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Volvo Cars* (VOLCAR-B.STO) today posted a group operating income (EBIT) of SEK 1.9 billion and an EBIT margin of 2% for Q4 of 2025. It attained a positive free cash flow of SEK 8.8 billion for the quarter, attributed to the effective execution of its SEK 18 billion cost and cash action plan. For the full year 2025, Volvo Cars recorded an adjusted operating income of SEK 12.5 billion, which converts into an adjusted EBIT margin of 3.5%. Full-year free cash flow was SEK 2.4 billion.
“Our actions in 2025 have set us on a path to return to growth. We are confident of our long-term strategy and clear direction of travel,” said Håkan Samuelsson, President and Chief Executive.** During 2025, Chinese-owned Volvo Cars sold more than 710,000 cars, 46% of them electrified.
Volvo Cars Q4 and full year 2025 Financial Results
- Q4 revenue was SEK 94.4 bn (SEK 112.1 bn in Q4 2024).
- Q4 operating income was SEK 1.9 bn (SEK 3.9 bn in Q4 2024).
- Q4 operating income (excl. items affecting comparability) was SEK 1.8 bn (SEK 5.6 bn in Q4 2024).
- Q4 EBIT margin was 2.0 % (3.4 % in Q4 2024).
- Q4 EBIT margin (excl. items affecting comparability) was 1.9 % (5.0 % in Q4 2024).
- Q4 basic earnings per share were SEK 0.43 (SEK 0.84 in Q4 2024).
- Q4 fully electric car sales share at 24% (21% in Q4 2024).
- Q4 electrified car sales share at 49% (47% in Q4 2024).
- Q4 free cash flow of SEK 8.8 billion (SEK 13.6 billion in Q4 2024).
“The company’s fourth quarter performance was affected by several external factors, such as EU-US import tariffs and the negative currency effect of a stronger Swedish krona. On top of that, revenues were affected by weak demand putting pressure on pricing and the removal of EV incentives in the US, which negatively impacted sales in the quarter.
“Fully electric sales grew in three consecutive months through December, retail orders are growing, and Volvo Cars saw a solid performance in China thanks to encouraging demand for the XC70 long-range plug-in hybrid SUV. The company increased its premium market share in the highly competitive China market in 2025,” Volvo Cars said in a release.
*AutoInformed on
**Volvo Cars is a subsidiary of Geely Holding, which owns ~78.7% of the company’s outstanding shares. Geely Holding, a Chinese multinational enterprise, bought Volvo from Ford Motor in 2010 after years of cultural clashes between American Ford and Swedish Volvo employees and senior managers. During 2025, Volvo Cars on average had 42,600 full-time employees. Volvo Cars’ head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars’ production plants are located in Gothenburg, Ghent (Belgium), South Carolina (US), Chengdu, Daqing and Taizhou (China). The company also has R&D and design centers in Gothenburg and Shanghai (China). – AutoCrat.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Volvo Cars Posts a -44% Group Earnings Drop in 2025
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Volvo Cars* (VOLCAR-B.STO) today posted a group operating income (EBIT) of SEK 1.9 billion and an EBIT margin of 2% for Q4 of 2025. It attained a positive free cash flow of SEK 8.8 billion for the quarter, attributed to the effective execution of its SEK 18 billion cost and cash action plan. For the full year 2025, Volvo Cars recorded an adjusted operating income of SEK 12.5 billion, which converts into an adjusted EBIT margin of 3.5%. Full-year free cash flow was SEK 2.4 billion.
“Our actions in 2025 have set us on a path to return to growth. We are confident of our long-term strategy and clear direction of travel,” said Håkan Samuelsson, President and Chief Executive.** During 2025, Chinese-owned Volvo Cars sold more than 710,000 cars, 46% of them electrified.
Volvo Cars Q4 and full year 2025 Financial Results
“The company’s fourth quarter performance was affected by several external factors, such as EU-US import tariffs and the negative currency effect of a stronger Swedish krona. On top of that, revenues were affected by weak demand putting pressure on pricing and the removal of EV incentives in the US, which negatively impacted sales in the quarter.
“Fully electric sales grew in three consecutive months through December, retail orders are growing, and Volvo Cars saw a solid performance in China thanks to encouraging demand for the XC70 long-range plug-in hybrid SUV. The company increased its premium market share in the highly competitive China market in 2025,” Volvo Cars said in a release.
*AutoInformed on
**Volvo Cars is a subsidiary of Geely Holding, which owns ~78.7% of the company’s outstanding shares. Geely Holding, a Chinese multinational enterprise, bought Volvo from Ford Motor in 2010 after years of cultural clashes between American Ford and Swedish Volvo employees and senior managers. During 2025, Volvo Cars on average had 42,600 full-time employees. Volvo Cars’ head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars’ production plants are located in Gothenburg, Ghent (Belgium), South Carolina (US), Chengdu, Daqing and Taizhou (China). The company also has R&D and design centers in Gothenburg and Shanghai (China). – AutoCrat.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.