Finance
Truckmaker Volvo's Q4 profit falls more than expected, raises dividend
Published by Global Banking and Finance Review
Posted on January 29, 2025
1 min readLast updated: January 27, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on January 29, 2025
1 min readLast updated: January 27, 2026
Volvo reported a larger-than-expected drop in Q4 profit but raised its dividend. The European truck market declined, while North America remained strong.
STOCKHOLM (Reuters) -Swedish truckmaker AB Volvo reported on Wednesday a larger drop than expected in fourth-quarter operating profit but raised its dividend payout.
Operating profit was 14.04 billion crowns ($1.28 billion) against a year-earlier 16.98 billion and a mean forecast in an LSEG poll of analysts of 14.51 billion, on a sales drop of 6%.
Volvo proposed an ordinary dividend for 2024 of 8.00 crowns per share, up from 7.50 crowns for 2023, and an unchanged extra dividend of 10.50 crowns.
"In Q4, the European truck market continued to decline compared with the high levels of 2023 with freight volumes and freight rates having come down from previous peaks," CEO Martin Lundstedt said in a statement.
He said the North American market for vocational trucks remained strong in the quarter, and had bottomed out for the long haul segment.
Volvo repeated a 2025 market forecast from October for 290,000 heavy trucks sold in Europe, and 300,000 in North America.
($1 = 10.9777 Swedish crowns)
(Reporting by Marie Mannes, editing by Anna Ringstrom)
Volvo reported an operating profit of 14.04 billion crowns in Q4, down from 16.98 billion crowns a year earlier.
Volvo proposed an ordinary dividend of 8.00 crowns per share for 2024, an increase from 7.50 crowns for 2023.
The European truck market continued to decline in Q4 compared to the high levels of 2023, with freight volumes and rates decreasing.
Volvo forecasts 290,000 heavy trucks to be sold in Europe and 300,000 in North America by 2025.
The North American market for vocational trucks remained strong in Q4 and had bottomed out for the long haul segment.
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