Volvo Cars reports record core operating profit of SEK 8.2 billion in Q2 2024
- Q2 operating profit (excl. JVs and associates) was
SEK 8.2 bn , up 28 per cent vs Q2 2023 - Q2 operating profit was 8.0 bn SEK, up 60 per cent vs Q2 2023
- Q2 EBIT margin (excl. JVs and associates) was 8.1 per cent, vs 6.3 per cent in Q2 2023
- Q2 EBIT margin was 7.9 per cent, vs 4.9 per cent in Q2 2023
- Q2 revenue was 101.5 bn SEK, vs
102.2 bn SEK in Q2 2023 - Q2 basic earnings per share was 1.79 SEK, vs
1.12 SEK in Q2 2023 - Q2 electrified share of sales at 48 per cent, vs 39 per cent in Q2 2023
- Q2 fully electric car sales share at 26 per cent, vs 16 per cent in Q2 2023
The corresponding core EBIT margin reached a record high of 8.1 per cent, versus 6.3 per cent in the same period last year. This improvement in the underlying profitability was a result of the company's focus on pricing discipline, internal cost control and sustained growth in sales.
During the quarter, global retail sales rose by 15 per cent year-on-year to 205,400 cars. This was driven by the performance of the company's electrified cars – both plug-in hybrids and electric cars – sales of which grew by 43 per cent in the second quarter, versus the same period last year.
48 per cent of
The EX30 has proved popular with customers in
Revenue for the second quarter came in at
"We delivered a strong second quarter performance in 2024 with record underlying profitability, demonstrating our ability to create value despite a complex geopolitical and economic environment," said
"Our brand and values around safety and sustainability, as well as our unique technology approach, continue to resonate strongly with customers," added
A balanced portfolio
2024 is a milestone year for Volvo Cars. Following the rollout of the EM90 MPV and the ramp-up of the EX30, the first customers will take place behind the wheel of
The EX30, EM90 and EX90 are clear examples of where Volvo Cars is going, as it continues its journey towards full electrification. Together with its plug-in and mild hybrid cars, these EV models provide Volvo Cars with a balanced portfolio that serves as a clear bridge to an all-electric future.
This transition will not be a linear development. Many consumers are not yet able to go fully electric, particularly in areas with low infrastructure development or because of the early withdrawal of incentives by governments. These factors make
Volvo Cars continues to invest across the breadth of its product range, both in new models and ongoing improvements to existing ones. During its Capital Markets Day in September, Volvo Cars will reveal more details on its technological roadmap as well as forthcoming models and updates.
Looking ahead
Yet like all global companies, Volvo Cars operates in a complex geopolitical environment that impacts trade and tests supply chain resilience. In the short term, potential tariffs from the EU commission affecting EVs from
However, as the company previously announced, it will start producing the EX30 in its Ghent,
Once the EU investigation concludes later this year, following the member state votes and potential issuance of the definitive tariffs, Volvo Cars will have a final and clear overview of how tariffs will impact it.
Volvo Cars has continued to grow responsibly, safeguarding value. Supported by its newly launched cars, it expects to considerably increase the share of fully electric cars versus 2023. However, the company expects the macroeconomic and geopolitical uncertainties to remain. For 2024, Volvo Cars expects retail sales to grow by 12-15 per cent, provided there are no major disruptions.
Macroeconomic and geopolitically complex headwinds are the inescapable business realities of today, and despite these many challenges, Volvo Cars is positioned for further growth. Its operational fundamentals are strong, it is well positioned for continued future growth and the company still expects cash flow to be neutral for the full year 2024 and 2025.
From 2026 onwards, Volvo Cars expects to deliver strong cash flows as the scale of investments declines and it starts to reap the long-term benefits of its strategy with higher revenue and profitability.
This disclosure contains information that
For further information please contact:
Volvo Cars Media Relations
+46 31-59 65 25
media@volvocars.com
Volvo Cars Investor Relations
+46 31-793 94 00
investors@volvocars.com
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