AB Volvo: NA Truck Lines Are Just About To Scale

AB Volvo (VOLAF) (VLVLY) delivered resilient performance with some segments looking up, compensating for pressure on trucks as capacity gets setup. Service revenues grew 6% organically (adjusted for considerable USD FX headwind), outpacing flat overall vehicles growth driven by trucks underperformance. Service mix helped defend margins. Production stops and model changeovers in North American trucks pressured results but are resolved, positioning VLVLY for operating income improvement as starts in earnest.