Swedish truck manufacturer Volvo reported a larger-than-expected decrease in its adjusted operating profit for the third quarter. The company noted that demand for the next year is expected to remain stable as customers continue to exercise caution.
The adjusted operating profit for the quarter was 14.1 billion Swedish crowns (approximately $1.34 billion), down from 19.3 billion crowns in the same period last year. This figure fell short of the average forecast of 15.6 billion crowns by analysts surveyed by the London Stock Exchange. Sales also saw a decline of 12%.
Volvo attributed the profit drop primarily to reduced sales volume, increased research and development expenses, and a negative price mix. The company forecasts that the heavy truck market in Europe and North America will reach 290,000 and 300,000 units, respectively, next year. For the current year, Volvo expects new heavy truck registrations in Europe to hit 300,000 units, an increase from the July estimate of 290,000 units. The North American market prediction remains at 290,000 units.
Orders for heavy trucks declined by 7% compared to the same quarter last year. The CEO, Martin Lundstedt, stated that this reflects customer caution amid uncertainties about macroeconomic developments in 2025. He added that short-term macroeconomic uncertainties influence their predictions for a relatively stable market next year.
