Volvo Cars' Q3 sales hit record highs in Stockholm, beating all expectations.

(Il Sole 24 Ore Radiocor) - Volvo Cars soars on the Stockholm Stock Exchange after reporting a significantly better-than-expected third quarter. Shares of the Swedish automaker, controlled by China's Geely, have soared more than 40% .

Volvo Cars' third-quarter revenue decreased 6.9% to SEK 86.4 billion, beating analysts' average forecast of SEK 83.5 billion. Sales totaled 160,514 vehicles in the quarter, a 7% decline compared to the same period in 2024. EBITDA rose to SEK 12.1 billion (from SEK 10.4 billion), compared to the expected SEK 7.7 billion, with an EBITDA margin of 14% (from 11.2%). Operating profit reached SEK 6.4 billion (from SEK 5.8 billion), with a margin of 7.4% (from 6.3%). Adjusted operating profit amounted to SEK 5.9 billion (from SEK 5.8 billion), with a margin of 6.8% (from 6.3%). Pre-tax profit amounted to 6.2 billion (up from 6.1 billion) and net profit was 4.5 billion (up from 4.4 billion). Cash flow from operating activities amounted to 2.7 billion kronor (up from 9.2 billion), while cash flow from investing activities was -7.1 billion (up from -9.6 billion).

"In a challenging market, we delivered solid results in the third quarter, and our cost-cutting and cash flow-improving measures are paying off," said President and CEO Häkan Samuelsson , quoted in a statement. "We returned to modest sales growth in September and are now accelerating the launch of our battery-electric vehicles. We are fully prepared for the highly anticipated launch of the EX60 in January, in the largest and most popular electric car segment," the CEO added, while noting that "despite the positive aspects of the third quarter, we face several challenges , such as continued price competition and the effects of tariffs." However, "the new customs agreement between the United States and the European Union provides clearer conditions and lower tariffs for imports into the EU," the automaker's head noted.

The company expects positive contributions from its cost-cutting and cash flow improvement program in the fourth quarter, as well as sustained demand for its XC90 and XC60 plug-in hybrid models. Volvo Cars also states that it is "finalizing major investments in a new product architecture. Subsequently, the company's investments will decrease significantly, while maintaining strict capital discipline in profitable investments." Samuelsson, who had led Volvo Cars for over a decade, was recalled this year to help with the turnaround . He has since appointed a new chief financial officer, announced 3,000 job cuts, withdrawn his profit forecast, and slowed investment. According to analysts at Handelsbanken , the improved results are largely due to the new management team. “When Hakan returned as CEO, we believe he took a far-sighted view, shifting the group’s focus from growth and market share to cash flow and profitability,” they said, adding that the results “were largely generated internally by the operations of the management team, which did not receive much help from the market.”