Volvo Company Profits Fall Less Than Expected as EV Sales Surge 12%

Volvo Cars Q1 operating profit fell 17% to SEK 1.6B, but beat consensus by 60% as EV sales surged. The Silicon Review reports on Swedish automaker's resilience amid US tariffs, China rivalry, and the EX60-driven recovery.

Volvo Company Profits delivered a stronger-than-expected first-quarter performance on Wednesday, with operating profit falling 17% to SEK 1.6 billion ($172 million) . While revenue dropped 12.4% to SEK 72.6 billion amid an 11% decline in retail sales to 153,300 units, the result comfortably exceeded Bloomberg's consensus forecast of SEK 990 million.

"We continue to strengthen the areas we can control," said CEO Håkan Samuelsson, noting that Volvo Company Profits beat expectations by 60%. The company's fully electric car sales share rose to a class-leading 24%, up from 19% a year ago, while electrified vehicles (including plug-in hybrids) reached 47% of total sales. BEV sales grew for six consecutive months, driven by the EX30, EX40, and EC40 models.

Headwinds remained significant. The Swedish automaker, majority-owned by China's Geely Holding, cited US tariffs, intense competition in China, and a stronger Swedish crown as margin pressures . CEO Håkan Samuelsson noted that while Europe showed stable sales with a record quarter in the UK, U.S. performance was "weaker than anticipated," and China faced "intense competition, both in terms of pricing and new product launches." 

Volvo is betting on the new EX60 electric SUV to drive a second-half recovery. Unveiled in January, the model has seen strong early demand in Europe, prompting production ramp-up at the Torslanda plant in Sweden. However, management cautioned that Q2 profitability will be impacted by continued headwinds and the production start of the EX60. The company reiterated its 2026 target of returning to year-on-year volume growth and significantly improving free cash flow.

As Volvo Company Profits beat expectations by 60% while navigating tariffs, China rivalry, and a strong crown, The Silicon Review examines whether the EX60 can power the Swedish automaker's recovery and if its class-leading EV share is enough to shield it from a brutal global price war.