Shares of this automotive company have enjoyed a remarkable rally, soaring up to 41% at intraday highs. Here’s the reason.
Shares of this automotive company listed on the Stockholm Stock Exchange (Nasdaq Stockholm) enjoyed a spectacular rally today, Thursday, October 23, 2025. We’re talking about Sweden’s Volvo, which saw its stock soar as much as 41%, marking its best trading day on record.
Owned by China’s Zhejiang Geely Holding Group, Volvo’s shares are soaring in the wake of the release of its third-quarter 2025 results, which proved better than expected.
Volvo posts surging profits as shares rally on Nasdaq Stockholm
In the period between July and September, the car company actually posted operating income of SEK 6.4 billion, well above analysts’ forecasts and well above the SEK 5.8 billion earned in the same quarter of 2024. EBIT margin came in at 7.4% for the period, well above the 6.2% recorded in the third quarter of last year.
Volvo Cars’ results were supported primarily by the Swedish group’s ongoing cost-reduction program valued at SEK 18 billion, as well as the impact of several extraordinary items.
CEO commentary on earnings and forward guidance
Volvo Cars CEO Håkan Samuelsson commented on Volvo’s financials:
"In a challenging market, we delivered solid results in the third quarter, and our cost-cutting and cash management actions are paying off."
CEO Samuelsson noted that "in September, we returned to modest sales growth," adding that "we are now ramping up production and sales of our battery electric vehicles (BEVs)."
The Volvo Cars CEO continued, emphasizing that "we are fully on track to launch the new EX60 in the largest and most competitive EV segment in January."
Looking ahead, Volvo announced that it expects additional benefits from ongoing cost-cutting measures in the final quarter of the year. At the same time, the automaker warned that the near-term outlook is becoming increasingly challenging, citing persistent macroeconomic challenges, intense pricing pressure, and the impact of U.S. tariffs reinstated under the Trump administration.
Not so positive news has come from the global automotive sector in recent hours, particularly from electric car giant Tesla, founded and managed by Elon Musk, which just released its financial results. However, the reasons for the stock’s decline go beyond the quarterly results.
Original article published on Money.it Italy 2025-10-23 13:17:30. Original title: Questo titolo del settore auto sta schizzando oggi del 40%
