Volvo has revised upwards its performance expectations for the European and North American truck markets, as several markets have begun to stabilize in recent months, with some even showing slight improvement.
The company now forecasts that sales in the European heavy-duty truck market will reach 305,000 units in 2026, up from a previous estimate of 295,000 units; sales in the North American heavy-duty truck market are projected to be 265,000 units, an increase from the earlier forecast of 250,000 units.
Volvo indicated that deliveries of new trucks in the fourth quarter of last year decreased by 3.4% year-on-year, with significant declines in the North and South American markets. North America is currently experiencing a freight industry recession, with demand at low levels, and the market is expected to remain weak through the first half of the year.
Demand in the European truck market continues to be driven by vehicle replacement cycles, with procurement demand from large freight fleets anticipated to persist until 2026.
Volvo reported a net profit of 9.61 billion Swedish kronor for the fourth quarter, compared to 10.74 billion kronor in the same period the previous year; sales fell by 11% year-on-year to 123.8 billion kronor. Analyst expectations had projected a net profit of 8.89 billion kronor and sales of 121.67 billion kronor for the quarter.
The company stated that tariff factors resulted in a negative impact of 800 million Swedish kronor on its fourth-quarter performance, with approximately half of that effect stemming from its construction equipment business. Volvo anticipates a net negative impact from tariffs of around 1 billion kronor in the first quarter.
Volvo proposed an ordinary dividend of 8.50 Swedish kronor per share and a special dividend of 4.50 kronor. In the same period last year, the company had proposed an ordinary dividend of 8 kronor and a special dividend of 10.50 kronor.
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