Swedish multinational manufacturing corporation Volvo Group has issued its financial results for the first quarter of 2025, with the firm’s CEO hailing an overall “solid performance in an increasingly uncertain market.”
In Q1 2025, the Volvo Group recorded a 7 per cent year-on-year decrease in net sales to SEK 121.8bn (£9.5bn). Operating income amounted to SEK 13.3bn (£1.04bn), compared to SEK 18.2bn (£1.42bn) in Q1 2024. Currency effects negatively impacted income by SEK 207m (£16.15m).
Within the marine-focused Volvo Penta business, net sales decreased by 3 per cent year-on-year to SEK 5bn (£390m) in Q1 2025. Engine sales declined by 5 per cent while service revenues increased by 4 per cent. The operating margin stood at 18.3 per cent, compared to 19.1 per cent in Q1 2024, with operating income totalling SEK 915m (£71.37m), down from SEK 988m (£77.06m).
According to the company, earnings were affected by lower engine volumes, which were partly offset by a favourable product and market mix, improved price realisation, and reduced selling and administrative costs.
Order intake for Volvo Penta engines grew by 35 per cent to 12,234 units in Q1, while deliveries declined by 17 per cent to 8,700 units. Within this, deliveries of fully electric systems dropped to 28 units from 44 in the previous year. Orders of electric systems across the quarter have dropped, with 17 fully electric orders in Q1 2025 – a 60 per cent decline compared to 43 orders in Q1 2024.
Demand patterns varied across Volvo Penta’s segments. Sales within the marine leisure market remained slow, while the commercial marine segment was reported to be stable, supported by energy transition-related demand. The IPS Professional Platform, launched in the North American yacht market, went into serial production during the quarter and was noted as gaining traction in the yacht segment. Meanwhile, the power generation business continued to grow, and the off-highway segment showed early signs of recovery in construction-related demand.
“We have high customer satisfaction and strong relations, and in times of uncertainty, it is more important than ever to work in close cooperation with our customers,” says Martin Lundstedt, president and CEO of Volvo.
“In the fast-changing geopolitical landscape, it is too early to assess the full implications from the imposed tariffs. However, we have strong regional value chains and global capabilities. In the short term, we therefore work actively with our regional value chains to adapt flows, production capacity, and commercial terms to mitigate the effects from tariffs and their subsequent impact on demand.”
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