Swedish truck manufacturer Volvo reported on Friday that its third-quarter operating profit met market expectations, despite pressure from weak demand in North and South America.

The company's adjusted operating profit for the period fell to 11.7 billion Swedish kronor (approximately $1.2 billion) from 14.1 billion Swedish kronor in the same period last year, aligning with the average forecast of analysts surveyed by LSEG.

The Gothenburg-based group, which also produces construction equipment and engines, has downgraded its outlook for the North American truck market while maintaining its expectations for Europe.

Volvo now anticipates that heavy truck deliveries in Europe will be around 290,000 units in 2025, compared to 265,000 units in North America, indicating a softening demand outlook for the US market.

The company noted that the long-haul freight market in North America remains in a downturn, with both freight volumes and pricing at low levels. Additionally, uncertainties regarding new emissions regulations and tariffs are causing customers to postpone orders.

In Europe, truck demand is largely driven by replacements and is supported by stable fleet utilization rates.