Volvo Group's sales increased in Europe as the company faced a more difficult market in the Americas. Global net sales were down 5% over the third quarter of 2024, driven by caution in the North American market.
"We are in a period with weaker demand in our key regions and with increased uncertainty in North America," says Martin Lundstedt, president and CEO. "In this situation, we focus on what we can impact. We have adjusted our operations, applied strict cost control, remain firm on commercial conditions and drive our service business. Our customers around the world continue to utilize their vehicles and machines, which means that they will have to be replaced sooner or later."
Volvo's financial summary
Net sales in the third quarter decreased by 5% globally, Volvo says, with an operating income of $1.24 billion.
Compared with Q3 2024, income was negatively affected by manufacturing and tariff costs. The net tariff impact for the quarter was $53,014,500, with more than half in the construction equipment sector. For the fourth quarter, the company expects it to be more than $1 billion.
Globally, Volvo Trucks ran an adjusted operating margin of 9.1%.
North American figures
In North America, net sales were down 14% quarter over quarter to 31,052 units.
"The North American long-haul freight market remains in recession with decreased freight volumes and freight prices," Volvo says. "The straight truck and cab-over-engine segment, such as refuse trucks, has held up better. Continued uncertainty regarding EPA 2027 emissions standards and tariffs also adds to customers taking a cautious stance. The total North American market as per August was 10% lower than in 2024."
[RELATED: Volvo opens order board for all-new VNR]
Order intake in America is also down 10% to 9,434 units in the quarter, largely driven by vocational Mack trucks and a weak comparison figure for Volvo Trucks in the third quarter of 2024.
Deliveries were down 20% in the market, dropping to 9,622 units in the third quarter. Globally, electric truck orders dropped 17% to just 733 trucks.
Financial services
The credit portfolio for Volvo Financial Services continued to grow in the third quarter, up 4% over the third quarter of 2024. However, Volvo says there are increased delinquencies and write-offs in certain markets and segments.
