 13.6 billion crowns. The strong performance was largely driven by a more than doubling of order intake in North America, which saw a 122% surge, contributing to an overall 33% rise in truck order intake for the group.
CEO Martin Lundstedt noted that demand in Europe and South America grew gradually, while North America showed exceptional strength. This pick-up in North American orders follows several years of market weakness in the region. Despite the strong order sentiment, actual truck retail sales in North America were still down in the quarter, though Volvo expects production levels, deliveries, and retail sales to increase in the second half of the year.
Volvo also raised its European truck market outlook for the year to 315,000 new registrations, up from the previous forecast of 310,000. The company reiterated its North America market retail sales forecast of 265,000 trucks. Lower spending on research and development helped offset the impact of U.S. tariffs and increased freight and material costs. The company stated it remains watchful of geopolitical developments, trade policy shifts, and the transition to zero-emission transport, while gradually offsetting cost increases through commercial discipline and operational efficiency.