Geely-owned Polestar has set out plans to broaden its electric vehicle (EV) portfolio with four new models scheduled between 2026 and 2028, as part of its next growth phase. It represents what the Swedish EV manufacturer described as “largest” product expansion in its history. The rollout will begin with the Polestar 5 four-door grand tourer, with deliveries due to start in summer this year. Later this year, in the fourth quarter, the company intends to introduce a new variant of the Polestar 4 SUV to ...

Polestar Automotive (NasdaqGM:PSNY) Update / briefing February 18, 2026 07:00 AM ET Company ParticipantsAnna Gavrilova - Head of Investor RelationsFredrika Klarén - Head of SustainabilityGiacomo Reghelin - Equity Research Senior AssociateMichael Lohscheller - CEOPhilipp Römers - Head of DesignStephanie Johansson - HostNone - Video NarratorConference Call ParticipantsAndres Sheppard - Managing Director and Senior Equity AnalystCamille Obeid - Equity Research AnalystStephanie JohanssonHello, everyone, and wel ...

Core Viewpoint - Polestar has secured a USD 300 million equity investment from Banco Bilbao Vizcaya Argentaria, S.A. and NATIXIS, enhancing its liquidity and balance sheet strength [1][3] Investment Details - Each financial institution is investing USD 150 million, and they have entered into a put option arrangement with Geely Sweden Holdings AB, allowing for an exit path in three years [1] - Geely Sweden Holdings AB will convert approximately USD 300 million of outstanding principal and interest owed by Polestar into equity, pending regulatory approvals [2] - The price per Class A ADS for the investment will be USD 19.34, based on the volume-weighted average price over the last three months [3] Company Background - Polestar is a Swedish electric performance car brand focused on design and sustainability, with operations in 28 markets globally [5] - The company has four models in its lineup and plans to introduce additional models, including the Polestar 7 compact SUV in 2028 [6] Sustainability Commitment - Polestar aims to halve greenhouse gas emissions per vehicle sold by 2030 and achieve climate neutrality across its value chain by 2040, focusing on Climate, Transparency, Circularity, and Inclusion [7]

Group 1: Credit Agreement - Polestar has entered into a credit agreement with a subsidiary of Geely Sweden Holdings AB for a subordinated term loan facility of up to USD 600 million, with the last USD 300 million contingent on lender consent based on Polestar's future liquidity needs [1] Group 2: Company Overview - Polestar is a Swedish electric performance car brand focused on design and innovation, aiming to accelerate the transition to a sustainable future, with its headquarters in Gothenburg, Sweden, and availability in 28 markets globally [2] - The company currently offers four models: Polestar 2, Polestar 3, Polestar 4, and Polestar 5, with future models including the Polestar 7 compact SUV planned for 2028 and the Polestar 6 roadster [3] Group 3: Sustainability Commitment - Polestar is committed to sustainability, aiming to halve greenhouse gas emissions per vehicle sold by 2030 and achieve climate neutrality across its value chain by 2040, with a comprehensive strategy focusing on Climate, Transparency, Circularity, and Inclusion [4]

Financial Data and Key Metrics Changes - Retail sales volume grew by 51% to over 30,000 cars, exceeding the growth target of 30% to 35% for 2025 to 2027 [11][12] - Revenue increased by 56% to $1.4 billion in the first half of 2025, driven by higher sales volume and a growing share of higher-priced models [13][14] - Adjusted gross margin improved to a positive 1.4% from a negative 2.6% a year ago, despite a negative gross margin of 49% due to an impairment expense of $739 million [14][15] - Adjusted EBITDA loss narrowed by 30% to $302 million, reflecting improvements in top-line performance and cost discipline [15] Business Line Data and Key Metrics Changes - Polestar 3 and Polestar 4 accounted for over 50% of total sales volume [11] - Carbon credit sales amounted to $90 million, contributing positively to profitability [13][15] - The company has grown its number of sales points, excluding China, by 40% to 169 [9] Market Data and Key Metrics Changes - Strong performances were noted in Europe, particularly in the UK, Germany, Belgium, and the Nordic region, while the U.S. market faced challenges due to tariffs and policy changes [12] - Europe is now the main regional market, with Polestar present in 17 countries [12] Company Strategy and Development Direction - The company is focused on increasing sales through a transformation of commercial operations, enhancing operating efficiency, and improving cash position [8][9] - The launch of Polestar 5 is anticipated to showcase the brand's capabilities and is set for September 8th at IIA in Munich [6][7] - The company aims to manufacture Polestar 7 in Slovakia, targeting the fast-growing compact SUV segment expected to launch in 2028 [7][8] Management's Comments on Operating Environment and Future Outlook - Management acknowledges significant external headwinds, including tariffs and pricing pressure, impacting profitability [11][14] - Despite challenges, the company expects to continue growing year on year in line with set growth targets [12] - The company will not issue financial guidance at this time but reiterates the target compound annual retail sale volume growth of 30% to 35% over 2025 to 2027 [21] Other Important Information - The company raised $200 million in new equity and secured about $1 billion in new loan facilities [18] - Cash position at the end of June was $719 million, with a focus on improving working capital management [19][38] Q&A Session Summary Question: Demand environment quarter to date and margin decline factors - Management noted that BEV markets are still growing, particularly in Europe, but there are shifts towards lower-priced models [24] - The margin decline was attributed to a negative car line sale mix and increased tariffs impacting cost of goods sold [25][26] Question: Potential reimbursements to contract manufacturing partners - Management stated that they have long-term agreements with partners and are working through any changes without providing specific figures [30] Question: Establishing brand independence from Geely and Volvo - Management emphasized that Polestar has established a strong brand identity and is differentiating itself while utilizing Volvo's service network [31][32] Question: Total liquidity and cash burn expectations - Management confirmed a cash position of $719 million and a cash burn of around $140 million for the first half of 2025, with expectations for improvement in the second half [37][39] Question: U.S. market strategy post-EV tax credit - Management highlighted that 77% of sales are in Europe, with the U.S. representing 8%, and emphasized the need to balance volume and profitability [49][50] Question: Path to EBITDA break-even - Management is assessing external headwinds and working on a new business plan, with no specific guidance provided at this time [54]