Volvo Cars Q1 2026: reinforcing strength in a volatile world
Volvo Cars today reports a group operating income (EBIT) of SEK 1.6 billion and EBIT margin of 2.2 per cent for the first quarter of 2026.
- Q1 revenue was SEK 72.6 bn (SEK 82.9 bn in Q1 2025)
- Q1 operating income was SEK 1.6 bn (SEK 1.9 bn in Q1 2025)
- Q1 EBIT margin was 2.2 per cent (2.3 per cent in Q1 2025)
- Q1 basic earnings per share were SEK 0.54 (SEK 0.40 in Q1 2025)
- Q1 fully electric car sales share at 24 per cent (19 per cent in Q1 2025)
- Q1 electrified car sales share at 47 per cent (43 per cent in Q1 2025)
- Q1 free cash flow of SEK -10.0 billion (SEK -6.3 billion in Q1 2025)
Volvo Cars today reports a group operating income (EBIT) of SEK 1.6 billion and EBIT margin of 2.2 per cent for the first quarter of 2026. The quarter reinforces Volvo Cars’ strength in electric cars and its ability to successfully execute its cost and cash actions. The result also reflects an increasingly challenging external environment, such as tariffs, heavy competition, geopolitical tensions and economic uncertainty.
“The first quarter of 2026 shows a divide between what we can control and a very challenging external environment,” says Håkan Samuelsson, Volvo Cars’ CEO. “The areas we can control continued to improve in Q1. Our BEV share increased to a class-leading level and we delivered a strong momentum in our cost and cash actions.”
Although the quarter’s overall sales were down, sales of fully electric cars (BEVs) rose by 12 per cent in the first quarter, taking Volvo Cars’ BEV share of total sales to 24 per cent for the period. This is the highest share among all its premium legacy competitors. Including March, BEV sales have grown for six consecutive months and this performance is only driven by electric models in the 30, 40 and 90 series.
Production of the fully electric EX60 has just started and customer deliveries will begin this summer. The EX60 will significantly increase Volvo Cars’ addressable BEV market and orders continue to exceed expectations. Margins on the ordered cars have so far also surpassed the company’s expectations.
In Europe, Volvo Cars saw solid commercial momentum, including a record quarter in the UK. With a strong BEV volume growth and BEV market share, it is one of the fastest growing and leading premium BEV brands in Europe.
Financially, Volvo Cars delivered continued positive effects from its cost and cash action plan in Q1. The company is on track to reduce an additional SEK 5 billion beyond last year’s savings. Free cash flow came in according to plan at SEK -10.0 bn, due to seasonality and build-up of stock related to the introduction of the EX60. More details about Volvo Cars’ performance can be found in the first-quarter financial report.
Looking ahead
In a continued challenging market, Volvo Cars expects full-year volumes to improve with a strong product offer supported by the EX60. Q2 profitability will be affected by continued headwinds and the EX60 production start and ramp-up. However, the ambition for full year volume growth and cash flow remains.
While Europe is solid, the US and China markets remain challenging. US consumer confidence is under significant pressure and the market is taking longer to recover from the removal of incentives, with sales of electrified cars declining significantly.
In China, Volvo Cars faces tough competition on pricing and new product launches by competitors. However, the company defended its overall market share in China and improved its PHEV share in Q1. The new XC70 long-range PHEV demonstrates the strength of its second-generation plug-ins, helped by a new front-wheel drive variant.
"While the overall market remains challenging, we remain confident in the strength of our long-term strategy,” says Håkan Samuelsson.
Note to editors
CEO Håkan Samuelsson, Chief Financial Officer Fredrik Hansson and Chief Commercial Officer Erik Severinson will host a press conference on Volvo Cars’ Q1 2026 results for media, investors and analysts at 08:00 CEST today. The presentation will be held in English and followed by a Q&A session.
It will be possible to ask questions during the Q&A session following the press conference. 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.
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 29-04-2026 07:00 CET.
