Q2 2026 Polestar Automotive Holding UK PLC Earnings Call Transcript
Key Points
- Record first-half retail sales of 30,423 cars, driven by strong demand for the Polestar 4 coupe and expansion of the retail network.
- Operating loss improved by 43% year-over-year, supported by cost discipline, lower headcount, and a favorable model mix shift toward higher-margin Polestar 4.
- Strengthened capital structure through $640 million debt-to-equity conversion by Geely Sweden and Volvo Cars, and extension of a $660 million shareholder loan to 2031.
- Launched the Polestar 4 SUV, which targets the mainstream SUV segment, with over 900 cars already shipped and customer deliveries starting in Q4 2026.
- Expanded retail footprint by 39% year-over-year, adding 24 new sales points and 20 new retail partners, primarily in Europe.
- Polestar 5 received exceptional feedback from journalists, positioning the brand as a halo car and enhancing brand perception.
- US Department of Commerce denied Polestar's application to sell vehicles from model year 2027 onward, leading to a $130 million estimated charge and a halt to new car sales in the US after 2026.
- Adjusted gross margin remained negative at -9% for H1 2026, impacted by pricing pressure, tariffs, and lower carbon credit sales.
- Revenue declined 4% year-over-year to $1.36 billion, with Q2 revenue down 8% due to lower volumes and pricing pressure.
- Cash position decreased to $888 million from $1.159 billion at end of 2025, with operating cash outflow of $850 million in H1 2026.
- Full-year volume guidance was revised down to low-to-mid single-digit growth, reflecting challenging market conditions and portfolio transition.
- US market share fell to 6% of retail sales from 9% a year earlier, and the company will not appeal the BIS decision, limiting future growth in that region.
Good day, and thank you for standing by. Welcome to the Polestar's second quarter and first half 2026 results conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Anna Gavrilova. Please go ahead.
Thank you, operator. Hello, everyone. I'm Anna Gavrilova, Head of Investor Relations at Polestar. Thank you for joining this call covering Polestar's results for the second quarter and the first half of 2026. I'm joined by Michael Lohscheller, Polestar's CEO; and Jean-Francois Mady, Polestar's CFO, who will comment on the performance, and then we will open the floor to analysts' questions.
Before we start, I would like to remind participants that many of our comments today will be considered forward-looking statements under the US federal securities laws and are subject to numerous risks and uncertainties that may cause Polestar's actual results to differ
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