Volvo Group Sales Down 9%, Operating Profit Down 22% in 2025

Volvo Group on Tuesday reported a 9% drop in net sales and a 22% decline in adjusted operating income for 2025, reflecting softer demand and currency headwinds, even as the Swedish commercial vehicle maker proposed a total dividend of SEK 13 per share. Net sales fell to SEK 479.2 billion from SEK 526.8 billion a year earlier, while adjusted operating income declined to SEK 51.2 billion from SEK 65.7 billion.

Volvo Group on Tuesday reported a decline in net sales and profit for 2025, citing weaker market conditions and currency headwinds, while proposing a total dividend of SEK 13 per share.

The Swedish commercial vehicle maker posted net sales of SEK 479.2 billion for the full year, down from SEK 526.8 billion a year earlier. Adjusted operating income fell to SEK 51.2 billion from SEK 65.7 billion, with the adjusted operating margin declining to 10.7% from 12.5% .

For the fourth quarter, net sales dropped 11% year-on-year to SEK 123.8 billion. Adjusted for currency movements and the divestment of SDLG, sales were flat compared with the same period last year. Operating income for the quarter stood at SEK 12.8 billion, translating into a margin of 10.3% .

Currency movements reduced operating income by SEK 2.1 billion during the quarter. Earnings per share for the quarter declined to SEK 4.73 from SEK 5.28 a year earlier .

For the full year, earnings per share fell to SEK 16.94 from SEK 24.78. Operating cash flow from industrial operations declined to SEK 21.8 billion from SEK 45.3 billion in 2024, while return on capital employed dropped to 25.3% from 35.8% .

Volvo ended 2025 with a net cash position of SEK 63.0 billion in its industrial operations, excluding pension and lease liabilities. The board proposed an ordinary dividend of SEK 8.50 per share and a special dividend of SEK 4.50 per share .

The company will host an online presentation and analyst call later on Tuesday.

Volvo Group is a Sweden-based manufacturer of commercial vehicles and industrial equipment, founded in 1927 and headquartered in Gothenburg. The company produces trucks, buses, construction equipment, and power solutions for marine and industrial applications, and also provides financing and related services. Volvo Group operates through brands including Volvo, Mack, Renault Trucks, UD Trucks and Volvo Construction Equipment. It employs about 100,000 people and sells products in nearly 180 markets. Volvo shares are listed on Nasdaq Stockholm, and the group focuses on electrification, automation and lower-emission transport solutions.