European Majors Report Mixed Q2: ABB and Volvo Group Outperform, Volvo Cars Struggles Amid Macro Headwinds

By / / Breaking News

  • ABB Delivers Strong Q2 Performance Amidst Robust Order Growth
    ABB (ABB) reported better-than-expected Q2 2025 results, driven by strong order growth and improved profit margins. The industrial giant's operational EBITA reached $1.71 billion, surpassing estimates of $1.66 billion, with an impressive EBITA margin of 19.2% against an estimated 18.8%. Orders also significantly exceeded expectations, coming in at $9.79 billion compared to an estimated $8.93 billion. The company anticipates comparable revenue growth in the mid-single-digit range for the full year and at least mid-single-digit growth in the third quarter, reflecting a positive outlook for its factory automation business.

  • Volvo Group Posts Solid Q2 Earnings, While Volvo Cars Faces Headwinds
    Volvo Group (VOLV-B) announced a strong second quarter for 2025, with adjusted operating profit reaching SEK 13.48 billion, outperforming the estimated SEK 13.12 billion. Net sales for the quarter were SEK 122.9 billion, slightly above the SEK 122.06 billion estimate, and the adjusted operating margin stood at 11%. The company maintained its full-year outlook for the China medium/heavy-duty truck market at 710,000 units.

In contrast, Volvo Cars (VOLCAR-B) reported a challenging Q2 2025, posting a loss with a negative EBIT margin of -10.6% and a basic EPS of SEK -2.53. While revenue of SEK 93.5 billion exceeded estimates, adjusted EBIT of SEK 2.9 billion fell short. The company noted that demand remains under pressure from macroeconomic conditions and tariffs. Despite the difficult quarter, Volvo Cars confirmed that its SEK 18 billion turnaround plan is progressing as planned.

  • Novartis Exceeds Sales and EPS Estimates, Nordea Bank Hit by Rate Cuts
    Swiss pharmaceutical giant Novartis (NVS) reported a strong second quarter for 2025, with net sales reaching $14.05 billion, slightly above the $14.04 billion estimate, and core EPS of $2.42, exceeding the $2.34 estimate. Key drug sales were mixed, with Entresto sales at $2.36 billion and Kisqali sales at $1.18 billion surpassing estimates, while Cosentyx sales of $1.63 billion and Tasigna sales of $327 million fell short.

Meanwhile, Nordea Bank Abp (NDA-FI) experienced a decline in income from lending for a fifth consecutive quarter. This downturn was attributed to continued interest-rate cuts by central banks, which dented the bank's second-quarter earnings.

  • Berenberg Lowers Aker BP Target Price Amid Production Concerns
    In the energy sector, Berenberg has lowered its target price for Aker BP (AKRBP.OL) from NOK 225 to NOK 220. The downgrade was prompted by concerns over declining production and high capital spending by the Norwegian oil and gas exploration and production company.

  • European Stocks Anticipate Higher Open
    Looking broadly at the market, European stocks are set to open higher as investors weigh the ongoing discussions around tariffs and recent comments from former President Trump. This sentiment suggests a cautious optimism among traders as they assess geopolitical and economic factors impacting the region.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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