Sweden's Volvo Cars Q2 revenue falls amid tough competitive enviroment

Volvo Car AB

17/07/2026 06:12

Overview
Sweden-based automaker's Q2 revenue declined yr/yr amid tough market and pricing effects
Q2 EBIT margin improved to 1.1% from -10.6% a year earlier
Company delivered SEK 5 bln in cost savings six months ahead of schedule

Outlook
Volvo Cars expects significantly stronger sales in H2 2026 versus H1 2026
Company anticipates strong positive free cash flow in late H2, ending year about break even
Volvo Cars to reveal two new models after summer to strengthen electrified offer

Result Drivers
CHALLENGING MARKET - Lower revenue and profitability driven by tough external and competitive environment, including a weaker sales mix and pricing, especially in China
ELECTRIC VEHICLE SALES - Fully electric car sales share rose to 25%, with strong performance in Europe and good demand for new models

Company press release: ID:nWkr88SNzH

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
SEK 77.70 bln
 
Q2 Basic EPS
 
SEK 0.42
 
Q2 EBIT
 
SEK 800 mln
 
Q2 EBIT Margin
 
1.10%
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 9 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the auto & truck manufacturers peer group is "buy."
Wall Street's median 12-month price target for Volvo Car AB is SEK21.00, about 0.7% below its July 16 closing price of SEK21.15
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)