Volvo Car slides after pre-close call flags Q2 margin pressure

Volvo Car AB

16/06/2026 12:27

   ** Shares in Volvo Car VOLCARb.ST fall around 5% after pre-close call, with investors reacting to a negative read-through for Q2 profitability versus expectations, according to Bernstein
** The global macro environment has remained challenging through Q2 2026, with continued low visibility across key regions and no clear-based improvement in consumer sentiment, says Volvo Car
** Challenging macro, higher discounts and rising freight and raw material costs, combined with a weaker mix (ICE declining, smaller BEVs gaining), all point to sequential margin pressure in Q2, according to Bernstein
** "Volvo's expectations were always that H1 will be worse than H2 this year, where the launch of the new EX60 is hoped to drive volume growth and better margins," says the brokerage
** "For now things remain tough," it adds
** Volvo's retail sales for April and May showed a 9% volume decline quarter-to-date, with April down 11% and May down 7%
** Bernstein says declines are being led by ICE models (-16%), while BEVs rose 6% YoY, with growth in EX30/EX40 SUVs
** "This mix will likely continue to weigh on margin, and for reference our Q2 retail sales expectation is -9%," it adds
** China remains in double-digit decline territory, while there are "early signs of recovery" in the U.S., says the brokerage
** Today's losses wiped off 3.6 billion Swedish crowns  ($383.32 million) from company's market cap









($1 = 9.3917 Swedish crowns)

 (Reporting by Agnieszka Gosciak-Rabalska and Jesus Calero)
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