Swedish industrail group and truckmaker Volvo Group has reported weaker fourth-quarter and full-year 2025 results as tariffs and softer regional demand weighed on performance.
Fourth-quarter net sales fell 11% to Skr123.8bn ($14.07bn), though stripping out currency effects and the SDLG divestment left revenue flat year-on-year (YoY).
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Income for the period was Skr9.61bn, compared with Skr10.81bn in the corresponding period last year.
Currency shifts cut operating income by Skr2.1bn, while both adjusted and reported operating profit reached Skr12.8bn, lifting the margin to 10.3%.
Earnings per share slipped to Skr4.73 and operating cash flow in industrial operations dropped to Skr19.3bn.
Volvo said profitability was hit by higher tariff and material costs and under-absorption in its US plants, partly offset by stronger services, lower expenses and improved joint-venture results.
The group put the Q4 net tariff impact at about Skr800m and expects roughly Skr1bn in the first quarter of 2026.
For 2025, net sales declined to Skr479.2bn.
Annual income was reported at Skr34.70bn, down from Skr50.57bn in the same period a year earlier.
Adjusted operating income fell to Skr51.2bn and reported profit to Skr48.5bn, with margins narrowing to just over 10%.
Earnings per share dropped to Skr16.94, while operating cash flow in industrial operations halved to Skr21.8bn.
The board proposed a total dividend of Skr13 per share.
Regional performance in the quarter was mixed, with Europe edging up 1% but sharp falls in North America, South America and Asia.
Vehicle and service sales both declined, while truck orders and deliveries weakened year on year.
Volvo president and CEO Martin Lundstedt said: “We generated an operating cash flow of Skr21.9bn with a strong Q4 and ended the year with a net cash position of Skr63bn in the Industrial Operations, pension and lease liabilities excluded. The Board of Directors proposes an ordinary dividend of Skr8.50 per share and an extra dividend of Skr4.50 per share.”
Looking ahead, Volvo expects negative currency effects of about Skr2bn on first-quarter 2026 operating income, alongside a full-year research and development impact that is net positive but weaker than in 2025.
