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Volvo Cars’ Cost Drive Delivers Q3 Profit Beat, Shares Surge 40%

Rapid savings lifted margins despite weaker sales, tariff pressure, price competition.

Overview

  • Group EBIT reached SEK 6.4 billion with a 7.4% EBIT margin on revenue of SEK 86.4 billion for Q3 2025.
  • Operating profit before restructuring was SEK 5.9 billion versus SEK 5.8 billion a year earlier, and gross margin rose to 24.4% from 17.7% in Q2.
  • Retail sales fell 7% to 160,514 vehicles, with fully electric models at 22% of sales and electrified models at 45%.
  • An SEK 18 billion cost-and-cash program delivered ahead of plan, with a 3,000-role redundancy process set to conclude in Q4 as management guides to further benefits.
  • The stock jumped about 40% intraday after the beat, as Volvo flagged ongoing pricing and U.S. tariff headwinds, noting the recent U.S.–EU deal cut certain U.S. car tariffs to 15% from 27.5%.