Volvo shares are in free fall after Thursday's report release, plunging nearly 30 percent.
"This is nothing that would make the top ten list," says CEO Håkan Samuelsson.
If the third quarter report was a positive surprise, the fourth quarter is the exact opposite, says Esbjörn Lundevall at SEB:
“The result is 58 percent worse than expected,” he says in a written comment, adding:
"The market probably thought that Volvo Cars was on the way back after a challenging period after the Q3 report and now they are backing away from that position."
Reduced sales
CEO Håkan Samuelsson himself describes 2025 as one of the most challenging years for the industry, not least for Volvo Cars.
"It was quite a challenging position. It was really a 'wake-up call,'" says Samuelsson about taking over as the new CEO last spring.
The company reported an operating profit of SEK 1.9 billion for the fourth quarter of 2025. This was worse than expected. Sales fell 16 percent year-on-year to SEK 94.4 billion. The forecast was SEK 101.8 billion.
Ahead of the financial year, Volvo Cars, as one of Sweden's largest employers, with 23,000 employees, has launched the all-electric EX60, an SUV that in its four-wheel-drive version can travel 810 kilometers on a single charge.
However, recently released figures show a decline in sales. Between November 2025 and January 2026, sales fell 7 percent compared to the same period a year earlier.
Samuelsson says the cost program launched in 2025 has had an effect, even though it has been a “painful process.” In 2025, Volvo Cars announced that 3,000 jobs would be cut. No new savings packages are in the works, but the company is holding tight to its finances.
"We have a chance to resume growth. That is our ambition unless something unexpected happens."
Brighter - despite tariff threats
The company has a good platform for 2026, says Samuelsson.
"We closed the year with a positive cash flow."
But there are still a lot of challenges ahead, including being able to increase volumes and continue to ensure cost efficiency. In addition, the company must deal with an uncertain environment, for example, constant tariff threats from the US.
“It's impossible to know how it will turn out,” says Samuelsson.
