Swedish car manufacturer Volvo Car Group (Volvo Cars) posted a small net profit in the second quarter of 2026, whilst seeing a decline in operating profit and revenue due to lower car sales.
According to a press release from Volvo Cars, net profit for April–June stood at 400 million Swedish kronor ($41.4 million), compared with a loss of 8.1 billion kronor for the same period a year earlier. A year ago, the loss was the result of large-scale one-off write-downs.
Operating profit, excluding one-off factors, fell to 800 million kronor in the last quarter from 2.9 billion kronor a year earlier.
Volvo Cars’ revenue for April–June fell by 17 per cent to 77.7 billion kronor. Retail car sales fell by 6 per cent to 171,500 units.
The company’s management forecasts a significant recovery in sales in the second half of the year, as well as a high level of free cash flow, which will bring the full-year figure to around zero.
Volvo Cars shares fell by 7.1% in trading on Friday. Since the start of this year, the company’s market capitalisation has fallen by 36%.