Key facts
- Volvo Cars reported a Q2 operating loss of SEK -10.0 billion.
- The loss was significantly impacted by a SEK 11.4 billion non-cash impairment charge for the EX90 and ES90 platforms.
- A restructuring charge of SEK 1.4 billion also affected the results.
- Excluding these one-off items, the operating profit was SEK 2.9 billion with a 3.1% margin.
- Retail sales fell 12% year-over-year to 181,600 cars in the quarter.
- The company's turnaround plan is progressing as scheduled.
Volvo Cars reported a second-quarter operating loss of SEK -10.0 billion, a significant decline from the previous year, primarily due to a SEK 11.4 billion impairment charge related to market circumstances affecting its EX90 and ES90 electric vehicle platforms, as well as import tariffs. The company also incurred a SEK 1.4 billion restructuring charge linked to a reduction of 3,000 employees.
Excluding these one-off items, Volvo Cars posted an operating profit of SEK 2.9 billion with a margin of 3.1%. Revenue for the quarter was SEK 93.5 billion, down from SEK 101.5 billion in the same period last year. Retail sales decreased by 12% to 181,600 cars.
Despite the challenging market conditions, including macroeconomic pressures, tariff uncertainties, and increased competition, President and CEO Håkan Samuelsson stated that the company's SEK 18 billion cost and cash turnaround plan is fully on track. He noted improvements in free cash flow compared to the first quarter and expressed confidence in the plan's positive effects, which are expected to fully materialize in 2026. The plan focuses on profitability, electrification, and regionalization, with actions including cost reductions, utilization of Geely group synergies for procurement, and reduced investment pace.
Separately, truckmaker Volvo Group reported a rise in second-quarter operating profit that roughly matched expectations, with truck order intake increasing by 33% from a year earlier.