Volvo lifts adjusted operating income 26% to 14.693 billion kronor in third quarter
Key Facts
Volvo Group reported adjusted operating income of 14,693 million Swedish kronor in the third quarter of 2026, up from 11,707 million in the same period a year earlier, with its margin rising to 12.3% from 10.6%, according to the group’s results. Reported operating income was 14,354 million kronor, compared with 12,517 million a year earlier, and its margin increased to 12.0% from 11.3%. The results came as sales grew 8% to 119.5 billion kronor, from 110.7 billion in the third quarter of 2025, while organic sales growth was 7%. The chief executive said, "The positive development in Volvo Group’s performance continued in the third quarter." Improved profitability and cash flow lifted operating performance indicators alongside growth in truck orders and deliveries.
Earnings per share rose to 5.29 Swedish kronor from 3.71 kronor in the third quarter of 2025. Industrial operations’ operating cash flow turned positive at 7,195 million kronor, after an outflow of 1,739 million a year earlier. This shift accompanied the increase in adjusted operating income, as the group recorded gains in both earnings and cash generated by its industrial operations during the period. Volvo said organic sales grew 7%, with vehicle sales up 8% and organic service sales growth of 5%. The figures reflect expansion in sales across both businesses, with vehicle sales advancing faster than services.
In trucks, net new orders rose 26% year over year to 46,918, while deliveries increased 11% to 49,611 in the third quarter, according to Volvo’s published results. Deliveries outnumbered orders recorded during the period, and both measures were higher than in the corresponding quarter a year earlier. Orders also improved in Europe and North America, rising 22% to 25,989 in Europe and 18% to 11,150 in North America. The chief executive said a gradual cyclical recovery in the truck and construction equipment markets continued in Europe and North America. The company linked this to the need to replace older trucks and machines, a factor supporting demand in both markets.
Delivery performance differed by region: truck deliveries in North America rose 42% to 13,683, while those in Asia fell 9% to 3,388. Volvo said sales growth extended across most regions except Asia, and that the weak krona supported sales abroad. Currency movements also had a positive impact of 970 million kronor on operating income compared with the third quarter of 2025. This impact was among the factors behind the improvement in operating income, while overall sales growth continued alongside weaker deliveries in Asia. The regional comparison shows a contrast between rising deliveries in North America and a decline in Asia during the quarter.
As for the outlook, Volvo raised its estimate for the 2026 Chinese market for medium and heavy-duty trucks by 20,000 to 900,000 trucks, and increased its estimate for the Indian market by 50,000 to 450,000 vehicles. The revisions concern the size of the two markets and are not direct forecasts of Volvo’s sales in them. By contrast, the company kept its estimate for the heavy-duty truck market in Europe, including the UK, at 315,000 registrations in 2026, and held its North American estimate at 265,000 trucks. For 2027, Volvo expects the two markets to reach 320,000 registrations in Europe and 300,000 trucks in North America. These estimates put the India and China markets on an upward revision path for 2026, while the Europe and North America forecasts remain at their stated levels.
Adjusted operating income of 14.69 billion kronor was close to the Bloomberg consensus estimate of 14.78 billion, according to Reuters via Investing. The actual figure also compares with 11.71 billion kronor in the third quarter of the previous year, according to the same source. The comparison appeared in a report that said the cyclical recovery in the truck and construction equipment markets continued in Europe and North America, supported by the need to replace older vehicles and machines. The quarter’s results thus combined higher sales and orders with improved margins and cash flow, alongside a positive currency impact and differing regional performance. The company’s published market forecasts for 2026 and 2027 remain the defined time horizon for its truck-market outlook.