Volvo Cars Q2 2026: executing in a very challenging environment
Volvo Cars today released its results for the second quarter of 2026, highlighted by the delivery of SEK 5 billion in targeted full-year cost savings six months ahead of schedule.
- Q2 revenue was SEK 77.7 bn (SEK 93.5 bn in Q2 2025, including SEK 4.0 bn one-off)
- Q2 operating income was SEK 0.8 bn (SEK -10.0 bn in Q2 2025)
- Q2 EBIT margin was 1.1 per cent (-10.6 per cent in Q2 2025)
- Q2 basic earnings per share were SEK 0.42 (SEK -2.53 in Q2 2025)
- Q2 fully electric car sales share at 25 per cent (21 per cent in Q2 2025)
- Q2 electrified car sales share at 52 per cent (44 per cent in Q2 2025)
- Q2 free cash flow of SEK -5.2 billion (SEK 4.2 billion in Q2 2025)
Volvo Cars today released its results for the second quarter of 2026, highlighted by the delivery of SEK 5 billion in targeted full-year cost savings six months ahead of schedule. The company reported a group operating income (EBIT) of SEK 0.8 billion and EBIT margin of 1.1 per cent for the quarter.
The result demonstrates Volvo Cars’ strength in electric cars, a solid sales performance in Europe and its ability to successfully execute on its cost actions. However, the result also reflects a very tough external and competitive environment, which resulted in lower revenues and profitability due to sales mix and pricing effects.
The second quarter was marked by a considerable weakening of the China market for both Volvo Cars and the entire car industry. Global uncertainty because of the ongoing Middle East conflict also increased. However, Volvo Cars saw several underlying developments which give it confidence for the quarters ahead. More details about Volvo Cars’ performance can be found in the second quarter 2026 financial report.
“In this very challenging external environment, we made progress on our strategic actions,” said Håkan Samuelsson, president and CEO. “This gives us the momentum and confidence that the second half of the year will improve compared to the first six months.”
Signs of US recovery, strong BEV sales in Europe
After several months of sales decline, the US market is showing signs of recovery and Volvo Cars recorded two consecutive months of growth in May and June. The company expects this recovery to continue in the second half of the year, as the negative effects from the withdrawal of incentives on electrified cars lessens.
In Europe, Volvo Cars’ biggest market, the company’s performance was resilient despite increased competition and a weaker pricing environment. It recorded a continued strong performance of its fully electric cars (BEVs), with a 23 per cent increase versus last year, including Türkiye.
The company also saw good demand for the EX30, now fully produced in Belgium, as well as an all-time high order pace for the EX90. It started production of the new, EX60 in Sweden in April and made the first customer deliveries earlier this month.
Continued progress on cost and cash
Volvo Cars also continued to make strong progress on its cost and cash actions. Despite increasing raw material prices, the company has already delivered SEK 5 bn in indirect and variable cost savings this year, six months ahead of time.
This is on top of the SEK 8 bn in savings on spending it delivered in 2025. These savings have been made possible because of structural changes in the company, including a reduced headcount of approximately 3,000 positions versus H1 2025.
Earlier this week, Volvo Cars announced a new Memorandum of Understanding with the Belgian and Flemish governments to make its manufacturing plant in the city of Ghent more competitive. This will allow the company to secure increased utilisation of the facility, including possible opportunities to use the plant for contract assembly of cars of other brands.
While volumes for the second quarter declined 5.6 per cent compared to last year, they improved sequentially from the first quarter of 2026. Revenues came in at SEK 77.7 bn, but comparability was affected by SEK 4.0 bn in positive one-off effects in Q2 2025.
Free cash flow for the quarter ended up at an expected SEK -5.2 billion, mainly because of inventory build-up related to the production start of EX60.
Looking ahead
Volvo Cars expects significantly stronger sales during the second half of the year compared to the first half, on the back of growth in Europe, a continued recovery in the US and a challenging China market. The company expects a strong positive free cash flow in the late second half of the year, ending the year approximately at break even.
After summer, Volvo Cars will reveal two exciting new models that will further strengthen its electrified offer. Soon after, on September 17 during its Strategy Update, the company will share the next phase in its strategic journey towards becoming the leading premium electric car brand, including the most ambitious product plan in its history and its approach to regionalisation.
Note to editors
The company will host a livestream on Volvo Cars’ Q2 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 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.
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) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 17-07-2026 07:00 CET.
