AUTOLIV INC
For the period ended Jun 30, 2026. Filed Jul 17, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 17, 2026
ALV$123.47-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-17.
0001193125-26-160472
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-17.
0001193125-26-306974
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 134 previous paragraphs and 174 current paragraphs.
67 unchanged; 44 reworded; 53 added; 23 removed; 0 previous and 10 current paragraphs rearranged.
Tables are not compared: 19 previous and 24 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (53)
Current report
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%.
Current report
Well executed cost reduction activities supported a continued improvement of underlying profitability, with adjusted operating margin (Non-GAAP measure, see reconciliation table below) increasing to 9.6%.
Current report
We are 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 (Non-GAAP measure, see reconciliation table below) improved to 1.2x, despite repurchasing around 1.65 million shares, equal to $200 million, in the quarter.
Current report
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.
Current report
We continued to manage geopolitical developments successfully in the quarter, limiting the effects of tariffs, supply chain challenges and raw material price increases.
Current report
Customer compensations and other mitigation initiatives are expected to have limited impact in the third quarter, but significantly greater contribution in the fourth quarter. Therefore, we expect third quarter adjusted operating margin to be around the first half 2026 level, with a significant improvement in the fourth quarter.
Current report
$2,803 million net sales, increase of 3.3%
Current report
1.0%organic sales growth (non-GAAP measure, see reconciliation table below)
Current report
6.8% operating margin,9.6% adj. operating margin (non-GAAP measure, see reconciliation table below)
Current report
$1.35 diluted EPS,38% decrease
Current report
Underlying profitability remained strong. Operating income decreased substantially due to previously communicated restructuring activities in Türkiye. Adjusted operating income (non-GAAP measure, see reconciliation table below) increased by 7.3%, despite adverse effects from foreign currency exchange rates and raw material prices, mainly due to well executed direct material cost savings. Operating margin was 6.8% and adjusted operating margin (non-GAAP measure, see reconciliation table below) was 9.6%. ROCE was 17.9% and adjusted ROCE (non-GAAP measure, see reconciliation table below) was 24.9%.
Current report
Cash flow was the best for a second quarter so farwith 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 (non-GAAP measure, see reconciliation table below) more than doubled to $340 million. The leverage ratio (non-GAAP measure, see reconciliation table below) 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.
Current report
Autoliv to discontinue manufacturing operations in Türkiye
Current report
On May 8, 2026, Autoliv announced an update to its strategy to align production capacity with future EMEA market requirements. As part of this strategy, Autoliv will gradually discontinue its manufacturing operations in Türkiye, which include the production of steering wheels, airbags, and seatbelts, to continue optimizing its manufacturing footprint and ensure long-term competitiveness and operational sustainability. This discontinuation is expected to affect approximately 2,200 employees. Production in Türkiye will be moved to Autoliv's other existing facilities in the EMEA region. The complete closure is anticipated in the first half of 2028. The Company expects to record restructuring charges of approximately $142 million in total, of which $90 million was recognized in the second quarter of 2026. Cash outflow is expected to be approximately $129 million, with a limited impact on the 2026 cash flow. The Company expects to achieve estimated annual pre-tax savings of $40 million, beginning in 2027, reaching the full run-rate benefit in 2028.
Current report
3)Non-GAAP measure.
Current report
1)Non-GAAP measure.
Current report
Change second quarter of 2026 versus second quarter of 2025
Current report
Gross profit increased by $8 million and gross margin decreased by 0.3pp compared to the prior year. The drivers behind the gross profit improvement were mainly positive foreign currency translation effects and lower costs for materials. This was partly offset by $13 million in costs for a supplier compensation reversal and $9 million in asset impairment related to the restructuring activities in Türkiye.
Current report
S,G&A costs decreased by $7 million compared to the prior year, mainly due to $8 million from revised estimated credit loss reserve and $1 million in lower personnel costs, partly offset by $3 million in negative foreign currency translation effects and higher legal costs. S,G&A costs in relation to sales decreased from 5.4% to 4.9%.
Current report
Other income (expense), net, was negative $56 million, compared to negative $1 million in the same period last year. The $56 million in the second quarter of 2026 consists mainly of around $66 million in capacity alignments related to our restructuring activities in Türkiye partly offset by around $10 million in government income in India.
Current report
Operating income decreased by $55 million compared to the prior year, mainly due to higher capacity alignment costs related to restructuring activities in Türkiye and higher R,D&E, net, costs, partly offset by higher gross profit and lower S,G&A costs as outlined above.
Current report
Adjusted operating income(non-GAAP measure, see reconciliation table below) increased by $18 million compared to the prior year, due to the higher gross profit and lower S,G&A costs as outlined above.
Current report
Financial and non-operating items, net, was a negative $38 million compared to a negative $27 million a year earlier. The cost increase was driven by $12 million in higher costs for non-operating items mainly related to costs associated with restructuring activities in Türkiye.
Current report
six months period ended June 30, 2026 COMPARED WITH six months period ended June 30, 2025
Current report
Consolidated Sales Development
Current report
(dollars in millions)
Current report
1)Effects from currency translations.
Current report
2)Including Corporate sales.
Current report
3)Non-GAAP measure.
Current report
Sales for Seatbelt Products and Other declined organically (non-GAAP measure, see reconciliation table above) by 1.0% in the period. Sales decreased organically (non-GAAP measure) in Americas, China and EMEA while it increased in Asia excluding China.
Current report
Sales by region
Current report
Our global organic sales (non-GAAP measure, see reconciliation table above) increased by 0.9% compared to the global LVP decrease of 1.0% (according to S&P Global, July 2026). The relative outperformance was mainly driven by new product launches. Our organic sales growth outperformed LVP growth by 10pp in China and by 5.8pp in Asia excluding China. We underperformed LVP in EMEA by 1.8pp and by 5.1pp in Americas, impacted mainly by lower top line effect from tariffs, negative mix due to high LVP growth in lower content in South America and a lower content on some replacement models.
Current report
LVP in China declined by 6.0%, with Global OEMs LVP declining by 12% and Chinese OEMs LVP decreased by 3.1%. Autoliv's sales to domestic OEMs increased organically (non-GAAP measure) by around 37% while our sales to global OEMs decreased by around 17%. Chinese OEMs accounted for 51% of our sales in China in the first half year of 2026, compared to 39% a year ago. Our strong sales growth in Asia excluding China was mainly due to 37% organic sales growth in India, reflecting LVP growth but mainly the trend of increased safety content in vehicles in India.
Current report
1)Non-GAAP measure.
Current report
Light Vehicle Production Development
Current report
Source: S&P Global, July 2026.
Current report
Earnings
Current report
2)Net of treasury shares.
Current report
S,G&A costs increased by $9 million compared to the prior year, mainly due to negative foreign currency translation effects and higher personnel costs, partly offset by reversal of estimated credit loss reserve. S,G&A costs in relation to sales decreased from 5.5% to 5.4%.
Current report
R,D&E, net, costs increased by $40 million compared to the prior year, mainly due to lower engineering income, higher personnel costs and negative foreign currency translation effects. R,D&E, net, in relation to sales increased from 3.8% to 4.4%.
Showing the first 40 of 53 passages. Open the source sections for the rest.
Removed paragraphs (23)
Previous report
The first quarter turned out better than we had anticipated, with strong sales in March. Our operational performance exceeded our expectations, with solid productivity improvements, partly supported by reduced call-off volatility. Underlying profitability improved, with gross profit increasing by 10%, although adjusted operating income (Non-GAAP measure, see reconciliation table below) was slightly lower due to temporary lower R,D&E reimbursements and the one-time income in Q1 last year.
Previous report
Our positive trend in Asia continued, with strong growth in India, South Korea and China. In China, we continued to grow faster than LVP, especially with the Chinese OEMs, outperforming by 40pp. In India, we grew sales organically (Non-GAAP measure, see reconciliation table below) by 38%, reflecting mainly the trend of increased safety content in vehicles in India, as well as the continued high level of LVP growth. We continue to expand our production capabilities in India, investing in additional inflator production capacity for future growth.
Previous report
We are pleased that we in the quarter introduced our first airbag for motorcycles, as well as our first wearable airbag solution for motorcycle riders, building on our long term strategy of growing business outside our traditional core business.
Previous report
The quarter was characterized by ongoing and new geopolitical challenges. At this point, it is difficult to fully assess the likely impacts, as the situation remains fluid. We continue to carefully monitor the developments while preparing for various scenarios, including different mitigation strategies.
Previous report
$2,753 million net sales, increaseof 6.8%
Previous report
0.8% organic sales growth (Non-GAAP measure, see reconciliation table below)
Previous report
8.6% operating margin,8.9% adjusted. operating margin (Non-GAAP measure, see reconciliation table below)
Previous report
$1.88 diluted EPS,12% decrease
Previous report
Profitability was strong. Supported by successful execution of cost reductions and positive foreign currency effects, gross profit increased by 10%. Operating income decreased by 6.7% and adjusted operating income (Non-GAAP measure, see reconciliation table below) decreased by 3.9%, impacted by adverse foreign currency translation effects and temporary lower R,D&E reimbursements as well as that Q1 2025 was positively impacted by one-time effects. Operating margin was 8.6% and adjusted operating margin (Non-GAAP measure, see reconciliation table below) was 8.9%. ROCE was 22.2% and adjusted ROCE (Non-GAAP measure, see reconciliation table below) was 22.9%.
Previous report
Operating cash flow was negative $76 million, mainly due to an increase in working capital due to strong sales in March, temporary effects expected to reverse later in the year and the high level of accounts payable at the end of 2025. Free operating cash flow (Non-GAAP measure, see reconciliation table below) thereby decreased to negative $159 million. The leverage ratio (Non-GAAP measure, see reconciliation table below) was unchanged compared to a year ago at 1.3x, below our target limit of 1.5x. In the quarter, a dividend of $0.87 per share was paid.
Previous report
We currently do not expect any material impact from the U.S. Supreme Court's ruling that the International Emergency Economic Powers Act did not authorize the imposition of the tariffs in 2025, as our gross exposure is limited to around $25 million and the net exposure is well below $10 million.
Previous report
3)Non-U.S. GAAP measure.
Previous report
1)Non-U.S. GAAP measure.
Previous report
S,G&A costs increased by $16 million compared to the prior year, mainly due to $10 million in negative foreign currency translation effects and $5 million in higher costs for personnel driven by wage inflation and a non-recurring cost of $4 million. S,G&A costs in relation to sales increased from 5.6% to 5.8%.
Previous report
Other income (expense), net, was negative $9 million, compared to positive $15 million in the same period last year. The positive $15 million in 2025 related mainly to recycled accumulated currency translation differences related to the divestment of our idled operations in Russia while the negative $9 million in 2026 related mainly to restructuring costs in EMEA.
Previous report
First quarter of 2026 development
Previous report
Calculation of “Leverage ratio”
Previous report
On February 19, 2026, Autoliv announced that Mr. Martin Lundstedt, a current member of the Board of Directors, has elected not to stand for re-election. Mr. Lundstedt's service as a director will end at the 2026 Annual Stockholders Meeting.
Previous report
On March 6, 2026, Autoliv announced that its Board of Directors appointed Monika Grama as the new Chief Financial Officer and Executive Vice President, Finance, of the Company. Ms. Grama succeeded Fredrik Westin as of April 1, 2026. Ms. Grama has served as the Vice President, Finance of the Autoliv Europe Middle East and Africa (EMEA) division since 2020. Monika Grama joined Autoliv in 2009 and, prior to her current role, she served as Finance Manager and Managing Director of Autoliv Romania, one of Autoliv's largest production hubs globally. Ms. Grama has played a vital role in contributing to the development of the Autoliv EMEA division during a challenging period for the automotive industry.
Previous report
On March 6, 2026, Autoliv announced the renewal for one year of its €3 billion guaranteed euro medium term note program, originally established on April 11, 2019.
Previous report
On March 12, 2026, Autoliv announced it has together with Yamaha Motor Co. co-developed an innovative airbag system for the new Tricity commuter scooter. This is a significant step toward making advanced safety solutions accessible to a wider range of riders, moving beyond their previous availability solely on high-end motorcycles. The collaboration reflects Autoliv's continued expansion beyond its core business and supports the company's long-term strategic direction.
Previous report
On March 24, 2026, Autoliv announced it has developed its first complete wearable protection for motorcycle riders: a vest with an integrated airbag system designed to reduce critical injury risks in the event of a crash. This system is being launched in collaboration with RS Taichi, a leading manufacturer of motorcycle riding gear, who will bring it to market. This initiative complements Autoliv's motorcycle and bike offer and supports its long-term strategy to explore opportunities beyond its core business of airbags, seatbelts and steering wheels for light vehicles.
Previous report
The Board has set Thursday, May 7, 2026 as the date for the 2026 Annual Stockholders Meeting. The Board has decided that the meeting will be in-person only.
Reworded paragraphs (44)
Previous wording
The business environment is uncertain but our current best estimate for the remainder of the year is a re-iteration of our full year 2026 guidance of about unchanged organic sales (Non-GAAP measure) and an adjusted operating margin (Non-GAAP measure) of around 10.5-11%. This is based on the assumption that LVP will decline by around 1%.
Current wording
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 (Non-GAAP measure), adjusted operating margin (Non-GAAP measure) 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%.
Previous wording
Our balance sheet is healthy, with debt leverage (Non-GAAP measure, see reconciliation table below) of 1.3x, well below our target limit of 1.5x. Based on our guidance for sales and adjusted operating margin, we continue to expect strong cash flow for the year, which supports our ambitions to provide attractive shareholder returns, including to repurchase shares of $300-500 million in 2026.
Current wording
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.
Previous wording
Net sales increased organically (Non-GAAP measure, see reconciliation table below) by 0.8%, which was 4.2pp higher than the global LVP decrease of 3.4% (S&P Global, April 2026) driven mainly by strong progress in Asia. Regional and customer LVP mix is estimated to have impacted sales positively by about 1.5pp, while tariff compensations added around 0.5pp. Our organic sales growth (Non-GAAP measure) outperformed LVP significantly in China (15pp) and Asia excl. China (6.8pp) and performed in line in EMEA and underperformed in Americas (4.5pp). Our strong performance in Asia excl. China was mainly due to India, where we outperformed by 28pp, driven by continued strong market growth in safety content per vehicle, while our China performance was mainly driven by further improved presence with Chinese OEMs.
Current wording
Net sales increased organically (non-GAAP measure, see reconciliation table below) 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 (non-GAAP measure) 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.
Previous wording
Call-off volatility improved somewhat compared to both Q4 2025 and Q1 2025, although it still remains higher than pre-pandemic levels. Low customer demand visibility and changes to customer call-offs with short notice continued to have some negative impact on our production efficiency and profitability. We expect call-off volatility for the full year 2026 on average to be slightly improved compared to 2025 but still remain higher than pre-pandemic levels. However, the continued significant uncertainty in the geopolitical environment and future changes in tariffs and trade restrictions may lead to more negative call-off volatility.
Current wording
Call-off accuracy improved somewhat compared to the second quarter of 2025, but declined slightly versus the first quarter of 2026, mainly driven by light vehicle market developments in China. Call-off volatility remains higher than pre-pandemic levels. Low customer demand visibility and changes in customer call-offs with short notice continued to have some negative impact on our production efficiency and profitability. We expect call-off volatility for the full year 2026 on average to be slightly improved compared to 2025 but still remain higher than pre-pandemic levels. However, the continued significant uncertainty in the geopolitical environment and future changes in tariffs and trade restrictions may lead to more negative call-off volatility.
Previous wording
Raw material price changes had only a small negative impact on our profitability in the first quarter, with a gross impact of around $5 million. For the full year 2026, our current assessment is for around $90 million gross impact from higher raw material prices. We expect to be able to mitigate a majority of this headwind, mainly through internal cost reductions, material mix improvements and commercial negotiations with customers and suppliers. Given the continued uncertainty in the geopolitical environment, the effects of tariffs and trade restrictions may lead to a more adverse inflation environment. We continue to execute on productivity and cost reduction initiatives to offset these cost pressures.
Current wording
Raw material price changes had a negative impact on our profitability in the second quarter, with a gross impact of around $21 million. For the full year 2026, our current assessment is for around $110 million gross impact from higher raw material prices. We expect to be able to mitigate a majority of this headwind, mainly through internal cost reductions, material mix improvements and commercial negotiations with customers and suppliers. Given the continued uncertainty in the geopolitical environment, the effects of tariffs and trade restrictions may lead to a more adverse inflation environment. We continue to execute on productivity and cost reduction initiatives to offset these cost pressures.
Previous wording
The effects of the new tariffs imposed in 2025 impacted our profitability negatively in the first quarter 2026. Although we achieved customer compensations for more than 70% of tariff costs, the net effect on operating margin was around 40bps negative, including the dilution effect. While it is our ambition and expectation to continue passing tariff costs on to our customers, there is significant uncertainty as future recovery levels may vary. For the full year 2026, we estimate the tariff-related dilution on operating margin to be similar to the around 20 bps that it was for full year 2025.
Current wording
The new tariffs imposed in 2025 negatively impacted our profitability in the second quarter of 2026. We achieved customer compensation for more than 80% of the tariff costs, resulting in a net negative impact after compensation of around $7 million, which was in line with the net amount in Q2 2025. Including the dilution effect, the impact on operating margin was around 35bps negative. The recovery of tariffs related to the U.S. Supreme Court's ruling regarding the International Emergency Economic Powers Act had a net positive effect of around $3 million. While it is our ambition and expectation to continue passing tariff costs on to our customers, there is significant uncertainty as future recovery levels may vary. For the full year 2026, we estimate the tariff-related dilution on operating margin will be similar to the around 20bps for full year 2025.
Previous wording
Ongoing geopolitical developments, including the hostilities in and around the Persian Gulf, introduce additional uncertainty into the global economic environment. These conditions may affect supply chains, commodity prices, customer demand, and broader market stability. As a result, our current financial guidance reflects the best information available today but may be subject to change should these geopolitical dynamics materially impact our operations or the markets in which we operate.
Current wording
Ongoing geopolitical developments, including the hostilities in and around the Persian Gulf, have added uncertainty into the global economic environment. These conditions may affect supply chains, commodity prices, customer demand, and broader market stability. As a result, our current financial guidance reflects the best information available today but may change should these geopolitical dynamics materially impact our operations or the markets in which we operate.
Previous wording
We continue to closely monitor both geopolitical developments and the tariff policy environment in order to be agile to adjust our commercial and operational responses to any such developments.
Current wording
We continue to closely monitor both geopolitical developments and the tariff policy environment in order to remain agile and to adjust our commercial and operational responses to any such developments.
Previous wording
7)Net debt adjusted for pension liabilities in relation to EBITDA. See tabular presentation reconciling this non-U.S. GAAP measure to U.S. GAAP below.
Current wording
7)Net debt adjusted for pension liabilities in relation to EBITDA. See tabular presentation reconciling this non-GAAP measure to GAAP below.
Previous wording
Sales for Airbags, Steering Wheels and Other grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 0.7% in the quarter. The largest contributors to the increase were center airbags, driver airbags and side airbags, partly offset by declines for passenger airbags and inflatable curtains.
Current wording
Sales for Airbags, Steering Wheels and Other grew organically (non-GAAP measure, see reconciliation table above) by 3.0% in the quarter. The largest contributors to the increase were side airbags and center airbags, followed by driver airbags, inflatable curtains and knee airbags, partly offset by declines for steering wheels and passenger airbags.
Previous wording
Sales for Seatbelt Products and Other grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 1.1% in the quarter. Sales increased organically in Asia excluding China, EMEA and China while sales declined in Americas.
Current wording
Sales for Seatbelt Products and Other declined organically (non-GAAP measure, see reconciliation table above) by 3.0% in the quarter. Sales decreased organically (non-GAAP measure) in Americas, China and EMEA while it increased in Asia excluding China.
Previous wording
Our global organic sales (Non-U.S. GAAP measure, see reconciliation table above) increased by 0.8% compared to the global LVP decrease of 3.4% (according to S&P Global, April 2026). The relative performance was positively impacted by product launches but also by positive effects from the regional and model LVP mix development, which we estimate contributed to about 1.5pp outperformance and by tariff compensations of around 0.5pp. Our organic sales growth (Non-U.S. GAAP measure) outperformed LVP growth by 15pp in China and by 6.8pp in Asia excluding China. We performed in line with LVP in EMEA and underperformed by 4.5pp in Americas, impacted mainly by negative mix due to a high LVP growth in low content South America and a lower content on some replacement models.
Current wording
Our global organic sales (non-GAAP measure, see reconciliation table above) increased by 1.0% compared to the global LVP decrease of 0.3% (according to S&P Global, July 2026). The relative outperformance was positively impacted by product launches but negatively impacted by regional and model LVP mix development (around 60bps). Our organic sales growth (non-GAAP measure) outperformed LVP growth by 7.3pp in China and by 5.9pp in Asia excluding China. We underperformed LVP in EMEA by 1.0pp and by 4.9pp in Americas, impacted mainly by lower top line effect from tariffs, negative mix due to high LVP growth in lower content South America and a lower content on some replacement models.
Previous wording
LVP in China declined substantially with global OEMs declining by 8.5% and Chinese OEMs declining by 11%. Our sales to domestic OEMs increased by around 30% while our sales to global OEMs decreased by around 10%. We expect continued strong sales growth in China in 2026, driven mainly by our performance with domestic OEMs. Our strong sales growth in Asia excluding China was mainly due to 38% organic sales growth (Non-U.S. GAAP measure, see reconciliation table above) in India, reflecting LVP growth but mainly the trend of increased safety content in vehicles in India.
Current wording
LVP in China declined by 4.0%, with Global OEMs LVP declining by 19% and Chinese OEMs LVP growing by 3.1%. Autoliv's sales to domestic OEMs increased organically (non-GAAP measure) by around 44% while our sales to global OEMs decreased by around 24%. Chinese OEMs accounted for 55% of our sales in China in the quarter, compared to around 40% a year ago. We expect continued strong sales growth in China in 2026, driven mainly by our performance with domestic OEMs. Our strong sales growth in Asia excluding China was mainly due to 36% organic sales growth (non-GAAP measure) in India, reflecting LVP growth but mainly the trend of increased safety content in vehicles in India.
Previous wording
First quarter of 2026 organic growth 1)
Current wording
Second quarter of 2026 organic growth 1)
Previous wording
1)Non-U.S. GAAP measure, excluding effects from capacity alignments and antitrust related matters.
Current wording
1)Non-GAAP measure, excluding effects from capacity alignments and antitrust related matters.
Previous wording
First quarter of 2026 financial development
Current wording
Second quarter of 2026 financial development
Previous wording
R,D&E, net, costs increased by $25 million compared to the prior year, mainly due to $11 million in lower engineering income related to timing effects, $5 million in higher personnel costs due to wage inflation and $4 million in negative FX translation effects. R,D&E, net, in relation to sales increased from 3.7% to 4.3%.
Current wording
R,D&E, net, costs increased by $15 million compared to the prior year, mainly due to $5 million in lower engineering income related to timing effects, $4 million in higher personnel costs due to wage inflation and $3 million in negative foreign currency translation effects. R,D&E, net, in relation to sales increased from 3.9% to 4.4%.
Previous wording
Income before taxes decreased by $30 million compared to the prior year, mainly due to the lower operating income and higher costs for financial and non-operating items, net.
Current wording
Income before taxes decreased by $67 million compared to the prior year, mainly due to the lower operating income and higher costs for financial and non-operating items, net, as outlined above.
Previous wording
Tax rate was 29.9% compared to 28.0% the prior year. Discrete tax items, net, had an unfavorable impact of 2.3pp in the first quarter 2026, while discrete tax items, net were not material in the corresponding quarter last year.
Current wording
Tax rate was 34.5% compared to 24.1% the prior year. Discrete tax items, net, had an unfavorable impact of 5.4pp in the second quarter of 2026, while discrete tax items, net, in the second quarter of 2025 had a favorable impact of 4.3pp. Discrete tax items recorded in the second quarter of 2026 primarily related to negative tax impacts from costs recorded for the capacity alignment for Autoliv’s manufacturing operations in Türkiye.
Previous wording
Earnings per share, diluted decreased by $0.26 compared to the prior year. The main drivers were $0.16 from lower operating income, $0.12 from financial and non-operating items, $0.05 from taxes partly offset by $0.07 from lower number of outstanding shares, diluted.
Current wording
Earnings per share, diluted decreased by $0.81 compared to the prior year. The main drivers were $0.55 from lower operating income, $0.21 from higher taxes and $0.11 from financial and non-operating items, partly offset by $0.05 from lower number of outstanding shares, diluted.
Previous wording
Change first quarter of 2026 versus first quarter of 2025
Current wording
Change first six months of 2026 versus first six months of 2025
Previous wording
Gross profit increased by $48 million and gross margin increased by 0.6pp compared to the prior year. The drivers behind the gross profit improvement were mainly positive foreign currency effects, improved operational efficiency with lower costs for labor as well as positive effects from higher sales. This was partly offset by increased tariff costs, net.
Current wording
Gross profit increased by $56 million and gross margin increased by 0.1pp compared to the prior year. The drivers behind the gross profit improvement were mainly positive foreign currency translation effects and lower costs for materials. This was partly offset by costs for a supplier compensation reversal and asset impairment related to the restructuring activities in Türkiye.
Previous wording
Operating income decreased by $17 million compared to the prior year, due to the higher costs for R,D&E, net, Other income (expense) and S,G&A, partly offset by higher gross profit as outlined above.
Current wording
Operating income decreased by $73 million compared to the prior year, mainly due to higher capacity alignment costs related to restructuring activities in Türkiye, higher R,D&E, net, costs and higher S,G&A costs, partly offset by higher gross profit as outlined above.
Previous wording
Adjusted operating income(Non-U.S. GAAP measure, see reconciliation table below) decreased by $10 million compared to the prior year, due to the higher costs for R,D&E, net, S,G&A and Other income (expense), partly offset by higher gross profit as outlined above.
Current wording
Adjusted operating income (non-GAAP measure, see reconciliation table below) increased by $8 million compared to the prior year, due to the higher gross profit, partly offset by the higher costs for R,D&E, net and S,G&A.
Previous wording
Financial and non-operating items, net, was negative $35 million compared to negative $22 million a year earlier. The cost increase comes from $12 million in higher costs for non-operating items mainly related to restructuring costs in Americas.
Current wording
Financial and non-operating items, net, was negative $73 million compared to negative $48 million a year earlier. The cost increase comes from higher costs for non-operating items mainly related to costs associated with restructuring activities in Türkiye and Mexico.
Previous wording
Changes in operating working capital impacted operating cash flow by $349 million negative compared to an impact of $179 million negative in the prior year. The $349 million increase in operating working capital mainly comes from $175 million increase in receivables and $134 million decrease in accounts payables. The increase in operating working capital is mainly related to high level of sales in March 2026, other temporary effects that are expected to reverse later in the year and the high level of accounts payable at the end of December 2025.
Current wording
Changes in operating working capital impacted operating cash flow by $240 million positive compared to $15 million positive in the prior year. The $240 million decrease in operating working capital comes mainly from $120 million from accounts payable, $35 million from receivables, net, and $48 million from accrued severance and restructuring costs. The decrease in operating working capital is mainly due to an expected normalization of working capital following the increase seen in the first quarter, which was related to high level of sales in March 2026 and other temporary effects.
Previous wording
Operating cash flow decreased by $153 million to $(76) million compared to the prior year, mainly because of the increase in operating working capital outlined above and a lower net income, partly offset by higher depreciation and other non-cash adjustments.
Current wording
Operating cash flow increased by $157 million to $434 million compared to the prior year, mainly because of the decrease in operating working capital outlined above, partly offset by a lower net income.
Previous wording
Capital expenditure, net, decreased by $10 million compared to the prior year. The level of capital expenditure, net, in relation to sales declined to 3.0% versus 3.6% a year earlier. The lower level of capital expenditure, net is mainly related to the lower activity level of footprint optimization and less capacity expansion.
Current wording
Capital expenditure, net, decreased by $20 million compared to the prior year. The level of capital expenditure, net, in relation to sales declined to 3.4% versus 4.2% a year earlier. The lower level of capital expenditure, net is mainly related to the lower activity level of footprint optimization and less capacity expansion.
Previous wording
Free operating cash flow(Non-U.S. GAAP measure, see reconciliation table below) was negative $159 million compared to negative $16 million in the prior year. The decrease was due to the lower operating cash flow partly offset by the lower capital expenditure, net, as outlined above.
Current wording
Free operating cash flow (non-GAAP measure, see reconciliation table below) was positive $340 million compared to positive $163 million in the prior year. The increase was due to the higher operating cash flow and lower capital expenditure, net, as outlined above.
Previous wording
Cash conversion (Non-U.S. GAAP measure, see reconciliation table below) defined as free operating cash flow (Non-U.S. GAAP measure) in relation to net income, was n/a in the quarter compared to n/a a year earlier as free operating cash flow was negative both quarters.
Current wording
Cash conversion (non-GAAP measure, see reconciliation table below), defined as free operating cash flow (non-GAAP measure) in relation to net income, was 338% compared to 97% a year earlier as free operating cash flow was increased while net income decreased.
Previous wording
Net debt (Non-U.S. GAAP measure, see reconciliation table below) was $1,773 million as of March 31, 2026, which was $14 million lower than a year earlier.
Current wording
Net debt (non-GAAP measure, see reconciliation table below) was $1,695 million as of June 30, 2026, which was $57 million lower than a year earlier.
Previous wording
Total equity as of March 31, 2026, increased by $283 million compared to March 31, 2025. This was mainly due to net income of $710 million and $103 million in positive currency translation effects, partly offset by $304 million in share repurchases, including taxes, and $249 million in dividend payments.
Current wording
Total equity as of June 30, 2026, increased by $21 million compared to June 30, 2025. This was mainly due to net income of $643 million and $27 million in other positive effects, partly offset by $454 million in share repurchases, including taxes, and $194 million in dividend payments.
Previous wording
Leverage ratio (Non-U.S. GAAP measure, see reconciliation table below): On March 31, 2026, the Company had a leverage ratio of 1.3x compared to 1.3x on March 31, 2025, as the 12 months trailing adjusted EBITDA (Non-U.S. GAAP measure, see reconciliation table below) increased by $74 million while net debt (Non-U.S. GAAP measure) per the policy was unchanged. Our target is to have a leverage ratio not higher than 1.5x.
Current wording
Leverage ratio (non-GAAP measure, see reconciliation table below): On June 30, 2026, the Company had a leverage ratio of 1.2x compared to 1.3x on June 30, 2025, as the 12 months trailing adjusted EBITDA (non-GAAP measure, see reconciliation table below) increased by $73 million while net debt (non-GAAP measure) per the policy decreased by $44 million. Our target is to have a leverage ratio not higher than 1.5x.
Previous wording
The Company believes that comparability between periods is improved through the exclusion of certain items. To assist investors in understanding the operating performance of Autoliv's business, it is useful to consider certain U.S. GAAP measures exclusive of these items.
Current wording
The Company believes that comparability between periods is improved through the exclusion of certain items. To assist investors in understanding the operating performance of Autoliv's business, it is useful to consider certain GAAP measures exclusive of these items.
Previous wording
The following tables reconciles Income before income taxes, Net income attributable to controlling interest and Capital employed, which are inputs utilized to calculate Return On Capital Employed (“ROCE”), adjusted ROCE, Return On Total Equity (“ROE”), and adjusted ROE. The Company believes this presentation may be useful to investors and industry analysts who utilize these adjusted non-U.S. GAAP measures in their ROCE and ROE calculations to exclude certain items for comparison purposes across periods. Autoliv’s management uses the ROCE, adjusted ROCE, ROE and adjusted ROE measures for purposes of comparing its financial performance with the financial performance of other companies in the industry and providing useful information regarding the factors and trends affecting the Company’s business.
Current wording
The following tables reconcile Income before income taxes, Net income attributable to controlling interest and Capital employed, which are inputs utilized to calculate Return On Capital Employed (“ROCE”), adjusted ROCE, Return On Total Equity (“ROE”), and adjusted ROE. The Company believes this presentation may be useful to investors and industry analysts who utilize these adjusted non-GAAP measures in their ROCE and ROE calculations to exclude certain items for comparison purposes across periods. Autoliv’s management uses the ROCE, adjusted ROCE, ROE and adjusted ROE measures for purposes of comparing its financial performance with the financial performance of other companies in the industry and providing useful information regarding the factors and trends affecting the Company’s business.
Previous wording
Accordingly, the tables below reconcile from U.S. GAAP to the equivalent non-U.S. GAAP measure.
Current wording
Accordingly, the tables below reconcile from GAAP to the equivalent non-GAAP measure.
Previous wording
Reconciliation of U.S. GAAP financial measure to “Net debt”
Current wording
Reconciliation of GAAP financial measure to non-GAAP measure “Net debt”
Previous wording
The non-U.S. GAAP measure “Net debt” is also used in the non-U.S. GAAP measure “Leverage ratio”. Management uses the non-U.S. GAAP measure “Leverage Ratio” to analyze the amount of debt the Company can incur under its debt policy. Management believes that this policy also provides guidance to credit and equity investors regarding the extent to which the Company would be prepared to leverage its operations. The Company's long-term target for the leverage ratio (sum of net debt plus pension liabilities divided by EBITDA) is 1.0x with the aim to operate within the range of 0.5x to 1.5x. For details and calculation of leverage ratio, refer to the table below.
Current wording
The non-GAAP measure “Net debt” is also used in the non-GAAP measure “Leverage ratio”. Management uses the non-GAAP measure “Leverage Ratio” to analyze the amount of debt the Company can incur under its debt policy. Management believes that this policy also provides guidance to credit and equity investors regarding the extent to which the Company would be prepared to leverage its operations. It is Autoliv’s target to operate with a leverage ratio (sum of net debt plus pension liabilities divided by adjusted EBITDA) of 1.5x or below. For details and calculation of leverage ratio (non-GAAP measure), refer to the table below.
Previous wording
Management uses the non-U.S. GAAP measure “free operating cash flow” to analyze the amount of cash flow being generated by the Company’s operations after capital expenditure, net. This measure indicates the Company’s cash flow generation level that enables strategic value creation options such as dividends or acquisitions. For details on the calculation of free operating cash flow, see the table below. Management uses the non-U.S. GAAP measure “cash conversion” to analyze the proportion of net income that is converted into free operating cash flow. The measure is a tool to evaluate how efficiently the Company utilizes its resources. For details on cash conversion, see the table below.
Current wording
Management uses the non-GAAP measure “free operating cash flow” to analyze the amount of cash flow being generated by the Company’s operations after capital expenditure, net. This measure indicates the Company’s cash flow generation level that enables strategic value creation options such as dividends or acquisitions. For details on the calculation of free operating cash flow, see the table below. Management uses the non-GAAP measure “cash conversion” to analyze the proportion of net income that is converted into free operating cash flow. The measure is a tool to evaluate how efficiently the Company utilizes its resources. For details on cash conversion, see the table below.
Previous wording
Reconciliation of GAAP measure "Operating cash flow" to "Free operating cash flow" and "Cash conversion"
Current wording
Reconciliation of GAAP measure "Operating cash flow" to non-GAAP measures "Free operating cash flow" and "Cash conversion"
Showing the first 40 of 44 pairs. Open the source sections for the rest.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
Sales by product - Airbags, Steering Wheels and Other
Current report — wording carried from elsewhere
Sales for Airbags, Steering Wheels and Other grew organically (non-GAAP measure, see reconciliation table above) by 1.8% in the period. The largest contributors to the increase were side airbags and center airbags, followed by driver airbags, partly offset by declines for passenger airbags and steering wheels.
Current report — wording carried from elsewhere
Sales by product - Seatbelts and Other
Current report — wording carried from elsewhere
First six months of 2026 organic growth 1)
Current report — wording carried from elsewhere
1)Non-GAAP measure, excluding effects from capacity alignments and antitrust related matters.
Current report — wording carried from elsewhere
First six months of 2026 financial development
Current report — wording carried from elsewhere
Income before taxes decreased by $98 million compared to the prior year, mainly due to the lower operating income and higher costs for financial and non-operating items, net, as outlined above.
Current report — wording carried from elsewhere
Capital expenditure, net, decreased by $29 million compared to the prior year. The level of capital expenditure, net, in relation to sales was 3.2% versus 3.9% a year earlier. The lower level of capital expenditure, net was mainly related to the lower activity level of footprint optimization and less capacity expansion.
Current report — wording carried from elsewhere
Cash conversion (non-GAAP measure, see reconciliation table below) defined as free operating cash flow (non-GAAP measure) in relation to net income, was 74% compared to 44% a year earlier as free operating cash flow increased while net income decreased.
Current report — wording carried from elsewhere
Calculation of non-GAAP measure “Leverage ratio”