Volvo Group sign

Volvo Group, the parent company of industrial engine and marine propulsion specialist Volvo Penta, has revealed the financial results of its fiscal third quarter.

In the third quarter of 2024, Volvo Penta saw a slight decrease in sales but managed to maintain profitability. Despite a challenging market for smaller powerboats, the offshore wind and patrol sectors showed positive developments, helping to stabilise the marine division’s overall performance.

“After a few years of high market levels in Europe and North America, volumes have come down this year,” president and CEO Martin Lundstedt says. “There is some uncertainty about the macroeconomic development in the near term, and this is reflected in our forecasts, with relatively flat markets overall for next year.”

Volvo Penta’s net sales for Q3 2024 amounted to SEK 4.7bn (£343.1m), a decrease of 5 per cent compared to the same period in 2023. Adjusted for currency fluctuations, the decline was only 2 per cent. This decrease was largely driven by lower demand for smaller engines, with net order intake falling by 18 per cent and deliveries decreasing by a similar margin.

Despite the downturn, the company maintained profitability with an adjusted operating income of SEK 831m (£60.7m), reflecting a 5 per cent year-on-year increase. The operating margin improved to 17.7 per cent from 15.9 per cent in Q3 2023, thanks to a favourable product mix and strong price realisation. The increased demand for larger engines, particularly in sectors such as offshore wind, contributed to this improvement. The power generation and off-highway sectors, including mining and agriculture, also contributed positively to the demand for Volvo Penta’s larger engine models.

One of the highlights of Q3 was the launch of the world’s first yacht to pilot Volvo Penta’s helm-to-propeller hybrid-electric package. This innovation, developed in collaboration with Azimut Yachts, is a significant step forward in the company’s sustainability efforts. Volvo Penta is also focusing on increasing the adoption of its Inboard Performance System (IPS) in professional vessels, such as crew transport ships used in offshore wind farms. The first such vessel was launched in Q3 2024​.

These initiatives reflect Volvo Penta’s commitment to driving sustainable solutions in the marine sector, aligning with Volvo Group’s broader goal of achieving net-zero emissions in the coming years. Volvo Penta recently confirmed its new hybrid-electric solutions will begin on a limited scale at the end of 2025 across its heavy-duty range.

Volvo Penta IPS 40 drive

Volvo Penta IPS 40 drive.

Lundstedt highlights the company’s strategic focus on long-term growth, particularly in the transport and infrastructure sectors. “Transport and infrastructure are exciting industries with long-term growth, and we are in a good position to continue to support our customers with products and solutions that drive their productivity and profitability,” he says.

Looking ahead, Volvo Penta‘s focus on larger engines for professional applications, such as offshore wind and power generation, is expected to continue supporting its profitability. Demand for smaller marine engines remains uncertain, but the company says its diversified product range and ongoing innovations in hybrid-electric technologies provide a solid foundation for future growth.

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