AB Volvo (publ) (STO: VOLV B) Q2 2025 Earnings | 17/07/2025

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AB Volvo (publ) reported its Q2 2025 results on July 17, 2025, reflecting a period of market stabilization in Europe and ongoing uncertainty in North America. Group net sales for the quarter declined 12% year-over-year to SEK 122.9 billion, or 5% lower when adjusted for currency effects. Vehicle sales were down 6% in currency-adjusted terms, while service revenues remained robust—driven by strong demand for vehicle and machinery utilization. Adjusted operating income amounted to SEK 13.5 billion, yielding an adjusted operating margin of 11.0% (down from 13.9% a year ago). Reported operating income was SEK 9.96 billion, with an operating margin of 8.1%. Earnings per share for the quarter fell to SEK 3.64 from SEK 7.65 in Q2 2024. Operating cash flow in the Industrial Operations segment was SEK 2.95 billion, below last year's SEK 9.06 billion, and return on capital employed came in at 25.7% (compared to 41.3% last year)1. Performance Highlights: Net sales: SEK 122.9 billion (down 12% year-over-year, or -5% adjusted for currency) Adjusted operating income: SEK 13.5 billion (margin 11.0%) Reported operating income: SEK 9.96 billion (margin 8.1%) Earnings per share: SEK 3.64 Operating cash flow (Industrial Ops): SEK 2.95 billion Return on capital employed (Industrial Ops): 25.7% Management attributed the lower volumes to slow vehicle orders, particularly in North America, where customers showed a “wait-and-see” approach. In contrast, service activities—such as aftermarket support and parts—held steady, providing a measure of stability in group revenues. Tight cost controls, volume flexibility in the industrial system, and disciplined capital allocation remained focal points for the quarter. Looking ahead, Volvo expects market conditions to remain challenging but sees continued resilience in its core service segment. The company will maintain a focus on operational flexibility, margin protection, and long-term investment in next-generation vehicle solutions. About Inside Ticker: For more expert analysis and real-time updates on AB Volvo (publ) (STO: VOLV B) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #VolvoGroup #VOLVB #Q22025 #Earnings #FinancialResults #NetSales #OperatingIncome #TruckIndustry #Machinery #StockMarket #Investing #InsideTicker #Aftermarket #CashFlow #CostControl #IndustrialOperations #BusinessUpdate #Guidance #2025Outlook #Europe #northamerica