Volvo Q4 Profit Jumps 80.6% as Deliveries, Margins Increase

Q4 North American Deliveries Sag 2% on Mack Trucks Strike
Volvo FM electric
Volvo Group’s net truck order intake in the most recent three-month period totaled 49,347, down 9% compared with 54,108 in Q4 2022. (Rodolfo Buhrer/La Image/Volvo Group)

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A jump in truck sales and margins in the fourth quarter of 2023 at Volvo Group saw the Swedish original equipment manufacturer’s profits almost double year-over-year, it said Jan. 26.

Volvo Group posted net income of $1.16 billion, or 59 cents per diluted share, in the final three months of 2023, up 80.6% compared with $641.4 million, or 31 cents per diluted share, in the same period a year earlier.

Gothenburg-based Volvo reports in Swedish kronor, and all U.S. dollar figures are based on Jan. 26 exchange rates.

In the fourth quarter, the truck and bus maker’s net sales increased 10% to $14.2 billion from $12.88 billion.

The increase in net sales was mainly driven by improved European and North American opportunities, the company said.

European net sales jumped 23% year-over-year to $6.35 billion from $5.15 billion in the final quarter of 2022. North American sales rose 9% in Q4 to $3.93 billion from $3.61 billion a year earlier.

The company’s operating margin in the most recent quarter was 11.4%, compared with 8.5% in the year-ago period.

Volvo Group’s net truck order intake in the most recent three-month period totaled 49,347, down 9% compared with 54,108 in Q4 2022.

CEO Martin Lundstedt said in a statement accompanying the results this was due to an “ongoing normalization of demand that reflects somewhat lower transport volumes and a weaker macroeconomy.”

However, order intake in North America increased 19% to 13,492 trucks from 11,347 vehicles in the year-ago period.

Splitting that out by brand, Volvo accounted for 8,548 trucks, up 1% compared with 8,431 in the final quarter of 2022, while Mack Trucks orders soared 73% to 4,931 from 2,850 a year earlier.

The Swedish company’s truck deliveries in the fourth quarter totaled 65,625, up 4% compared with 62,834 in the year-ago period, and a record for the quarter.

Lundstedt noted that this came despite continued supply disturbances and a six-week strike at Mack Trucks.

North American deliveries decreased 3% to 13,770 vehicles from 14,242 trucks, partly as a consequence of the strike, the company said.

Mats Backman


During the company’s Jan. 26 analyst earnings presentation, Chief Financial Officer Mats Backman confirmed the strike cost Mack Trucks a total of 500 trucks and 1 billion kronor, or $95.95 million.

For the company’s two main brands in the region, Volvo accounted for 7,964 trucks, up 2% compared with 7,846 a year earlier, while Mack Trucks deliveries dropped 9% to 5,774 from 6,351 a year earlier.

Volvo’s North American heavy-duty truck market share decreased to 9.3% in the fourth quarter from 9.9% a year earlier, while Mack Trucks’ market share inched up to 6.2% from 6.1% in the same period in 2022.

Overall, in Q4, a normalization of demand continued in both Europe and North America on the back of transport volumes and freight rates coming down from historically high levels, the company said in a report on its results.

The pent-up demand that characterized 2022 and 2023 was largely absorbed by the transport industry and lead times, particularly in Europe, are back to more normal levels, it said, adding that fleet utilization remains at good levels.

Volvo Group’s net profit in 2023 totaled $4.79 billion or $2.35 per diluted share, up 51.5% compared with $3.16 billion, or $1.54 per diluted share in 2022. Its net sales in 2023 totaled $53 billion, up 16.75% compared with $45.4 billion in 2022.

Mack strike

A motorist waves to picketers outside a Mack Trucks facility in Hagerstown, Md., on Oct. 9. (Steve Ruark/Associated Press)

The company’s operating margin for 2023 was 12.1%, compared with 9.7% in the year-ago period.

Volvo Group’s truck net order intake in 2023 totaled 204,897, down 6% compared with 217,779 in 2022.

In North America, its truck orders in 2023 totaled 54,714, up 20% compared with 45,736 in 2022.

Splitting that up by brand, Volvo accounted for 25,540 trucks, a decrease of 2% compared with 25,988 a year earlier, while Mack Trucks orders jumped 49% to 29,083 from 19,544 a year earlier. The remainder are Renault.

The Swedish company’s truck deliveries globally in 2023 totaled 246,272, an increase of 6% compared with 232,558 in the year-ago period.


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In North America, its truck deliveries in 2023 totaled 60,782, up 8% compared with 56,535 in 2022.

On a brand basis, Volvo accounted for 32,247 trucks, up 4% compared with 30,994 a year earlier, while Mack Trucks deliveries rose 11% to 28,322 from 25,434 a year earlier.

North American heavy-duty truck retail sales totaled 330,792 in 2023, up 7% compared with 309,916 vehicles in 2022, Volvo said. Lundstedt said the presentation that the regional market ended the year with a figure the company expected.

Volvo’s forecast for 2024 retail sales remains unchanged at 290,000.

European heavy-duty truck retail sales, including the U.K., totaled 341,892 in 2023, up 15% compared with 297,500 vehicles in 2022, Volvo said.

However, the company has trimmed its sales expectations for the region in 2024 by 10,000 vehicles to 280,000 trucks.

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Production output at Volvo manufacturing plants is being trimmed as a result.

“Since we ran our machine at full speed all the way until year-end, we are now, and going forward, gradually adjusting capacity in our system to balance with this normalizing market,” Lundstedt said during the presentation. “We have, as you know, different flexibility tools in hand for those adjustments.”

The company’s North American truck lead time is currently about 2½ quarters, Lundstedt said, adding later that Mack Trucks’ order book was particularly strong.