--- title: "08:12 ETAutoliv: Financial Report April - June 2026" type: "News" locale: "en" url: "https://longbridge.com/en/news/293034786.md" description: "Autoliv reported Q2 2026 net sales of $2,803 million, up 3.3% year-over-year, with organic growth of 1.0%. Adjusted operating margin reached 9.6%, while diluted EPS fell 38% to $1.35 due to restructuring costs in Türkiye. The company announced the discontinuation of manufacturing operations in Türkiye and signed new strategic agreements with Chinese OEMs Great Wall Motor and XPENG. Operating cash flow improved significantly to $434 million, and the leverage ratio decreased to 1.2x." datetime: "2026-07-17T12:14:08.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293034786.md) - [en](https://longbridge.com/en/news/293034786.md) - [zh-HK](https://longbridge.com/zh-HK/news/293034786.md) --- # 08:12 ETAutoliv: Financial Report April - June 2026 Q2 2026: Positive momentum continued in second quarter , /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.\*For Non-GAAP measures see enclosed reconciliation tables. **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 income1) 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 margin1) 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 - diluted1) 2.43 2.21 10 % 4.49 4.36 2.9 % Operating cash flow 434 277 57 % 359 355 1.1 % Return on capital employed2) 17.9 % 23.8 % (5.8) pp 20.3 % 24.8 % (4.5) pp Adjusted return on capital employed1,2) 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 % 1) Excluding effects from capacity alignments and antitrust related matters. Non-GAAP measure, see reconciliation table. 2) Annualized operating income and income from equity method investments, relative to average capital employed. **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 pleased that our cash flow improved in line with our expectations, resulting in record operating cash flow for a second quarter, and supporting our ambitious shareholder return strategy. Our leverage ratio improved to 1.2x, despite repurchasing around 1.65 million shares, equal to $200 million, in the quarter. In line with our ambition to ensure long-term competitiveness and align production capacity with market demand, we continue to optimize our footprint. In the quarter, we announced that we will discontinue manufacturing operations in Türkiye. We continued to manage geopolitical developments successfully in the quarter, limiting the effects of tariffs, supply chain challenges and raw material price increases. The business environment remains uncertain but our current best estimate for the remainder of the year is to reiterate our full year 2026 guidance of about unchanged organic sales growth, adjusted operating margin of around 10.5-11% and operating cash flow of around 1.2 billion. This is based on the assumption that LVP will decline by around 2.5%. Customer compensations and other mitigation initiatives are expected to have limited impact in Q3, but significantly greater contribution in Q4. Therefore, we expect third quarter adjusted operating margin to be around the first half 2026 level, with a significant improvement in Q4. Based on our full year guidance, we continue to expect strong cash flow for the year, which supports our ambition to provide attractive shareholder returns, including share repurchases of $300-500 million in 2026. **Next Report** Autoliv intends to publish the quarterly earnings report for the third quarter of 2026 on Friday, October 23, 2026. **Inquiries: Investors and Analysts** Anders Trapp Vice President Investor Relations Tel +46 (0) 709 578 171 Henrik Kaar Director Investor Relations Tel +46 (0) 709 578 114 **Inquiries: Media** Gabriella Etemad Senior Vice President Communications Tel +46 (0) 70 612 6424 Autoliv, Inc. is obliged to make this information public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the VP of Investor Relations set out above, at 12.00 CET on July 17, 2026. This information was brought to you by Cision http://news.cision.com https://news.cision.com/autoliv/r/financial-report-april---june-2026,c4375674 The following files are available for download: https://mb.cision.com/Main/751/4375674/4197566.pdf The full report (PDF) SOURCE Autoliv ### Related Stocks - [ALV.US](https://longbridge.com/en/quote/ALV.US.md) - [02333.HK](https://longbridge.com/en/quote/02333.HK.md) - [601633.CN](https://longbridge.com/en/quote/601633.CN.md) - [SPGI.US](https://longbridge.com/en/quote/SPGI.US.md) - [XPEV.US](https://longbridge.com/en/quote/XPEV.US.md) - [09868.HK](https://longbridge.com/en/quote/09868.HK.md) - [82333.HK](https://longbridge.com/en/quote/82333.HK.md) ## Related News & Research - [Great Wall Motor Reports Higher July Output and Strong Overseas, NEV Growth](https://longbridge.com/en/news/294606641.md) - [GWM's H10 boxy SUV set to launch on August 5](https://longbridge.com/en/news/294522874.md) - [GWM Wey opens pre-orders for V8X hybrid SUV with 402-km electric range](https://longbridge.com/en/news/294188344.md) - [Autoliv (ALV) Signs China Deals On A Narrative That Says It May Still Be Undervalued](https://longbridge.com/en/news/292912226.md) - [ICBC Turkey Bank Share Trading Shifted to Single-Price Auction After Circuit Breaker](https://longbridge.com/en/news/294516076.md)