Volvo Cars has said it expects profitability to improve in the second half of 2026, notwithstanding higher raw material costs and a steeper-than-anticipated downturn in China.
The Geely-owned manufacturer’s second quarter figures showed Skr5bn ($517.6m) in targeted full-year cost savings had been delivered, six months earlier than planned
Quarterly revenue came in at Skr77.67bn, down from Skr93.49bn in the same period of 2025, a figure that included a Skr4bn one-off positive effect. Net income for the quarter was Skr417m, compared with a net loss of Skr8.10bn a year earlier. Operating income (EBIT) stood at Skr826m, against a loss of Skr9.95bn in Q2 2025.
Fully electric vehicles made up 25% of sales, up from 21% a year earlier, while electrified models – including plug-in hybrids – accounted for 52%, up from 44%. Overall volumes fell 5.6% year-on-year (YoY) in the quarter, although they rose compared with the first quarter of 2026. The carmaker noted that the US market had begun to stabilise after a prolonged decline, with growth recorded in both May and June.