In This Article:
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Net Sales: SEK122 billion, a decline of 7% year-over-year.
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Adjusted Operating Income: SEK13.3 billion, with a margin of 10.9%.
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Free Cash Flow: SEK1.3 billion generated in Q1 2025.
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Net Cash Position: SEK77.9 billion at the end of the quarter.
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Return on Capital Employed: 31.8% in industrial operations.
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Earnings Per Share: SEK4.86.
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Truck Deliveries: Declined 12% in Q1 2025.
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Construction Equipment Deliveries: Decreased by 7%.
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Electric Vehicle Orders: Increased by 138%.
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Service Sales: SEK129 billion, 12-month rolling, with a 2% growth year-over-year adjusted for currency.
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Dividend Distribution: SEK37.6 billion to shareholders for fiscal year 2024.
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Truck Market Share in Europe: Volvo Trucks at 20.1%, combined with Renault at 30.6%.
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Book-to-Bill Ratio for Trucks: 114% in Q1 2025.
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Book-to-Bill Ratio for Construction Equipment: 111% in Q1 2025.
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Financial Services New Business Volumes: SEK24.9 billion in Q1 2025.
Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Volvo AB (VLVLY) maintained market leadership in Europe with a truck market share exceeding 20%, reaching 20.1%.
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Order intake for full electric vehicles increased by 138%, driven by Renault Trucks and SDLG machines in China.
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Volvo AB (VLVLY) reported a strong financial position with a net cash position of SEK77.9 billion.
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Volvo Buses launched the new Volvo 7800 Electric in Mexico, marking the first electric bus model manufactured in the country.
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Volvo Financial Services reported stable earnings with new business volumes reaching SEK24.9 billion.
Negative Points
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Net sales declined by 7% year-over-year, with vehicle sales dropping by 8% due to lower volumes.
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The North American market faced increased uncertainty, leading to a reduction in the forecast from 300,000 to 275,000 units.
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Volvo Trucks in North America experienced under-absorption in production due to the changeover to a new truck platform.
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Construction Equipment sales were down 10% due to lower volumes in Europe and North America.
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The adjusted operating income was negatively impacted by reduced volumes and negative product and brand mix within Construction Equipment.
Q & A Highlights
Q: On the investment side, will we see a similar rate of increase in investments for the rest of the year as we saw in Q1? A: Mats Backman, CFO, stated that the investment level will be somewhat higher, driven by the assembly plant in Mexico. The increase seen in Q1 is primarily due to this project, and similar impacts are expected throughout the year.