Volvo Cars Reports Q3 2025 Profit Rise Amid Falling Sales, Expands China, US Production

Volvo Cars reported a mixed financial performance in the third quarter of 2025, with revenue declining to SEK 86.4 billion from SEK 92.8 billion a year earlier, largely due to lower wholesale volumes and currency effects from a stronger Swedish krona. Despite the revenue drop, operating profit increased to SEK 6.4 billion and net profit edged higher to SEK 4.5 billion, supported by cost-cutting measures including an 18-billion-kronor program and workforce reductions. The company highlighted ongoing challenges from a shrinking premium car market and intense competition in the fully electric vehicle segment, although new product launches such as the EX30, EX90, and the XC70 SUV are expected to drive growth, particularly in China and Europe. Volvo also announced strategic moves including collaboration with Polestar on the Polestar 7 and production expansion in Charleston, South Carolina. The company has ceased providing financial guidance for 2025 and 2026 due to market uncertainties but remains optimistic about sales recovery and cost program benefits. Structural changes in the executive team and a focus on regional empowerment aim to support profitable growth amid a difficult market environment.