PHOTO COURTESY VOLVO PENTA

The Volvo Group announced its fiscal year 2024 report yesterday. Volvo Penta, the marine and industrial segment, saw a 4% decline in net sales to SEK$19.9 billion ($1.85 billion), driven by lower sales volumes. Volvo Penta had an operating margin of 17.2%.

In its report, Volvo Group said the marine leisure market “experienced a significant downturn, while the marine commercial market showed better resilience.” Despite challenging market conditions, Volvo Penta achieved strong financial performance in 2024, the report said. Both adjusted and reported operating income amounted to SEK$3.4 billion ($322.5 million). Volvo Penta’s deliveries decreased by 20% to 35,651 units.

As a whole, the Volvo Groupʼs net sales decreased 3% when adjusted for currency and amounted to SEK$526.8 billion ($49 billion), with sales of vehicles being 5% lower than in 2023 and sales of services increasing by 4%. The group generated good profits on lower sales volumes with an adjusted operating income of SEK$65.7 billion ($6.1 billion) compared with SEK$78.2 billion ($7.2 billion) in 2023 and an adjusted operating margin of 12.5% compared to 14% in 2023.

“2024 was a year of normalizing market demand as freight and construction activity came down in many regions after a couple of years of very strong growth,” Volvo president and CEO Martin Lundstedt said in a statement. “It was also a year of continued geopolitical turmoil. In these challenging circumstances, the Volvo Group continued to show resilience in earnings on lower volumes after hard work by dedicated colleagues and business partners across the value chain.”