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Third party research

Ferronordic: Truck orders in Volvo beat consensus by 6%, driven by strong performance in Europe - Nordea

Ferronordic

This is a third party research report and does not necessarily reflect our views or values

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Volvo delivered a mixed report, with EBIT 12% below Infront consensus. More importantly for Ferronordic however, we note that the company reported truck orders improving by 13% y/y - beating consensus by 6pp, in turn driven by strong demand in Europe (+25% y/y). Regarding the truck market oulook for 2025 this was left unchanged in absolute terms in Europe, corresponding to -7% y/y at the mid-point, yet lowered for North America and Brazil. Perhaps unsurprisingly, the company reported seeing “increased uncertainty surrounding tariffs and their effect on global trade” in the quarter. Looking to VCE, the company downgraded the outlook for construction equipment for North America by 5% compared to Q4 2024, corresponding to a mid-point guidance of -10% y/y in 2025. We forecast Ferronordic to show ~9% y/y sales growth in Germany in 2025E, following ~-25% y/y growth in 2024, and expect the company to show ~-1% y/y sales growth in 2025E, following ~15% y/y growth in 2024.
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