Volvo reports profits down amid ongoing tariff uncertainty Volvo said its net profit fell to €910 million in the first three months of 2025, compared with just over €1.29 billion in the year-earlier period.

The decline was due to a 7 percent drop in the group's net sales, which amounted to €11.15 billion in the same period, Euronews reported.

"Volvo, which manufactures trucks, buses, construction equipment and engines, said vehicle sales fell 9 percent and service sales fell 1 percent. Meanwhile, the operating margin was 10.9%.

The company's earnings per share amounted to 44 cents. 

Truck deliveries were down 12%, although the number of orders was up 13%. This was largely due to demand in Europe. "Volvo sees positive trends in this market, where the company's overall market share for heavy trucks has reached an all-time high of more than 20%.

Order intake in Europe also increased by 25%, although total deliveries declined by 18%.

The company expects European orders to increase as recently announced increased defense spending will drive demand from the armed forces. 

"Volvo also said that in North America, the market was down year-on-year due to the recent uncertainty surrounding trade tariffs and new emissions legislation, which has led US customers to adopt a wait-and-see approach.

"In the rapidly changing geopolitical environment, it is too early to assess the full implications of the duties imposed," said Martin Lundstedt, the company's president and CEO.

"We are actively working with our regional value chains to adjust flows, production capacity and trading conditions to mitigate the effects of the tariffs and their subsequent impact on demand," he added. | BGNES