Volvo Group Kept at Sector Perform as RBC Expects Cyclical Recovery to Bolster H2 Volumes

01:50 AM EDT, 07/22/2026 (MT Newswires) -- RBC Capital Markets maintained its investment view on AB Volvo (VOLV-A.ST, VOLV-B.ST), d/b/a Volvo Group, noting robust second-quarter order momentum supports volume-driven recovery in the latter half of 2026. "Volvo's Q2 results showed a sharp ongoing recovery in the North American HD truck market, coupled with high stable demand in Europe. [Construction Equipment] trends in the quarter were mixed, though the cycle overall is trending positively. There are moving pieces with margins, but on an underlying basis should continue to improve as volumes recover. We retain our Sector Perform rating and SEK360 price target," the research firm said Tuesday. Analysts said the Swedish truckmaker's quarterly truck order intake came in at 63,412 units, up 33% on an annual basis and 19% ahead of market expectations, due to a 122% year-on-year surge in North American orders. "While Volvo does not guide for its own volumes, management indicates that strong Trucks order intake will enable a substantial production ramp-up in H2, which should support capacity [utilization] and hence profitability (though Q3 includes the European summer production lull). R&D [capitalization] and ongoing cost inflation will represent additional headwinds," the note said. Against this backdrop, RBC raised its full-year 2026 to 2028 estimates, including adjusted EBITA, adjusted EPS and sales.