August 4, 2026

Earnings improvement with growth in both vehicle and service sales

The second quarter of 2026 demonstrates the strength and adaptability of the Volvo Group. We delivered net sales of SEK 126.3 billion, with an organic sales growth of 7%. This improvement was broad-based with vehicle sales growing 6% and service sales 7% organically – reflecting both the quality of our product offering and the continued high utilization of our customers’ fleets across most markets.

Profitability reached its highest level in recent quarters. Adjusted operating income rose to SEK 14.8 billion (13.5), with an adjusted operating margin of 11.7%, up from 11.0% in Q2 2025, progress that demonstrates our capacity to achieve good earnings through the business cycle. This improvement was achieved despite headwinds from net US tariff costs as well as higher freight and material costs. These were more than offset by a stronger service business, a favorable brand and market mix as well as lower net R&D expenses.

Earnings per share grew to SEK 5.10, compared to SEK 3.64 in Q2 2025, a 40% increase. Operating cash flow in Industrial Operations doubled year over year to SEK 5.8 billion, and return on capital employed rose to 26.8% (25.7). We ended the quarter with a net cash position in the Industrial Operations of SEK 34.7 billion (43.1).

In Trucks net order intake surged by 33% to 63,412 vehicles. Demand in Europe and South America continued to grow gradually, while it was exceptionally strong in North America, where orders more than doubled year over year. Total truck deliveries increased by 6%. Net sales in our truck business amounted to SEK 86.9 billion (81.7), with vehicle sales growing by 6% organically, and with the service business growing by 10% supported by total solution sales as well as continued good utilization of the truck fleets. The adjusted operating margin improved to 11.2% (10.3), reflecting the positive momentum in our business. We have strong market positions across key markets, and both Volvo and Mack gained market share in North America during the quarter. As of Q2, several key launches are underway, including new battery-electric truck models in 2026 and a new engine platform from early 2027. We also assembled the first customer trucks at our new plant in Monterrey, Mexico. The ramp up of production will be gradual during 2026 and 2027, with the facility increasing our capacity and manufacturing flexibility in North America.

Construction Equipment had net sales of SEK 21.6 billion (22.9), with an organic sales growth of 13% supported by good under- lying development for both the sales of Volvo-branded machines and services. Volvo Construction Equipment continued its positive trajectory with an adjusted operating margin of 14.4% (13.1), driven by an improved service business and a positive brand and market mix.

Volvo Buses continued their good performance of recent quarters, despite lower demand in certain key markets. Net sales amounted to SEK 6.1 billion (6.6). The adjusted operating margin improved to 8.2% (7.9).

Volvo Pentaʼs net sales of SEK 5.4 billion (5.5) were at the same level as in the prior year, with slightly lower engine sales but with strong growth in the service business. Profitability was slightly lower than in Q2 2025, impacted by lower volumes and higher costs, but Volvo Penta continued to show good earnings with an adjusted operating margin of 16.7% (20.7).

For Volvo Financial Services, the portfolio performance continued to be good although credit provision expenses were slightly higher than in Q2 2025. The adjusted operating income amounted to SEK 1.0 billion (1.0).

Looking ahead, we remain watchful and responsive to geopolitical developments, trade policy shifts and the speed of transition into zero-emission transport. We are gradually offsetting cost increases from inflationary pressure through commercial discipline and operational efficiency. Our flexible business model, strong order book, disciplined cost management, and growing service business support our ability to navigate this environment.

The Volvo Group is well-positioned both to continue to benefit from the long-term global trends driving increased transport and infrastructure demand – economic growth, urbanization and rising living standards – and to create lasting value for our customers, employees, and shareholders.

Martin Lundstedt President and CEO