Volvo (VOLV) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2025 were SEK 110.7 billion, down 5% year-over-year, but up 1% when adjusted for currency movements, with a negative SEK 7.2 billion FX impact.

• Adjusted operating income was SEK 11.7 billion (margin 10.6%), down from SEK 14.1 billion (12.0%) last year.

• Earnings per share were SEK 3.71, compared to SEK 4.93 in Q3 2024.

• Operating cash flow in Industrial Operations was negative at SEK -1.7 billion, compared to SEK 3.1 billion last year.

• Service business showed underlying growth of 4–5% adjusted for currency and divestments, now representing 28% of quarterly revenues.

Financial highlights

• Adjusted operating margin was 10.6%; adjusted operating income SEK 11.7 billion.

• Net sales for the last 12 months reached SEK 494 billion.

• Return on capital employed in Industrial Operations was 25.2%, down from 38.3% year-over-year.

• Service sales (including Financial Services) for the last 12 months were SEK 126 billion, up 4% excluding FX.

• Tariff costs increased, with a net impact of SEK 500 million in Q3 and expected to reach SEK 1 billion in Q4.

Outlook and guidance

• North America heavy-duty truck market forecast for 2025 is 265,000 units, down from 308,000 in 2024, with further decline expected in 2026.

• Europe heavy-duty truck market forecast for 2025 is 290,000 units, down from 314,000 in 2024.

• Construction equipment market in North America expected to decline 5–10% in 2025.

• China heavy-duty and medium-duty truck market forecast to decrease to 360,000–760,000 units in 2025.

• Management expects continued weaker demand in key regions, especially North America, and is focusing on cost control and service business growth.