#Sweden #Gothenburg #Q4 2024 #financial report #Volvo Group

Volvo Group’s Financial Results for FY 2024 and Q4 Overview

On January 29, 2025, Volvo Group announced its financial performance for the full year 2024, alongside key insights from the fourth quarter. The Swedish automotive giant reported a notable decline in both net sales and adjusted operating income, reflecting the challenges faced in a turbulent market environment.

Full Year Financial Performance

For the entirety of 2024, Volvo Group recorded net sales amounting to SEK 526.8 billion, down from SEK 552.3 billion in 2023. The adjusted operating income saw a similar trend, decreasing to SEK 65.7 billion compared to SEK 78.2 billion from the previous year. This resulted in an adjusted operating margin of 12.5%, slightly off from 14.0% in 2023. However, the company maintained a strong return on capital employed (ROCE) of 35.8%, demonstrating robust financial health despite lower sales figures.

Operating cash flow was also solid, totaling SEK 45.3 billion, just shy of 2023’s SEK 45.8 billion. The strong financial footing enabled Volvo Group to propose a regular dividend of SEK 8.00 per share and an additional extraordinary dividend of SEK 10.50, reflecting its commitment to shareholder returns.

Q4 Financial Highlights

In the fourth quarter alone, net sales dipped by 6%, reaching SEK 138.4 billion compared to SEK 148.0 billion in Q4 2023. Adjusted operating income for Q4 amounted to SEK 14.0 billion, a decrease from SEK 18.5 billion, marking an adjusted operating margin of 10.1%, which is a decline from 12.4% a year prior. Interestingly, there were no major adjustments in the recent quarter’s results, contrasting with the negative impacts reported in the previous year’s Q4.

The reported operating income reflected this trend with a total of SEK 14.0 billion, down from SEK 17.0 billion in the same period the year before. A significant factor affecting operating income was the adverse currency movements that incurred a loss of SEK 44 million. Earnings per share were influenced as well, standing at SEK 5.28, down from SEK 5.93 in Q4 2023. Operating cash flow for the quarter totaled SEK 24.3 billion, indicating an increase from SEK 22.7 billion in Q4 2023.

Conclusion and Future Outlook

Despite the challenges over the past year, Martin Lundstedt, President and CEO of Volvo Group, expressed confidence in the company’s financial stability and growth prospects. The strong net cash position, recorded at SEK 85.9 billion, excludes pension and lease liabilities, indicating a healthy balance sheet and capability to invest in future opportunities while providing value to shareholders.

As Volvo Group continues to adapt to the shifting market landscape, its commitment to innovation and sustainability in transport solutions remains a priority, ensuring competitiveness and resilience for years to come.

For more detailed insights, including a live presentation and a Q&A session, stakeholders are encouraged to participate in the upcoming conference scheduled for 09:00 CET, with a link available on the Volvo Group website.