Volvo Cars Q4 Pofit Rises, Backs Outlook; Stops Further Funding To Polestar; Stock Climbs

(RTTNews) - Shares of Volvo Cars AB (VLVOF) were gaining more than 21 percent on Thursday in Sweden after the Swedish luxury auto major reported higher profit in its fourth quarter wih increased revenues.

Looking ahead, the company expects 2024 to be another big year as it continues to boost its product portfolio and accelerate its transformation towards becoming a fully electric car maker by 2030.

The company also maintained its ambition to report an EBIT margin above 8 percent for 2026, and expected revenues between 550 billion Swedish kronor to 600 billion kronor.

Further, the company said it is evaluating a potential adjustment to its shareholding in Polestar, including a distribution of shares to shareholders. This may result in Geely Sweden Holdings becoming a significant new shareholder.

Volvo Cars will no longer provide further funding to Polestar. Volvo Cars will, however, extend the repayment period for the existing convertible loan by 18 months to the end of 2028.

Geely will continue to provide full operational and financial support to Polestar going forward.

In the fourth quarter, basic earnings per share was 1.04 kronor, up from 0.82 krona last year.

Operating income was 5.4 billion kronor, higher than last year's 3.4 billion kronor. EBIT margin was 4.9 percent, up from 3.3 percent last year.

Revenue increased to 109.4 billion kronor from prior year's 105.2 billion kronor.

Fully electric car sales share in the quarter was at 16 percent, down from last year's 18 percent.

In Stockholm, Volvo Car shares were trading at 33.12 kronor, up 21.23 percent.

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