Volvo Group reported a decline in sales and profits for 2024, attributing the downturn to weakening truck demand in Europe, inflationary pressures, and geopolitical uncertainties. Despite these challenges, the company remains committed to innovation, sustainability, and business transformation.
Financial Results: Declining Revenue and Operating Income
According to its full-year 2024 earnings report, Volvo recorded net sales of SEK 526.8 billion (€45.98 billion), down from SEK 552.3 billion (€48.20 billion) in 2023. The primary factor behind this decline was a slowdown in truck sales across Europe.
The company’s adjusted operating income also fell, reaching SEK 65.7 billion (€5.73 billion) compared to SEK 78.2 billion (€6.82 billion) in 2023.
For Q4 2024, net sales dropped by 6% to SEK 138.4 billion (€12.08 billion), down from SEK 148 billion (€12.91 billion) in Q4 2023. Adjusted operating income in the quarter also declined to SEK 14.0 billion (€1.22 billion) from SEK 18.5 billion (€1.61 billion) in the same period last year.
The decline was driven by reduced freight and construction activity after years of growth, as well as inflation and global instability impacting demand across key markets.
Strategic Focus: Innovation and Business Optimization
Despite a weaker market, Volvo Group continues to invest heavily in research and development (R&D).
CEO Martin Lundstedt emphasized that 2024 saw significant product launches and high R&D investments, particularly in Q4. Looking ahead, R&D spending in 2025 is expected to stabilize slightly above 2024 levels as Volvo continues to focus on innovation and efficiency.
To strengthen its core business, Volvo Group is streamlining operations and forming new strategic partnerships aimed at accelerating its transition toward sustainable and energy-efficient solutions.
To maintain investor confidence, Volvo announced an ordinary dividend of SEK 8.00 (€0.70) per share along with an extra dividend of SEK 10.50 (€0.92) per share.
Volvo Cars Acquires Full Control of NOVO Energy AB
In a separate announcement, Volvo Cars revealed that it has taken full ownership of NOVO Energy AB by acquiring Northvolt AB’s stake in their joint venture. The company aims to ensure the completion of its electric vehicle (EV) battery factory in Gothenburg, Sweden.
Back in October, Volvo Cars stated that it was seeking a new partner to keep the project on track. While the financial terms of the transaction remain undisclosed, the deal is pending regulatory approval.
Northvolt AB, which has been struggling financially, has been selling off non-core businesses and joint ventures to stabilize its operations. However, the company has entered into a framework agreement with Volvo Cars to explore potential collaborations in North America.
Outlook: Driving Innovation Amid Market Challenges
Despite slowing demand and economic pressures, Volvo Group remains focused on technological advancement and sustainability. By prioritizing R&D, strategic partnerships, and operational efficiency, the company is positioning itself for long-term success in an evolving market.
