Volvo Group - the second quarter 2025

Rhea-AI Summary

Volvo Group (VLVLY) reported mixed Q2 2025 results, with net sales declining 5% (currency-adjusted) to SEK 122.9 billion compared to SEK 140.2 billion in Q2 2024. Vehicle sales dropped 6% year-over-year, while service revenues remained stable. The company's adjusted operating income decreased to SEK 13.5 billion from SEK 19.4 billion, with adjusted operating margin falling to 11.0% from 13.9%.

The quarter was marked by market stabilization in Europe but increased uncertainty in North America. Operating cash flow in Industrial Operations decreased to SEK 2,948 million from SEK 9,060 million. Earnings per share declined to SEK 3.64 from SEK 7.65, while return on capital employed in Industrial Operations fell to 25.7% from 41.3%.

Positive

• Service business remains robust with rolling 12-month revenues of SEK 126.3 billion
• Maintained double-digit adjusted operating margin of 11.0%
• Strong return on capital employed at 25.7% in Industrial Operations
• Stable service revenue development despite market challenges

Negative

• Net sales declined 5% currency-adjusted to SEK 122.9 billion
• Vehicle sales dropped 6% year-over-year
• Adjusted operating income fell to SEK 13.5 billion from SEK 19.4 billion
• Operating cash flow decreased significantly to SEK 2,948M from SEK 9,060M
• Earnings per share declined by 52% to SEK 3.64

GOTHENBURG, Sweden, July 17, 2025 /PRNewswire/ -- "In a quarter characterized by a general stabilization of the European market and more of uncertainty and a wait and see mode among customers in North America, the Volvo Group's net sales declined by 5% adjusted for currency movements and amounted to SEK 122.9 billion (140.2). Sales of vehicles were 6% lower than in Q2 2024 when adjusted for currency, while the underlying service development remained robust, supported by continued good utilization of vehicles and machines. Our service sales were on the same level as in the previous year when adjusted for currency, and on a rolling 12-month basis revenues in our service business amounted to SEK 126.3 billion. On the lower vehicle volumes, we generated an adjusted operating income of SEK 13.5 billion (19.4) with an adjusted operating margin of 11.0% (13.9)," says Martin Lundstedt, President and CEO.

• In Q2 2025, net sales decreased by 12% and amounted to SEK 122.9 billion (140.2). When adjusted for currency movements net sales decreased by 5%.
• Adjusted operating income amounted to SEK 13,484 M (19,446), corresponding to an adjusted operating margin of 11.0% (13.9). In Q2 2025, a negative effect of SEK 4,512 M and a positive effect of SEK 989 M were excluded from adjusted operating income. In Q2 2024, positive effects of SEK 893 M were excluded from adjusted operating income.
• Reported operating income amounted to SEK 9,961 billion (20,339), corresponding to an operating margin of 8.1% (14.5).
• Compared with Q2 2024, currency movements had a negative impact on operating income amounting to SEK 2,310 M.
• Earnings per share amounted to SEK 3.64 (7.65).
• Operating cash flow in the Industrial Operations amounted to SEK 2,948 M (9,060).
• Return on capital employed in the Industrial Operations amounted to 25.7% (41.3).

Press and Analyst Conference Call. An online presentation of the report, followed by a question and answer session will start at 09:00 CEST. Link to webcast: https://qreport.volvogroup.com/.

More information, including an interview with CEO Martin Lundstedt, will soon be available on https://www.volvogroup.com/en/investors.html.

Jul 17, 2025

This information is information that AB Volvo (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 07:20 CEST on July 17, 2025.

Aktiebolaget Volvo (publ) 556012-5790

Investor Relations
SE-405 08 Göteborg, Sweden
Tel +46 31 66 00 00
www.volvogroup.com

Contact Media Relations:
Claes Eliasson                       +46 765 53 72 29

Contacts Investor Relations:
Johan Bartler                          +46 739 02 21 93
Anders Christensson              +46 765 53 59 66

For more information, please visit volvogroup.com 

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The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers' uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs more than 100,000 people and serves customers in almost 190 markets. In 2024, net sales amounted to SEK 527 billion (EUR 46 billion). Volvo shares are listed on Nasdaq Stockholm.

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https://news.cision.com/ab-volvo/r/volvo-group---the-second-quarter-2025,c4208102

The following files are available for download:

https://mb.cision.com/Main/39/4208102/3583210.pdf	Volvo Group – Report on the second quarter 2025
https://news.cision.com/ab-volvo/i/q22025-1860x1050,c3456855	Q22025 1860x1050
https://mb.cision.com/Public/39/4208102/ba67558731e3b8b8.pdf	Press Release – Volvo Group – the second quarter 2025

 

View original content:https://www.prnewswire.com/news-releases/volvo-group--the-second-quarter-2025-302507677.html

SOURCE AB Volvo

FAQ

What were Volvo Group's (VLVLY) Q2 2025 earnings results?

Volvo reported net sales of SEK 122.9 billion, down 5% currency-adjusted, with adjusted operating income of SEK 13.5 billion and an adjusted operating margin of 11.0%.

How did Volvo's vehicle sales perform in Q2 2025?

Volvo's vehicle sales decreased by 6% compared to Q2 2024 when adjusted for currency movements.

What was Volvo Group's earnings per share in Q2 2025?

Volvo Group's earnings per share were SEK 3.64, down from SEK 7.65 in Q2 2024.

How is Volvo's service business performing?

Volvo's service business remained stable year-over-year, with rolling 12-month revenues reaching SEK 126.3 billion.

What was Volvo's operating cash flow in Q2 2025?

Operating cash flow in Industrial Operations was SEK 2,948 million, down from SEK 9,060 million in Q2 2024.