Volvo Group (VLVLY, Financial) has reported its financial results for the first quarter, revealing a revenue of SEK 121.8 billion, a 7% decline from the previous year's SEK 131.2 billion when adjusted for currency movements. The downturn in net sales primarily resulted from a 9% decrease in vehicle sales compared to the same period in 2024, coupled with concerns over tariffs impacting global trade.
Despite the challenges in vehicle sales, Volvo's service sector showed resilience. Adjusted for the divestment of Arquus and currency effects, the service business grew by 2% compared to the first quarter of 2024. Over the past twelve months, service revenues reached SEK 129.2 billion.
The decrease in vehicle volumes dented Volvo's profitability, yet the company still achieved an operating income of SEK 13.3 billion, down from SEK 18.2 billion the previous year. This resulted in a margin of 10.9% for the quarter.
