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On February 5, Volvo Cars unveiled its financial performance for both the fourth quarter and the entire year of 2025. In Q4, the company's operating revenue dipped to SEK 94.4 billion, a decline from SEK 112.1 billion recorded in the corresponding period of 2024. Its operating profit also shrank to SEK 1.9 billion, down from SEK 3.9 billion in the same quarter of the previous year. The EBIT margin stood at 2%, falling short of the 3.4% achieved in Q4 2024. Excluding comparable items, the EBIT margin was 1.9%, in contrast to 5% in the same period of 2024. For the full year of 2025, Volvo Cars reported an adjusted operating profit of SEK 12.5 billion, accompanied by an adjusted EBIT margin of 3.5%. Despite grappling with substantial challenges in the external business environment, the company still managed to generate a free cash flow of SEK 2.4 billion for the year.
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