Recent developments highlight Autoliv's Q2 2026 financial results, operational updates, and market positioning.

• Autoliv reported Q2 2026 net sales of $2.803 billion, a 3.3% increase year-over-year, with 1.0% organic sales growth outperforming global light vehicle production trends, especially in Asia [N1].
• Adjusted operating margin for Q2 2026 was 9.6%, supported by cost reduction activities despite raw material inflation and tariff impacts [N1].
• Diluted EPS for Q2 2026 was $1.35, representing a 38% decrease compared to the prior year period [N1].
• The company announced the planned discontinuation of manufacturing operations in Türkiye by mid-2028, with restructuring charges of approximately $142 million and expected annual pre-tax savings of $40 million starting 2027 [S2].
• Operating cash flow improved to $434 million in Q2 2026, with free operating cash flow more than doubling to $340 million, supporting dividends and share repurchases [N1].
• Autoliv's sales to Chinese OEMs grew over 40%, with Chinese OEMs accounting for 55% of sales in China, up from 40% a year ago, and sales in India grew over 35% [S2].
• The company continues to manage geopolitical risks, tariffs, and supply chain volatility, including hostilities in the Persian Gulf region [S2].

Autoliv demonstrates resilience through organic sales growth outpacing global light vehicle production, particularly in high-growth Asian markets. The company maintains strong adjusted operating margins and cash flow generation, enabling shareholder returns via dividends and share repurchases. Strategic initiatives such as manufacturing footprint optimization and cost reduction programs support profitability despite raw material inflation and geopolitical challenges. Continued growth with Chinese OEMs and expanding market share in India highlight growth opportunities within its core automotive safety segment.

Autoliv faces risks from raw material price inflation, geopolitical tensions, and tariff impacts that pressure profitability. Supply chain volatility and customer call-off unpredictability may affect production efficiency and margins. The planned discontinuation of manufacturing operations in Türkiye involves significant restructuring charges and workforce reductions, which could disrupt operations. Uncertainties in global economic conditions and trade policies may adversely impact demand and cost structures, challenging the company's ability to sustain growth and profitability levels.

Autoliv's moat is supported by its specialized product portfolio in automotive safety systems, long-standing relationships with global OEMs, and geographic diversification. Its scale and technical expertise in safety modules and components create barriers to entry. The company's ability to negotiate tariff compensations and execute cost reduction initiatives further supports its competitive position. Strategic manufacturing footprint optimization aims to enhance operational sustainability and cost competitiveness.

• Raw Material Inflation and Tariffs: Rising raw material costs and tariffs negatively impact profitability, with partial mitigation through cost reductions and customer compensation, but uncertainty remains regarding future tariff recovery levels.
• Geopolitical and Supply Chain Risks: Ongoing geopolitical tensions, including hostilities in the Persian Gulf, create uncertainty affecting supply chains, commodity prices, and customer demand, potentially disrupting operations.
• Manufacturing Footprint Changes: The planned discontinuation of manufacturing in Türkiye involves restructuring charges and workforce impacts, which may affect operational continuity and cost structures during the transition.

• Autoliv, Inc. is a Delaware corporation with principal executive offices in Stockholm, Sweden, operating as a holding company with two main subsidiaries: Autoliv AB and Autoliv ASP, Inc.
• The company supplies automotive safety systems including airbags (passenger, driver, side, curtain), seatbelts, steering wheels, and pedestrian protection systems.
• Autoliv's common stock trades on the NYSE under the ticker ALV; Swedish Depositary Receipts trade on Nasdaq Stockholm under ALIV SDB.
• As of June 30, 2026, Autoliv reported cash and cash equivalents of $377 million and current assets of approximately $4.01 billion, with current liabilities of about $3.90 billion, resulting in a current ratio of 1.03 and a cash ratio of 0.1.
• For Q2 2026, net sales were $2.803 billion, a 3.3% increase year-over-year, with 1.0% organic sales growth outperforming global light vehicle production (LVP) trends, especially in Asia.
• Adjusted operating margin for Q2 2026 was 9.6%, with operating margin at 6.8%.
• Diluted earnings per share for Q2 2026 was $1.35, representing a 38% decrease compared to the prior year period.
• The company is executing a manufacturing footprint optimization, including discontinuing operations in Türkiye by mid-2028, with restructuring charges of approximately $142 million and expected annual pre-tax savings of $40 million starting 2027.
• Autoliv's leverage ratio improved to 1.2x in Q2 2026 despite share repurchases of $200 million.
• The company faces raw material price inflation and geopolitical risks, including tariffs impacting profitability, with customer compensation mitigating most tariff costs.
• Autoliv's sales to Chinese OEMs grew over 40%, with Chinese OEMs accounting for 55% of sales in China, up from 40% a year ago.
• The company continues to manage supply chain volatility and geopolitical uncertainties, including hostilities in the Persian Gulf region.
• Operating cash flow for Q2 2026 improved to $434 million, with free operating cash flow more than doubling to $340 million.
• The company paid a dividend of $0.87 per share and repurchased 1.65 million shares in Q2 2026.
• Return on capital employed (ROCE) was 17.9% and adjusted ROCE was 24.9% for Q2 2026.
• Autoliv's filings, including 10-K and 10-Q reports, are publicly available on its corporate website and the SEC EDGAR system.