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.