Volvo said profit margins were squeezed by lower sales volumes and increased investment in research and development, but that was countered by price increases that were implemented last year.
"The Volvo Group delivered good profitability as demand in many markets continued to normalise compared with the high levels of 2023," said Chief Executive Martin Lundstedt.
Operating profit was 20.3 billion crowns (USD 1.92 billion) against a 14.6 billion crowns a year earlier and a mean forecast of 18 billion crowns in an LSEG poll of analysts.
The second-quarter operating margin was 14.5%, up from 10.3% a year earlier.
The company, which makes vehicles under brands such as Mack Trucks and Renault as well as its own name, said that net truck order intake remained flat at 47,760 vehicles while deliveries were down 8% year on year at 58,935 vehicles.
Large fleets continued to replace vehicles to meet freight capacity needs, but smaller customers were more hesitant in placing orders, Volvo said.
The Gothenburg-based group, which also makes construction equipment and engines, raised its forecast for the total European heavy truck market this year to 290,000 new vehicles, up from the 280,000 forecast in April.
The projection for the total North American heavy truck market remained unchanged at 290,000 vehicles.
Its outlook for the Chinese medium and heavy duty market, however, was lowered to 750,000 vehicles from 800,000.
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