Brief: Volvo Car Sees Headwinds To Profitability In Q2
29/04/2026 06:06
April 29 (Reuters) - Volvo Car AB VOLCARb.ST: VOLVO CARS Q1 EBIT SEK 1,600 MILLION VOLVO CARS Q1 BASIC EPS SEK 0.54 VOLVO CARS Q1 EBIT MARGIN 2.2% VOLVO CARS Q1 REVENUE SEK 72,600 MILLION Q1 OF 2026 SHOWS A DIVIDE BETWEEN WHAT WE CAN CONTROL AND A VERY CHALLENGING EXTERNAL ENVIRONMENT Q1 SALES OF FULLY ELECTRIC CARS (BEVS) ROSE BY 12 PER CENT IN Q1, TAKING VOLVO CARS' BEV SHARE OF TOTAL SALES TO 24 PER CENT FOR PERIOD ON TRACK TO REDUCE AN ADDITIONAL SEK 5 BILLION BEYOND LAST YEAR'S SAVINGS Q1 FREE CASH FLOW CAME IN ACCORDING TO PLAN AT SEK -10.0 BN EXPECTS FULL-YEAR VOLUMES TO IMPROVE WITH A STRONG PRODUCT OFFER SUPPORTED BY EX60 Q2 PROFITABILITY WILL BE AFFECTED BY CONTINUED HEADWINDS AND EX60 PRODUCTION START AND RAMP-UP AMBITION FOR FULL YEAR VOLUME GROWTH AND CASH FLOW REMAINS. Q1 EBIT EXCLUDING. ITEMS AFFECTING COMPARABILITY SEK 1.6 BILLION FOR 2026, VOLVO CARS AIMS TO COME BACK TO VOLUME GROWTH ON A YEAR-ON-YEAR BASIS FOR THE FULL YEAR FOR 2026, VOLVO CARS AIMS TO INCREASE CASH GENERATION WITH FULL YEAR FREE CASH FLOW CLEARLY BETTER THAN WHAT WAS ACHIEVED IN 2025 NEGATIVE EFFECTS FROM SALES MIX AND PRICING, DEPRECIATION AND AMORTISATION AS WELL AS HIGHER US TARIFFS ON IMPORTED GOODS WE SAW SOLID COMMERCIAL MOMENTUM IN EUROPE, OUR LARGEST MARKET. THE US AND CHINA MARKETS REMAIN CHALLENGING. IN CHINA WE FACE TOUGH COMPETITION, BOTH IN TERMS OF PRICING AND NEW PRODUCT LAUNCHES FROM COMPETITORS Source text: ID:nWkrbmvL50 Further company coverage: [VOLCARb.ST] (Gdansk Newsroom) ((gdansk.newsroom@thomsonreuters.com; +48 58 772 0920;))