Volkswagen (VOWG_p.DE): Stable quarter - ex China obviously.

Research evidence excerpt

Volkswagen (VOWG_p.DE): Stable quarter - ex China obviously.

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14 Jul 2026 11:44:00 ET │ 12 pages

Volkswagen (VOWG_p.DE)

Stable quarter - ex China obviously.

CITI'S TAKE

BuyVW hosted a detailed Q2 26 pre-close group call yesterday, after last

week's delivery data and new management 2030 strategic plans. Our take Price (14 Jul 26 14:54) €71.06

- as previously - is that VW management is doing an excellent job in the Target price €94.00

face of intense headwinds (outside management control) in China, in Expected share price return 32.3%

Europe, and in the US. For Q2 26 to be "within the 4.0%-5.5% guidance Expected dividend yield 6.3%

range" in these market conditions looks a very solid performance, Expected total return 38.6%

supported by solid sustained ex-China sales, up 10% QoQ. We view VW's

Market Cap €36,135M proposed strategic changes as a further positive, although union

US$41,326M opposition may dilute any outcome. However, investors will likely await

any negotiation outcome, and or trough in EBIT margins, even at this

extreme low valuation. Buy rated.

Harald C HendrikseAC

Q2 26 "in the range", supported by 10% QoQ delivery growth - Although VW global +44-2075-0858-10

deliveries were down 8% yoy, with China down a remarkable 37%, deliveries ex harald.hendrikse@citi.com

China were up 3% yoy, and, more importantly, were up 10% QoQ. Compared with Ross MacDonald

the 3.3% EBIT margin (€2.4bn) in Q1 (4.3% ex exceptionals), the incremental 153k +44-20-7986-7547

units translates into ~€5.8bn sequential core revenues, or ~€1.4bn incremental ross.macdonald@citi.com

EBIT just from the volume effect. Slower sales at Porsche and Audi, and the BEV mix

Soumava Banerjee

increase likely offset, with continued price pressure, and cost pressures further

+44-20-7986-4126