Overview
- Fourth-quarter operating income fell to SEK 1.9 billion with an EBIT margin of 2.0%, as revenue declined 16% year over year to SEK 94.4 billion.
- The company cited EU–U.S. import tariffs, a stronger Swedish krona, weak demand and the removal of U.S. EV incentives, with pricing pressure further squeezing margins.
- Shares dropped more than 18% in Thursday trading, putting the stock on course for its worst single session since listing in Stockholm.
- Volvo said it completed an SEK 18 billion cost-and-cash program, cut about 3,000 positions and generated SEK 8.8 billion in Q4 free cash flow; full-year free cash flow was SEK 2.4 billion with an adjusted EBIT margin of 3.5%.
- The 2026 outlook remains challenging, but Volvo targets year-on-year volume growth and stronger cash generation, highlighting strong initial EX60 orders with deliveries ramping in the second half and a planned temporary inventory build at Torslanda weighing on first-half cash.