Volvo Group (VOLV) Q4 2025 earnings summary

Executive summary

• Net sales for Q4 2025 were SEK 123.8 billion, flat when adjusted for FX and SDLG divestment, with adjusted operating income at SEK 12.8 billion (margin 10.3%).

• Full-year 2025 net sales reached SEK 479 billion, down 3% YoY excluding FX and SDLG; adjusted operating income was SEK 51 billion (margin 10.7%).

• Vehicle and machine sales declined 5% YoY (FX and SDLG adjusted), while service revenues grew 2%.

• Cash flow was strong at SEK 19.3 billion in Q4 and SEK 22 billion for the year, supporting a net cash position of SEK 63 billion.

• Board proposes an ordinary dividend of SEK 8.5 and an extraordinary dividend of SEK 4.5 per share.

Financial highlights

• Q4 2025 EPS was SEK 4.73; return on capital employed at 25.3%.

• Q4 operating cash flow in Industrial Operations was SEK 19.3 billion; net cash position at year-end was SEK 63 billion.

• Gross margin for Q4 was 24.9%; full year gross margin was 24.4%.

• Adjusted operating margin for FY 2025 was 10.7%.

• Book-to-bill for trucks was 94% in Q4; for construction equipment, 118% in Q4.

Outlook and guidance

• Market forecast for 2026 revised upward for North America (265,000 heavy-duty trucks, up 15,000 units) and marginally for Europe (305,000 units, down 10,000 from Q3 guidance).

• Currency effects expected to reduce Q1 2026 operating income by SEK 2 billion.

• Net R&D capitalization/amortization effect on operating income expected to be SEK 3 billion for FY 2026.

• CapEx to remain elevated in 2026 due to ongoing investments, especially in Mexico, but slightly lower than 2025.

• Tax rate estimated at 24% for 2026.