Volvo's Profit Plummets 99% in 2025

[Financial Flash] Volvo reported an 11% decline in revenue for 2025, with operating profit plunging 99% year-over-year to just SEK 3 billion.

Key Figures: Profit Nearly Wiped Out

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  Global sales in 2025 totaled 710,000 vehicles, down 7% year-over-year; full-year revenue reached SEK 357.3 billion, a decrease of 11%.

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  Operating profit tumbled from SEK 22.3 billion in 2024 to SEK 3 billion in 2025, driving the operating margin down from 5.6% to 0.1%.

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  Q4 alone saw profit of SEK 18 billion, down 68% year-over-year, on revenue of SEK 94.4 billion, a 16% decline.

Strategic Context: External Shocks Compound Internal Pressures

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  The elimination of U.S. EV subsidies and the EU’s increase of auto tariffs to 15% severely impacted export-focused models like the EX30.

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  Weak demand in the global premium vehicle market forced price cuts in China for models such as the XC60, amid fierce competition from BYD and Tesla.

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  CEO Håkan Samuelsson announced 3,000 layoffs and emphasized deeper collaboration with Geely to enhance cost efficiency and operational effectiveness.