Automaker Volvo Cars has reported revenue for the fourth quarter that fell short of expectations, with operating profit also coming in below forecasts. The board is proposing no dividend.
Revenue dropped 15.8 percent to 94.4 billion kronor (112.1), compared to the Bloomberg analyst consensus of 101.8.
"The decrease is mainly explained by sales mix, pricing, lower wholesale volume, and unfavorable currency effects from a stronger krona compared to the previous year," the company wrote.
EBITDA reached 7.8 billion kronor (10.6), with an EBITDA margin of 8.3 percent (9.5).
Operating profit was 1.9 billion kronor (3.9), with expectations at 4.4. The operating margin was 2.0 percent (3.5). The decline is primarily a result of sales mix and pricing.
Adjusted operating profit amounted to 1.8 billion kronor (5.6), with an adjusted operating margin of 1.9 percent (5.0).
Net profit after tax was -0.4 billion kronor (2.3).
Earnings per share amounted to 0.43 kronor (0.84).
No ordinary dividend is proposed (0). Expectations were also 0.
Cash flow from operating activities amounted to 15.9 billion kronor (26.3).
For 2026, Volvo Cars aims to return to annual volume growth for the full year and increase cash flow generation, with free cash flow for the year expected to be clearly better than what was achieved in 2025, the company stated.
Volvo Car AB is a Sweden-based automotive brand. Volvo Car Group is focused on the design, engineering, manufacturing, distribution and sale of passenger cars, with particular focus on sustainability, fully electric cars and direct consumer relations, including subscription and other new mobility services. Volvo Car Group’s addressable market is the global premium passenger car market. Moreover, the Company’s intention is to be a pure electric car company and as a result it is undergoing a shift in its business model to a direct sales model in most of its markets. Volvo Cars’ commitment to electrification also results in the launch of Polestar, a progressive stand-alone electric performance car brand, in which Volvo Cars owns shares. Volvo Cars also holds shares in the automotive brand LYNK&CO, which focuses on young open-minded urban people through a flexible customer offering.
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