Volvo AB

Volvo AB maintains a capital structure characterized by significant leverage, with a debt-to-equity ratio of 1.38 and long-term debt totaling SEK 247.0 billion against total equity of SEK 178.4 billion. The balance sheet shows total assets of SEK 648.6 billion and total liabilities of SEK 470.2 billion. Liquidity is assessed as medium, supported by a current ratio of 1.15, though cash and equivalents stand at only SEK 1.7 billion, resulting in a negative net cash position after subtracting total debt.

Profitability metrics indicate strong returns on capital, with a return on equity of 18.43% and a return on assets of 5.07%. The company generated operating income of SEK 48.5 billion and net income of SEK 34.5 billion on revenue of SEK 479.2 billion. Gross profit was SEK 116.9 billion, reflecting a gross margin of approximately 24.4%. These returns suggest efficient capital utilization despite the high leverage profile.

Revenue concentration and segment details are not explicitly broken down in the provided data, but the company’s activity is classified under Industrial Goods with a focus on Heavy Machinery & Vehicles. The geographic exposure and specific segment contributions are not detailed in the available snapshot, limiting granular analysis of revenue mix.

Growth trajectory analysis is constrained by the absence of historical period data in the input. The latest normalized period shows revenue of SEK 479.2 billion and net income of SEK 34.5 billion. Without multi-year trend data, year-over-year growth rates cannot be calculated from the provided information.

Risk assessment highlights medium liquidity risk and medium dilution risk. Key flags indicate that net cash is negative after subtracting total debt, and source documents mention dilution or offering risk. The company’s free cash flow was negative SEK 7.0 billion, driven by capital expenditures of SEK 26.1 billion against operating cash flow of SEK 45.6 billion.

Recent observations include analyst estimates with a mean price target of 343.45 SEK and a median of 358.00 SEK. The mean recommendation is 2.38, with 4 strong buys, 8 buys, and 7 holds. No specific filing, news, or transcript observations were provided in the input data.

Analysts maintain a buy recommendation with a mean price target of 343.45 SEK, signaling positive market sentiment.

The company generated 49.8 billion SEK in net income in 2024, reflecting strong absolute earnings power.

Cash conversion of 1.39 surpasses the 1.03 cohort median, highlighting effective translation of earnings into cash.

Revenue declined 9.0% year-over-year to 479.2 billion SEK in 2026, signaling weakening top-line growth momentum.

The debt-to-equity ratio of 1.38 places Volvo in the bottom quartile, reflecting high leverage risk.

High credit risk and medium liquidity risk flags suggest potential challenges in meeting financial obligations.

Revenue kr 110.77B, −9,1% YoY; Operating income −19,5% YoY.

• ▍Revenue kr 110.77B, −9,1% YoY
• ▍Operating income −19,5% YoY
• ▍Net income −15,9% YoY
• ▍Free cash flow −18,6% YoY
• ▍Net margin 7.5%

Revenue kr 123.80B, −10,6% YoY; Operating income −9,1% YoY.

• ▍Revenue kr 123.80B, −10,6% YoY
• ▍Operating income −9,1% YoY
• ▍Net income −10,5% YoY
• ▍Free cash flow −29,1% YoY
• ▍Net margin 7.8%

Revenue kr 110.69B, −5,4% YoY; Operating income −11,1% YoY.

• ▍Revenue kr 110.69B, −5,4% YoY
• ▍Operating income −11,1% YoY
• ▍Net income −24,7% YoY
• ▍Free cash flow −34,6% YoY
• ▍Net margin 6.8%

Revenue kr 122.90B, −12,4% YoY; Operating income −51,0% YoY.

• ▍Revenue kr 122.90B, −12,4% YoY
• ▍Operating income −51,0% YoY
• ▍Net income −52,3% YoY
• ▍Free cash flow −58,2% YoY
• ▍Net margin 6.0%

Revenue kr 121.79B; Operating income kr 13.26B.

• ▍Revenue kr 121.79B
• ▍Operating income kr 13.26B
• ▍Net margin 8.1%

Revenue kr 138.41B; Operating income kr 14.04B.

• ▍Revenue kr 138.41B
• ▍Operating income kr 14.04B
• ▍Net margin 7.8%

Revenue kr 116.98B; Operating income kr 14.07B.

• ▍Revenue kr 116.98B
• ▍Operating income kr 14.07B
• ▍Net margin 8.6%

Revenue kr 140.25B; Operating income kr 20.34B.

• ▍Revenue kr 140.25B
• ▍Operating income kr 20.34B
• ▍Net margin 11.1%

Revenue kr 479.18B, −9,0% YoY; Operating income −27,2% YoY.

• ▍Revenue kr 479.18B, −9,0% YoY
• ▍Operating income −27,2% YoY
• ▍Net income −31,6% YoY
• ▍Free cash flow −141,3% YoY
• ▍Net margin 7.2%

Revenue kr 526.82B, −4,6% YoY; Operating income −1,0% YoY.

• ▍Revenue kr 526.82B, −4,6% YoY
• ▍Operating income −1,0% YoY
• ▍Net income +1,1% YoY
• ▍Free cash flow −27,5% YoY
• ▍Net margin 9.6%

Revenue kr 552.25B, +16,6% YoY; Operating income +47,2% YoY.

• ▍Revenue kr 552.25B, +16,6% YoY
• ▍Operating income +47,2% YoY
• ▍Net income +52,3% YoY
• ▍Free cash flow +28 871,6% YoY
• ▍Net margin 9.0%

Revenue kr 473.48B, +27,2% YoY; Operating income +6,1% YoY.

• ▍Revenue kr 473.48B, +27,2% YoY
• ▍Operating income +6,1% YoY
• ▍Net income −0,2% YoY
• ▍Free cash flow +100,4% YoY
• ▍Net margin 6.9%