Autoliv: Financial Report April - June 2026

Q2 2026: Positive momentum continued in second quarter STOCKHOLM , July 17, 2026 /PRNewswire/ -- Financial highlights Q2 2026 $2,803 million net sales, increase of 3.3% 1.0% organic sales growth* 6.8% operating margin, 9.6% adj. operating margin* $1.35 diluted EPS, 38% decrease Full year 2026 guidance Around 0% organic sales growth Around 2.5% positive FX impact on net sales Around 10.5-11% adjusted operating margin Around $1.2 billion operating cash flow All change figures in this release compare to the same period of the previous year except when stated otherwise. Key business developments in the second quarter of 2026 Net sales increased organically* by 1.0% , which was 1.3pp higher than the global LVP decrease of 0.3% (S&P Global July 2026) mainly driven by strong performance in Asia. Regional and customer LVP mix is estimated to have impacted sales negatively by about 0.6pp. Our organic sales growth* outperformed LVP significantly in China and in Asia excl. China, underperformed slightly in EMEA and more markedly in Americas. Our strong performance in Asia excl. China was mainly due to India, where we outperformed by 20pp, driven by continued strong market growth in safety content per vehicle, while our China performance was due to more than 40pp outperformance with Chinese OEMs. Underlying profitability remained strong. Operating income decreased substantially due to previously communicated restructuring activities in Türkiye. Adjusted operating income* increased by 7.3%, despite adverse effects from FX and raw material prices, mainly due to well executed direct material cost savings. Operating margin was 6.8% and adjusted operating margin* was 9.6%. ROCE was 17.9% and adjusted ROCE* was 24.9%. Cash flow was the best for a second quarter so far with operating cash flow improving from $277 million to $434 million, mainly driven by strong underlying profitability and a normalization of working capital. Free operating cash flow* more than doubled to $340 million. The leverage ratio* improved to 1.2x. In the quarter, a dividend of $0.87 per share was paid and 1.65 million shares were repurchased and retired. Key Figures (Dollars in millions, except per share data) Q2 2026 Q2 2025 Change 6M 2026 6M 2025 Change Net sales $2,803 $2,714 3.3 % $5,556 $5,292 5.0 % Operating income 192 247 (22) % 429 502 (14) % Adjusted operating income 1) 270 251 7.3 % 515 506 1.7 % Operating margin 6.8 % 9.1 % (2.3)pp 7.7 % 9.5 % (1.8)pp Adjusted operating margin 1) 9.6 % 9.3 % 0.4pp 9.3 % 9.6 % (0.3)pp Earnings per share - diluted 1.35 2.16 (38) % 3.24 4.31 (25) % Adjusted earnings per share - diluted 1) 2.43 2.21 10 % 4.49 4.36 2.9 % Operating cash flow 434 277 57 % 359 355 1.1 % Return on capital employed 2) 17.9 % 23.8 % (5.8)pp 20.3 % 24.8 % (4.5)pp Adjusted return on capital employed 1,2) 24.9 % 24.1 % 0.8pp 24.1 % 25.0 % (0.9)pp Dividends paid (64) (54) 19 % (130) (108) 20 % Share repurchases (200) (51) 293 % (200) (101) 97 % Comments from Mikael Bratt, President & CEO Through focused execution, we maintained the positive momentum from the first quarter. Globally, our sales grew organically more than 1pp faster than global LVP, outgrowing LVP significantly in Asia. Our sales to Chinese OEMs grew by more than 40%, and Chinese OEMs accounted for 55% of our sales in China, compared to 40% a year ago. Our opportunities with Chinese OEMs were further solidified by signing new strategic cooperation agreements with both Great Wall Motor and XPENG. Sales in India continued to grow by more than 35%. Well executed cost reduction activities supported a continued improvement of underlying profitability, with adjusted operating margin increasing to 9.6%. I am please...