Volvo Group on Wednesday reported a drop in fourth-quarter operating profit that was smaller than analysts had forecast, even as the truckmaker reduced its overall annual dividend by more than the market had anticipated.
Operating profit for the October-December period amounted to 12.77 billion Swedish crowns, down from 14.04 billion a year earlier. The result outperformed the mean analyst estimate of 11.49 billion in an LSEG poll.
Despite the relative outperformance on profit, Volvo trimmed its total shareholder payout for the year. The company proposed an ordinary dividend of 8.50 crowns per share for 2025, up from 8.0 crowns for 2024, but cut the extra dividend to 4.50 crowns from 10.50 crowns. The combined proposal totals 13.00 crowns per share, below the 14.50 crowns average total dividend predicted by analysts polled by LSEG.
Volvo described a challenging trading environment for the sector, noting continuing pressure on profits as the industry contends with more than a three-year slump in the United States amid policy and tariff uncertainty and lower freight volumes.
The company updated its market outlook for heavy trucks. For North America it now expects the heavy truck market to be roughly flat year-on-year at 265,000 units, revised up from a slightly weaker forecast of 250,000 units issued in October. For Europe it raised its October projection to 305,000 units from an earlier 295,000.
"Over the last couple of months we have seen a stabilisation in several of our markets and in some cases even a slight improvement," CEO Martin Lundstedt said in a statement. "However, there are uncertainties, not least when it comes to geopolitical developments, which could impact demand going forward," he added.
The company reiterated the operating backdrop remains uneven across regions as it balances near-term market stabilization against ongoing geopolitical and policy risks. Currency conversion used in the report was $1 = 8.8028 Swedish crowns.
Contextual note: The firm highlighted both stabilisation in some markets and the continued potential for downside from geopolitical or policy shifts, underscoring the mixed signals facing truckmakers and freight-dependent sectors.