First Read Volvo B 2Q26: Truck orders beat to drive positive reaction

Research evidence excerpt

First Read Volvo B 2Q26: Truck orders beat to drive positive reaction

K)

higher freight and raw material cost headwinds that were seen in Q2, latest order (and UBS Cons.

pricing) dynamics on the more fuel efficient European engine, CE order dynamics, 12/26E 22.60 20.63

12/27E 26.92 24.77

demand drivers and Volvo's NA engine strategy for 2027 given recent

12/28E 28.66 26.83

EPA announcement.

Hemal Bhundia, CFA

What were the most noteworthy areas in the results? Analyst

hemal.bhundia@ubs.com

Truck market forecasts: Europe's HDT unit forecasts were increased by 5k to +44-20-7901 6515

315k and China MDT & HDT was increased to 880k from 760k. Other regions Andre Kukhnin

were unchanged. Analyst

andre.kukhnin@ubs.com

CE market forecasts: North America and China's construction equipment +44-20-7567 2162

forecast ranges were increased by 5pp to 0 to 10% and 5% to 15% respectively.

For Asia ex China, this was lowered by 5pp to -10% to 0%. Patrick Hummel, CFA

Analyst

Net tariff impact was -1.2bn SEK in Q2, with just over half impacting CE. For Q3 patrick.hummel@ubs.com

2026, the net tariff impact is expected to be approximately SEK 1.1 billion +41-44-239 52 54

negative, this is is expected to be fully offset by the net impact of an IEEPA

refund filed in July.

How did the results compare vs expectations?

Revenues: Volvo reported 2Q26 Group revenues of SEK126.3bn, representing a

0.9% beat vs consensus at SEK125.2bn. The organic growth rate was 4% (vs

consensus at 5.1%, indicating a miss of -108bps).

Highlights (SKrm) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 552,764 526,816 479,183 509,205 557,883 583,239 579,700 595,105

EBIT (UBS) 80,367 68,581 53,240 62,240 73,419 77,529 76,498 80,337

Net earnings (UBS) 58,199 50,075 38,126 45,954 54,746 58,288 57,922 60,866