Volvo Cars shares surge 40% after strong Q3 profit beat, on track for best day ever

Shares of Sweden’s Volvo Cars soared as much as 41% on Thursday after the automaker reported a stronger-than-expected third-quarter profit, putting the stock on course for its biggest one-day gain since listing in 2021.

The company, majority-owned by China’s Geely Holding, posted an operating income of 6.4 billion Swedish kronor ($680 million) for the July–September quarter, up from 5.8 billion kronor a year earlier and well above market estimates.

Volvo’s operating margin rose to 7.4% from 6.2% in the same period last year, boosted by ongoing cost-reduction efforts and one-off gains linked to its 18 billion kronor savings programme.

“In a tough market we delivered a solid third-quarter result and our cost and cash actions are delivering,” CEO Håkan Samuelsson said. “We returned to slight sales growth in September and are now ramping up deliveries of our battery electric vehicles.”

He added that the company remains on track for the January launch of the EX60, a key electric SUV model targeting the high-demand mid-size segment.

Volvo Cars said it expects continued benefits from cost-cutting measures in the fourth quarter but warned that the near-term environment remains difficult amid stiff competition and macroeconomic headwinds, including higher tariffs on U.S. imports.

The company’s shares, listed on Nasdaq Stockholm, were last up about 40%, marking their biggest intraday jump since the firm’s debut four years ago.

Volvo, which has been transitioning aggressively towards an all-electric lineup by 2030, has faced margin pressures in recent quarters due to slowing EV demand and pricing competition from Chinese automakers.