AB Volvo (publ)
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About the company
AB Volvo (publ), a multinational enterprise operating through its subsidiaries, is a leading producer and marketer of commercial vehicles, buses, heavy construction equipment, and specialized marine and industrial power solutions. Its extensive global presence spans Europe, North America, South America, Asia, Africa, and Oceania. The company's diverse range of trucks, catering to sectors such as long-haul transportation, construction, mining, and distribution, are offered under prominent brands including Volvo, UD Trucks, Renault Trucks, Mack, Eicher, Arquus, cellcentric, and Dongfeng Trucks.
- CEO
- Martin Lundstedt
- IPO
- 2018
- Employees
- 98,844
- HQ
- Gothenburg, VG, SE
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- Market Cap
- $72.51B
- P/E
- 19.29
- Fwd P/E
- 1.67
- PEG
- -3.34
- P/S
- 1.47
- P/B
- 3.91
- EV/EBITDA
- 12.18
- Div Yield
- 3.82%
- Gross Margin
- 25.34%
- Op Margin
- 10.51%
- Net Margin
- 7.60%
- ROE
- 19.98%
- ROIC
- 7.15%
Latest fiscal year · YoY change
- Revenue
- $479.18B-9.0%
- Gross Profit
- $116.87B-18.9%
- Op Income
- $45.41B
- Net Income
- $34.46B-31.6%
- EPS
- $15.93-35.7%
- OCF Growth
- -1.8%
- FCF Growth
- +1.0%
- 52W High
- $39.62
- 52W Low
- $26.11
- 50D MA
- $35.28
- 200D MA
- $34.00
- Beta
- 0.97
- RSI (14)
- 44
- Avg Volume
- 170.31K
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Volvo Group posted a strong second quarter with higher sales, a wider margin, and solid order momentum, while flagging North American truck ramp execution, tariff noise, and ongoing cost inflation.· July 17, 2026
- Adjusted operating income was SEK 14.8 billion with an 11.7% margin, supported by strong service growth and favorable mix.
- Organic net sales rose 7% to SEK 126 billion; services grew 7% organically across all business areas.
- Group truck orders were up 33% year over year; global truck book-to-bill was 170% in the quarter.
- Management raised Europe truck market guidance to 315,000 units and lifted Volvo CE Europe/China forecasts, while keeping North America truck outlook unchanged at 265,000.
- Cash flow was SEK 5.8 billion and industrial net cash was about SEK 35 billion after SEK 26 billion of dividends.
- Management said cost inflation, freight/material costs, and tariffs remain headwinds, but pricing and operational flexibility are helping offset them.
Volvo Group reported second-quarter 2026 organic net sales growth of 7% to SEK 126 billion. Adjusted operating income was SEK 14.8 billion and the adjusted operating margin was 11.7%; EPS was SEK 5.1, operating cash flow was SEK 5.8 billion, industrial net cash was SEK 35 billion, and return on capital employed was 26.8%. Truck deliveries increased 6% to 55,700 vehicles, electrical vehicle orders rose 39% to 5,500 units on a 12-month rolling basis, and service sales grew 7% organically. For the next quarter, management expects a positive currency impact of about SEK 500 million year over year, an underlying tariff impact of SEK 1.1 billion that should be fully offset by IEEPA refunds for a net zero effect, a full-year 2026 R&D capitalization effect of SEK 3.5 billion, and a full-year tax rate of 24%. Truck market guidance was reaffirmed at 265,000 units in North America, increased to 315,000 units in Europe, repeated at 80,000 in Brazil, repeated at 400,000 in India, and raised to 880,000 in China. Volvo CE guidance was lifted to +5% for North America, kept at +5% for Europe, left flat for South America, lowered to -5% for Asia, and raised to +10% for China.
Martin Lundstedt framed the quarter as a strong performance delivered amid geopolitical turmoil, tariffs, and higher freight and material costs. He emphasized resilience, broad-based order strength, low cancellations, and the value of Volvo’s flexible business model, especially the service franchise and the ability to balance demand and supply. He also pointed to product and portfolio moves, including new truck platforms, electrification progress, the Eicher JV in India, and the Flexis transaction closing.
Mats Backman said group organic sales rose 7%, with vehicle sales up 6% and service sales up 7%, while FX was a negative about SEK 1 billion. He detailed the margin drivers: service business, positive brand and market mix, and R&D net, offset by freight and material inflation and a U.S. tariff net cost of about SEK 1.2 billion in Q2, up SEK 1 billion year over year. He also said cash flow was SEK 5.8 billion, return on capital employed improved to 26.8%, industrial net cash was SEK 35 billion, and the decrease versus Q1 reflected SEK 26 billion of paid-out dividends; financial services had a SEK 274 billion credit portfolio and 10% rolling 12-month ROE.
Analysts focused on the gap between North America orders and deliveries, tariff offsets, the truck production ramp, pricing versus cost inflation, and EPA 2027 implications. Management said North America is still working through a weak first half and a freight recession, but the order book and coverage are solid and the second half should be a delivery-heavy period; they also said the ramp-up is going according to plan so far, including test production and gradual ramping in Mexico. On tariffs, Volvo said the Q3 guidance assumes SEK 1.1 billion of underlying tariff cost offset by IEEPA refunds to a net zero effect, while Section 232 credits are not included because filing guidance is not yet available. On EPA 2027, management stressed customer optionality, ongoing discussion of a potential bridge solution, and that Volvo intends to offer both current and next-generation technologies.
The call showed broad demand strength, with strong order intake, low cancellations, and a 170% global truck book-to-bill. Services remain a meaningful stabilizer, growing 7% organically and supporting margins, while Volvo Penta’s data center-related order book and Volvo CE’s stronger outlook in North America and China point to additional growth pockets. Management sounded confident that pricing, flexibility, and a healthy balance sheet can help offset cost and tariff pressures.
North America remains the biggest execution question: deliveries are still lagging orders, the freight market has been weak, and management needs a successful second-half ramp to hit market expectations. Cost inflation, freight and material costs, and tariffs are still weighing on profitability, and some tariff credits are not yet visible in guidance because procedural details are unresolved. Volvo Penta also flagged temporary delivery pauses in the Middle East, and Asia weakness is still pulling on some business areas.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 95.5%
- Shares Outstanding
- 2.03B
- Float Shares
- 1.94B
Congressional trading
Senate and House stock disclosures for VLVLY, newest first.
| Member | Type | Traded | |
|---|---|---|---|
| Daniel GoldmanHouse · NY10 | Sell | Jul 10, 23 | Filing → |
Source: public STOCK Act disclosures. Filed weeks after the trade — a lagging signal, not a real-time one.
Held by 2 ETFs
Biggest fund positions in VLVLY by dollar value.
Our VLVLY coverage
Recent articles, reports, and earnings notes.
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