Volvo’s Q2 Profit Drops Sharply
(MENAFN) Swedish automobile manufacturer Volvo reported a sharp downturn in its second-quarter operating earnings for 2025, showing a 63.75% year-on-year reduction, based on financial disclosures made public on Thursday.
The firm’s operating income—excluding elements considered non-comparable—decreased to 2.9 billion Swedish kronor (approximately $297.1 million), a notable drop from 8 billion kronor (about $818.75 million) posted during the same timeframe in the previous year.
Total sales for the quarter also experienced a decline, shrinking by 7.8% to 93.5 billion kronor (roughly $9.6 billion) compared to 101.5 billion kronor (around $10.4 billion) in Q2 of 2024.
Even though both earnings and revenue figures fell, the company’s financial outcome exceeded analysts’ projections for the quarter. Following the earnings report, Volvo’s stock climbed over 10% by 0800GMT.
The results were published as the vehicle producer confronts a 25% tariff imposed by the United States.
"Demand remains under pressure from the macroeconomic environment, tariff-related uncertainties and tougher competition," Volvo noted in its official statement.
In response to these pressures, the carmaker plans to ramp up local output of its popular XC60 SUV at its Charleston, South Carolina facility.
This step is intended to both optimize the use of the U.S.-based factory and minimize the impact of new import duties.
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