Volvo Car (VOLCAR) Pre-close call summary

Executive summary

• Global macroeconomic conditions remain mixed in Q1 2026, with only gradual improvement and limited visibility across key regions.

• Retail sales volumes declined 19% year-over-year for January and February, with FX headwinds and higher discounts impacting revenues.

• Growth for the year is expected to come in H2, driven by ramp-up and launch of new EV models, particularly the EX60.

Trading performance and revenue trends

• Retail sales dropped 16% in January and 22% in February, totaling a 19% decline so far in Q1.

• FX movements, notably a stronger SEK and weaker USD, continue to pressure revenues.

• Higher discounts from Q4 2025 are expected to negatively affect Q1 2026 revenues.

Profitability and margins

• Gross margins will be negatively impacted by higher discounts and tariffs introduced in 2025.

• Depreciation and amortization are increasing due to new product launches.