Volvo's B-share has during morning trading risen by over 6 percent.
The owners can simultaneously rejoice that the cash flow looks strong, which paves the way for a proposal for increased dividend to a new record level – nearly 38 billion kronor – in the truck manufacturer's financial report for 2024.
We provide a good return to our owners, says AB Volvo's CEO Martin Lundstedt.
"Extremely strong" financial position
Despite the record dividend, he describes the group's financial position as "extremely strong" and highlights that the company generates large tax revenues and also drives research and development – not least in Sweden.
We have room for maneuver. We are investing forward. Then we provide a good, but also reasonable return to our owners, says Lundstedt.
A large increase in order intake for trucks in the financial report. It increased to 61,200 trucks in the fourth quarter, which strengthens the image that Volvo can get sales going and lift the result this year after last year's dip.
An uncertainty factor is the new US president: Donald Trump. New US tariffs and an economic policy characterized by the election promise to put the US first from the new Trump administration are expected.
I think one should be humble in the face of such a situation. It's a big country. It's a big material to handle, of course, with many aspects, says Lundstedt.
According to the Volvo CEO, the group is well prepared for what is expected.
We have invested strongly in North America over the past 6-7 years. These are the largest investments ever, both for Volvo and for Mack on the truck side. But it's also investments in construction equipment, he says.
Sees opportunities in the US
Mack is a truck manufacturer in the US that is part of the Volvo Group.
We stand strong. For example, it's the case that 100 percent of our production of trucks for North America takes place in the US. So in that perspective, we have a good basic position, says Lundstedt.
Deregulation and major investments in, for example, energy can also bring in money for Volvo, he believes.
I think we will see a number of simplifying factors, for example, when it comes to permit issuance for the energy sector. It's broad in the energy sector, which will create opportunities when it comes to infrastructure expansion and such things. It's clear that it's good, both for construction equipment but also for Mack – which are strong in those segments.
