Stockholm: Swedish carmaker Volvo Cars' shares surged more than 33% on Thursday following the release of their third-quarter financial results, which surpassed market expectations. The company's operating income for the July-September period reached 6.4 billion Swedish kronor ($680.4 million), a significant increase from the previous year's $616 million.

According to Anadolu Agency, Volvo Cars, owned by China's Geely Holding, reported an improved third-quarter earnings before interest and taxes (EBIT) margin of 7.4%, up from 6.2% last year. The company attributed the strong results to various factors, including the positive impact of a $1.9 billion cost-saving program.

Volvo Cars stated that their action plan led to faster-than-expected reductions in variable and indirect costs during the quarter. Despite the positive earnings, the company's third-quarter revenues decreased to $9.1 billion from $9.8 billion in the same period of 2024. Retail sales also declined by 7% to 160,514 cars.

However, the company noted a return to modest retail sales growth in September, driven by strong performances in markets such as the UK, Austria, Trkiye, Canada, Brazil, and Mexico. Despite the solid performance, Volvo acknowledged ongoing challenges in the global economy and a competitive market environment, particularly in the fully electric segment.

Volvo Cars expressed that their performance during the quarter remained under pressure due to a shrinking premium market and intense competition. Nonetheless, the significant surge in share prices reflects investor confidence in the company's strategic direction and ability to navigate a challenging landscape.