The AB Volvo Group announced its first quarter 2025 earnings. Volvo Penta, its marine segment, saw net sales decrease by 3% from the year-ago quarter to SEK$5 billion ($467.5 million). The sector’s operating margin amounted to 18.3%, down from 19.1% in the prior period.
In its report, Martin Lundstedt, Volvo president and CEO, said, “In the fast-changing geopolitical landscape, it is too early to assess the full implications from the imposed tariffs. However, we have strong regional value chains and global capabilities. In the short term, we therefore work actively with our regional value chains to adapt flows, production capacity and commercial terms to mitigate the effects from tariffs and their subsequent impact on demand.”
The company reported that in its marine leisure market, demand continued to be slow, while there was good sales traction with its recently introduced IPS Professional Platform in the yacht segment that went into serial production.
In the marine segment, net order intake increased by 35% to 12,234 units with strong demand in the power generation segment, while deliveries decreased by 17% to 8,700 units. Net sales decreased by 3%. Also, when adjusted for currency movements, the decrease was 3%, of which sales of engines decreased by 5% and sales of services increased by 4%. Both adjusted and reported operating income amounted to SEK 915 M ($95 million), corresponding to an operating margin of 18.3%.
“Earnings were negatively impacted by lower engine volumes, which were partly offset by a positive product and market mix, price realization and lower selling and administrative expenses,” the report stated.
