The Volvo Group said on Wednesday that its net profit fell to SEK 9.89bn (€910 million) in the first three months of 2025, from a little more than SEK 14bn (€1.29bn) in the previous year.
The drop was driven by a 7% decline in the group’s net sales, amounting to SEK 121.8bn (€11.15bn) in the same period.
Volvo Group, which manufactures trucks, buses, construction equipment and engines, reported that its vehicle sales decreased by 9% and service sales declined by 1%. Meanwhile, the operating margin was 10.9%.
The company’s earnings per share amounted to SEK 4.86 (44 euro cent).
Truck deliveries were down by 12%, though order intake grew 13%. That was largely driven by European demand. The Volvo Group sees positive trends in this market, where Volvo Trucks' total heavy-duty market share reached an all-time high of more than 20%.
The European order intake also increased by 25% even though total deliveries decreased by 18%.
The company expects European orders to pick up after the recently announced increased defence spending will boost demand from armed forces.
Volvo Group also said that in North America, the market was down compared with the previous year, due to recent uncertainty surrounding trade tariffs and a new emissions legislation, which has caused US customers to adopt a wait-and-see approach.
“In the fast-changing geopolitical landscape, it is too early to assess the full implications from the imposed tariffs,” Martin Lundstedt President and CEO of Volvo Group, said. He added, “we work actively with our regional value chains to adapt flows, production capacity and commercial terms to mitigate the effects from tariffs and their subsequent impact on demand.”
