Swedish automaker Volvo Car Group (Volvo Cars) reduced its net profit by 1.9 times and revenue by 16% in the fourth quarter of 2025.
Both indicators were significantly worse than market expectations, which, along with the company's pessimistic forecasts, caused its stock prices to plummet by 25.6% - a record in the history of Volvo Cars.
In October-December, Volvo Cars' net profit amounted to 1.29 billion Swedish kronor ($143 million) compared to 2.5 billion kronor a year earlier.
Revenue decreased to 94.38 billion kronor from 112.5 billion kronor a year earlier.
Car sales fell by 3% to 195.7 thousand units.
The company's press release notes that 2025 was a challenging year for the automotive industry. The results of Volvo Cars were negatively impacted by the introduction of import tariffs and the cancellation of incentives for electric vehicle buyers in the U.S., the strengthening of the Swedish krona, as well as overall weak demand.
2026 is also expected to be difficult. The company forecasts a contraction in the premium segment of the automotive market, particularly due to pricing pressure from China and regulatory uncertainty.
Leave a comment