Trucking – Strong Order Momentum

Jaguar Pro clients know that there were two themes called out in the latest Q2 Outlook as it pertained to the trucking market. From these themes, there were two specific stocks that were made as Top Picks. Here are the excerpts:

While still early in the earnings season, we got a glimpse of these two themes playing out last week when Volvo (VLVLY) reported their Q1 earnings in which it delivered net sales of SEK 111 billion (up 2% organically Y/Y), operating margins of 11%, and strong service growth of +6%. What ultimately stood out were the comments made by management regarding order intake:

“Performance was good across all business areas with a high customer confidence in our products and services, reflected in good order intake and low cancellations throughout the quarter.”

“When it comes to the market forecast for the full year, we are for trucks then, slightly revising upwards for Europe and Latin America while reiterating the forecast for North America on the back of stronger order momentum.”

“Book-to-bill, positive obviously, as you have seen, 135% for medium and heavy duty in the quarter and 99% rolling, 12-month rolling. North America, we had a book-to-bill of 192% on one side on the back of strong order intake, mainly from fleets, but also retailers coming in, but also that we still had planned stop weeks.”

“For North America, we repeat our market outlook for 2026 at 265,000 in retail sales. Order levels have been elevated, as you have seen in recent months, while retail sales, that is how we measure the market or retail deliveries, pace is lower, because that is related to the order intake at the end of 2025, but is expected now to regain momentum in the second half of the year. Any EPA 2027 pre-buy is included in that view.”