One of the Stockholm Stock Exchange's largest companies - AB Volvo - has now reported its financial statements for 2025. The report is being received positively by the market; shortly after the stock exchange opened, its shares were up 2.7 percent.
The company's operating profit of SEK 12.8 billion for the fourth quarter was higher than market expectations, while revenue decreased by 11 percent. President Donald Trump's tariffs have also had a negative impact on the company.
"We are delivering a strong result. It shows that we have the ability to adapt to many messy and changing factors," CEO Martin Lundstedt tells TT.
If we look at the fourth quarter in isolation, the tariffs have had a negative effect of SEK 800 million.
Strengthened krona
The strengthened krona burdened profits by just over SEK 2 billion, according to the financial statements. Martin Lundstedt says the company must "live with" the currency fluctuations that are occurring.
We're used to it and work with the prevailing reality rather than analyzing ourselves to death, he says.
According to Lundstedt, it is an advantage that Volvo, both when it comes to currencies and in a turbulent world, has large regional operations in North America, South America, Asia and Europe.
Then you become less sensitive when different things happen.
Last year, AB Volvo paid a record dividend of SEK 18.50 per share. This year, the proposed dividend is SEK 13 per share. Lundstedt says this reflects "a year that still had a very good result, but was lower than 2024."
We can continue to invest in innovation and technology and at the same time return a reasonable level, a good level, to our shareholders, he says.
Seeing a recovery
At the same time, truck orders fell to 53,688 vehicles, down from 61,200 in the same quarter of 2024.
However, for 2026, Volvo management has raised its forecasts for truck sales by 15,000 vehicles in North America and 10,000 in Europe.
In Europe we are now seeing the need for replacements. The same applies in North America. We have had a market situation that has been at a low level, but the rolling fleet will need to be replaced, says Lundstedt.
When asked whether AB Volvo will have more or fewer employees in a year, Lundstedt answers:
Probably a few more employees, but those are very uncertain parameters.
Corrected version: In a previous version, the wrong region was specified where the need for replacements begins.
