AB Volvo (VOLV_A) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

So welcome this morning to the Volvo Group fourth quarter press conference. Today we'll do as we always do. We will listen to the presentation from our CEO, Martin, and then listen to Mats. And then we'll follow up with a Q&A session. So with that short introduction, I'll hand over to you, Martin. Thank you. Thank you, Johan, for that. Also from my side, welcome. It was very special with the full year also report. And of course also in more detail quarter four. So, maybe now to get started. As you know, we are still in a period with uncertainty in our key regions, and in particular for North and South America. where we have seen a continuation of cautious stance among our truck customers. Having said that, lately in the later part of the quarter and also in the beginning of the year, there are signs of stabilization and somewhat of recovery. And while Europe had a positive volume development in the quarter, volumes in both North and South America were lower in the quarter and are expected to be weak also in the first quarter of 2026. And that is, of course, related to the order intake that we had earlier in 25. But however, when it comes to the market forecast for the full year of 2026, we are revising our market forecast upwards for North America, as we do also for Europe, even if that is more marginal. Despite the many moving parameters, the group had a solid performance in the fourth quarter, with a flat level of sales if you adjust for currency and the divestment of SGLG. and adjusted operating margin of 10.3% and good cash generation. Operationally, we continue to drive what we can impact ourselves, not at least by utilizing our flexibility toolbox to maintain balance between demand and supply, and very important where we are in the cycle to keep inventories at ...