CEO comment - Second quarter 2025

Our business environment continued to be affected by geopolitical turbulence in the second quarter of 2025. Global conflict and ongoing trade tensions contributed to the uncertain economic outlook. For our customers that meant delayed investment decisions. 

Scania’s sales revenue in the second quarter was negatively impacted by a decline in truck deliveries (unit sales) compared to the same period 2024, particularly in Latin America. In Brazil, weakening market momentum driven by high interest rates, inflation and elevated dealer stocks, contributed to reduced demand.

Totalling SEK 49.9 (55.4) billion, Scania’s sales revenue declined by 10 percent in the second quarter. Operating result (adjusted) fell by 44 percent to SEK 4.5 (8.0) billion, due to lower delivery volumes, currency headwinds, market mix and cost related to the China production site, resulting in an operating return on sales (adjusted) of 9.0 (14.5) percent.

Scania’s total incoming orders for trucks rose in the second quarter compared to the same period 2024: a continued decline in Latin America was offset by stronger orders in Europe. However, the upward trend in order intake seen in previous quarters has reversed. 

Stable production in previous quarters meant we have gradually reduced the order book to more normal levels. Looking ahead, Scania is adjusting the production rate globally in the second half of 2025 to ensure our operations remain aligned with current uncertain market conditions. Flexibility is a built-in feature of our production system, and we are fully prepared and equipped to scale up operations rapidly as soon as demand recovers. We also have other initiatives in place to address cost efficiency both in the short and long term. 

Scania maintained a stable European market share of 17.9 percent (18.2) during the first half of this year, despite challenging conditions in a contracting heavy truck market.

On the bus side the good momentum continued with high level of deliveries and order intake. I am really pleased to see that Scania’s updated strategy for people transport keeps providing good results in key markets. 

Our service business continues to generate stable, recurring revenue streams, helping to offset fluctuations in new vehicle sales. In the first half of 2025, service revenue grew by 5 percent adjusted for currency, underlining its resilience. 

In our financial services business, the portfolio grew by 2 percent in local currency in the first half of 2025. Currently, more than a third of trucks sold are financed by Scania Financial Services. Beyond strengthening customer loyalty and retention, this business plays a key role in supporting our transformation, including the shift to electric and autonomous solutions. 

Electrification is central to our sustainability journey, and in the second quarter we made good progress in that area. We expanded our electric bus portfolio, with the addition of a new chassis variant that opens possibilities for electrifying bus transport beyond urban applications. And in June, we introduced our Megawatt Charging System, capable of increasing a truck’s battery charge from 20 to 80 percent in less than 30 minutes (about half the time of today’s CCS2 standard). 

Alongside our electrification progress, we expanded the Super powertrain portfolio with the launch of the Super 11 engine. Built on the proven Super 13 and thus developed from TRATON’s Common Base Engine (CBE), it’s tailored for weight-sensitive operations—offering higher payloads without compromising power or efficiency. Compatible with both HVO and FAME, it helps reduce emissions without requiring new infrastructure. To me, the Super 11 is a great example of how cross-brand collaboration can accelerate brand-specific solutions and deliver customer value faster across more applications and performance levels.

Our achievements in electrification are a positive sign that BEV technology is moving forward. We’re steadily increasing deliveries of Scania BEV trucks. However, the total market adoption of heavy BEV trucks remains disappointingly low at 1.5 percent (Q1 2025). As a result, Europe’s truck manufacturers are at risk of missing their 2030 carbon reduction targets. 

Frankly, the problem isn’t technology: electric trucks and buses are ready and in production, and European commercial vehicle manufacturers can deliver on orders now. One bottleneck is infrastructure. Fewer than 1,000 truck-suitable chargers exist across the EU, megawatt charging is largely unavailable, and grid connection lead times are unworkable. 

Another obstacle is that economics are currently skewed against BEVs. Electricity is taxed more heavily than diesel in many member states, and high upfront costs and uncertainty around TCO remain a barrier for hauliers. To scale up our BEV offering at the pace we need to see, we urgently need political alignment on infrastructure, energy pricing and regulation.

I am proud to say that the work with our third global production hub in Rugao, China is progressing according to plan and the facility will open up in the fourth quarter this year. Operating entirely on renewable energy, the new site complements our industrial operations in Europe and Latin America and strengthens our flexible, one-production-system set up. It will enhance our ability to respond to shifting market demands while increasing customer value in China and across Asia by bringing tailored solutions with shorter lead times.  

For Scania, China is more than a growth opportunity. It’s not just the world’s biggest market, but a strategic arena where the future of transport, sustainability, and smart manufacturing is being shaped at unprecedented speed. Ongoing geopolitical shifts and diverse customer demands make a regionalised approach essential. Our investment in China supports this strategy, enhancing our agility and resilience while reducing dependencies, including supply chain vulnerabilities and foreign trade risks.

In the latest milestone in our ongoing integration with TRATON Group, our group-wide TRATON R&D business is now live and operational. This means we can pool the capabilities of our entire industrial group through this outstanding research and development and production network we are creating. Along with the solid resources provided by Group integration, this gives us stability to invest in a sustainable future, securing growth, innovation and increasing customer value. 

Scania’s special role as trusted partners to our customers – reflected in our extensive service network – has long been one of the cornerstones of our reputation. In an increasingly uncertain business environment, that role matters more than ever. But today, with the strength of the TRATON Group behind us, a flexible production system, and our strategic investment in China, we now have the best of all worlds. A business with resilience and capacity, alongside the customer closeness and premium solutions offer that defines our identity. 

That’s why, despite the instability we face, I’m confident we are in a strong and unique position to play a leading role in shaping the future of our industry.