Volvo Car AB has released its Annual and Sustainability Report for 2025, outlining the company’s financial performance, strategic priorities, and progress toward electrification and sustainability goals.
The report, published on the company’s investor website, provides a comprehensive overview of Volvo Cars’ business performance in 2025, along with its long-term strategy and sustainability initiatives. The sustainability statement has been integrated into the report and prepared in accordance with the European Sustainability Reporting Standards (ESRS).
For the full year 2025, the Volvo Cars reported an adjusted operating income of SEK 12.5 billion, with an adjusted EBIT margin of 3.5 percent. The company also generated free cash flow of SEK 2.4 billion, despite challenging global market conditions.
In terms of sales performance, Volvo Cars delivered 710,000 vehicles worldwide in 2025, compared to 763,400 units in 2024. The company continued to make significant progress in electrification, with electrified vehicles accounting for 46 percent of total sales, the highest share among legacy premium car manufacturers.
The expansion of electrified models played a key role in reducing emissions, enabling the company to achieve a 31 percent reduction in CO₂ emissions per car compared with its 2018 baseline. This allowed Volvo Cars to successfully meet its 2025 target of reducing emissions by 30–35 percent per vehicle.
Despite global economic headwinds during the year, the company said it remains focused on improving operational efficiency, maintaining strict cost control, and strengthening its core business. These measures are aimed at positioning the company for sustainable growth once market conditions improve.
The report highlights Volvo Cars’ continued commitment to sustainability and electrification as key pillars of its long-term strategy in the global automotive industry.
