Volvo (VOLV) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 were SEK 110.8 billion, down 9% year-over-year, but organic sales grew 2%; service sales grew 6% organically, supporting resilience.

• Adjusted operating income reached SEK 12.2 billion with an 11% margin, reflecting strong earnings resilience despite moderated market volumes and external challenges.

• Order intake for trucks rose 14% year-over-year, with low cancellations and high customer confidence, while deliveries fell 3%.

• Strategic moves included the Swecon acquisition, closure of the loss-making Rokbak business, and Toyota joining the fuel cell JV cellcentric.

• EPS was SEK 4.09, down from SEK 4.86 year-over-year.

Financial highlights

• Adjusted operating income: SEK 12.2 billion; adjusted operating margin: 11.0%.

• Net sales: SEK 110.8 billion; organic sales growth: 2% year-over-year.

• Service sales: SEK 32.3 billion in Q1 2026, up 6% organically.

• Operating cash flow in Industrial Operations: SEK 400–432 million, reflecting normal seasonal effects.

• Return on capital employed: 24.5% (rolling 12 months); earnings per share: SEK 4.09.

Outlook and guidance

• Truck market forecast for 2026: North America 265,000 units; Europe 310,000; Brazil 80,000; India 400,000; China 760,000.

• Currency effects on Q2 2026 operating income expected to be neutral; US net tariff headwind in Q2 2026 expected at SEK 1.2 billion, mainly impacting construction equipment.

• R&D net capitalization guidance for 2026 at SEK 3 billion; tax rate guidance at 24%.

• Gradual recovery expected in North America with balanced production capacity from May.