Volvo Cars reports Q3 2024 core operating profit of SEK 5.7 billion

Q3 operating profit (excl. JVs and associates) was SEK 5.7 bn, vs SEK 6.1 bn in Q3 2023

Q3 operating profit was 5.8 bn SEK, vs SEK 4.5 bn in Q3 2023

Q3 EBIT margin (excl. JVs and associates) was 6.2 per cent, vs 6.7 per cent in Q3 2023

Q3 EBIT margin was 6.2 per cent, vs 4.8 per cent in Q3 2023

Q3 revenue was 93 bn SEK, vs 92 bn SEK in Q3 2023

Q3 electrified share of sales at 48 per cent, vs 34 per cent in Q3 2023

Q3 fully electric car sales share at 25 per cent, vs 13 per cent in Q3 2023

GOTHENBURG, Sweden, Oct. 23, 2024 /PRNewswire/ -- Volvo Cars today reports a core operating profit (EBIT), excluding joint ventures and associates, of SEK 5.7 billion for the third quarter of 2024, versus SEK 6.1 bn for the same period in 2023.

Gross margins came in at 20.5 per cent for the third quarter, broadly in line with the company's underlying operational gross margins for the first half of 2024. Revenues for the period amounted to SEK 93 billion and the core EBIT margin landed at 6.2 per cent. Free cash flow was around flat at SEK -0.4 billion.

As stated during its Capital Markets Day in September, Volvo Cars aims to outgrow the premium car market* and generate a core EBIT margin of 7-8 per cent as well as strong free cash flows from 2026 onwards. The company is determined to reach its ambitions and has a clear roadmap towards doing so.

However, achieving these ambitions will not be straightforward since the weakness in the market has recently accelerated, a fact also echoed in revised industry forecasts for 2024 and 2025 by third-party analysts. Overall industry demand continues to soften and is now affecting the premium segment.

"Our journey towards 2026 will not be linear, as our industry is facing an increasingly volatile environment," says Jim Rowan, chief executive for Volvo Cars. "Macroeconomic headwinds are intensifying, as is geopolitical complexity. Despite these challenges we demonstrated resilience during the third quarter of 2024, which is reflected in our overall financial performance."

Volvo Cars has grown faster than its premium peers this year. The company's third-quarter sales rose by 3 per cent to 172,849 cars sold, with electrified models (fully electric and plug-in hybrid cars) representing 48 per cent of the total.

Volvo Cars' electrified share was the highest for the premium car industry in Europe. For the first nine months, Volvo Cars sales increased by 10 per cent year-on-year. This gives the company a foundation to outgrow the premium car market in 2024, which is expected to grow by ...