Volvo Group reported 8% net sales growth to $12.38 billion in Q3, with North American truck sales surging 24% and orders jumping 45% as customers replace aging fleets and the market gradually recovers from cyclical lows.
- Volvo Group Q3 net sales reached $12.38 billion, up 8% with North America growing 24%
- Growth driven by aging truck fleet replacement demand and improved customer profitability and vehicle utilization
- Company launched autonomous freight operations in Texas and introduced the new Volvo VNX heavy-duty truck for demanding work environments
Volvo Group's third quarter net sales were up 8% to $12.38 billion, the company reported Friday. That includes a 24% increase in North America.
"The gradual cyclical recovery in the truck and construction equipment markets continued in both Europe and North America, supported by the need to replace aging trucks and machines," says Martin Lundstedt, president and CEO. "Customer activity is on good levels with high utilization of vehicles and machines supporting demand for services. Our service business continued to benefit from both higher volumes and positive price realization. Inflationary pressure remains, and we are working to gradually offset higher costs through pricing and operational efficiency."
[RELATED: Mack, Volvo launch new service contract tiers]
Volvo saw a 45% increase in North American orders in the quarter, topping out at 29,843. Mack, meanwhile, saw a modest drop of 9% to 4,883. North American deliveries on the quarter were up 42% from 2025 to 13,683. The company says it's ramping up North American production accordingly.
Replacement demand is fueling the North American market, Volvo says, as the active truck population ages and customers see profitability slowly nudge upwards. Through September, Volvo's heavy-duty market share grew to 9.1% from 8.3% and Mack's went up 1% to 8.3%.
Q3 developments
The third quarter saw the start of autonomous operations in Texas as Volvo Autonomous Solutions and Waabi teamed up to serve the Dallas-Houston corridor.
"This is an important step in our journey toward commercializing autonomous freight solutions at scale," Lundstedt says.
Also, the company launched the new Volvo VNX, a heavy-duty truck for the most demanding work environments.
"This truck is nothing like you’ve ever seen before from Volvo Trucks," Volvo Trucks North America President Peter Voorhoeve said at the October launch, "with a rugged, all-business design built for the toughest jobs out there."
Tariffs and other risks
U.S. tariffs had a positive impact in the third quarter of $20.12 million as IEEPA refunds of $120.71 million more than offset Volvo's tariff costs. However, the company still categorizes tariffs as a risk to its business.
"Recent tariffs and other trade restrictions imposed or considered to be imposed by the U.S. and other countries have significantly increased uncertainty about trade conditions in the markets where the Group is present, as well as in relation to global and regional supply chains" Volvo says in its earnings report.
It goes on to say that the introduction of tariffs, retaliatory tariffs or other trade restrictions could disrupt supply chains and increase costs.
"The situation is fast-changing and complex to assess, and future developments remain uncertain," the report says.
[RELATED: New order season sputters to take off in September]
Volvo also highlights international tension and conflicts increasing the risk of a broad economic slowdown.
"A prolonged period of uncertainty in the market may also negatively affect investment levels and customer purchasing behavior, particularly in key Group markets," Volvo says. "The Group will endeavor to adapt to changes in market conditions as they may evolve, but these developments could, individually or in combination, have a material adverse effect on the Group's business and financial performance."
Buses and EVs
Volvo's North American bus sales dropped 19% on the quarter to $249.6 million. The company said that while it saw some gains in price realization, net U.S. tariff costs and an unfavorable brand and product mix had a negative effect.
Order intake for fully electric Volvo trucks was up 163% but it still remains a sliver of the commercial truck market. Even though the Volvo brand saw a 175% increase in orders of electric trucks, that still only amounted to 789 trucks globally. Mack took in 13 orders, a 550% increase.
