Volvo Group Presents Strategy to Strengthen Earnings Resilience and Drive Profitable Growth Across Transport and Infrastructure Markets

Volvo Group Presents Strategy to Strengthen Earnings Resilience and Drive Profitable Growth Across Transport and Infrastructure Markets

(IN BRIEF) AB Volvo presented its 2026 Capital Markets Day strategy in Eskilstuna, Sweden, outlining how the Group plans to strengthen earnings resilience, accelerate profitable growth and support long-term shareholder returns. President and CEO Martin Lundstedt emphasized that demand for transport and infrastructure solutions is expected to keep growing despite geopolitical uncertainty, regionalization and fast-moving technological change. Volvo Group is seeking to reinforce resilience through decentralized decision-making, flexibility tools, disciplined pricing, cost control and a larger service business that provides recurring revenue. The Group also sees growth opportunities across trucks, construction equipment, Renault Trucks’ light-duty business, Volvo Penta and Volvo Autonomous Solutions, which is targeting driverless on-highway operations by early 2027 and aims to approach USD 3 billion in revenue within five years. CFO Mats Backman said current business activity remains solid, with stable demand in Europe, strong demand in North America and service activity supported by high utilization of customer vehicles and machinery.

(PRESS RELEASE) GOTHENBURG, 10-Jun-2026 — /EuropaWire/ — AB Volvo used its 2026 Capital Markets Day in Eskilstuna, Sweden, to present a strategy focused on strengthening earnings resilience, accelerating profitable growth and supporting long-term shareholder value. The event, held on June 10, 2026, at Volvo Construction Equipment’s Customer Center, brought together President and CEO Martin Lundstedt and members of Group Management to outline how the Group intends to build on its financial progress, industrial scale and technology investments.

Martin Lundstedt said demand for transport and infrastructure solutions is expected to continue expanding despite a global environment marked by geopolitical uncertainty, regionalization and rapid technological change. He pointed to Volvo Group’s established strengths, including its global brands, retail capabilities, segment expertise, application knowledge and regional value chains, as important assets in capturing opportunities across changing markets.

Over the past decade, Volvo Group has strengthened its financial performance, expanded its product innovation and continued investing in technologies that support the future of transport and infrastructure. The company’s strategy remains centered on sustainable and profitable growth, with a focus on improving resilience across business cycles while creating opportunities for expansion in key segments and regions.

At the Capital Markets Day, Lundstedt highlighted the importance of decentralized decision-making as a way to enable quicker and more customer-focused actions across the Group. Volvo Group is also reinforcing its earnings resilience through flexible operational tools, disciplined pricing and continued cost control. The company sees further support from its growing service business, which increases recurring revenue and helps stabilize earnings during market fluctuations.

Beyond the broader long-term growth in global transport demand, Volvo Group sees opportunities to increase content and service value through complete customer offers, market share gains and targeted expansion across selected regions and growth segments. The Group expects its Trucks business and Volvo Construction Equipment to exceed their historical growth rates, while Renault Trucks aims to double its light-duty business. Volvo Penta is also targeting a doubling of revenue in the coming years.

Volvo Autonomous Solutions forms another important part of the Group’s growth agenda. The business is targeting driverless on-highway operations by the first quarter of 2027 and has set an ambition to approach around USD 3 billion in revenue within five years, with a positive contribution to the Group’s operating margin.

Volvo Group said its continued investments in research and development, capital expenditure, technology platforms and industrial capacity have created a foundation for future growth and technology leadership. These investments are intended to support a more resilient earnings profile while preserving a strong return on capital employed and maintaining attractive shareholder returns.

As part of a current trading update, Volvo Group CFO Mats Backman said business activity remains solid. In Europe, customer demand and deliveries are stable at good levels across the Group’s business areas. In North America, demand remains strong, with production gradually increasing. Cost inflation is moving upward, while high utilization of customers’ trucks and machines continues to support service activity.

Lundstedt said the company’s strategy has served Volvo Group, its customers and its owners well, adding that the Group remains committed to building resilience and growth across the business cycle.

The Capital Markets Day is being webcast on www.volvogroup.com. A recording of the presentation and the related materials will be made available after the event.

Volvo Group provides transport and infrastructure solutions, including trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services aimed at improving customer uptime and productivity. Founded in 1927 and headquartered in Gothenburg, Sweden, the Group employs almost 100,000 people and serves customers in nearly 180 markets. In 2025, Volvo Group reported net sales of SEK 479 billion, equivalent to EUR 43 billion. Volvo shares are listed on Nasdaq Stockholm.

Journalists wanting further information, please contact:
Claes Eliasson, Head of Media Relations
+46 76 553 7229
press@volvo.com

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The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers’ uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs almost 100,000 people and serves customers in almost 180 markets. In 2025, net sales amounted to SEK 479 billion (EUR 43 billion). Volvo shares are listed on Nasdaq Stockholm.

SOURCE: AB Volvo