Volvo Car (VOLCAR) Pre-close call summary

Executive summary

• Macroeconomic conditions remain mixed globally, with only gradual improvement and limited visibility in key regions for Q1 2026.

• Consumer confidence in the Euro area is stabilized but subdued, while U.S. sentiment has improved modestly but remains historically soft.

• China shows uneven recovery, with retail sales up 2.8% and exports up 19.2% year-on-year in early 2026.

Trading performance and revenue trends

• Retail sales volumes declined by 19% in Q1 so far, with January down 16% and February down 22%.

• FX remains a headwind due to a stronger SEK and weaker USD compared to last year.

• Higher discounts from Q4 2025 are impacting Q1 2026 revenues.

• Premium auto segment is forecasted to contract globally by 0.9% in 2026, with the U.S. down 3.0%, Europe down 0.8%, and China down 2.0%.

Profitability and margins

• Q1 gross margins are negatively affected by higher discounts from Q4 2025 and tariffs introduced in 2025.

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

• Cost and cash program effects from 2025 will impact Q1 2026 EBIT margin.