Volvo Car
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Volvo Car (VOLCAR) investor relations material

Volvo Car Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary5 Feb, 2026

Executive summary

  • 2025 marked a strategic reset with a focus on profitability, electrification, and regionalization, supported by a SEK 18 billion cost action plan and leaner operations.

  • Electrified vehicles accounted for 46% of sales, with BEV sales up 12% year-over-year and a successful EX60 launch.

  • Despite strong cash flow, Q4 profitability was pressured by tariffs, FX, and pricing, with EBIT margin at 2% and net income negative.

  • Retail sales declined 3% in Q4 and 7% for the full year, with revenue down 16% in Q4 and 11% for the year, mainly due to lower volumes, unfavorable sales mix, and currency effects.

  • Achieved a 31% CO2 emission reduction per car from 2018 baseline, meeting the 2025 target.

Financial highlights

  • Q4 revenue: SEK 94.4 billion (-16% YoY); full year: SEK 357.3 billion (-11% YoY).

  • Q4 EBIT: SEK 1.9 billion (2.0% margin); full year EBIT: SEK 0.3 billion (0.1% margin), impacted by a SEK 11.4 billion impairment and SEK 0.8 billion restructuring costs.

  • Net income Q4: SEK -0.4 billion; full year: SEK -3.0 billion.

  • Free cash flow improved, reaching SEK 8.8 billion in Q4 and SEK 2.4 billion for the full year.

  • Electrified models accounted for 49% of Q4 retail sales, with BEVs at 24%.

Outlook and guidance

  • Aims for volume growth and improved free cash flow in 2026, with continued cost reductions of SEK 5 billion and investment discipline.

  • EX60 electric SUV launch and ramp-up expected to support growth.

  • Long-term strategy targets EBIT margin above 8% and sustained positive cash flows.

  • Industry headwinds expected to persist, including pricing pressure and regulatory uncertainty.

How will 2026 cost reductions build on 2025
Strategic importance of EX60 launch
Reason for EX90/ES90 platform impairment
EX60 margin impact vs. XC60?
Investment reduction impact on 2026 cash flow?
Geely synergies beyond shared platforms?
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Frequently asked questions

Volvo Car AB designs, manufactures, and markets premium automobiles with a focus on safety, sustainability, and Scandinavian design. The company produces a range of sedans, SUVs, and station wagons, and is active in the development of electric vehicles and mobility services. Volvo Car serves both individual consumers and fleet customers globally through direct sales, digital platforms, and dealership networks. The company is headquartered in Gothenburg, Sweden, and its shares are listed on the STO.

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