Volvo Group Reports 5% Revenue Decline in Second Quarter 2025

Volvo Group reported net sales of SEK 122.9 billion for the second quarter of 2025, representing a 5% decline when adjusted for currency movements compared to the same period in 2024. The Swedish industrial company attributed the decrease to market stabilization in Europe and customer uncertainty in North America.

The company's adjusted operating income fell to SEK 13.5 billion from SEK 19.4 billion in the previous year, resulting in an adjusted operating margin of 11.0% compared to 13.9% in Q2 2024. Vehicle sales declined 6% on a currency-adjusted basis, while service revenues remained at the same level as the previous year when adjusted for currency fluctuations.

President and CEO Martin Lundstedt characterized the quarter as one marked by general stabilization in the European market and a wait-and-see approach among customers in North America. Despite lower vehicle volumes, the company maintained that its service business development remained robust, supported by continued utilization of vehicles and machinery.

The company's service business generated SEK 126.3 billion in revenue on a rolling 12-month basis. Operating cash flow in Industrial Operations amounted to SEK 2.9 billion, down from SEK 9.1 billion in Q2 2024. Return on capital employed in Industrial Operations decreased to 25.7% from 41.3% in the corresponding period last year.

Currency movements had a negative impact of SEK 2.3 billion on operating income compared to the second quarter of 2024. Earnings per share dropped to SEK 3.64 from SEK 7.65 in the previous year.

Volvo Group, founded in 1927 and headquartered in Gothenburg, Sweden, provides transport and infrastructure solutions including trucks, buses, construction equipment, and power solutions for marine and industrial applications. The company employs more than 100,000 people and serves customers in nearly 190 markets. In 2024, the company reported net sales of SEK 527 billion. Volvo shares are listed on Nasdaq Stockholm.