Key Highlights Volvo Group’s adjusted operating income reached SEK 14.78 billion in Q2 2026, compared to SEK 13.48 billion in the prior-year period. The company’s adjusted operating margin ex
Volvo Group delivered impressive second-quarter performance, demonstrating profitability gains and margin growth even as tariff expenses mounted. The Swedish commercial vehicle manufacturer’s VOLVb shares were hovering near SEK 338.20, declining 0.91% during trading, although the fundamental performance indicators revealed strength.
Volvo Car second-quarter earnings were weaker than expected as intense competition, higher costs and expenses related to the production ramp-up of a new fully electric SUV weighed on profitability. https://t.co/MANKbQmlTS
— Bloomberg (@business) July 17, 2026
The company’s adjusted operating income registered at SEK 14.78 billion, representing an increase from SEK 13.48 billion recorded during the corresponding quarter last year. Operating margin on an adjusted basis climbed to 11.7% versus 11%.
Total revenue advanced 3% to SEK 126.27 billion, featuring 7% organic expansion. Vehicle revenue showed 6% organic growth while service revenue expanded 7% organically.
Volvo Car AB (publ.) (VOLCAR-B.ST)Reported operating income climbed substantially to SEK 13.48 billion from SEK 9.96 billion, with the reported margin advancing to 10.7% from 8.1% in the year-ago period.
Earnings per share totaled SEK 5.10, up from SEK 3.64 in the previous year. Operating cash flow within Industrial Operations increased to SEK 5.84 billion versus SEK 2.95 billion.
Return on capital employed achieved 26.8%, demonstrating robust capital efficiency throughout the organization.
The demand environment proved exceptionally favorable in the truck division. Net orders surged 33% to 63,412 units. North American order volumes more than doubled on a year-over-year basis, while European and South American markets demonstrated steady recovery.
Overall truck deliveries increased 6%. The Trucks division generated net sales of SEK 86.85 billion, rising 6%, while its adjusted operating margin improved to 11.2% from 10.3%.
CEO Martin Lundstedt noted the margin enhancement occurred despite pressures from U.S. tariff policies and elevated freight and raw material expenses, which were successfully countered by robust service operations, beneficial brand and geographic mix, plus reduced research and development spending.
“Profitability reached its highest level in recent quarters,” Lundstedt added.
The net impact from U.S. tariffs amounted to a negative SEK 1.2 billion in Q2, with more than half affecting the Construction Equipment division. This represents a significant increase from just SEK 0.2 billion in tariff-related costs during the same quarter last year.
Construction Equipment revenue declined 6% to SEK 21.60 billion, partially attributed to the SDLG divestment, although organic sales climbed 13%. The division’s adjusted operating margin improved to 14.4% from 13.1%.
Buses revenue remained essentially unchanged at SEK 6.07 billion, with the adjusted margin rising slightly to 8.2% from 7.9%.
Volvo Penta represented the sole underperforming segment. Net sales remained largely stable at SEK 5.43 billion, but its adjusted operating margin contracted to 16.7% from 20.7%, primarily due to reduced volumes and increased cost pressures.
Following quarter-end, Volvo Group submitted an application for tariff refunds under the International Emergency Economic Powers Act. Management indicated they anticipate the refund will be recorded in Q3 2026 and should neutralize a projected SEK 1.1 billion negative tariff impact on operating income.
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