Swedish truck manufacturer Volvo Group reported a 30% drop in net profit for the first quarter of the year, as global trade uncertainty and falling vehicle sales took a toll on business.
Vehicle sales declined by 9%, and the company cited increasing concerns over trade tariffs as a major factor. “Recent and potential trade restrictions, especially from the US and other countries, have added significant uncertainty to our key markets and supply chains,” Volvo said in a statement. The company added that the situation remains unpredictable and complex.
Although all trucks sold in the US are manufactured domestically, Volvo warned that tariffs could still impact parts and components used in production. As a result, Volvo has lowered its 2025 forecast for heavy-duty truck sales in the US by 25,000 units, now expecting to sell 275,000. Forecasts for Europe and China remain unchanged.
In financial terms, Volvo’s net profit dropped to 9.98 billion kronor ($1.03 billion), down from 14.1 billion kronor a year earlier. Operating profit also fell 27% to 13.2 billion kronor, and the operating margin shrank from 13.8% to 10.9%. Adjusted for currency effects, overall sales dropped by 7% to 121.8 billion kronor, and truck deliveries fell 12%.
Volvo noted that US customers are hesitant to make new purchases due to ongoing uncertainty around trade policies and emissions regulations. Despite the cautious market, new truck orders rose by 13% in the quarter, reaching 55,227 units.