Volvo Lifts Truck Market Guidance as Markets Begin to Stabilize

By Dominic Chopping

STOCKHOLM--Volvo raised its outlook for European and North American truck markets after several markets began to stabilize in recent months, with a slight improvement in some cases.

It now sees the European heavy-duty truck market at 305,000 vehicles in 2026, up from a previous estimate of 295,000. The North American heavy-duty truck market is seen at 265,000 vehicles, up from 250,000 previously.

New truck deliveries fell 3.4% in the fourth quarter, with North America and South America posting a significant drop on year. North America is in a freight recession and demand is at a low level with the market expected to remain weak through the first half, Volvo said.

The European truck market continued to be replacement-driven and demand from larger fleets is expected to continue through 2026.

Volvo reported a fourth-quarter net profit of 9.61 billion Swedish kronor ($1.1 billion) compared with 10.74 billion kronor a year earlier as sales fell 11% to 123.8 billion kronor. Analysts polled by FactSet had expected a net profit of 8.89 billion kronor on sales of 121.67 billion kronor.

The company said tariffs dealt a blow of 800 million kronor to fourth-quarter earnings, with around half affecting its construction-equipment business. In the first quarter, the net tariff impact is expected to be around 1 billion kronor.

Volvo proposed an ordinary dividend of 8.50 kronor and an extra dividend of 4.50 kronor. A year earlier, it proposed an ordinary dividend of 8 kronor and an extra dividend of 10.50 kronor.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

January 28, 2026 02:20 ET (07:20 GMT)