Volvo Says Current Trading Remains Solid as it Moves to Make Earnings More Resilient

By Dominic Chopping

STOCKHOLM--Swedish truckmaker Volvo said that current business activity remains solid as it outlined plans to build earnings resilience through cost control, disciplined pricing and growing its service business.

In a statement released in conjunction with its investor day on Wednesday, the company said customer demand and deliveries in Europe are stable at good levels across its business units.

In North America, demand remains strong, with production gradually beginning to increase.

At the same time, it cautioned that cost inflation is trending upwards. Chief Financial Officer Mats Backman said at the event that Volvo is starting to see an impact on raw material costs from the Middle East conflict.

Looking further out, Volvo said it expects long-term growth in global transport demand, with trucks and construction equipment expected to outperform their historical growth rates moving forward.

"In a world shaped by geopolitical uncertainty, increasing regionalization, and rapid technological change, demand for transport and infrastructure solutions will continue to grow," Chief Executive Martin Lundstedt said.

Volvo's Renault Trucks brand aims to double its light truck business, while engine manufacturer Volvo Penta plans to double its revenue in the coming years.

Volvo Autonomous Solutions is targeting driverless on-highway operations by the first quarter of 2027 and aims to approach around $3 billion in revenues within five years.

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

(END) Dow Jones Newswires

June 10, 2026 04:08 ET (08:08 GMT)