The Volvo Group recently reported its second quarter 2026 earnings. Data shows that in the second quarter of 2026, Volvo Group net sales increased by 3% to SEK 126.3 billion (compared to SEK 122.9 billion in the same period last year). Organic sales increased 7%. Adjusted operating profit of SEK 14.783 billion (year-on-year 13.484 billion) and adjusted operating margin of 11.7% (year-on-year 11.0%). In the second quarter of 2026, the negative impact of SEK 1.305 billion was excluded from adjusted operating profit; in the second quarter of 2025, the negative impact of SEK 3.523 billion was excluded. The reported operating profit was SEK 13.478 billion (vs. 9.961 billion in the same period last year) and the operating margin was 10.7% (vs. 8.1% in the same period last year). Compared to the second quarter of 2025, the positive impact of exchange rate fluctuations on operating profit totalled SEK 491 million. Earnings per share were SEK 5.10 (compared to SEK 3.64 in the same period last year). Cash flows from operating activities in the Industrial Operations segment amounted to SEK 5,837 million (compared to SEK 2,948 million in the same period last year). The return on capital employed in the Industrial Operations segment was 26.8% (vs. 25.7% in the same period last year). In Europe, the largest single market for Volvo, Bev sales rose 23% year-on-year (including Turkey) amid fierce price competition. The EX30 Belgian factory has achieved stable mass production and a record number of EX90 orders. The new EX60 put into production in Sweden in April has also started customer delivery in July, and the competitiveness of the electrified product matrix has continued to strengthen. After months of declining sales in the US market, May and June saw sequential quarter-on-quarter growth. Volvo judged that the recovery trend in the North American market will continue in the second half of the year as the negative effects of the decline in electric vehicle subsidies gradually dissipate. In terms of the Chinese market, the overall Chinese automobile consumption market was weak in the second quarter, and Volvo's sales in China were under pressure at the same time, superimposing global geopolitical uncertainty, which became the core external factor of the performance pressure in the quarter. Electrification continues to be the core highlight of Volvo's downside to the industry, and the product structure continues to be optimized: 1. In the second quarter, global sales of pure electric vehicles accounted for 25%, an increase of 4 percentage points from 2025; 2. The overall sales of all electric vehicles including plug-in models increased to 52%, an increase of 8 percentage points year-on-year. The pace of brand electrification transformation continues to be faster than the industry average. At the same time, Volvo signed a memorandum of cooperation with the Flemish government in Belgium to optimize the capacity utilization rate of the Ghent factory. In the future, Volvo may undertake foundry business of other brands and further dilute the manufacturing cost of electric vehicles. In view of the operating trend in the second half of 2026, Volvo gives clear expectations: 1. Sales expectations: relying on the stable performance of Europe and the continuous recovery of the United States, the overall sales volume in the second half of the year will be significantly better than that in the first half of the year, and the Chinese market will still maintain a difficult trend; 2. Cash flow targets: It is expected to achieve a basic balance of cash flow at the end of the year, and free cash flow will turn positive in the second half of the year; 3. New car layout: After the summer, two new electric models will be launched to expand the electrified gasification product camp; On September 17, a strategic conference will be held to announce the most ambitious product planning and regional development strategy in the history of the brand, which will comprehensively impact the top position of the high-end pure-electricity track. (Compiler/AutoHome graduated).