In the third quarter of 2025, Volvo Group reported mixed financial results, with net sales rising in Europe but facing declines in North and South America due to challenging market conditions. Overall, the company’s net sales reached SEK 110.7 billion, a decrease from SEK 117.0 billion in the same period last year. However, when adjusted for currency movements, net sales showed a 1% increase.
Vehicle sales were down by 1% compared to the third quarter of 2024 after currency adjustments. The service business continued to perform well, with service sales increasing by 4% on a currency-adjusted basis. Over the past twelve months, service revenues totaled SEK 126 billion.
Martin Lundstedt, President and CEO of Volvo Group, stated: “In Q3 2025, the Volvo Group’s net sales increased in Europe, while more difficult market conditions in North America and South America impacted sales negatively. In total, the Group’s net sales amounted to SEK 110.7 billion (117.0), which was an increase of 1% when adjusted for currency movements. Sales of vehicles were 1% lower than in Q3 2024 when adjusted for currency. The underlying development in the service business remained good, with service sales growing by 4% adjusted for currency. On a rolling 12-month basis service revenues amounted to SEK 126 billion. Despite the lower vehicle volumes, we maintained our earnings resilience and generated an adjusted operating income of SEK 11.7 billion (14.1) with an adjusted operating margin of 10.6% (12.0).”
The company’s adjusted operating income for the quarter was SEK 11,707 million, compared to SEK 14,074 million the previous year. This corresponds to an adjusted operating margin of 10.6%, down from 12.0%. A positive effect of SEK 811 million was excluded from the adjusted operating income for the quarter; there were no such adjustments in the previous year.
Reported operating income stood at SEK 12,517 million with an operating margin of 11.3%. Currency movements negatively affected operating income by SEK 1,626 million compared to the same quarter in the prior year.
Earnings per share dropped to SEK 3.71 from SEK 4.93 last year. Operating cash flow in the Industrial Operations segment turned negative at SEK -1,739 million, down from a positive SEK 3,069 million in Q3 2024. Return on capital employed in Industrial Operations was also lower at 25.2%, compared to 38.3% a year earlier.
A press and analyst conference call will be held online at 09:00 CEST, including a presentation of the report followed by a question and answer session. The webcast can be accessed at https://qreport.volvogroup.com/. Further information and an interview with CEO Martin Lundstedt will be available soon on the company’s investor relations website at https://www.volvogroup.com/en/investors.html.
The Volvo Group is headquartered in Gothenburg, Sweden and operates globally with over 100,000 employees serving customers in nearly 190 markets. In the previous year, the company’s net sales reached SEK 527 billion.
The company is required to disclose this information under the EU Market Abuse Regulation and the Securities Markets Act.
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