Volvo Car pulls 2026 guidance as markets deteriorate

(Sharecast News) - Shares in Volvo Cars fell sharply on Friday after the Swedish carmaker scrapped its previous full-year guidance for volumes and cash flow, blaming deteriorating conditions in China and a slower-than-expected recovery in the US.

Volvo said an "increasingly challenging market situation" and worsening near-term outlook had resulted in lower-than-expected sales and a weaker outlook for the year, meaning it would no longer fulfil its previous 2026 volume and cash-flow guidance.

It said the deterioration would also have a "significant negative impact" on third-quarter core earnings and cash flow, on top of previously communicated headwinds from raw-material costs, foreign exchange and higher amortisation and depreciation.

Given the heightened uncertainty, Volvo said it would not provide updated short-term guidance. It will give further details alongside third-quarter results on 23 October.

The shares were down around 4.2% at SEK14.68 in Stockholm in mid-morning trade.

The warning came as the company separately reported a 10.7% year-on-year drop in third-quarter global sales to 141,609 vehicles.

Greater China deliveries slumped 40.6% to 20,284 vehicles amid growing competitive and pricing pressure, while sales in the Americas fell 14% to 30,777. Europe and the rest of the world proved more resilient, with deliveries up 2% to 90,548.

Fully electric vehicle sales rose 28.6% globally and accounted for 32% of total sales, while electrified vehicles, including plug-in hybrids, represented 53%.

Volvo said withdrawing its short-term guidance did not affect its longer-term ambition to generate strong positive cash flow and achieve an 8% EBIT margin.