Volvo Group Reports Lower Sales and Profit in 2025, Proposes SEK 13 Dividend

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Key Highlights:

• Net sales fell 9% to SEK 479.2 billion.

• Operating profit declined 22% to SEK 51.2 billion.

• Q4 sales dropped 11% year-on-year.

• Full-year EPS reduced to SEK 16.94.

• Total dividend proposed at SEK 13 per share.

Volvo Group has reported a decline in its financial performance for 2025, mainly due to weaker market demand and currency challenges. Despite this slowdown, the Swedish commercial vehicle major has proposed a total dividend of SEK 13 per share for shareholders.

Full-Year Financial Performance in 2025

For the full year 2025, Volvo Group’s net sales fell by 9% to SEK 479.2 billion, compared to SEK 526.8 billion in the previous year. The company’s adjusted operating income declined by 22% to SEK 51.2 billion, down from SEK 65.7 billion in 2024.

As a result, the adjusted operating margin reduced to 10.7%, compared to 12.5% last year. The company stated that softer demand across key markets and unfavourable currency movements affected overall profitability.

Fourth Quarter 2025 Performance

In the fourth quarter of 2025, net sales dropped 11% year-on-year to SEK 123.8 billion. However, after adjusting for currency effects and the divestment of SDLG, sales remained flat compared to the same period last year.

Operating income for Q4 stood at SEK 12.8 billion, with an operating margin of 10.3%. Currency movements alone reduced operating income by SEK 2.1 billion during the quarter. Earnings per share for the quarter declined to SEK 4.73, compared to SEK 5.28 a year earlier.

Earnings, Cash Flow, and Returns

For the full year, earnings per share fell to SEK 16.94 from SEK 24.78 in 2024. Operating cash flow from industrial operations declined sharply to SEK 21.8 billion, compared to SEK 45.3 billion last year.

The company’s return on capital employed dropped to 25.3%, down from 35.8%, reflecting lower profitability and market pressure during the year.

Strong Balance Sheet and Dividend Announcement

Despite weaker earnings, Volvo Group maintained a strong financial position. The company ended 2025 with a net cash position of SEK 63.0 billion in its industrial operations, excluding pension and lease liabilities.

Based on this strength, the board has proposed an ordinary dividend of SEK 8.50 per share along with a special dividend of SEK 4.50 per share, taking the total proposed dividend to SEK 13 per share.

Company Overview

Founded in 1927 and headquartered in Gothenburg, Sweden, Volvo Group is a global manufacturer of commercial vehicles and industrial equipment. The company produces trucks, buses, construction equipment, and power solutions for marine and industrial use, along with financing and related services.

Volvo Group operates through well-known brands such as Volvo, Mack, Renault Trucks, UD Trucks, and Volvo Construction Equipment. It employs around 100,000 people and sells its products in nearly 180 markets worldwide. The company is listed on Nasdaq Stockholm and continues to focus on electrification, automation, and low-emission transport solutions.

Volvo Group will host an online presentation and analyst call to discuss its 2025 results later on Tuesday.

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CMV360 Says

Volvo Group faced a challenging 2025 as weaker demand and currency pressure pulled down sales, profit, and cash flow. Even so, the company maintained a strong balance sheet and rewarded shareholders with a healthy dividend. With its continued focus on electrification, automation, and low-emission transport solutions, Volvo aims to strengthen its long-term position while navigating short-term market uncertainties.