#Sweden #Gothenburg #Volvo Group #Martin Lundstedt

Volvo Group's Q3 2025 Financial Performance

On October 17, 2025, the Volvo Group released its financial results for the third quarter. The report reveals both challenges and successes across different markets. Notably, the company experienced a net sales increase in Europe, while North and South America faced more challenging conditions. This divergence underscores the complexities of operating in a global marketplace where regional economic conditions can significantly impact performance.

According to Martin Lundstedt, the President and CEO of Volvo Group, the total net sales reached SEK 110.7 billion, a slight decrease from SEK 117.0 billion in the same period last year. However, when accounting for currency movements, the sales reflect a marginal increase of 1%. This suggests that despite experiencing lower vehicle sales—down by 1% when adjusted for currency—the overall health of the company's service business remained robust, with service sales rising by 4% on an adjusted basis.

Breakdown of Financials

• - Adjusted Operating Income: The adjusted operating income for the quarter was SEK 11.7 billion, down from SEK 14.1 billion in Q3 2024, yielding an adjusted operating margin of 10.6% compared to the previous year's 12.0%. This shift highlights the adjusted impact of challenging conditions in key markets and currency fluctuation.

• - Operating Income: The reported operating income stood at SEK 12.5 billion (a slight decline from SEK 14.1 billion), marking an operating margin of 11.3% against the prior year’s margin of 12.0%. This operational performance indicates the adverse effect of currency changes, which impacted operating income negatively by SEK 1.6 billion compared to Q3 2024.

• - Earnings per Share: The earnings per share recorded for this quarter were SEK 3.71, down from 4.93 in the previous year.

• - Operating Cash Flow: The industrial operations saw a negative operating cash flow of SEK -1.7 billion, contrasting sharply with the positive SEK 3.1 billion from the prior year’s quarter. This decrease in cash flow is an essential point to monitor moving forward, as it can influence overall liquidity and investment capabilities.

• - Return on Capital Employed: This key performance indicator in industrial operations dropped to 25.2%, down from the impressive 38.3% seen in Q3 2024. This slip calls for further investigation into operational efficiency and capital allocation strategies moving ahead.

Future Developments

In light of these results, Volvo Group is preparing to engage with stakeholders through an online conference to discuss the findings further. This presentation, set for 0900 CEST, will provide an opportunity for analysts and the media to delve deeper into the implications of these results and seek clarity on future strategies. Links to access this meeting as well as detailed reports on the quarterly performance are available on the Volvo Group's investor relations page.

Despite the hurdles faced in certain regions, the group maintains a commitment to sustainable growth and profitability. Founded in 1927 and headquartered in Gothenburg, Sweden, Volvo Group continues to expand its influence in transportation and infrastructure solutions globally, with dedicated efforts towards innovations that emphasize sustainability.

For those interested in the company’s trajectory, additional insights, including interviews with Martin Lundstedt, will be accessible shortly on the official investor pages. As Volvo Group navigates through these economic variances, stakeholders remain keenly observant of how the company positions itself in the evolving global landscape.