Pole Position "UBS European & US Autos Daily" Hummel

Research evidence excerpt

Pole Position "UBS European & US Autos Daily" Hummel

Global Research

17 June 2026ab

Pole Position Equities

Europe including UKUBS European & US Autos Daily

Automobiles

Patrick Hummel, CFA

Volvo Cars: Feedback from Q226 pre-close call Analyst

Yesterday, Volvo Cars hosted pre-close calls opened to buy-side investors and sell-side patrick.hummel@ubs.com

analysts. Key notes are available on the company website. Net, most items discussed +41-44-239 52 54

point to a weak Q2 financial performance: David Lesne

Analyst

david.lesne@ubs.com•Volvo Cars delivered retail sales of -9% yoy during April/May and the company

+33-14-888 3034

emphasized wholesale and retail sales should be balanced for the FY

•Higher discounts seen in Q226 vs Q126 Joseph Spak, CFA

•Negative powertrain mix with margin dilutive BEV outperforming non-BEV Analyst

joseph.spak@ubs.com

•Higher freight costs and higher D&A

+1-212-713 3089

Juan Perez-Carrascosa

The more positive comment related to FCF, which should not be impaired by the

inventory built-up seen in Q126, which led to a negative FCF of close to SEK10bn. juan-perez.carrascosa@ubs.com

+34-91-436 9025

Following the debt-to-equity conversion of Polestar, the BV of the holding is now Paul Gong

positive meaning that Volvo will resume recognising Polestar net profit with one quarter Analyst

delay starting Q3. We do not note cover Polestar but note that VA consensus currently paul.gong@ubs.com

forecasts a net loss of -$1.35bn/-$1.1bn in 2026 and 2027, respectively. Volvo Car +852-2971 7868

currently has a stake of 19.9%. On that basis, we estimate the potential impact on Volvo Zehua Jiang

consensus EPS could be c-0.4SEK in 2026 (vs current consensus of SEK2.9) and c-0.7SEK Analyst

in 2027 (vs current consensus of SEK3.9). zehua.jiang@ubs.com

+44-20-7567 0860