AB Volvo (publ) (PNK:VOLAF) reported earnings per share of $0.4752 (5.28 Swedish Krona) and revenue of $12.54 billion (138 billion Swedish Krona )
The company’s operating profit dropped to 14.04 billion crowns ($1.28 billion), with a proposed increased ordinary dividend of 8.00 crowns per share for 2024.
Financial ratios indicate a P/E ratio of 10.94, a price-to-sales ratio of 1.05, and a debt-to-equity ratio of 1.40.
AB Volvo, trading under the symbol PNK:VOLAF on the PNK exchange, is a prominent player in the global truck manufacturing industry. The company is known for its production of trucks, buses, and construction equipment. It competes with other major manufacturers like Daimler and Scania. On January 29, 2025,
During the Q4 2024 earnings call, key figures such as CEO Martin Lundstedt and CFO Mats Backman discussed the company’s financial performance. AB Volvo reported earnings per share of $0.4752, just below the estimated $0.4763, Volvo’s revenue of 136 billion crowns exceeded 125.76 billion crowns forecast.
Volvo’s operating profit for the fourth quarter dropped to 14.04 billion crowns ($1.28 billion) from the previous year’s 16.98 billion crowns, as highlighted by LSEG. This decline was below the mean forecast of 14.51 billion crowns. Despite this, Volvo proposed an increased ordinary dividend of 8.00 crowns per share for 2024, up from 7.50 crowns in 2023, maintaining an extra dividend of 10.50 crowns.
CEO Martin Lundstedt pointed out a decline in the European truck market, with reduced freight volumes and rates compared to 2023. However, the North American market for vocational trucks remained strong, and the long haul segment had reached its lowest point. Volvo’s 2025 market forecast anticipates sales of 290,000 heavy trucks in Europe and 300,000 in North America.
Financially, PNK:VOLAF has a price-to-earnings (P/E) ratio of 10.94, indicating how the market values its earnings. The price-to-sales ratio is 1.05, suggesting investors pay $1.05 for every dollar of sales. The enterprise value to sales ratio is 1.39, reflecting the company’s total valuation relative to sales. The debt-to-equity ratio of 1.40 shows the proportion of debt used to finance assets. The current ratio of 1.29 indicates the company’s ability to cover short-term liabilities with short-term assets.
