VolvoVOLV B
AB Volvo makes trucks under the Volvo, Renault Trucks and Mack brands, construction equipment, buses, and engines through Volvo Penta. Volvo Financial Services lends to customers so they can buy them. The car maker Volvo Cars is a separate company.
Volvo had revenue of SEK 479.2bn in 2025. That is 7% more a year since 2020.
Trucks are the largest part of sales. Service, parts and connected services add a steadier stream that keeps running when new truck sales slow. The truck business is cyclical, so profit swings hard with haulers' investment.
Latest report: Third quarter 2026 (January–September in brackets)
| Now | Year before | |
|---|---|---|
| Net sales | SEK 119.5bn (356.6) | SEK 110.7bn (355.4) |
| Adjusted operating income | SEK 14,693m, 12.3% | SEK 11,707m, 10.6% |
| Operating income | SEK 14,354m, 12.0% | SEK 12,517m, 11.3% |
| Operating cash flow, industrial operations | SEK 7,195m (13,464) | SEK −1,739m (2,518) |
| Earnings per share | SEK 5.29 (14.48) | SEK 3.71 (12.22) |
| Net financial position, industrial operations | SEK 43.8bn | SEK 45.4bn |
| Truck order intake (units) | 46,918 (173,085) | 37,134 (140,122) |
| Truck deliveries (units) | 49,611 (152,802) | 44,631 (146,228) |
Source: Volvo Group, Report on the third quarter 2026, 23 October 2026, p. 2. Interim reports are not filed in ESEF, so these figures are read by hand from the report.
Revenue from the group income statement in the annual report (ESEF). Growth is the average annual change.
Of every 100 in sales, 10 became operating profit in 2025. Over the period it has ranged from 8 to 13.
| Year | Revenue | Operating profit | Margin | Net profit | Operating cash flow | Cash conversion |
|---|---|---|---|---|---|---|
| 2020 | SEK 338.4bn | SEK 27.5bn | 8.1% | SEK 19.3bn | SEK 30.6bn | 158% |
| 2021 | SEK 372.2bn | SEK 43.1bn | 11.6% | SEK 32.8bn | SEK 33.6bn | 103% |
| 2022 | SEK 473.5bn | SEK 45.7bn | 9.7% | SEK 32.7bn | SEK 33.2bn | 102% |
| 2023 | SEK 552.3bn | SEK 67.3bn | 12.2% | SEK 49.8bn | SEK 21.4bn | 43% |
| 2024 | SEK 526.8bn | SEK 66.6bn | 12.6% | SEK 50.4bn | SEK 46.4bn | 92% |
| 2025 | SEK 479.2bn | SEK 48.5bn | 10.1% | SEK 34.5bn | SEK 45.6bn | 132% |
On average, 105% of profit arrived as cash over the period.
Operating margin = operating profit divided by revenue. Cash conversion = cash flow from operations divided by net profit.
Earnings per share went from SEK 9.50 in 2020 to SEK 16.94 in 2025. Dividends took 91% of owner earnings over the last 3 years.
| Year | Owner earnings | Dividends | EPS | DPS | Shares |
|---|---|---|---|---|---|
| 2020 | – | – | SEK 9.50 | – | 2,033m |
| 2021 | – | SEK 49.8bn | SEK 16.12 | SEK 24.49 | 2,034m |
| 2022 | – | SEK 26.4bn | SEK 16.09 | SEK 13.00 | 2,034m |
| 2023 | SEK 45.8bn | SEK 28.5bn | SEK 24.50 | SEK 14.00 | 2,034m |
| 2024 | SEK 45.3bn | SEK 36.6bn | SEK 24.78 | SEK 18.00 | 2,033m |
| 2025 | SEK 21.8bn | SEK 37.6bn | SEK 16.94 | SEK 18.50 | 2,034m |
The share count has been roughly unchanged.
Owner earnings = Volvo's operating cash flow in the industrial operations, after investment and without the finance arm's lending. The measure is in ESEF from 2023. Share count is derived as net profit divided by earnings per share.
Net cash of SEK 63.0bn.
The industrial operations had a net financial position of SEK 63.0bn at the end of 2025, excluding pensions and leases. That is Volvo's own measure, and it leaves out the finance arm, which borrows in order to lend to customers.
Competitive advantages, our assessment
Haulers, construction firms, public transport and industry. They choose on running cost per kilometre, uptime and the service network, not on purchase price.
Return on capital employed = operating profit after 20.6% Swedish tax, divided by equity plus net debt at year end.
Today's price needs owner earnings to grow 2% a year for ten years. Revenue has grown 7% a year.
| Required return | Growth needed |
|---|---|
| 8% | 0% |
| 9% | 2% |
| 10% | 4% |
Market value SEK 626bn, enterprise value SEK 563bn. Base: owner earnings of SEK 37.7bn a year on average over the last three years, an owner earnings yield of 6.7%.
Reverse discounted cash flow. Enterprise value = market value plus net debt. The base is average owner earnings over the last three years. Required return 9%, 10 years, then 2.5% growth.
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Where every number comes from
| Item | Amount | Period | Source |
|---|---|---|---|
| Revenue | SEK 479.2bn | 2025-12-31 | Annual report 2025 (ESEF)ifrs-full:Revenue |
| Operating profit | SEK 48.5bn | 2025-12-31 | Annual report 2025 (ESEF)ifrs-full:ProfitLossFromOperatingActivities |
| Net profit, owners | SEK 34.5bn | 2025-12-31 | Annual report 2025 (ESEF)ifrs-full:ProfitLossAttributableToOwnersOfParent |
| Cash flow from operations | SEK 45.6bn | 2025-12-31 | Annual report 2025 (ESEF)ifrs-full:CashFlowsFromUsedInOperatingActivities |
| Equity | SEK 178.4bn | 2025-12-31 | Annual report 2025 (ESEF)ifrs-full:EquityAttributableToOwnersOfParent |
| Cash | SEK 73.4bn | 2025-12-31 | Annual report 2025 (ESEF)ifrs-full:CashAndCashEquivalents |
| Net financial position, industrial operations (excl. pensions and leases) | SEK 63,040m | 2025-12-31 | Annual report 2025, note 4, table 4:1 |
| Net financial position, industrial operations | SEK 43.8bn | 2026-09-30 | Report on the third quarter 2026, p. 2 |
The figures come from the company's annual reports in the machine-readable ESEF format, via filings.xbrl.org and the Swedish financial regulator. The latest filing wins, so restated comparatives replace the originals. Anything not tagged in ESEF is given with its source and page.
General analysis and educational material, not personal investment advice and not a recommendation to buy or sell. The figures are mechanical and can be rebuilt from the company's public reports; the text is the author's judgement. Author's position in Volvo: not disclosed. Data to 2025-12-31, price as of 2026-10-23.