- Q3 revenue was SEK 86.4 bn (SEK 92.8 bn in Q3 2024)
- Q3 operating income was SEK 6.4 bn (SEK 5.8 bn in Q3 2024)
- Q3 operating income (excl. JVs and associates) was SEK 6.3 bn (SEK 5.7 bn in Q3 2024)
- Q3 EBIT margin was 7.4 per cent (6.2 per cent in Q3 2024)
- Q3 EBIT margin (excl. JVs and associates) was 7.2 per cent (6.2 per cent in Q3 2024)
- Q3 basic earnings per share were 1.75 SEK (1.41 SEK in Q3 2024)
- Q3 fully electric car sales share at 22 per cent (25 per cent in Q3 2024)
- Q3 electrified car sales share at 45 per cent (48 per cent in Q3 2024)
Volvo Cars today reports a group operating income (EBIT) of SEK 6.4 billion and an EBIT margin of 7.4 per cent for the third quarter of 2025. The result was supported by certain one-off items, but a large contributor to the improvement was the effect of the company's ongoing SEK 18 billion cost and cash action plan.
The action plan delivered faster than planned reductions in variable and indirect costs during the quarter. Part of these reductions were related to the company's redundancy process, which will be completed in the fourth quarter. This will result in a total reduction of 3,000 positions, giving Volvo Cars a leaner and more agile organisation.
In terms of retail sales, the company sold 160,514 cars in the third quarter, down 7 per cent versus the same period in 2024. But the company returned to a modest retail sales growth in September, boosted by all-time high performances in the UK and other markets such as Austria, Türkiye, Canada, Brazil and Mexico.
Despite a solid performance, the third quarter results continue to reflect the ongoing turbulence in the global economy and a challenging market environment. Throughout the quarter, Volvo Cars' performance continued to be under pressure due to a shrinking total premium market and tough competition, especially in the fully electric segment.
Revenues for the quarter came in at SEK 86.4 billion, while free cash flow remained negative, mainly due to seasonal factors such as vacation shutdowns at the company's manufacturing plants. Other factors affecting cash flow were ongoing investments in the upcoming fully electric Volvo EX60 mid-size SUV, which will be launched in January 2026; construction of the Kosice plant in Slovakia; as well as the ramp-up of ES90 production in Chengdu and EX30 production in Ghent.
"In a tough market we delivered a solid third-quarter result and our cost and cash actions are delivering," said Håkan Samuelsson, chief executive. "We returned to a slight sales growth in September and we are now ramping up sales of our BEV cars. We are fully on track towards the very important January launch of the EX60 in the largest and most popular electric segment."
More details about the company's performance can be found in Volvo Cars' full financial report.
Good progress on regionalisation and electrification
Volvo Cars' renewed focus on regionalisation is well underway, as the company continues to empower its regions with more operational responsibility to tailor products and marketing to their market requirements.
In China, Volvo Cars successfully launched the XC70 next-generation long-range hybrid in August. The encouraging customer response demonstrates that this car clearly meets demand from Chinese customers.
In the US, the company announced that it will add a new hybrid model to its South Carolina manufacturing plant before the end of this decade. This new model comes in addition to plans for local production of the best-selling XC60. Together, these cars will improve capacity utilisation at the South Carolina plant to better serve the US market.
Volvo Cars continues to move towards an electric future, and it is steadily expanding its portfolio of fully electric cars. The ES90 is now on the road, production of the EX90 flagship SUV continues to ramp up after comprehensive software updates, and the Ghent plant in Belgium is increasing EX30 production in the EU.
The company is also gearing up for the reveal of the all-new, born-electric EX60 SUV in January 2026 and the start of production after that. Final road testing is currently underway and the EX60 will be a crucial entry for Volvo Cars in the largest and most popular electric segment. This car will strengthen the company's position in the fully electric market and underpin its growth plans in the mid-size SUV segment.
Looking ahead
In the short term, Volvo Cars expects the market to be increasingly challenging, as macroeconomic challenges will remain, including continued price competition and the effects of US import tariffs. However, the recent tariff agreement between the US and EU offers much-needed clarity and also lowers tariffs for imports to the EU.
Volvo Cars expects more positive effects from its cost and cash programme in the fourth quarter. It is ramping up sales of its fully electric cars, while demand for the best-selling XC90 and XC60 plug-in hybrids remains strong, providing an attractive bridge for customers that are not yet ready for full electrification.
The company is also finalising the major investments in its new product architecture. Thereafter Volvo Cars' investments will reduce significantly and the company will maintain strict capital discipline within affordable frameworks, while the new EX60 will offer valuable growth next year in an important growing segment.
Note to editors
Håkan Samuelsson and chief financial officer Fredrik Hansson will host a livestream on Volvo Cars' Q3 2025 results for media, investors and analysts at 08:00 CET today. The presentation will be held in English and followed by a Q&A session.
Link for livestream
It will be possible to ask questions during the Q&A session following the main presentation. To participate, you can either use the chat function online to type your question, or you can call in. To call in, participants need to register via the link below and will then receive the dial-in details and individual PIN.
Link to register
This disclosure contains information that Volvo Car AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 23-10-2025 07:00 CET.
For further information please contact:
Volvo Cars Media Relations
+46 31-59 65 25
media@volvocars.com
Volvo Cars Investor Relations
+46 31-793 94 00
investors@volvocars.com
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Volvo Cars in 2024
For the full year 2024, Volvo Car Group recorded a record-breaking core operating profit of SEK 27 billion. Revenue in 2024 amounted to an all-time high of SEK 400.2 billion, while global sales reached a record 763,389 cars.
About Volvo Car Group
Volvo Cars was founded in 1927. Today, it is one of the most well-known and respected car brands in the world with sales to customers in more than 100 countries. Volvo Cars is listed on the Nasdaq Stockholm exchange, where it is traded under the ticker "VOLCAR B".
"For life. To give people the freedom to move in a personal, sustainable and safe way." This purpose is reflected in Volvo Cars' ambition to become a fully electric car maker and in its commitment to an ongoing reduction of its carbon footprint, with the ambition to achieve net-zero greenhouse gas emissions by 2040.
As of December 2024, Volvo Cars employed approximately 42,600 full-time employees. Volvo Cars' head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars' production plants are located in Gothenburg, Ghent (Belgium), South Carolina (US), Chengdu, Daqing and Taizhou (China). The company also has R&D and design centres in Gothenburg and Shanghai (China).