Here’s what you need to know:
- North American orders were down 34% year-over-year. Mack Trucks were down 29% and Volvo trucks were off 18%.
- Global workforce dropped slightly amid market challenges.
- Tariffs, labor and material shortages, other factors strain supply chains.
Volvo Group's North American orders were down 34% year over year in the fourth quarter, the company reported. Volvo-branded trucks were off 18% and Mack Trucks were down 29%.
"Deliveries in North America were significantly lower than in the prior year and are expected to be weak also in Q1 2026, with continued under absorption in North America," President and CEO Martin Lundstedt says. "However, utilization of the installed truck fleets has remained on a good level in most markets, supporting demand for spare parts and services."
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Globally, net sales decreased 11% in the quarter. Adjusted for currency and the divestment of SDLG, a Chinese equipment manufacturer, sales were stable year-over-year. Sales in service grew 5%. Deliveries of new trucks were also down 3% globally, but did include the first new Mack Pioneers in North America.
North American market weakness notable
Volvo says the freight recession pulled the total North American market down 15% in 2025 and expectations are that it will remain weak in early 2026. Volvo's share of that market amounted to 8.4% and Mack's was around 8%, an increase from 6%. The forecast is for 2026 is 265,000 units, an increase of 15,000 from the previous forecast.
One risk Volvo cited are recent tariffs and other trade restrictions imposed by the U.S. and other countries. These measures "have significantly increased uncertainty about trade conditions" and supply chains, Volvo says.
"Recent developments in global trade policies have also increased the risk of a broader economic slowdown," Volvo says in its fourth quarter report. "The Group will endeavor to adapt to changes in market conditions as they may evolve, but the introduction of trade restrictions and changes in trade policies could, individually or in combination, have a material adverse effect on the Group's business and financial performance."
Employment outlook dips
As of year's end 2025, Volvo Group has 98,944 employees, including temporary staff and consultants. That's down around 2% in the fourth quarter. The number of blue-collar employees dropped around 3% year-over-year, while the number of white-collar employees was down just 1%.
[RELATED: Volvo reports third-quarter earnings amid 'difficult' North American market conditions]
"I would like to extend a heartfelt thank you to all colleagues and business partners for yet another year of hard work and dedication to fulfilling our mission of driving prosperity through innovative and competitive transport and infrastructure solutions that drive customer value," Lundstedt says. "Together, we contribute to shaping the world we want to live in with economic growth, increased living standards and a sustainable development of society."
Supply chains strained
Volvo says its supply chain and industrial system is strained in some areas because of shortages in labor, materials and components, as well as transport services. Other events, such as supplier financial stress, new or amended export controls, more tariffs or geopolitical events, could further disturb the system and lead to higher costs and interruptions in productions, Volvo says.
Financial services
Volvo says its financial services portfolio has continued to grow, up 2% over the fourth quarter of 2024. However, the company says it saw increased delinquencies and higher write-offs throughout the quarter. New business volume was down 6%.
