FULLTEXT DEL 1 AV 1
Kvartalsrapport Q1 2025
===== SIDA 1 =====
V O L V O G R O U P
R E P O R T O N T H E F I R S T Q U A R T E R 2 0 2 5
Net sales SEK 121.8 billion (131.2)
— — — — — — — — — — — — — — — — — — — — — — —
Adjusted and reported operating income
SEK 13.3 billion (18.2)
— — — — — — — — — — — — — — — — — — — — — — —
===== SIDA 2 =====
• In Q1 2025, net sales decreased by 7% and amounted to
SEK 121.8 billion (131.2). When adjusted for currency
movements the decrease was also 7%.
• Both adjusted and reported operating income1 amounted
to SEK 13,258 M (18,159), corresponding to an
operating margin of 10.9% (13.8).
• Currency movements had a negative impact on operating
income amounting to SEK 207 M.
• Earnings per share amounted to SEK 4.86 (6.92).
• Operating cash flow in the Industrial Operations amounted
to SEK 1,309 M (8,896).
• Return on capital employed in the Industrial Operations
amounted to 31.8% (37.7).
131.2 121.8
Q1
2024
Q2 Q3 Q4 Q1
2025
18.2
13.3
13.8%
10.9%
Q1
2024
Q2 Q3 Q4 Q1
2025
37.7%
31.8%
Q1
2024
Q2 Q3 Q4 Q1
2025
First quarter
SEK M unless otherwise stated 2025 2024
Net sales 121,792 131,177
Adjusted operating income¹ 13,258 18,159
Adjusted operating margin, % 10.9 13.8
Operating income 13,258 18,159
Operating margin, % 10.9 13.8
Income after financial items 12,855 18,442
Income for the period 9,984 14,103
Earnings per share, SEK 4.86 6.92
Operating cash flow in Industrial Operations 1,309 8,896
Net financial position in Industrial Operations², SEK bn 77.9 88.7
Return on capital employed in Industrial Operations³, % 31.8 37.7
Return on equity in Financial Services³, % 12.7 13.0
Net order intake, number of trucks 55,227 48,701
Deliveries, number of trucks 48,833 55,470
Net order intake, number of construction equipment 17,176 13,851
Deliveries, number of construction equipment 15,508 14,456
1 For information on adjusted operating income, please see note 6.
2 Excluding post-employment benefits and lease liabilities.
3 12 months rolling.
On the cover: The all-new Mack Pioneer for long haul trucking on the North American market.
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
2 IN BRIEF
Net sales, SEK bn Adjusted operating income, SEK bn 1
Adjusted operating margin, %
Return on capital employed
Industrial Operations, % 3
===== SIDA 3 =====
In Q1, the Volvo Groupʼs net sales declined by 7% adjusted for
currency movements and amounted to SEK 121.8 billion (131.2).
Sales of vehicles were 9% lower than in Q1 2024 and as the
quarter went by, there was increased uncertainty surrounding
tariffs and their effect on global trade. The underlying service
business continued to grow supported by good utilization of
vehicles and machines in many markets across the world.
Adjusted for the divestment of Arquus and currency our service
business grew by 2% compared with Q1, 2024, and on a rolling
12-month basis we had service revenues of SEK 129.2 billion.
The lower vehicle volumes affected our profitability, but we
nonetheless generated an operating income of SEK 13.3 billion
(18.2) with a margin of 10.9% (13.8). Return on capital
employed amounted to 31.8% (37.7) and operating cash flow in
our Industrial Operations was SEK 1.3 billion (8.9). At the end of
the quarter, we had a net financial position of SEK 77.9 billion,
excluding pension and lease liabilities and before the distribution
of the dividend in April.
Compared with Q1 2024, deliveries in our truck business
declined by 12% to 48,833 trucks, and the currency-adjusted net
sales decreased by 9% to SEK 82.2 billion. In contrast to the
lower deliveries, order intake rose by 13% to 55,227 trucks, with
increases in all markets except South America. The operating
margin amounted to 10.3% (14.5), impacted by the lower
deliveries. In addition, the margin was impacted by the change-
over to the new truck platform in North America as well as under
absorption in the U.S. truck production.
It is clear that our customers appreciate our new trucks and the
benefits they provide for their businesses. In Europe, Volvo Trucks
had an all-time high market share of 20.1% in heavy-duty trucks.
Combined with Renault Trucks, the Groupʼs share was a record
30.6%, We were also the market leader in Brazil with Volvo
Trucks on 23.8%. Volvo Trucksʼ market share in North America
has been hampered by the changeover to the new product
platform, whereas Mack Trucks have regained market share as
supply chain issues have been worked through.
On April 8, Mack celebrated its 125th anniversary and launched
the all-new Mack Pioneer for long-haul trucking. The Mack
Pioneer is designed for superior comfort, advanced aerodynamics
and game-changing fuel efficiency and is a strong lever for further
strengthening Mackʼs position going forward.
Construction Equipmentʼs deliveries increased by 7% with lower
volumes for the Volvo brand in Europe and North America more
than being offset by an increase for the SDLG brand mainly in
China. The net sales of SEK 21.1 billion were 8% lower than in
the previous year adjusted for currency changes, and the operating
margin declined to 12.0% (16.1) impacted by the lower volumes
in Europe and North America.
On the construction equipment side, we also continue to push
innovation with the rollout of new products. At the large trade fair
Bauma in Germany in early April we showcased our groundbreak-
ing all-electric lineup of excavators, wheel loaders, articulated
haulers, and compact equipment, and we also unveiled the
worldʼs first electric articulated haulers in the A30 and A40 size
classes.
Demand for buses remained strong in many markets, particularly
for coaches. Buses currency-adjusted net sales increased by 7%
to SEK 5.4 billion with an improvement in the operating margin to
6.6% (5.0) supported by price realization and the restructuring of
the business model in Europe carried out in 2024.
Volvo Penta continued to perform well on slightly lower volumes
in Q1. Net sales decreased by 3% to SEK 5.0 billion and the
operating margin amounted to 18.3% (19.1), supported by a
positive mix.
Our customer financing operations, Volvo Financial Services,
continued to report good earnings, stable portfolio performance
and an increase in the penetration level to 29%. The operating
income amounted to SEK 1.0 billion (1.0).
We have have high customer satisfaction and strong relations, and
in times of uncertainty it is more important than ever to work in
close cooperation with our customers. We stay close to support
their businesses as efficiently as possible with leading products
and services. We have a solid foundation with the right people, a
well-invested industrial backbone, cutting-edge technology and a
strong financial position.
In the fast-changing geopolitical landscape, it is too early to
assess the full implications from the imposed tariffs. However, we
have strong regional value chains and global capabilities. In the
short term, we therefore work actively with our regional value
chains to adapt flows, production capacity and commercial terms
to mitigate the effects from tariffs and their subsequent impact on
demand.
In the long term, transport and infrastructure remain exciting
growth industries at the core of driving prosperity.
Martin Lundstedt
President and CEO
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
3 CEO'S COMMENTS
“We have have high customer
satisfaction and strong relations,
and in times of uncertainty it is
more important than ever to work
in close cooperation with our
customers.”
Solid performance in an
increasingly uncertain
market
===== SIDA 4 =====
Annual General Meeting of AB Volvo
AB Volvoʼs Annual General Meeting on April 2, 2025 adopted the
income statement and balance sheet as well as the consolidated
income statement and the consolidated balance sheet. In
accordance with the Boardʼs proposal, the Meeting resolved that
an ordinary dividend of SEK 8.00 per share and an extraordinary
dividend of SEK 10.50 per share should be paid to the share-
holders. April 4, 2025 was decided as the record date for the right
to receive dividends. The Board Members, Board Deputies and the
President and CEO were discharged from liability for their
administration during the 2024 fiscal year. Matti Alahuhta, Bo
Annvik, Pär Boman, Jan Carlson, Eric Elzvik, Martha Finn Brooks,
Kurt Jofs, Martin Lundstedt, Kathryn V. Marinello, Martina Merz
and Helena Stjernholm were re-elected as members of the Board.
Pär Boman was re-elected as Chairman of the Board. The auditing
firm Deloitte AB was re-elected as auditor for the period until the
close of the Annual General Meeting 2026, in accordance with
the Election Committeeʼs proposal and the Boardʼs and the Audit
Committeeʼs recommendation. Fredrik Persson (AB Industri-
värden), Anders Oscarsson (AMF and AMF Funds), Carina Silberg
(Alecta), Anders Algotsson (AFA Insurance) and the Chairman of
the Board were elected members of the Election Committee. The
Annual General Meeting approved the Boardʼs remuneration
report.
Detailed information is available at www.volvogroup.com
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
4 IMPORTANT EVENTS
===== SIDA 5 =====
Net sales
In Q1 2025, the Volvo Groupʼs net sales decreased by 7% to SEK
121,792 M compared with SEK 131,177 M in the same quarter
the preceding year. Net sales decreased in all regions and in all
segments except Buses.
Also when adjusted for currency movements, net sales
decreased by 7%, of which vehicle sales decreased by 9% and
service sales decreased by 1%.
Operating income
In Q1 2025, both adjusted and reported operating income
amounted to SEK 13,258 M (18,159), corresponding to an
operating margin of 10.9% (13.8). For more information on
adjusted operating income, please see Note 6.
Compared with Q1 2024, the operating income was negatively
affected by lower volumes, a negative brand and product mix, the
changeover to new truck platform in North America as well as
under absorption in the truck production in the U.S. These were
partly offset by an improved service business, lower freight costs
as well as decreased R&D, selling and administrative expenses.
Currency movements, compared with Q1 2024, had a negative
impact of SEK 207 M.
Financial items
In Q1 2025, interest income was SEK 638 M (885), whereas
interest expenses amounted to SEK -409 M (-364).
Other financial income and expenses amounted to SEK -632 M
(-238). The change is primarily due to revaluation effects of
financial assets and liabilities.
Income taxes
In Q1 2025, income taxes amounted to SEK -2,871 M (-4,339).
The effective tax rate was 22.3% (23.5).
Income for the period and earnings per share
In Q1 2025, income for the period amounted to SEK 9,984 M
(14,103). Earnings per share amounted to SEK 4.86 (6.92).
Consolidated Income Statement
First quarter
SEK M 2025 2024
Net sales 121,792 131,177
Cost of sales -90,867 -94,395
Gross income 30,925 36,781
Research and development expenses -6,951 -7,332
Selling expenses -8,232 -8,617
Administrative expenses -1,820 -1,964
Other operating income and expenses -564 -567
Income/loss from investments in joint ventures and associated companies -122 -142
Income/loss from other investments 22 –
Operating income 13,258 18,159
Interest income and similar credits 638 885
Interest expenses and similar charges -409 -364
Other financial income and expenses -632 -238
Income after financial items 12,855 18,442
Income taxes -2,871 -4,339
Income for the period * 9,984 14,103
* Attributable to:
Owners of AB Volvo 9,890 14,080
Non-controlling interest 94 23
Basic earnings per share, SEK 4.86 6.92
Diluted earnings per share, SEK 4.86 6.92
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
5 FINANCIAL SUMMARY
===== SIDA 6 =====
Net sales
First quarter
SEK M 2025 2024 Change %
Net sales per geographical region
Europe 49,749 56,861 -13
North America 40,457 40,888 -1
South America 10,743 11,428 -6
Asia 14,671 14,710 –
Africa and Oceania 6,171 7,289 -15
Total net sales 121,792 131,177 -7
Net sales per product group
Vehicles 89,929 98,841 -9
Services 31,863 32,336 -1
Total net sales 121,792 131,177 -7
Timing of revenue recognition
Revenue of vehicles and services recognized at the point of delivery 108,877 117,799 -8
Revenue of vehicles and services recognized over contract period 12,915 13,377 -3
Total net sales 121,792 131,177 -7
Operating cash flow in the Industrial Operations
During Q1 2025, operating cash flow in the Industrial Operations
was positive in an amount of SEK 1,309 M (8,896). Compared
with Q1 2024, the decreased operating cash flow is mainly an
effect of the lower operating income.
8.9
1.3
Q1
2024
Q2 Q3 Q4 Q1
2025
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
6 FINANCIAL SUMMARY
Operating cash flow
Industrial Operations, SEK bn
===== SIDA 7 =====
Volvo Group financial position
During Q1 2025, net financial assets in the Industrial Operations,
excluding provisions for post-employment benefits and lease
liabilities, decreased by SEK 7.9 billion resulting in a net financial
asset position of SEK 77.9 billion on March 31, 2025, compared
with SEK 85.9 billion on December 31, 2024. The change is
mainly explained by capital injections to Financial Services, made
in order to increase their equity ratio from 8.0% to 10.0%.
Currency movements decreased net financial assets by SEK 2.5
billion.
Including provisions for post-employment benefits and lease
liabilities, the Industrial Operations net financial assets amounted
to SEK 61.4 billion on March 31, 2025, compared with SEK
67.2 billion on December 31, 2024. Remeasurements of defined
benefit pension plans had a positive impact of SEK 1.2 billion
during Q1 2025.
Total assets in the Volvo Group decreased by SEK 26.9 billion
compared with year end 2024, whereof SEK 38.9 billion is
related to currency movements.
On March 31, 2025, total equity for the Volvo Group amounted
to SEK 199.2 billion compared with SEK 197.4 billion at year end
2024. The equity ratio was 29.0% (27.6). On the same date the
equity ratio in the Industrial Operations amounted to 39.1%
(38.4).
88.7
77.9
Q1
2024
Q2 Q3 Q4 Q1
2025
Number of employees
On March 31, 2025, the Volvo Group had 102,648 employees,
including temporary employees and consultants, compared with
101,595 employees on December 31, 2024. The number of
blue-collar employees increased by 1,168 and the number of
white-collar employees decreased by 115.
Mar 31
2025
Dec 31
2024
Mar 31
2024
Blue-collar 49,645 48,477 51,599
Whereof temporary employees and consultants 4,597 3,201 6,153
White-collar 53,003 53,118 53,306
Whereof temporary employees and consultants 6,897 7,022 7,510
Total number of employees 102,648 101,595 104,905
Whereof temporary employees and consultants 11,494 10,223 13,663
Number of employees
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
7 FINANCIAL SUMMARY
Net financial position excl. post-employment benefits
and lease liabilities Industrial Operations, SEK bn
===== SIDA 8 =====
Net sales
First quarter Change 12 mths. Jan-Dec
SEK M 2025 2024 % %¹ rolling 2024
Trucks 82,248 89,946 -9 -8 352,912 360,610
Construction Equipment 21,117 22,877 -8 -8 86,545 88,305
Buses 5,436 5,173 5 7 24,807 24,544
Volvo Penta 5,004 5,168 -3 -3 19,688 19,852
Group Functions & Other 3,664 4,281 -14 -14 15,931 16,548
Eliminations -1,213 -1,280 – – -4,816 -4,883
Industrial Operations 116,256 126,163 -8 -7 495,068 504,975
Financial Services 6,779 6,532 4 6 27,228 26,982
Reclassifications and eliminations -1,243 -1,519 – – -4,865 -5,140
Volvo Group net sales 121,792 131,177 -7 -7 517,431 526,816
1 Adjusted for exchange rate fluctuations.
Adjusted operating income ¹
First quarter Change 12 mths. Jan-Dec
SEK M 2025 2024 % rolling 2024
Trucks 8,464 13,073 -35 41,217 45,826
Construction Equipment 2,542 3,683 -31 11,596 12,737
Buses 360 259 39 2,333 2,233
Volvo Penta 915 988 -7 3,345 3,419
Group Functions & Other -114 -947 88 -2,109 -2,943
Eliminations -5 -13 – 39 32
Industrial Operations 12,162 17,044 -29 56,422 61,305
Financial Services 1,019 1,009 1 4,052 4,042
Reclassifications and eliminations 77 106 -27 343 371
Volvo Group adjusted operating income 13,258 18,159 -27 60,817 65,718
Adjustments ¹ – – – 893 893
Volvo Group operating income 13,258 18,159 -27 61,710 66,611
1 For more information on adjusted operating income, please see note 6.
Adjusted operating margin
First quarter 12 mths. Jan-Dec
% 2025 2024 rolling 2024
Trucks 10.3 14.5 11.7 12.7
Construction Equipment 12.0 16.1 13.4 14.4
Buses 6.6 5.0 9.4 9.1
Volvo Penta 18.3 19.1 17.0 17.2
Industrial Operations 10.5 13.5 11.4 12.1
Volvo Group adjusted operating margin 10.9 13.8 11.8 12.5
Volvo Group operating margin 10.9 13.8 11.9 12.6
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
8 BUSINESS SEGMENT OVERVIEW
===== SIDA 9 =====
Market development
In Q1, the European heavy-duty truck market was down by 15%
in terms of registrations. Truck utilization remained on normal levels
and the market is largely replacement-driven.
Recently announced increases in defense spending in Europe is
expected to gradually drive demand from armed forces. The
Group's global deliveries of trucks to armed forces amount to
approximately 1,500 trucks per year.
Also in North America the market was down compared with Q1
2024 with retail sales being 13% lower mainly driven by a weaker
long haul segment while the vocational segment remained
stronger. Recent uncertainty surrounding trade tariffs and the
EPA27 emissions legislation have caused US customers to adopt
a wait and see approach. There is no longer an expectation of a
prebuy in 2025 due to EPA27.
The Brazilian truck market remained on a level broadly on par
with the prior year. The market is supported by continued strong
agricultural and mining exports, but high inflation and increased
interest rates are expected to gradually dampen demand.
In Q1 2025, the Indian truck market was supported by ongoing
infrastructure projects and gradually strengthening freight
demand.
The freight overcapacity in China continued to hamper demand
for trucks and the total market declined year of year. The market
for battery-electric applications continued to grew.
Orders and deliveries
In Q1, net order intake increased by 13% to 55,227 trucks and
deliveries decreased by 12% to 48,833 units. Deliveries of heavy-
duty trucks decreased by 7%, of medium-duty trucks by 26% and
for light-duty trucks the decrease was 36%.
In Europe, order intake increased by 25% to 31,362 units.
Order intake for heavy- and medium-duty trucks increased by
35% with good momentum for both Volvo and Renault Trucks.
Total deliveries in Europe decreased by 18% to 24,047 trucks,
impacted by deliveries of light-duty vehicles decreasing by 36% as
a consequence of a model changeover. Through March, Volvo
Trucks' total heavy-duty market share reached an all-time high of
20.1% (16.8). The electric heavy-duty market share was 36.5%
(56,8). Renault Trucks' also had strong total heavy-duty truck
market share, which increased to 10.5% (8.2). The electric heavy-
duty market share increased to 23.6% (15.4).
Order intake in North America increased by 6% to 10,217
trucks with strong demand for Mack's vocational trucks while
order intake for Volvo was impacted by the changeover to the new
platform. Deliveries in North America decreased by 5% to 14,315
trucks. Volvo Trucksʼ heavy-duty truck market share amounted to
7.2% (9.1) hampered by the model changeover while Mack
Trucksʼ market share rose to 6.9% (5.3) on the back of an
improved supply chain and good vocational demand.
In South America, order intake decreased by 25% to 5,948
trucks while deliveries increased by 5% to 5,397 vehicles. In
Brazil, Volvo Trucksʼ remained the market leader with a heavy-duty
truck market share of 23.8% (22.3).
Order intake in Asia increased by 35% to 5,556 vehicles while
deliveries decreased by 11% to 3,315 vehicles.
Order intake for fully electric trucks increased by 51% to 965
vehicles, largely driven by the light-duty segment while deliveries
decreased by 9% to 828 vehicles. The market for electric trucks is
still driven by early adopters. A broader adoption is dependent on
several factors, among them the expansion of necessary
infrastructure such as charging and the total cost of ownership
development including incentive schemes.
Order intake in the Indian joint venture, VE Commercial
Vehicles, increased by 9% to 20,213 vehicles while deliveries
increased by 6% to 20,580 vehicles.
Deliveries from the Chinese joint venture, Dongfeng
Commercial Vehicles, increased by 33% to 30,432 trucks.
Total market development - the market forecasts are subject to significant uncertainty due to current market conditions
First quarter Change Full year Forecast Change vs.
Registrations, number of trucks 2025 2024 % 2024 2025 previous forecast
Europe 29 ¹ heavy-duty 62,302 73,702 -15 278,166 – –
Europe 30 ¹ heavy-duty 70,142 82,530 -15 313,894 290,000 Unchanged
North America heavy-duty, retail sales. 62,275 71,329 -13 308,141 275,000 -25,000
Brazil heavy-duty 21,483 20,951 3 97,686 85,000 -5,000
China ² medium- and heavy-duty 213,408 222,454 -4 704,534 710,000 Unchanged
India medium- and heavy-duty 105,851 103,695 2 351,252 380,000 +10,000
1 EU29 includes Norway and Switzerland but excludes UK. EU30 includes UK.
2 Previous year has been adjusted to exclude exports.
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
9 TRUCKS
All time high market
share for Volvo in Europe
• In Q1, net order intake increased by 13%
while deliveries decreased by 12%
• Adjusted and reported operating income
decreased to SEK 8,464 M (13,073), with a
margin of 10.3% (14.5)
• Service sales increased by 1%, adjusted for
currency
===== SIDA 10 =====
Net order intake
First quarter Change
Number of trucks 2025 2024 %
Europe 31,362 25,077 25
Heavy- and medium-duty 26,964 19,976 35
Light-duty 4,398 5,101 -14
North America 10,217 9,620 6
South America 5,948 7,898 -25
Asia 5,556 4,115 35
Africa and Oceania 2,144 1,991 8
Total order intake 55,227 48,701 13
Heavy-duty (>16 tons) 47,808 40,211 19
Medium-duty (7-16 tons) 3,020 3,269 -8
Light-duty (<7 tons) 4,399 5,221 -16
Total order intake 55,227 48,701 13
Volvo 33,659 31,067 8
Renault Trucks 15,510 14,823 5
Heavy- and medium-duty 11,111 9,602 16
Light-duty 4,399 5,221 -16
Mack 5,854 2,765 112
Other brands 204 46 343
Total order intake 55,227 48,701 13
Non-consolidated operations
VE Commercial Vehicles (Eicher) 20,213 18,611 9
Deliveries
First quarter Change
Number of trucks 2025 2024 %
Europe 24,047 29,289 -18
Heavy- and medium-duty 19,748 22,559 -12
Light-duty 4,299 6,730 -36
North America 14,315 15,056 -5
South America 5,397 5,154 5
Asia 3,315 3,717 -11
Africa and Oceania 1,759 2,254 -22
Total deliveries 48,833 55,470 -12
Heavy-duty (>16 tons) 41,366 44,431 -7
Medium-duty (7-16 tons) 3,167 4,270 -26
Light-duty (<7 tons) 4,300 6,769 -36
Total deliveries 48,833 55,470 -12
Volvo 27,944 31,954 -13
Renault Trucks 12,948 15,836 -18
Heavy- and medium-duty 8,648 9,067 -5
Light-duty 4,300 6,769 -36
Mack 7,874 7,467 5
Other brands 67 213 -69
Total deliveries 48,833 55,470 -12
Non-consolidated operations
VE Commercial Vehicles (Eicher) 20,580 19,328 6
Dongfeng Commercial Vehicle Company (Dongfeng Trucks) 30,432 22,850 33
Net sales and operating income
In Q1 2025, net sales decreased by 9% to SEK 82,248 M
(89,946). Excluding currency effects, net sales decreased by 8%
with sales of vehicles decreasing by 10% and sales of services
increasing by 1%.
In Q1 2025, both adjusted and reported operating income
amounted to SEK 8,464 M (13,073), corresponding to an
operating margin of 10.3% (14.5). For more information on
adjusted operating income, see note 6.
Compared with Q1 2024, the lower operating income is an
effect of lower volumes, the changeover to the new truck platform
in North America and under absorption in the truck production in
the U.S., which were partly offset by an improved service
business, lower freight costs and lower R&D expenses. Compared
with Q1 2024, currency movements had a negative impact of
SEK 58 M.
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
10 TRUCKS
===== SIDA 11 =====
Net order intake and deliveries of fully electric trucks
First quarter Change
Number of trucks 2025 2024 %
Volvo 397 306 30
Renault Trucks 561 319 76
Heavy- and medium-duty 139 172 -19
Light-duty 422 147 187
Mack 7 13 -46
Total order intake of fully electric trucks 965 638 51
Volvo 281 520 -46
Renault Trucks 519 358 45
Heavy- and medium-duty 178 202 -12
Light-duty 341 156 119
Mack 28 29 -3
Total deliveries of fully electric trucks 828 907 -9
Net sales and operating income
First quarter Change
SEK M 2025 2024 %
Net sales per geographical region
Europe 37,925 43,425 -13
North America 26,882 27,237 -1
South America 8,046 8,712 -8
Asia 5,633 5,976 -6
Africa and Oceania 3,762 4,594 -18
Total net sales 82,248 89,946 -9
Net sales per product group
Vehicles 63,752 71,584 -11
Services 18,496 18,361 1
Total net sales 82,248 89,946 -9
Timing of revenue recognition
Revenue of vehicles and services recognized at the point of delivery 76,344 84,078 -9
Revenue of vehicles and services recognized over contract period 5,904 5,868 1
Total net sales 82,248 89,946 -9
Adjusted operating income ¹ 8,464 13,073 -35
Adjustments – - –
Operating income 8,464 13,073 -35
Adjusted operating margin, % 10.3 14.5
Operating margin, % 10.3 14.5
1 For more information on adjusted operating income, please see note 6.
Important events
In the beginning of March, Volvo Trucks launched a completely
new Volvo VNR for the North American regional haul market. It is
built on Volvo's new platform, making the new truck more fuel
efficient, safer and more versatile.
Volvoʼs most fuel-efficient truck ever – the Volvo FH Aero –
won the 2025 Green Truck award. The Volvo FH Aero offers a
combination of good aerodynamics and an efficient powertrain,
resulting in savings in fuel and CO2 according to an independent
test in Germany.
On April 8, Mack Trucks unveiled the all-new Mack Pioneer, its
new flagship highway truck. Available in the U.S. and Canada in
multiple configurations including day cabs, and short, medium and
long sleeper options, the Pioneer meets the diverse needs of fleet
owners and operators across all highway applications.
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
11 TRUCKS
===== SIDA 12 =====
Market development
In Q1, the total machine market was flat compared with the prior
year. Asia, including China, and South America grew while Europe
and North America contracted.
Compared with the historically high levels in Q1 2024, the total
market in Europe declined as end customer demand remained
saturated.
The North American market was down from very high levels, as
replenishment of dealer and rental fleets continued to normalize.
End customer demand declined due to repositioning of fleets and
market outlook uncertainty.
In South America, the market grew mainly driven by Brazil but
also by improved business sentiment in Argentina and Chile.
The Chinese market continued to grow on the back of govern-
mental policies to stimulate the real estate and construction
segments.
Asia excluding China was slightly up, with growth in Indonesia
driven by regained momentum in the mining industry as well as a
good development in South Korea. India, Turkey and the Middle
East experienced declines mainly because of revised government
investments in infrastructure.
Orders and deliveries
In Q1, net order intake increased by 24% to 17,176 machines.
Order intake for the Volvo brand increased by 19% with
improvements in all markets except South America.
In Europe, dealer orders increased as dealer inventory levels
came down and end customer sentiment improved.
The increased order intake in North America is an effect of more
normalized supply and low order intake in the prior year due to
high inventory levels in the market.
Order intake for SDLG branded machines improved by 30%
driven by the Chinese market.
Deliveries in Q1 were 7% higher than in 2024 and amounted
to 15,508 machines. Increased volumes for SDLG in China more
than offset lower volumes of Volvo branded machines in Europe
and North America.
Total market development - the market forecasts are subject to significant uncertainty due to current market conditions
Year-to-date
February Forecast Previous forecast
Change in % measured in units 2025 2025 2025
Europe -18 -5% to +5% -5% to +5%
North America -14 -15% to -5% -10% to 0%
South America 12 -5% to +5% -5% to +5%
Asia excl. China 1 -5% to +5% -5% to +5%
China 42 0% to +10% 0% to +10%
Net order intake
First quarter Change
Number of construction equipment 2025 2024 %
Europe 3,455 2,677 29
North America 1,625 1,446 12
South America 575 662 -13
Asia 10,687 8,415 27
Africa and Oceania 834 651 28
Total orders 17,176 13,851 24
Large and medium construction equipment 12,218 9,901 23
Compact construction equipment 4,958 3,950 26
Of which fully electric 1,019 199 412
Total orders 17,176 13,851 24
Of which:
Volvo 8,442 7,083 19
SDLG 8,698 6,712 30
Of which in China 6,831 5,534 23
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
12 CONSTRUCTION EQUIPMENT
• In Q1, order intake increased by 24% and
deliveries increased by 7%
• Adjusted and reported operating income
decreased to SEK 2,542 M (3,683), with a
margin of 12.0% (16.1)
• Service sales increased by 2%, adjusted for
currency
Earnings impacted by
lower volumes in Europe
and North America
===== SIDA 13 =====
Deliveries
First quarter Change
Number of construction equipment 2025 2024 %
Europe 2,635 3,050 -14
North America 1,430 1,746 -18
South America 459 370 24
Asia 10,270 8,650 19
Africa and Oceania 714 640 12
Total deliveries 15,508 14,456 7
Large and medium construction equipment 11,016 10,593 4
Compact construction equipment 4,492 3,863 16
Of which fully electric 1,008 232 334
Total deliveries 15,508 14,456 7
Of which:
Volvo 6,774 7,688 -12
SDLG 8,698 6,712 30
Of which in China 6,831 5,534 23
Net sales and operating income
First quarter Change
SEK M 2025 2024 %
Net sales per geographical region
Europe 6,400 7,177 -11
North America 5,251 6,425 -18
South America 889 759 17
Asia 7,362 6,925 6
Africa and Oceania 1,215 1,589 -24
Total net sales 21,117 22,877 -8
Net sales per product group
Construction equipment 17,233 19,092 -10
Services 3,884 3,784 3
Total net sales 21,117 22,877 -8
Timing of revenue recognition
Revenue of vehicles and services recognized at the point of delivery 20,215 22,065 -8
Revenue of vehicles and services recognized over contract period 902 811 11
Total net sales 21,117 22,877 -8
Adjusted operating income ¹ 2,542 3,683 -31
Adjustments – – –
Operating income 2,542 3,683 -31
Adjusted operating margin, % 12.0 16.1
Operating margin, % 12.0 16.1
1 For more information on adjusted operating income, please see note 6.
Net sales and operating income
In Q1 2025, net sales decreased by 8% to SEK 21,117 M
(22,877). Also when adjusted for currency movements net sales
decreased by 8%, of which net sales of machines decreased by
10% and service sales increased by 2%.
Both adjusted and reported operating income amounted to SEK
2,542 M (3,683), corresponding to an operating margin of
12.0% (16.1).
Compared with Q1 2024, a negative brand, market and
product mix was partly offset by increased volumes, lower
material costs and an improved service business. Compared with
Q1 2024, currency movements had a negative impact of SEK 12 M.
Important events
In Q1, the rollout of Volvo Construction Equipmentʼs (Volvo CE)
new conventional product range continued with the launch of the
A50 articulated hauler for the important North American market
alongside several local launches of the new range of excavators in
Asian markets.
Volvo CE also announced a partnership with Danish software
company Unicontrol to integrate their 3D machine control
technology into Volvo excavators.
At the construction trade show Bauma in Germany in early
April, Volvo CE showcased a groundbreaking all-electric lineup of
excavators, wheel loaders, articulated haulers, and compact
equipment. Bauma also marked the unveiling of the worldʼs first
electric articulated haulers in the A30 and A40 size classes, which
will reach selected customers in Europe in 2026.
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
13 CONSTRUCTION EQUIPMENT
===== SIDA 14 =====
In Q1, demand for buses remained strong in many markets,
particularly in the coach segment. Net order intake increased by
123% compared with Q1 2024 from a good order intake in all
regions. The transition towards electric vehicles in city traffic
continued and orders for 168 electric buses were confirmed in
Q1. Total deliveries decreased by 5% to 1,235 units.
In Q1, net sales increased by 5% to SEK 5,436 M (5,173).
Adjusted for currency, net sales increased by 7%, with vehicle
sales increasing by 5% and service sales increasing by 10%.
Both adjusted and reported operating income amounted to SEK
360 M (259), corresponding to an operating margin of 6.6%
(5.0). For information on adjusted operating income, see Note 6.
Operating income was positively impacted by good price
realization, a positive market mix and lower manufacturing costs
as an effect of the restructuring in Europe, while lower delivery
volumes and increased material costs had a negative impact.
Compared with Q1 2024, currency movements had a negative
impact of SEK 30 M.
In Q1, Volvo Buses launched the new Volvo 7800 Electric in
Mexico, the first electric articulated and bi-articulated bus manu-
factured in the country. The new electric bus is built on Volvo
Busesʼ global electromobility platform BZR and it will evolve the
Bus Rapid Transit systems in Mexico, creating a more efficient and
sustainable people transport system.
The high order intake included the first order for the new inter-
city bus Volvo 8900 Electric. Svealandstrafiken ordered a total of
106 electric buses to operate in Sweden, whereof 60 Volvo 8900
Electric.
Net order intake and deliveries ¹
First quarter Change
Number of buses 2025 2024 %
Total orders 1,947 874 123
Of which fully electric 168 45 273
Of which hybrids – – –
Total deliveries 1,235 1,301 -5
Of which fully electric 119 74 61
Of which hybrids – 26 –
Net sales and operating income
First quarter Change
SEK M 2025 2024 %
Net sales per geographical region
Europe 1,721 1,564 10
North America 2,230 2,396 -7
South America 376 403 -7
Asia 431 296 46
Africa and Oceania 678 514 32
Total net sales 5,436 5,173 5
Net sales per product group
Vehicles 3,928 3,794 4
Services 1,508 1,378 9
Total net sales 5,436 5,173 5
Timing of revenue recognition
Revenue of vehicles and services recognized at the point of delivery 5,136 4,929 4
Revenue of vehicles and services recognized over contract period 300 244 23
Total net sales 5,436 5,173 5
Adjusted operating income ¹ 360 259 39
Adjustments – – –
Operating income 360 259 39
Adjusted operating margin, % 6.6 5.0
Operating margin, % 6.6 5.0
1 For more information on adjusted operating income, please see note 6.
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
14 BUSES
• In Q1, deliveries decreased by 5% while net
order intake increased by 123%
• Adjusted and reported operating income
increased to SEK 360 M (259), with a
margin of 6.6% (5.0)
• Service sales increased by 10% adjusted for
currency
Strong order intake and
continued earnings
improvement
===== SIDA 15 =====
In Q1, demand for power generation continued to rise, driven by
energy infrastructure expansion. The off-highway segment was
stable with some signs of construction recovering. Demand in the
marine leisure market continued to be slow, while there was good
sales traction with the IPS Professional Platform in the yacht
segment. The marine commercial segment remained stable,
supported by demand driven by the energy transition.
In Q1, net order intake increased by 35% to 12,234 units with
strong demand in the power generation segment, while deliveries
decreased by 17% to 8,700 units.
Net sales decreased by 3% to SEK 5,004 M (5,168). Also
when adjusted for currency movements the decrease was 3%, of
which sales of engines decreased by 5% and sales of services
increased by 4%.
Both adjusted and reported operating income amounted to SEK
915 M (988), corresponding to an operating margin of 18.3%
(19.1).
Earnings were negatively impacted by lower engine volumes,
which were partly offset by a positive product and market mix,
price realization and lower selling and administrative expenses.
Compared with Q1 2024, the currency impact on operating
income was negative in an amount of SEK 37 M.
In Q1, the IPS Professional Platform was introduced to the
North American yacht market and went into serial production.
Net order intake and deliveries
First quarter Change
Number of Engines 2025 2024 %
Total orders 12,234 9,050 35
Of which fully electric 17 43 -60
Total deliveries 8,700 10,435 -17
Of which fully electric 28 44 -36
Net sales and operating income
First quarter Change
SEK M 2025 2024 %
Net sales per geographical region
Europe 2,531 2,624 -4
North America 1,025 874 17
South America 204 226 -10
Asia 990 1,125 -12
Africa and Oceania 255 319 -20
Total net sales 5,004 5,168 -3
Net sales per product group
Engines 3,647 3,861 -6
Services 1,357 1,306 4
Total net sales 5,004 5,168 -3
Timing of revenue recognition
Revenue of vehicles and services recognized at the point of delivery 4,993 5,156 -3
Revenue of vehicles and services recognized over contract period 11 11 –
Total net sales 5,004 5,168 -3
Adjusted operating income ¹ 915 988 -7
Adjustments – – –
Operating income 915 988 -7
Adjusted operating margin, % 18.3 19.1
Operating margin, % 18.3 19.1
1 For more information on adjusted operating income, please see note 6.
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
15 VOLVO PENTA
Good performance on
lower volumes
• In Q1, order intake increased by 35% while
deliveries decreased by 17%
• Adjusted and reported operating income
decreased to SEK 915 M (988), with a margin
of 18.3% (19.1)
• IPS Professional Platform introduced to the
North American yacht market and serial
production started
===== SIDA 16 =====
In Q1 2025, the credit portfolio for Financial Services continued
to grow. Adjusted for currency, the net credit portfolio increased
by 6% compared with Q1 2024. The portfolio performance
continued to be good, with customer delinquencies stabilizing at
average business cycle levels.
Compared with Q1 2024, new business volume increased by
5%, when adjusted for currency. In Q1, both adjusted and
reported operating income increased to SEK 1,019 M (1,009).
The increase in operating income was primarily a result of
continued profitable portfolio growth, which was partly offset by
increased credit provisions. Currency movements had a negative
impact of SEK 48 M compared with Q1 2024.
The equity level has during the quarter been raised from 8.0%
to 10.0%, due to increased regulatory requirements in many of
the markets where Financial Services operates. Return on equity
on a rolling 12-month basis amounted to 12.7% (13.0).
Financial Services
First quarter
SEK M unless otherwise stated 2025 2024
Number of financed units, 12 months rolling 66,326 66,258
Total penetration rate, 12 months rolling, % ¹ 29 27
New retail financing volume, SEK billion 24.9 24.0
Credit portfolio net, SEK billion 264 270
Credit provision expenses 309 248
Adjusted operating income² 1,019 1,009
Adjustments – –
Operating income 1,019 1,009
Credit reserves, % of credit portfolio 1.29 1.35
Return on equity³, 12 months rolling, % 12.7 13.0
1 Share of unit sales financed by Volvo Financial Services in relation to the total number of units sold by the Volvo Group in markets where financial services
are offered.
2 For more information on adjustments, please see note 6.
3 2024 included Russian and Belarus operations, which were divested in Q3 2023.
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
16 FINANCIAL SERVICES
Good earnings and
stable portfolio
performance
• In Q1, the net credit portfolio increased by
6%, adjusted for currency
• Stable portfolio performance
• Adjusted and reported operating income of
SEK 1,019 M (1,009)
===== SIDA 17 =====
CONSOLIDATED INCOME STATEMENT - FIRST QUARTER
Industrial Operations Financial Services Eliminations Volvo Group
SEK M 2025 2024 2025 2024 2025 2024 2025 2024
Net sales 116,256 126,163 6,779 6,532 -1,243 -1,519 121,792 131,177
Cost of sales -87,499 -91,567 -4,688 -4,453 1,320 1,625 -90,867 -94,395
Gross income 28,757 34,596 2,091 2,079 77 106 30,925 36,781
Research and development expenses -6,951 -7,332 – – – – -6,951 -7,332
Selling expenses -7,410 -7,778 -822 -839 – – -8,232 -8,617
Administrative expenses -1,816 -1,960 -4 -4 – – -1,820 -1,964
Other operating income and expenses -308 -340 -255 -227 – – -564 -567
Income/loss from investments in joint ventures
and associated companies -122 -142 – – – – -122 -142
Income/loss from other investments 12 – 10 – – – 22 –
Operating income 12,162 17,044 1,019 1,009 77 106 13,258 18,159
Interest income and similar credits 715 991 – – -77 -106 638 885
Interest expenses and similar charges -409 -364 – – – – -409 -364
Other financial income and expenses -632 -238 – – – – -632 -238
Income after financial items 11,835 17,433 1,019 1,009 – – 12,855 18,442
Income taxes -2,600 -4,047 -271 -293 – – -2,871 -4,339
Income for the period * 9,235 13,387 749 716 – – 9,984 14,103
* Attributable to:
Owners of AB Volvo 9,890 14,080
Non-controlling interest 94 23
Basic earnings per share, SEK 4.86 6.92
Diluted earnings per share, SEK 4.86 6.92
Key ratios, %
Gross margin 24.7 27.4 25.4 28.0
Research and development expenses as % of
net sales 6.0 5.8 5.7 5.6
Selling expenses as % of net sales 6.4 6.2 6.8 6.6
Administrative expenses as % of net sales 1.6 1.6 1.5 1.5
Operating margin 10.5 13.5 10.9 13.8
CONSOLIDATED OTHER COMPREHENSIVE INCOME - FIRST QUARTER
SEK M 2025 2024
Income for the period 9,984 14,103
Items that will not be reclassified to income statement:
Remeasurements of defined benefit pension plans 920 453
Remeasurements of holding of shares at fair value -1 -7
Items that may be reclassified subsequently to income statement:
Exchange differences on translation of foreign operations -7,697 4,282
Share of OCI related to joint ventures and associated companies -1,359 756
Accumulated exchange differences reversed to income – –
Other comprehensive income, net of income taxes -8,137 5,485
Total comprehensive income for the period * 1,847 19,588
* Attributable to:
Owners of AB Volvo 2,031 19,437
Non-controlling interest -183 151
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
17 FINANCIAL STATEMENTS
===== SIDA 18 =====
CONSOLIDATED BALANCE SHEET - ASSETS
Industrial Operations Financial Services Eliminations Volvo Group
SEK M
Mar 31
2025
Dec 31
2024
Mar 31
2025
Dec 31
2024
Mar 31
2025
Dec 31
2024
Mar 31
2025
Dec 31
2024
Non-current assets
Intangible assets
Goodwill 24,269 25,143 – – – – 24,269 25,143
Other intangible assets 19,370 19,046 132 151 – – 19,502 19,197
Tangible assets
Property, plant and equipment 78,530 79,571 61 58 – – 78,591 79,629
Assets under operating leases 35,080 37,226 20,922 22,276 -15,625 -14,000 40,376 45,501
Financial assets
Investments in joint ventures and associated
companies 21,789 22,496 – – – – 21,789 22,496
Other shares and participations 1,075 1,089 27 18 – – 1,102 1,107
Non-current customer-financing receivables 1,298 1,533 125,604 134,969 -1,684 -1,897 125,218 134,605
Net pension assets 1,890 2,115 – – – – 1,890 2,115
Non-current interest-bearing receivables 4,220 4,969 3,570 – -3,570 -1,505 4,220 3,464
Other non-current receivables 6,582 7,018 277 322 -201 -220 6,658 7,120
Deferred tax assets 13,109 13,889 1,536 1,989 – – 14,645 15,878
Total non-current assets 207,212 214,094 152,128 159,784 -21,081 -17,623 338,260 356,254
Current assets
Inventories 74,603 77,121 797 1,238 – – 75,400 78,359
Current receivables
Customer-financing receivables 633 923 117,424 123,160 -1,394 -1,406 116,663 122,677
Tax assets 1,753 2,277 478 1,214 – – 2,232 3,491
Interest-bearing receivables 2,088 4,256 – – -16 -18 2,073 4,238
Internal funding 4,270 9,463 – – -4,270 -9,463 – –
Accounts receivables 38,367 40,005 1,807 1,767 – – 40,174 41,772
Other receivables 22,237 22,441 3,348 3,796 -3,989 -4,234 21,597 22,003
Marketable securities 189 218 – – – – 189 218
Cash and cash equivalents 86,141 80,505 5,856 6,872 -1,283 -2,206 90,714 85,171
Assets held for sale 373 381 – – – – 373 381
Total current assets 230,654 237,590 129,710 138,047 -10,952 -17,328 349,413 358,309
Total assets 437,867 451,684 281,839 297,830 -32,032 -34,950 687,673 714,564
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
18 FINANCIAL STATEMENTS
===== SIDA 19 =====
CONSOLIDATED BALANCE SHEET - EQUITY AND LIABILITIES
Industrial Operations Financial Services Eliminations Volvo Group
SEK M
Mar 31
2025
Dec 31
2024
Mar 31
2025
Dec 31
2024
Mar 31
2025
Dec 31
2024
Mar 31
2025
Dec 31
2024
Equity
Equity attributable to owners of AB Volvo 167,887 170,218 28,183 23,831 – – 196,070 194,049
Non-controlling interest 3,117 3,312 – – – – 3,117 3,312
Total equity 171,004 173,530 28,183 23,831 – – 199,187 197,361
Non-current provisions
Provisions for post-employment benefits 10,752 12,606 98 99 – – 10,850 12,706
Other provisions 11,077 12,243 51 51 – – 11,128 12,293
Total non-current provisions 21,829 24,849 148 150 – – 21,978 24,999
Non-current liabilities
Bond loans 109,682 109,031 – – – – 109,682 109,031
Other loans 24,971 29,783 23,095 22,602 -1,377 -1,561 46,689 50,824
Internal funding -120,097 -126,063 104,859 113,733 15,239 12,330 – –
Deferred tax liabilities 2,041 2,483 1,636 2,295 – – 3,677 4,778
Other liabilities 51,464 54,411 1,639 1,762 -11,047 -9,591 42,056 46,583
Total non-current liabilities 68,061 69,645 131,228 140,393 2,815 1,178 202,104 211,216
Current provisions 17,582 19,653 32 37 – – 17,613 19,690
Current liabilities
Bond loans 43,683 45,460 – – – – 43,683 45,460
Other loans 41,093 44,698 14,047 14,507 -808 -912 54,332 58,292
Internal funding -72,660 -81,228 98,056 107,718 -25,397 -26,490 – –
Trade payables 72,653 77,607 745 920 – – 73,397 78,527
Tax liabilities 2,862 1,916 659 1,194 – – 3,521 3,111
Other liabilities 71,745 75,540 8,740 9,082 -8,642 -8,726 71,842 75,896
Liabilities held for sale 14 13 – – – – 14 13
Total current liabilities 159,390 164,006 122,247 133,420 -34,847 -36,129 246,791 261,298
Total equity and liabilities 437,867 451,684 281,839 297,830 -32,032 -34,950 687,673 714,564
Key ratios, %
Equity ratio 39.1 38.4 10.0 8.0 29.0 27.6
Equity attributable to owners of AB Volvo, per
share in SEK 96.4 95.4
Return on operating capital ¹ 60.4 70.3
Return on capital employed ¹ 31.8 35.8
Return on equity ¹ 12.7 13.0 25.2 28.5
1 12 months rolling.
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
19 FINANCIAL STATEMENTS
===== SIDA 20 =====
Net financial position excl. post-employment benefits and lease liabilities
Industrial Operations Volvo Group
SEK bn
Mar 31
2025
Dec 31
2024
Mar 31
2025
Dec 31
2024
Non-current interest-bearing assets
Non-current customer-financing receivables – – 125.2 134.6
Non-current interest-bearing receivables 4.2 5.0 4.2 3.5
Current interest-bearing assets
Customer-financing receivables – – 116.7 122.7
Interest-bearing receivables 2.1 4.3 2.1 4.2
Internal funding 4.3 9.5 – –
Marketable securities 0.2 0.2 0.2 0.2
Cash and cash equivalents 86.1 80.5 90.7 85.2
Assets held for sale – – – –
Total interest-bearing financial assets 96.9 99.4 339.1 350.4
Non-current interest-bearing liabilities
Bond loans -109.7 -109.0 -109.7 -109.0
Other loans -19.3 -23.8 -41.1 -44.9
Internal funding 120.1 126.1 – –
Current interest-bearing liabilities
Bond loans -43.7 -45.5 -43.7 -45.5
Other loans -39.0 -42.6 -52.3 -56.2
Internal funding 72.7 81.2 – –
Liabilities held for sale – – – –
Total interest-bearing financial liabilities excl. post-employment benefits
and lease liabilities -19.0 -13.5 -246.7 -255.6
Net financial position excl. post-employment benefits and lease liabilities 77.9 85.9 92.3 94.8
Provisions for post-employment benefits and lease liabilities, net
Industrial Operations Volvo Group
SEK bn
Mar 31
2025
Dec 31
2024
Mar 31
2025
Dec 31
2024
Non-current lease liabilities -5.7 -6.0 -5.6 -5.9
Current lease liabilities -2.1 -2.1 -2.1 -2.1
Provisions for post-employment benefits, net -8.9 -10.5 -9.0 -10.6
Liabilities held for sale – – – –
Provisions for post-employment benefits and lease liabilities, net -16.6 -18.6 -16.6 -18.6
Net financial position incl. post-employment benefits and lease liabilities
Industrial Operations Volvo Group
SEK bn
Mar 31
2025
Dec 31
2024
Mar 31
2025
Dec 31
2024
Net financial position excl. post-employment benefits and lease liabilities 77.9 85.9 92.3 94.8
Provisions for post-employment benefits and lease liabilities, net -16.6 -18.6 -16.6 -18.6
Net financial position incl. post-employment benefits and lease liabilities 61.4 67.2 75.7 76.2
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
20 FINANCIAL STATEMENTS
===== SIDA 21 =====
First quarter
SEK bn 2025
Net financial position excl. post-employment benefits and lease liabilities at the end of previous period 85.9
Operating cash flow 1.3
Investments and divestments of shares, net -0.8
Acquired and divested operations, net -0.1
Capital injections to/from Financial Services -5.1
Currency effect -2.5
Dividend to owners of AB Volvo –
Dividend to non-controlling interest –
Other changes -0.8
Net financial position excl. post-employment benefits and lease liabilities at the end of period 77.9
Provisions for post-employment benefits and lease liabilities at the end of previous period -18.6
Pension payments, included in operating cash flow 0.4
Remeasurements of defined post-employment benefits 1.2
Service costs and other pension costs -0.3
Investments, remeasurements and amortizations of lease contracts -0.1
Transfer pensions and lease liabilities to divested entities –
Currency effect 0.9
Other changes -0.1
Provisions for post-employment benefits and lease liabilities at the end of period -16.6
Net financial position incl. post-employment benefits and lease liabilities at the end of period 61.4
Changes in net financial position, Industrial Operations
CHANGES IN CONSOLIDATED EQUITY
SEK M
Equity attributable to
owners of AB Volvo
Non-controlling
interest Total equity
Balance as of December 31, 2023 177,791 2,948 180,739
Income for the period 50,389 186 50,576
Other comprehensive income for the period 2,365 206 2,572
Total comprehensive income for the period 52,755 393 53,147
Dividend -36,602 -16 -36,618
Changes in non-controlling interests – -21 -21
Other changes 106 8 114
Transactions with shareholders -36,497 -28 -36,525
Balance as of December 31, 2024 194,049 3,312 197,361
Income for the period 9,890 94 9,984
Other comprehensive income for the period -7,859 -277 -8,137
Total comprehensive income for the period 2,031 -183 1,847
Dividend – – –
Changes in non-controlling interests – -12 -12
Other changes -9 – -9
Transactions with shareholders -9 -12 -21
Balance as of March 31, 2025 196,070 3,117 199,187
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
21 FINANCIAL STATEMENTS
===== SIDA 22 =====
CONSOLIDATED CASH FLOW STATEMENT - FIRST QUARTER
Industrial Operations Financial Services Eliminations Volvo Group
SEK M 2025 2024 2025 2024 2025 2024 2025 2024
Operating activities
Operating income 12,162 17,044 1,019 1,009 77 106 13,258 18,159
Amortization intangible assets 998 770 16 6 – – 1,014 776
Depreciation tangible assets 2,430 2,132 5 7 – – 2,436 2,138
Depreciation leasing vehicles 1,014 972 1,252 1,280 – – 2,266 2,252
Other non-cash items -56 365 378 213 – – 322 578
Total change in working capital whereof -7,576 -3,818 -3,293 -6,034 96 -104 -10,773 -9,956
Change in accounts receivables -904 953 -60 52 – – -964 1,005
Change in customer-financing receivables 13 31 -2,538 -5,099 57 -61 -2,467 -5,128
Change in inventories -2,677 -6,117 417 -138 – – -2,260 -6,255
Change in trade payables -1,266 1,150 -114 31 – – -1,380 1,181
Change in vehicles on operating lease and
assets for service solutions -288 -63 -1,224 -1,108 -5 48 -1,516 -1,123
Other changes in working capital -2,454 227 225 229 44 -91 -2,184 364
Dividends received from joint ventures and
associated companies – – – – – – – –
Interest and similar items received 713 994 – – -82 -106 631 888
Interest and similar items paid -344 -267 – – -41 -27 -385 -294
Other financial items -83 -138 – – – – -83 -138
Income taxes paid -2,003 -5,588 -226 -300 – – -2,229 -5,888
Cash flow from operating activities 7,256 12,465 -849 -3,818 51 -131 6,457 8,516
Investing activities
Investments in intangible assets -1,520 -1,135 -5 -11 – – -1,526 -1,146
Investments in tangible assets -4,500 -2,511 -1 -1 – – -4,500 -2,512
Disposals of in-/tangible assets 73 77 2 2 – – 75 79
Operating cash flow 1,309 8,896 -853 -3,828 51 -131 506 4,937
Investments of shares -779 -2,940
Divestment of shares – 2
Acquired operations -61 -2,448
Divested operations -48 170
Interest-bearing receivables incl. marketable
securities -389 -292
Cash flow after net investments -771 -570
Financing activities
New borrowings 119,179 62,761
Repayments of borrowings -109,691 -56,332
Dividend to owners of AB Volvo – –
Dividend to non-controlling interest – –
Other -26 41
Change in cash and cash equivalents excl.
exchange rate changes 8,692 5,901
Effect of exchange rate changes on cash and
cash equivalents -3,149 2,036
Change in cash and cash equivalents 5,543 7,936
Cash and cash equivalents, beginning of
period 85,171 83,326
Cash and cash equivalents, end of period 90,714 91,263
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
22 FINANCIAL STATEMENTS
===== SIDA 23 =====
Income Statements, Volvo Group
SEK M unless otherwise stated 1/2025 4/2024 3/2024 2/2024 1/2024
Net sales 121,792 138,413 116,978 140,249 131,177
Cost of sales -90,867 -103,142 -84,973 -100,257 -94,395
Gross income 30,925 35,271 32,005 39,992 36,781
Research and development expenses -6,951 -8,196 -7,213 -8,216 -7,332
Selling expenses -8,232 -9,292 -7,938 -8,841 -8,617
Administrative expenses -1,820 -2,194 -1,655 -1,988 -1,964
Other operating income and expenses -564 -666 -594 -16 -567
Income/loss from investments in joint ventures and associated companies -122 -889 -530 -605 -142
Income/loss from other investments 22 6 -1 13 –
Operating income 13,258 14,039 14,074 20,339 18,159
Interest income and similar credits 638 656 601 546 885
Interest expenses and similar charges -409 -484 -375 -370 -364
Other financial income and expenses -632 449 -727 19 -238
Income after financial items 12,855 14,660 13,573 20,534 18,442
Income taxes -2,871 -3,843 -3,500 -4,952 -4,339
Income for the period * 9,984 10,817 10,073 15,583 14,103
* Attributable to:
Owners of AB Volvo 9,890 10,742 10,017 15,551 14,080
Non-controlling interest 94 75 56 32 23
Key ratios, Volvo Group, %
Gross margin 25.4 25.5 27.4 28.5 28.0
Research and development expenses as % of net sales 5.7 5.9 6.2 5.9 5.6
Selling expenses as % of net sales 6.8 6.7 6.8 6.3 6.6
Administrative expenses as % of net sales 1.5 1.6 1.4 1.4 1.5
Operating margin 10.9 10.1 12.0 14.5 13.8
Key ratios, Industrial Operations, %
Gross margin 24.7 24.9 26.9 28.0 27.4
Research and development expenses as % of net sales 6.0 6.2 6.5 6.1 5.8
Selling expenses as % of net sales 6.4 6.3 6.4 5.9 6.2
Administrative expenses as % of net sales 1.6 1.7 1.5 1.5 1.6
Operating margin 10.5 9.8 11.7 14.2 13.5
EBITDA margin, Industrial Operations
Net sales 116,256 132,519 111,577 134,715 126,163
Operating income 12,162 12,946 13,029 19,179 17,044
Amortization product and software development 907 915 944 821 736
Amortization other intangible assets 91 325 48 290 34
Depreciation tangible assets 3,444 3,721 3,168 3,274 3,103
Total depreciation and amortization 4,443 4,962 4,160 4,385 3,873
Operating income before depreciation and amortization (EBITDA) 16,604 17,907 17,189 23,563 20,917
EBITDA margin, % 14.3 13.5 15.4 17.5 16.6
Net capitalization of research and development
Capitalization 1,488 1,673 839 648 1,101
Amortization -891 -900 -924 -786 -701
Net capitalization and amortization 598 774 -85 -138 400
Return on operating capital, Industrial Operations, %¹ 60.4 70.3 75.9 83.9 75.2
Return on capital employed, Industrial Operations, %¹ 31.8 35.8 38.3 41.3 37.7
1 12 months rolling.
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
23 QUARTERLY FIGURES
===== SIDA 24 =====
Net sales
SEK M 1/2025 4/2024 3/2024 2/2024 1/2024
Trucks 82,248 95,478 80,054 95,132 89,946
Construction Equipment 21,117 22,197 18,809 24,423 22,877
Buses 5,436 6,625 6,195 6,551 5,173
Volvo Penta 5,004 4,761 4,707 5,216 5,168
Group Functions & Other 3,664 4,685 2,925 4,657 4,281
Eliminations -1,213 -1,228 -1,112 -1,263 -1,280
Industrial Operations 116,256 132,519 111,577 134,715 126,163
Financial Services 6,779 6,936 6,712 6,801 6,532
Eliminations -1,243 -1,043 -1,311 -1,268 -1,519
Volvo Group net sales 121,792 138,413 116,978 140,249 131,177
Operating income
SEK M 1/2025 4/2024 3/2024 2/2024 1/2024
Trucks 8,464 10,138 9,363 13,391 13,073
Construction Equipment 2,542 2,609 2,558 3,888 3,683
Buses 360 689 731 754 259
Volvo Penta 915 583 831 1,016 988
Group Functions & Other -114 -1,091 -468 117 -947
Eliminations -5 18 14 13 -13
Industrial Operations 12,162 12,946 13,029 19,179 17,044
Financial Services 1,019 1,012 992 1,028 1,009
Eliminations 77 81 52 132 106
Volvo Group operating income 13,258 14,039 14,074 20,339 18,159
Adjusted operating income ¹
SEK M 1/2025 4/2024 3/2024 2/2024 1/2024
Trucks 8,464 10,138 9,363 13,251 13,073
Construction Equipment 2,542 2,609 2,558 3,888 3,683
Buses 360 689 731 554 259
Volvo Penta 915 583 831 1,016 988
Group Functions & Other -114 -1,091 -468 -436 -947
Eliminations -5 18 14 13 -13
Industrial Operations 12,162 12,946 13,029 18,286 17,044
Financial Services 1,019 1,012 992 1,028 1,009
Eliminations 77 81 52 132 106
Volvo Group adjusted operating income 13,258 14,039 14,074 19,446 18,159
1 For more information on adjusted operating income, please see note 6.
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
24 QUARTERLY FIGURES
===== SIDA 25 =====
Operating margin
% 1/2025 4/2024 3/2024 2/2024 1/2024
Trucks 10.3 10.6 11.7 14.1 14.5
Construction Equipment 12.0 11.8 13.6 15.9 16.1
Buses 6.6 10.4 11.8 11.5 5.0
Volvo Penta 18.3 12.2 17.7 19.5 19.1
Industrial Operations 10.5 9.8 11.7 14.2 13.5
Volvo Group 10.9 10.1 12.0 14.5 13.8
Adjusted operating margin
% 1/2025 4/2024 3/2024 2/2024 1/2024
Trucks 10.3 10.6 11.7 13.9 14.5
Construction Equipment 12.0 11.8 13.6 15.9 16.1
Buses 6.6 10.4 11.8 8.5 5.0
Volvo Penta 18.3 12.2 17.7 19.5 19.1
Industrial Operations 10.5 9.8 11.7 13.6 13.5
Volvo Group adjusted operating margin 10.9 10.1 12.0 13.9 13.8
Share data
1/2025 4/2024 3/2024 2/2024 1/2024
Earnings per share, SEK ¹ 4.86 5.28 4.93 7.65 6.92
Earnings per share, SEK ¹, 12 months rolling 22.72 24.78 25.43 27.43 25.07
Diluted earnings per share, SEK 4.86 5.28 4.93 7.65 6.92
Number of outstanding shares in millions 2,033 2,033 2,033 2,033 2,033
Average number of shares before dilution in millions 2,033 2,033 2,033 2,033 2,033
Average number of shares after dilution in millions 2,033 2,033 2,033 2,033 2,033
Number of own shares in millions – – – – –
Average number of own shares in millions – – – – –
1 Earnings per share are calculated as Income for the period (excl. Non-controlling interest) divided by the weighted average number of shares outstanding
during the period.
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
25 QUARTERLY FIGURES
===== SIDA 26 =====
NOTE 1 | ACCOUNTING POLICIES
The Volvo Group applies International Financial Reporting
Standards (IFRS) as endorsed by the EU. The accounting policies
and definitions are consistently applied with those described in
the Volvo Group Annual Report 2024 (available at
www.volvogroup.com). There are no new accounting policies
applicable from 2025 that materially affects the Volvo Group.
This interim report has been prepared in accordance with IAS
34 Interim Financial Reporting and the Swedish Annual Accounts
Act. The Parent Company applies the Swedish Annual Accounts
Act and RFR 2 Reporting for legal entities.
NOTE 2 | RISKS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
Each of the Volvo Groupʼs Business Areas and Truck Divisions
monitors and manages risks in its operations. In addition, the
Volvo Group utilizes a centralized Enterprise Risk Management
(ERM) reporting process, which is a systematic and structured
framework for reporting and reviewing risk assessments and
mitigations as well as for follow-up on identified risks.
The ERM process classifies Volvo Group risks into four
categories:
Macro and market related risks – such as cyclical nature of the
commercial vehicles industry, intense competition as well as
political and social uncertainty;
Operational risks – such as transformation and technology risk,
new business models, risks related to industrial operations
including supply chain, reliance on suppliers and materials, cost
inflation and price increases, information security and digital
infrastructure, strategic transactions such as mergers and
acquisitions, partnerships and divestments, residual value
commitments as well as people and culture;
Compliance risks – such as product and operational related
regulations, digital and data related regulations, protection and
maintenance of intangible assets, legal proceedings, corruption
and competition law and human rights; and
Financial risks – such as insurance coverage, credit risk, pension
commitments, interest-rates and currency fluctuations, liquidity
risk, as well as impairment on goodwill and other intangible assets.
For a more elaborate description of these risks, please refer to
the Risk Management section on pages 60-66 in the Volvo Group
Annual Report 2024.
Risk updates
Short-term risks, when applicable, are also described in the
respective segment section of this report.
Tariffs and trade policy shifts
Recent tariffs and other trade restrictions imposed or considered
to be imposed by the US and other countries have significantly
increased uncertainty about trade conditions in markets where the
Group is present, as well as in relation to global and regional
supply chains. The situation is fast-changing and complex to
assess, and no predictions can be made on future developments,
potential impacts on the Group or whether trade restrictions may
impact the Group more severely than main competitors. However,
the introduction of tariffs, retaliatory tariffs or other trade
restrictions on our vehicles, parts, and other products and
materials could disrupt existing supply chains, impose additional
costs on our business or that of our suppliers, create sudden
disadvantages for Group operations compared to competitors
having different supply chains, and could generally make our
products more expensive for customers and/or less competitive.
Recent developments in global trade policies have also
increased the risk of a broader economic slowdown. Such
developments could negatively impact global demand and lead to
increased costs for e.g. raw materials, components, transport and
energy. A prolonged period of trade uncertainty may also
negatively affect investment levels and customer purchasing
behavior, particularly in Group key markets. The Group will
endeavor to adapt to changes in market conditions as they may
evolve, but the introduction of trade restrictions and changes in
trade policies could, individually or in combination, have a material
adverse effect on the Groupʼs business and financial performance.
Update on supply situation and inflationary pressure
Our ability to deliver according to market demand depends
significantly on obtaining a timely and adequate supply of
materials, components and other vital services, as well as on our
ability to properly utilize the capacity in the Groupʼs different
production and services facilities. At present, our supply chain and
industrial system are strained in many areas due to e.g. shortages
of labor, materials and components, and transport services.
Further strains on the supply chain may also evolve from other
events, including financial distress of suppliers, introduction of
new or amended export controls, tariffs or other restrictions on
international trade and other geopolitical events. There might be
supply chain disturbances and stoppages in production going
forward. Such disturbances could lead to higher costs and
interruptions in production and delivery of Group products and
services, that could have a material negative impact on the
Groupʼs financial performance.
The Group might experience higher input costs from increased
prices on e.g. purchased material, freight and energy as well as
higher labor costs. If the Group is unable to compensate for the
higher input costs through increased prices on products and
services sold, this could have a negative impact on the Groupʼs
financial performance.
Accounts receivable
Due to the prevailing business model in the construction
equipment industry in China, with long payment terms to
customers, a substantial part of the Volvo Groupʼs accounts
receivable is related to customers in this market. The weakened
Chinese construction equipment market is currently impacting
customersʼ and dealersʼ profitability negatively. This might affect
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
26 NOTES
===== SIDA 27 =====
their ability to honor their obligations to the Group and may
consequently have a material adverse effect on the Groupʼs
financial result and position.
Detected premature degradation of emissions control
component
As previously communicated, the Volvo Group has detected that
an emissions control component used in certain markets and
models, may degrade more quickly than expected, affecting the
vehicles emission performance negatively. The Volvo Group made
a provision of SEK 7 billion impacting the operating income in
Q4 2018, relating to the estimated costs to address the issue.
Negative cash flow effects started in 2019 and will continue in
the coming years. As of year-end 2024, approximately half of the
initial provision had been utilized. The Volvo Group will
continuously assess the size of the provision as the matter
develops.
Contingent liabilities
The reported amounts for contingent liabilities reflect a part of
Volvo Groupʼs risk exposure. Total contingent liabilities as of March
31, 2025, amounted to SEK 15.8 billion, a decrease of SEK 1.2
billion compared with December 31, 2024. The gross exposure of
SEK 15.8 billion is partly reduced by counter guarantees and
collaterals.
Legal proceedings
Starting in January 2011, the Volvo Group, together with a
number of other truck manufacturers, was investigated by the
European Commission in relation to a possible violation of EU
antitrust rules. In July 2016 the European Commission adopted a
settlement decision against the Volvo Group and other truck
manufacturers finding that they were involved in an antitrust
infringement which, in the case of the Volvo Group, covered a 14-
year period from 1997 to 2011. The Volvo Group paid a monetary
fine of EUR 670 million.
Following the adoption of the European Commissionʼs
settlement decision, the Volvo Group has received and is
defending itself against a significant number of private damages
claims brought by customers and other third parties alleging that
they suffered loss, directly or indirectly, by reason of the conduct
covered in the decision. The claims relate primarily to Volvo Group
trucks sold during the 14-year period of the infringement and, in
some cases, to trucks sold in certain periods after the infringement
ended. Some claims have also been made against the Volvo
Group that relate to trucks sold by other manufacturers. The truck
manufacturers subject to the 2016 settlement decision are, in
most countries, jointly and severally liable for any losses arising
from the infringement.
In the region of 3,000 claims are being brought in over 20
countries (including EU Member States, the United Kingdom,
Norway and Israel) by large numbers of claimants either acting
individually or as part of a wider group or class of claimants.
Further claims may be commenced. The litigation in many
countries can be expected to run for several years.
Several hundred thousand trucks sold by the Volvo Group are
currently subject to claims against it or other truck manufacturers,
with claimants alleging that the infringement resulted in an
increase in the prices paid for Volvo Group trucks which directly or
indirectly caused them loss.
The Volvo Group maintains its firm view that no damage was
caused to its customers or any third party by the conduct set out
in the settlement decision, and in fact, the European Commission
did not assess any potential effects of the infringement on the
market. The Volvo Group considers that transaction prices our
customers paid for their trucks were unaffected by the
infringement and were the outcome of individual negotiations
across all elements of their purchasing requirements, including not
only the prices for new trucks but also (where relevant) associated
products and services sold together with new trucks such as
service contracts, financing, buy-back guarantees etc.
Litigation developments so far have been mixed with some
adverse outcomes, although uncertainty regarding ultimate
exposure to the litigation remains high and it is inherent in
complex litigation that outlooks and risks fluctuate over time.
At this stage it is not possible to make a reliable estimate of the
total liability that could arise from such proceedings given the
complexity of the claims and the different (and in some cases
relatively early) stages to which national proceedings have
progressed. However, the litigation is substantial in scale and any
adverse outcome or outcomes of some or all of the litigation,
depending on the nature and extent of such outcomes, may have a
material negative impact on the Volvo Groupʼs financial results,
cash flows and financial position. In light of progress in litigations
and current risks, the Volvo Group has in Q2 2023 recognized a
cost of SEK 6 billion (in addition to previously recognized costs of
SEK 630 M and besides legal fees to advisors), relating to aspects
of the litigation that are currently possible to estimate and where
an outflow of resources is probable. This is Volvo Group's current
assessment, which may change as the litigation progresses.
NOTE 3 | ACQUISITIONS AND DIVESTMENTS
Acquisitions and divestments
The Volvo Group has not completed any acquisitions or
divestments of operations during the first quarter that have had a
material impact on the financial statements.
Assets and liabilities held for sale
Assets and liabilities held for sale amounted to net SEK 358 M
(368) as of March 31, 2025, which mainly relates to planned
property divestments.
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
27 NOTES
===== SIDA 28 =====
NOTE 4 | CURRENCY AND FINANCIAL INSTRUMENTS
Fair value of financial instruments
Valuation principles and classifications of Volvo Group financial
instruments, as described in Volvo Group Annual Report 2024
Note 30, have been consistently applied throughout the reporting
period. Financial instruments in the Volvo Group reported at fair
value through profit and loss consist mainly of interest and
currency derivatives. Derivatives with positive fair values
amounted to SEK 7.4 billion (6.3) and derivatives with negative
fair values amounted to SEK 2.6 billion (5.9) as of March 31,
2025. The derivatives are accounted for on gross basis.
Financial liabilities valued at amortized cost, reported as non-
current and current bond loans and other loans, amounted to SEK
253.0 billion (258.9) in reported carrying value with a fair value of
SEK 253.1 billion (258.7). In the Volvo Group consolidated
financial position, financial liabilities include loan-related deriva-
tives with negative fair values amounting to SEK 1.3 billion (4.8).
Currency effect on operating income, Volvo Group
Compared to first quarter 2024
SEK M
First quarter
2025
First quarter
2024 Change
Net flow in foreign currency -89
Realized and unrealized gains and losses on derivatives 2 2 –
Unrealized gains and losses on receivables and liabilities in foreign currency 27 -81 108
Translation effect on operating income in foreign subsidiaries -226
Total currency effect on operating income, Volvo Group -207
Applicable currency rates
Quarterly exchange rates Close rates
First quarter
2025
First quarter
2024
Mar 31 Mar 31
2025 2024
BRL 1.83 2.10 1.74 2.13
CNY 1.47 1.44 1.38 1.47
EUR 11.23 11.28 10.83 11.49
GBP 13.44 13.17 12.96 13.41
KRW 0.0074 0.0078 0.0068 0.0079
USD 10.68 10.38 10.00 10.62
NOTE 5 | TRANSACTIONS WITH RELATED PARTIES
Sales of goods, services
and other income
Purchases of goods, services
and other expenses
SEK M
First quarter
2025
First quarter
2024
First quarter
2025
First quarter
2024
Associated companies 155 503 65 53
Joint ventures 937 880 369 311
Receivables Payables
Mar 31 Dec 31 Mar 31 Dec 31
SEK M 2025 2024 2025 2024
Associated companies 184 422 56 115
Joint ventures 640 528 155 213
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
28 NOTES
===== SIDA 29 =====
NOTE 6 | RECONCILIATION OF ADJUSTED OPERATING INCOME
Adjusted operating income
SEK M 1/2025 4/2024 3/2024 2/2024 1/2024
Trucks 8,464 10,138 9,363 13,251 13,073
Construction Equipment 2,542 2,609 2,558 3,888 3,683
Buses 360 689 731 554 259
Volvo Penta 915 583 831 1,016 988
Group Functions & Other -114 -1,091 -468 -436 -947
Eliminations -5 18 14 13 -13
Industrial Operations 12,162 12,946 13,029 18,286 17,044
Financial Services 1,019 1,012 992 1,028 1,009
Eliminations 77 81 52 132 106
Volvo Group adjusted operating income 13,258 14,039 14,074 19,446 18,159
Adjustments
SEK M 1/2025 4/2024 3/2024 2/2024 1/2024
Adjustment items (segment)
Financial impact related to the divestment of Arquus (Group Functions & Other) – – – 181 –
Restructuring charges relating to the US bus production for Nova Bus (Group Functions
& Other) – – – 372 –
Restructuring charges relating to the European bus operation (Buses) – – – 200 –
Previously announced provision for premature degradation of an emission control
component:
Trucks – – – 140 –
Total adjustments
Trucks – – – 140 –
Construction Equipment – – – – –
Buses – – – 200 –
Volvo Penta – – – – –
Group Functions & Other – – – 553 –
Industrial Operations – – – 893 –
Financial Services – – – – –
Volvo Group – – – 893 –
Operating income
SEK M 1/2025 4/2024 3/2024 2/2024 1/2024
Trucks 8,464 10,138 9,363 13,391 13,073
Construction Equipment 2,542 2,609 2,558 3,888 3,683
Buses 360 689 731 754 259
Volvo Penta 915 583 831 1,016 988
Group Functions & Other -114 -1,091 -468 117 -947
Eliminations -5 18 14 13 -13
Industrial Operations 12,162 12,946 13,029 19,179 17,044
Financial Services 1,019 1,012 992 1,028 1,009
Eliminations 77 81 52 132 106
Volvo Group operating income 13,258 14,039 14,074 20,339 18,159
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
29 NOTES
===== SIDA 30 =====
Income from investments in Group companies for the first quarter
includes dividend amounting to SEK 39 M (-). In appropriations,
reversal of tax allocation reserve has been made by SEK 4,000 M.
Net financial asset amounted to SEK 3,404 M by March 31,
2025, compared with net debt SEK 34,317 M at year end 2024.
INCOME STATEMENT
First quarter
SEK M 2025 2024
Net sales¹ 284 233
Cost of sales¹ -284 -233
Gross income – –
Administrative expenses¹ -281 -313
Other operating income and expenses -8 -1
Operating income (loss) -288 -314
Income from investments in Group companies 39 –
Income from investments in joint ventures and associated companies – –
Income from other investments – –
Interest income and similar credits² 19 24
Interest expenses and similar charges² -156 -391
Income after financial items -387 -681
Appropriations 4,000 –
Income taxes -788 129
Income for the period 2,825 -552
1 Of net sales in the first quarter SEK 284 M (233) pertained to Group companies, while purchases from Group companies amounted to SEK 133 M (137).
2 Other financial income and expenses have been reclassified to either Interest income and similar credits or to Interest expenses and similar charges.
OTHER COMPREHENSIVE INCOME
SEK M 2025 2024
Income for the period 2,825 -552
Other comprehensive income, net of income taxes – –
Total comprehensive income for the period 2,825 -552
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
30 PARENT COMPANY
===== SIDA 31 =====
BALANCE SHEET
SEK M
Mar 31
2025
Dec 31
2024
Assets
Non-current assets
Tangible assets 21 6
Financial assets
Shares and participations in Group companies 72,925 72,925
Investments in joint ventures and associated companies 8,971 8,971
Other shares and participations 2 2
Other non-current receivables 590 615
Deferred tax assets 196 196
Total non-current assets 82,705 82,715
Current assets
Current receivables
Tax assets 259 478
Receivables Group companies 3,830 49,627
Other receivables 351 254
Total current assets 4,440 50,359
Total assets 87,144 133,074
Equity and liabilities
Equity
Restricted equity
Share capital 2,562 2,562
Statutory reserve 7,337 7,337
Unrestricted equity
Non-restricted reserves 390 390
Retained earnings 72,020 38,855
Income for the period 2,825 33,164
Total equity 85,134 82,309
Untaxed reserves – 4,000
Provisions
Provision for post-employment benefits 203 204
Other provisions – –
Total provisions 203 204
Non-current liabilities
Liabilities to Group companies 590 615
Other liabilities 46 108
Total non-current liabilities 636 723
Current liabilities
Trade payables 249 320
Other liabilities to Group companies 249 44,757
Tax liabilities – –
Other liabilities 673 760
Total current liabilities 1,171 45,838
Total equity and liabilities 87,144 133,074
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
31 PARENT COMPANY
===== SIDA 32 =====
Net order intake of trucks
First quarter Change
Number of trucks 2025 2024 %
Net order intake
Europe 31,362 25,077 25
Heavy- and medium-duty 26,964 19,976 35
Light-duty 4,398 5,101 -14
North America 10,217 9,620 6
South America 5,948 7,898 -25
Asia 5,556 4,115 35
Africa and Oceania 2,144 1,991 8
Total order intake 55,227 48,701 13
Heavy-duty (>16 tons) 47,808 40,211 19
Medium-duty (7-16 tons) 3,020 3,269 -8
Light-duty (<7 tons) 4,399 5,221 -16
Total order intake 55,227 48,701 13
Net order intake of trucks by brand
Volvo
Europe 18,517 12,065 53
North America 4,621 6,909 -33
South America 5,626 7,712 -27
Asia 3,702 3,074 20
Africa and Oceania 1,193 1,307 -9
Total Volvo 33,659 31,067 8
Heavy-duty (>16 tons) 32,837 30,194 9
Medium-duty (7-16 tons) 822 873 -6
Total Volvo 33,659 31,067 8
Renault Trucks
Europe 12,845 13,012 -1
Heavy- and medium-duty 8,447 7,911 7
Light-duty 4,398 5,101 -14
North America 15 26 -42
South America 245 108 127
Asia 1,854 1,041 78
Africa and Oceania 551 636 -13
Total Renault Trucks 15,510 14,823 5
Heavy-duty (>16 tons) 9,558 7,769 23
Medium-duty (7-16 tons) 1,553 1,833 -15
Light-duty (<7 tons) 4,399 5,221 -16
Total Renault Trucks 15,510 14,823 5
Mack
North America 5,581 2,685 108
South America 77 78 -1
Africa and Oceania 196 2 9,700
Total Mack 5,854 2,765 112
Heavy-duty (>16 tons) 5,208 2,214 135
Medium-duty (7-16 tons) 646 551 17
Total Mack 5,854 2,765 112
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
32 NET ORDER INTAKE
===== SIDA 33 =====
Deliveries of trucks
First quarter Change
Number of trucks 2025 2024 %
Deliveries
Europe 24,047 29,289 -18
Heavy- and medium-duty 19,748 22,559 -12
Light-duty 4,299 6,730 -36
North America 14,315 15,056 -5
South America 5,397 5,154 5
Asia 3,315 3,717 -11
Africa and Oceania 1,759 2,254 -22
Total deliveries 48,833 55,470 -12
Heavy-duty (>16 tons) 41,366 44,431 -7
Medium-duty (7-16 tons) 3,167 4,270 -26
Light-duty (<7 tons) 4,300 6,769 -36
Total deliveries 48,833 55,470 -12
Deliveries of trucks by brand
Volvo
Europe 12,502 14,554 -14
North America 6,510 7,881 -17
South America 5,206 5,012 4
Asia 2,578 3,045 -15
Africa and Oceania 1,148 1,462 -21
Total Volvo 27,944 31,954 -13
Heavy-duty (>16 tons) 27,364 30,987 -12
Medium-duty (7-16 tons) 580 967 -40
Total Volvo 27,944 31,954 -13
Renault Trucks
Europe 11,545 14,735 -22
Heavy- and medium-duty 7,246 8,005 -9
Light-duty 4,299 6,730 -36
North America 121 22 450
South America 151 87 74
Asia 737 672 10
Africa and Oceania 394 320 23
Total Renault Trucks 12,948 15,836 -18
Heavy-duty (>16 tons) 7,275 7,449 -2
Medium-duty (7-16 tons) 1,373 1,618 -15
Light-duty (<7 tons) 4,300 6,769 -36
Total Renault Trucks 12,948 15,836 -18
Mack
North America 7,684 7,153 7
South America 40 55 -27
Africa and Oceania 150 259 -42
Total Mack 7,874 7,467 5
Heavy-duty (>16 tons) 6,662 5,806 15
Medium-duty (7-16 tons) 1,212 1,661 -27
Total Mack 7,874 7,467 5
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
33 DELIVERIES
===== SIDA 34 =====
Events after the balance sheet date
For important events, please see page 4. No other significant events have occurred after the end of the first quarter 2025 that are
expected to have a material effect on the Volvo Group's financial statements.
Gothenburg, April 23, 2025
AB Volvo (publ)
Martin Lundstedt
President and CEO
This report has not been reviewed by AB Volvoʼs auditors.
Financial calendar
Report on the second quarter 2025 July 17, 2025
Report on the third quarter 2025 October 17, 2025
Contacts
Media relations:
Claes Eliasson +46 739 02 39 35
Investor Relations:
Johan Bartler +46 739 02 21 93
Anders Christensson +46 765 53 59 66
This is information that AB Volvo (publ) is obliged to make public
pursuant to the EU Market Abuse Regulation and the Securities
Market Act. The information was submitted for publication,
through the agency of the contact person set out in the press
release concerning this report, at 07.20 CET on April 23, 2025.
This report contains forward-looking statements that reflect the
Board of Directors' and management's current views with respect
to certain future events and potential financial performance.
Forward-looking statements are subject to risks and uncertainties.
Results could differ materially from forward-looking statements as
a result of, among other factors, (i) changes in economic, market
and competitive conditions, (ii) success of business initiatives, (iii)
changes in the regulatory environment and other government
actions, (iv) fluctuations in exchange rates and (v) business risk
management.
This report is based solely on the circumstances at the date of
publication and except to the extent required under applicable law,
AB Volvo is under no obligation to update the information,
opinions or forward-looking statements in this report.
Q1
VOLVO GROUP
THE FIRST QUARTER 2025
34 SIGNATURES AND CONTACTS
Aktiebolaget Volvo (publ)
556012–5790
Investor Relations, VGHQ
SE-405 08 Göteborg, Sweden
Tel +46 31 66 00 00
www.volvogroup.com