A sluggish trucking market in North America continues to be a drag on Volvo Group’s bottom line.
Headquartered in Sweden, Volvo, the parent company of a number of vehicle brands, including Mack Trucks, reported a 5% decline in global sales for its fiscal 2025 third quarter (Q3).
The decline was driven by a 14% drop in sales in North America, as well as a 16% decline in South America, when compared to the same quarter last year. Sales were actually up in Europe.
In his remarks from Gothenburg, Martin Lundstedt, Volvo Group’s President and CEO, noted that customers in North America continue to be cautious about placing orders due to a weak freight market, which is further compounded by uncertainty regarding 2027 EPA emissions standards, as well as the impact of tariffs. Those customers, Lundstedt said, are in a “wait-and-see mode.”
Still, though, when the market comes back, Lundstedt said- “And it will come back. So don’t worry about that”- Volvo will be well-positioned, with what he called a strong platform in North America.
Here are some more highlights from the company’s latest earnings report:
Trimming the forecast
In light of continued unknowns in the economy, Volvo Group is trimming its forecast for North American truck deliveries in 2025 to 265,000 units, a drop of 10,000.
For 2026, Volvo is forecasting the delivery of 250,000 heavy duty trucks in North America. “That is of course subject to a high level of uncertainty,” said Lundstedt.
Crunching the numbers
Volvo’s adjusted operating income for Q3 was SEK 11.7 billion (Swedish crowns), or about $1.2 billion in U.S. currency, down from SEK 14.04 billion ($1.49 billion) a year ago.
The company said the net tariff impact for the quarter amounted to 500 million Swedish crowns, or about $53 million.
Earnings per share amounted to 3.71 Swedish crowns, down from 4.93 in the third quarter of 2024.
Mack Trucks
Mack Trucks provided some bright spots on the balance sheet.
Lundstedt listed the startup of production of the new Pioneer highway truck at Mack’s Lower Macungie plant among the highlights of Volvo’s truck news. “That is of course a very important milestone for Mack Trucks since we have not had for quite many decades now a real, so to speak, proposition for the long-haul segment,” he said.
Also, Mack’s market share rose from 6% to 7.5% (year to date) on the back of “improved supply chain and good demand” in core segments, the company reported.
Mack’s net orders for Q3 2025 were 5,370, a 2% decline from 2024. Deliveries were recorded at 5,619 for the current quarter, a gain of 3%.
Orders for fully electric trucks plunged 93% to just 2, the company said.
