Volvo Group reports lower Q4 and 2025 earnings

Core Viewpoint - Volvo Group reported weaker fourth-quarter and full-year 2025 results due to tariffs and softer regional demand impacting performance [1][3] Financial Performance - Fourth-quarter net sales decreased by 11% to Skr123.8 billion ($14.07 billion), with revenue remaining flat year-on-year when excluding currency effects and the SDLG divestment [1] - Income for the fourth quarter was Skr9.61 billion, down from Skr10.81 billion in the same period last year [1] - For 2025, net sales declined to Skr479.2 billion, and annual income was reported at Skr34.70 billion, a decrease from Skr50.57 billion the previous year [3] Operating Income and Profitability - Currency shifts reduced operating income by Skr2.1 billion, while both adjusted and reported operating profit reached Skr12.8 billion, resulting in a margin of 10.3% [2] - Adjusted operating income fell to Skr51.2 billion, and reported profit decreased to Skr48.5 billion, with margins narrowing to just over 10% [3] - Earnings per share dropped to Skr4.73 for Q4 and Skr16.94 for the full year [2][3] Cash Flow and Dividends - Operating cash flow in industrial operations dropped to Skr19.3 billion for Q4 and halved to Skr21.8 billion for the full year [2][3] - The board proposed a total dividend of Skr13 per share, consisting of an ordinary dividend of Skr8.50 and an extra dividend of Skr4.50 [4][5] Regional Performance - Regional performance in Q4 was mixed, with Europe seeing a 1% increase, while North America, South America, and Asia experienced sharp declines [4] - Vehicle and service sales both declined, and truck orders and deliveries weakened year-on-year [4] Future Outlook - Volvo anticipates negative currency effects of about Skr2 billion on first-quarter 2026 operating income, alongside a full-year research and development impact that is net positive but weaker than in 2025 [5]