STOCKHOLM (dpa-AFX) - Volvo Car AB (VLVOF, VOLCAR.ST), a Swedish maker of luxury vehicles, on Friday posted a net profit for the second quarter, helped by decreased expenses. However, the company registered a drop in revenue.
For the three-month period to June 2026, the company posted a net income of SEK 1.256 billion, or SEK 0.42 per share, compared with a net loss of SEK 7.512 billion, or SEK 2.53 per share in the same period last year. Operating income stood at SEK 826 million as against the prior year's loss of SEK 9.955 billion.
Research and development expenses moved down to SEK 5.370 billion from SEK 12.935 billion, which was an impairment charge for the EX90 and ES90 platform CGU's lifecycle profitability recorded in the second quarter of 2025.
Selling expenses were SEK 5.010 billion, compared with SEK 6.551 billion in the previous year. Administrative expenses stood at SEK 2.247 billion as against last year's SEK 3.100 billion. Cost of sales also moved down to SEK 64.590 billion from SEK 80.903 billion a year ago. Other operating income and expenses were positive SEK 199 million, compared with negative SEK 191 million last year.
Revenue was SEK 77.673 billion, less than SEK 93.492 billion in the previous year. 'The decrease was primarily explained by the underlying wholesale volume, sales mix and pricing, a prior year one-time sale of subscription car portfolios of SEK 3.3 bn as well as foreign exchange rate effects,' the company said.
The Group's retail car sales stood at 171.5K, less than 181.6K vehicles sold a year ago.
Looking ahead, for the second half, Volvo Car expects significantly stronger sales, compared with the first half, helped by growth in Europe, continued recovery in the U.S., and challenging China.
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