ISTANBUL

Swedish car maker Volvo's operating income saw a year-on-year decline of 63.75% in the second quarter of 2025, according to the firm's financial results released Thursday.

The operating profit excluding items affecting comparability fell to 2.9 billion Swedish kronor ($297.1 million) in the second quarter, down from 8 billion kronor ($818.75 million) in the same period of last year.

Volvo's revenues were also down 7.8% year-on-year to 93.5 billion kronor ($9.6 billion), compared to 101.5 billion kronor ($10.4 billion) in the same period of 2024.

Despite the profit and revenue decline, the financial results beat market expectations for the quarter.

After the announcement, Volvo shares rose more than 10% as of 0800GMT.

The finances came in as the automaker faces a 25% tariff from the US.

"Demand remains under pressure from the macroeconomic environment, tariff-related uncertainties and tougher competition," Volvo said in a statement.

The carmaker said that in order to increase the utilization of its Charleston, South Carolina plant in the US and to reduce the effects of import tariffs, it will introduce local production of the best-selling XC60 SUV in the US.

On Monday, the Swedish firm stated that it would face a one-off, non-cash tariff-related impairment charge of 11.4 billion Swedish kronor ($1.19 billion) in the second quarter related to two models, the EX90 and ES90, saying it cannot sell them in the US due to import tariffs.