Volvo Group reports lower Q4 and 2025 earnings

Swedish industrail radical and truckmaker Volvo Group has reported weaker fourth-quarter and full-year 2025 results arsenic tariffs and softer determination request weighed connected performance.

Fourth-quarter nett income fell 11% to Skr123.8bn ($14.07bn), though stripping retired currency effects and the SDLG divestment near gross level year-on-year (YoY).

Income for the play was Skr9.61bn, compared with Skr10.81bn successful the corresponding play past year.

Currency shifts chopped operating income by Skr2.1bn, portion some adjusted and reported operating nett reached Skr12.8bn, lifting the borderline to 10.3%.

Earnings per stock slipped to Skr4.73 and operating currency travel successful concern operations dropped to Skr19.3bn.

Volvo said profitability was deed by higher tariff and worldly costs and under-absorption successful its US plants, partially offset by stronger services, little expenses and improved joint-venture results.

The radical enactment the Q4 nett tariff interaction astatine astir Skr800m and expects astir Skr1bn successful the archetypal 4th of 2026.

For 2025, nett income declined to Skr479.2bn.

Annual income was reported astatine Skr34.70bn, down from Skr50.57bn successful the aforesaid play a twelvemonth earlier.

Adjusted operating income fell to Skr51.2bn and reported nett to Skr48.5bn, with margins narrowing to conscionable implicit 10%.

Earnings per stock dropped to Skr16.94, portion operating currency travel successful concern operations halved to Skr21.8bn.

The committee projected a full dividend of Skr13 per share.

Regional show successful the 4th was mixed, with Europe edging up 1% but crisp falls successful North America, South America and Asia.

Vehicle and work income some declined, portion motortruck orders and deliveries weakened twelvemonth connected year.

Volvo president and CEO Martin Lundstedt said: “We generated an operating currency travel of Skr21.9bn with a beardown Q4 and ended the twelvemonth with a nett currency presumption of Skr63bn successful the Industrial Operations, pension and lease liabilities excluded. The Board of Directors proposes an mean dividend of Skr8.50 per stock and an other dividend of Skr4.50 per share.”

Looking ahead, Volvo expects antagonistic currency effects of astir Skr2bn connected first-quarter 2026 operating income, alongside a full-year probe and improvement interaction that is nett affirmative but weaker than successful 2025.

"Volvo Group reports little Q4 and 2025 earnings" was primitively created and published by Just Auto, a GlobalData owned brand.

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