Volvo Cars' stock price soared by 28%. Kepler Cheuvreux analyst Alexandre Raverdy noted that Volvo Cars released a strong third-quarter report that "far exceeded market expectations," with its revenue, profit margin, and cash flow all performing better than anticipated. He added that the Swedish car manufacturer’s revenue surpassed the average forecast by 4%, while its 7.4% operating profit margin and free cash flow also exceeded predictions. “Permitted income, currency impacts, and cost efficiency more than compensated for the effects of declining sales and an unfavorable pricing mix,” he stated. Furthermore, the performance included a one-time boost from partial reversals of restructuring provisions, but even excluding this factor, its operating profit and margin were still well above average expectations.

Volvo Cars, which is controlled by China's Zhejiang Geely Holding Group, reported a rise in net profit for the third quarter, attributing it to cost savings that offset the impact of declining sales. However, the automaker noted that it continues to face multiple challenges, including tariffs and unfavorable market conditions.

On Thursday, the company disclosed a net profit of SEK 5.195 billion (approximately USD 552 million) for the third quarter, up from SEK 4.21 billion in the same period last year. This marks a return to profitability after the company faced a net loss in the second quarter due to substantial restructuring and impairment costs.

Revenue fell from SEK 92.78 billion to SEK 86.44 billion, reflecting a drop in vehicle sales. Analysts surveyed by FactSet had previously estimated revenue to be SEK 81.33 billion. Earlier this month, the company stated that after six consecutive months of decline, its vehicle sales rebounded in September.

Excluding joint ventures and associates, the company’s EBITDA increased by 10% to SEK 6.3 billion.