Volvo Reports Rising Truck Demand Across Major Markets — Update

By Dominic Chopping

STOCKHOLM--Volvo said truck demand increased during the first quarter but noted that it is watching closely to assess any potential impact from the Middle East conflict on demand, and the global economy more broadly.

So far, the Swedish truck maker hasn't seen any major disruption to its supply chain from the recent geopolitical turmoil and the Middle East tensions, it said.

"With our flexible business model, strong market positions and disciplined cost control, we are well-positioned to navigate potential swings in demand," Chief Executive Martin Lundstedt said.

The company said truck demand in Europe continued to grow gradually through the first quarter while North and South America both saw a significant increase in orders.

Overall truck orders rose 14% on year.

Deliveries fell 2.7% though as a strong delivery pace in Europe was countered by a number of production stops in North America as well as lower deliveries in South America and Asia. However, given the recent increase in orders in North America, production there will be in better balance from May, Volvo said.

The truck unit's adjusted operating margin slipped to 10.1% from 10.3% as lower volumes and tariff costs were partially offset by an improved service business, lower research and development expenses, and a favorable market mix.

It now sees the European heavy-duty truck market at 310,000 vehicles in 2026, up from a previous estimate of 305,000. It also raised its Brazilian and Indian truck market forecasts slightly while maintaining the North American heavy-duty truck market forecast at 265,000 vehicles and China at 760,000.

The company's construction-equipment business--which makes up around 17% of group sales--reported a margin of 13.6%, up from 12%. It said the global construction equipment market continued to grow in the quarter and it maintained its demand forecasts for all regions in the business.

Volvo reported a first-quarter net profit of 8.32 billion Swedish kronor ($898.1 million), compared with 9.89 billion kronor a year earlier as sales fell 9.1% to 110.77 billion kronor. Analysts polled by FactSet had expected a net profit of 8.44 billion kronor on sales of 112.05 billion kronor.

The net tariff impact landed at 1 billion kronor in the quarter, in line with previous guidance. In the second quarter, the impact is expected to be around 1.2 billion kronor.

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

(END) Dow Jones Newswires

April 24, 2026 03:08 ET (07:08 GMT)