AB Volvo (VOLV_A) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

good morning and welcome to this second quarter presentation uh today we'll cover the second quarter of the volvo group and we will do as always we'll listen to the our ceo martin lunstedt followed by our cfo matt spackman and then follow up with the q a session so without further ado i hand over to you martin Thank you, Johan, for that introduction and also welcome from my side. And to start with, this second quarter has been characterized by a general stabilization in European markets and more of uncertainty and wait-and-see mood among customers in North America. We did see a solid performance with an adjusted operating margin of 11%. The societal transformation, not at least in Europe, to zero-emission solutions is slower than anticipated and therefore also one of costs have had a negative impact on the reported operating income. Across the group, we have continued to prioritize a high quality in the business by focusing on our customer deliveries and service operation. We did see good service activity levels, but also volume flexibility in the industrial system, tight cost control combined with commercial discipline and price management. We've had a good traction to adapt cost while we at the same time are maintaining high priority on innovation and technology. But also in these areas, we are now gradually adjusting for the right timing in relation to the speed of the transformation. Specifically for volume flexibility, we are in good balance for almost all markets. The only exceptions are group trucks in North America and partly South America, where we continue to have more cost related to specific situations. Firstly, there is a wait-and-see mood among customers in North America to place orders given the current uncertainties. We are therefore continuing to adj...