Sweden's Volvo Group Q3 revenue rises 8%, but misses estimates (updated)

Volvo AB

Today 10:17

Adds order intake and market forecast

Overview
Sweden transport solutions firm's Q3 net sales rose 8% but missed analyst expectations
Adjusted operating income for Q3 grew but missed analyst expectations
Company saw organic sales growth and improved operating cash flow
Order intake for trucks increased by 26% to 46,918 trucks

Outlook
Volvo Group expects FX to lift Q4 operating income by about SEK 1.3 bln vs Q4 2025
US tariff impact of negative SEK 0.7 bln in Q4 is expected to be fully offset by Section 232 MHDVP refunds
Net R&D capitalization and amortization is expected to add about SEK 4.0 bln to FY 2026 operating income
Keeps forecast for market truck registration in Europe and North America unchanged for 2026
Sees Europe’s heavy-duty market reaching 320,000 units in 2027 and North America’s at 300,000
CEO Martin Lundstedt told Reuters he sees strong cyclical recovery in both markets in 2027. 

Result Drivers
SERVICE, PRICING AND VOLUMES – Stronger service business, price realization and higher volumes lifted adjusted operating income, partly offset by mix and higher material and freight costs
IEEPA TARIFF REFUNDS – SEK 1.2 bln in refunds more than offset US tariff costs, producing a net SEK 0.2 bln positive impact
CURRENCY TAILWIND – Currency movements added SEK 970 mln to operating income

Company press release: ID:nWkr51gXRm

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
SEK 119.50 bln
SEK 124.31 bln (9 Analysts)
Q3 EPS
 
SEK 5.29
 
Q3 Adjusted Operating Income
Miss
SEK 14.70 bln
SEK 15.03 bln (8 Analysts)
Q3 Adjusted Operating Margin
 
12.30%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 8 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"
Wall Street's median 12-month price target for Volvo AB is SEK367.50, about 18.1% above its October 22 closing price of SEK311.20
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

 (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)