Swedish truck manufacturer Volvo Group has reported a larger-than-expected drop in operating profit for the first quarter and has revised its 2025 outlook for the North American truck market. The company's adjusted operating profit fell to 13.26 billion SEK (approximately $1.39 billion) from 18.16 billion SEK in the same period last year, missing analysts' expectations of 14.82 billion SEK.
Net sales for the first quarter decreased by 7% to 121.79 billion SEK from 131.18 billion SEK a year earlier. Vehicle sales were down 9% compared to the previous year, with truck deliveries dropping 12% to 48,833 units. Adjusted for currency, net sales fell 9% to 82.2 billion SEK. However, orders increased by 13% to 55,227 units, with growth in all markets except South America.
The construction equipment segment saw a 7% increase in deliveries and a 24% rise in orders, although net sales declined by 8%.
