Autoliv, Inc. Earnings Summary — Q2 FY2026

• Net sales grew 3.3% to $2.8 billion, with 1.0% organic growth outperforming a 0.3% decline in global light vehicle production (LVP).
• Adjusted operating margin improved to 9.6% from 9.3% YoY, driven by well-executed direct material cost savings and Asia outperformance.
• GAAP operating income and EPS were significantly impacted by a $90 million restructuring charge related to closing manufacturing operations in Türkiye.
• Autoliv achieved record Q2 operating cash flow of $434 million, supported by a normalization of working capital and improved production efficiency.
• Strong performance in China was driven by 44% organic growth with domestic Chinese OEMs, who now represent 55% of Autoliv's sales in the region.
• The company maintained a proactive shareholder return strategy, repurchasing and retiring 1.65 million shares for $200 million during the quarter.

Management reiterated full-year 2026 guidance, expecting around 0% organic sales growth and an adjusted operating margin of 10.5-11%. Operating cash flow is targeted at approximately $1.2 billion for the full year. Q3 adjusted operating margin is expected to remain near H1 2026 levels (9.3%), with a significant improvement projected for Q4.

Stable

While GAAP earnings were suppressed by restructuring costs in Türkiye, underlying adjusted profitability and record cash generation demonstrate execution strength in a declining global production environment.

The outlook remains cautious due to geopolitical uncertainty and raw material inflation, though Autoliv expects to mitigate most headwinds through internal cost reductions and commercial negotiations. The shift to Chinese OEMs and increased safety content in India are key regional tailwinds.