Volvo Car AB Revises Financial Targets for 2026

Investing.com — Volvo (OTC:VLVLY) Car AB (ST:VOLCARb) has revised its financial targets for 2026, aiming for a lower EBIT margin of 7-8% due to increased complexities.

While the company still expects to outperform the premium car market, it has reduced its revenue growth expectations.

The expected improvement in free cash flow is anticipated to follow from the current investment phase and contribute to profitability.

This adjustment in business objectives is matched by updated electrification targets from Volvo Cars.

The company is now targeting that 50% to 60% of its global sales will come from electrified vehicles, encompassing both plug-in hybrids and fully electric models, by 2025.

By 2030, Volvo Cars expects that electrified vehicles will represent 90% to 100% of its global sales, with a limited provision for mild hybrid models if needed.

“The sharpened business ambitions we announce today further reinforce our commitment to drive value as a business, while remaining true to our purpose,” said Jim Rowan, chief executive of Volvo Cars.