AUTOLIV INC
For the period ended Sep 30, 2026. Filed Oct 23, 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.
Sep 30, 2026 · Filed Oct 23, 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 2026-06-30; filed 2026-07-17.
0001193125-26-306974
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-23.
0001193125-26-429588
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 174 previous paragraphs and 167 current paragraphs.
89 unchanged; 54 reworded; 24 added; 28 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 24 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 (24)
Current report
We continued to deliver well across all key areas in the third quarter. Our sales in India grew by nearly 30% and our sales to Chinese OEMs grew by more than 20%. Strong sales growth in Japan contributed to our sales in Asia exceeding China in the quarter. Globally, our organic sales performance exceeded global LVP by around 1pp, significantly outpacing LVP growth in India, Japan and with Chinese OEMs.
Current report
Our cash flow remained strong, supporting our ambitious shareholder return strategy. Our leverage ratio (Non-GAAP measure) of 1.3x was almost unchanged compared with the prior quarter, despite repurchasing around 1.23 million shares for $150 million and paying dividends of $63 million in the quarter. Over the last 12 months, we have repurchased 4.14 million shares for $500 million, in addition to paying $258 million in dividends and keeping our debt leverage ratio unchanged.
Current report
To support our growing partnerships with Chinese OEMs, our innovation capabilities, global competitiveness and long term growth, we opened our second R&D center in China in the third quarter of 2026.
Current report
The business environment remains uncertain but we anticipate a strong fourth quarter supported by an increasing number of product launches and significant raw material recoveries. Throughout the year, cost headwinds have increased materially, mainly related to raw materials, logistics, the recent flooding in Thailand and lower call off accuracy since the first quarter. We have been able to offset the majority of these cost headwinds mainly through labor efficiency, material savings through Value Engineering and successful negotiations with customers and suppliers. However, the additional headwinds narrows our full year adjusted operating margin expectation to around 10.5%, the low end of our range of around 10.5-11%. We continue to expect unchanged organic sales growth (Non-GAAP measure) and an operating cash flow of around $1.2 billion.
Current report
Finally, we would like to invite you to our 2027 Investor Day, which will take place in Shanghai, China, on April 26 and 27, 2027. It will be held in connection with the Auto Shanghai, the largest and most important auto show in the world.
Current report
$2,693 million net sales, decrease of 0.5%
Current report
1.1%organic sales decrease (Non-GAAP measure, see reconciliation table below)
Current report
9.4% operating margin,9.7% adjusted operating margin (Non-GAAP measure, see reconciliation table below)
Current report
$2.13 diluted EPS, a 6.8% decrease
Current report
Sales by product - Seatbelt Products and Other
Current report
Change third quarter of 2026 versus third quarter of 2025
Current report
Source: Mobility Global, October 2026.
Current report
Gross profit decreased by $26 million, and gross margin decreased by 0.9pp compared to the prior year. The decrease in gross profit was mainly attributable to the $13 million gross profit impact of the supplier settlement compensation reported in the third quarter of 2025, lower net sales and higher logistics costs.
Current report
R,D&E, net, costs decreased by $18 million compared to the prior year, mainly due to $26 million of higher engineering income related to timing effects, partly offset by adverse effects from foreign currency translation, IT expenses and personnel costs. R,D&E, net, in relation to sales decreased from 4.3% to 3.7%.
Current report
Adjusted operating income (Non-GAAP measure, see reconciliation table below) decreased by $9 million compared to the prior year, mainly due to the lower gross profit, partly offset by lower R,D&E, net, costs, as outlined above.
Current report
Sales by product - Seatbelt Products and Other
Current report
Source: Mobility Global, October 2026.
Current report
Third quarter of 2026 development
Current report
Changes in operating working capital had a $45 million negative impact on operating cash flow compared to a negative impact of $53 million in the prior year. The $45 million increase in operating working capital resulted mainly from $71 million in higher inventories and $21 million from receivables, net, partly offset by $52 million from accounts payable and accrued liabilities.
Current report
First nine months of 2026 development
Current report
On September 8, 2026, Autoliv announced it is advancing the development of virtual testing through its Human Body Model (HBM) Safety Suite. The platform is designed to support the development of safer vehicles, with Toyota as the first customer to evaluate its capabilities.
Current report
On October 2, 2026, Autoliv announced the appointments of Natalie Draisin and Thomas Manfred Müller to its Research Advisory Board. Natalie Draisin serves as Director of the North American Office and United Nations Representative at FIA Foundation and is an External Affiliate at the Johns Hopkins Bloomberg School of Public Health.Thomas Manfred Müller, PhD, is a Board Member, Advisor and Business Angel with extensive international experience across leadership and executive roles at Audi, BMW, Volvo Cars, and Volkswagen Group.
Current report
Autoliv today published on its website its Green Financing Framework which has been updated to incorporate the latest market practices and standards, and to support the long-term commitment of the Company to integrate sustainability across the entire organization.
Current report
Autoliv invites investors, analysts and journalists to an Investor Day in Shanghai, China. It will take place on April 26 and 27, 2027, with management presentations, site visits and a full day at the world's leading auto show, Auto Shanghai 2027. Focus will be on global growth, innovations and key trends shaping China’s automotive industry and Autoliv’s strategy for success in the Chinese market. This includes how we strengthen our relationships with leading Chinese OEMs in China and overseas. Further details regarding agenda and registration will be provided at a later stage.
Removed paragraphs (28)
Previous 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%.
Previous 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%.
Previous 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.
Previous 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.
Previous report
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 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.
Previous report
$2,803 million net sales, increase of 3.3%
Previous report
1.0%organic sales growth (non-GAAP measure, see reconciliation table below)
Previous report
6.8% operating margin,9.6% adj. operating margin (non-GAAP measure, see reconciliation table below)
Previous report
$1.35 diluted EPS,38% decrease
Previous report
Autoliv to discontinue manufacturing operations in Türkiye
Previous 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.
Previous report
Sales by product - Seatbelts and Other
Previous report
Change second quarter of 2026 versus second quarter of 2025
Previous report
Source: S&P Global, July 2026.
Previous report
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 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.
Previous report
Sales by product - Seatbelts and Other
Previous report
Source: S&P Global, July 2026.
Previous report
Second quarter of 2026 development
Previous report
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 report
First six months of 2026 development
Previous report
As of June 30, 2026, total headcount (Full Time Equivalent) decreased by around 1,600, or 2.5%, compared to a year earlier. The indirect workforce increased by around 200, or 1.1%, mainly reflecting a change in headcount reporting classification, moving around 300 people from direct to indirect. The direct workforce decreased by approximately 1,800, or 3.7%. The decrease was supported by improved customer call-off accuracy, which enabled us to accelerate operating efficiency improvements, and also reflected the reclassification mentioned above.
Previous report
On May 8, 2026, Autoliv announced that it will discontinue its manufacturing operations in Türkiye.
Previous report
On June 3, 2026, Autoliv inaugurated the Autoliv Innovation Center in Vårgårda, Sweden. It is a significant step to accelerate the development of life-saving mobility solutions through the Autoliv Innovation Center - a new global platform designed to speed up innovation, collaboration, and development of advanced safety technologies.
Previous report
On June 26, 2026, Autoliv announced that Kevin Fox notified the Company that he is resigning as the President, Autoliv Americas for personal reasons. He will remain in his current position through August 31, 2026, and thereafter will serve as executive senior advisor to the CEO through February 28, 2027, to support the transition to his successor, unless otherwise agreed by the parties.
Previous report
On July 6, 2026, Autoliv announced that Great Wall Motor (GWM), a leading Chinese automotive manufacturer, and Autoliv (Shanghai) Management Co., Ltd signed a Global Strategic Cooperation Framework Agreement. The agreement marks a new phase in the companies' long-term global partnership.
Previous report
On July 7, 2026, Autoliv announced that XPENG Inc., a leading Chinese physical AI technology company with a growing international presence and innovations in smart electric vehicles, autonomous driving and humanoid robots, and Autoliv (Shanghai) Management Co., Ltd. signed a strategic cooperation framework agreement to support the development of safer mobility solutions for global markets. Under the agreement, Autoliv and XPENG will expand collaboration across several key areas, including technology development, digitalization, supply chain coordination, sustainability, and global business expansion, combining Autoliv's worldwide safety expertise with XPENG's innovation in smart electric mobility.
Reworded paragraphs (54)
Previous wording
The primary exchange market for Autoliv’s securities is the New York Stock Exchange ("NYSE") where Autoliv’s common stock trades under the symbol “ALV”. Autoliv’s Swedish Depositary Receipts ("SDRs") are traded on Nasdaq Stockholm’s list for large market cap companies under the symbol “ALIV SDB”. Options in SDRs trade on Nasdaq Stockholm under the name “Autoliv SDB”. Options in Autoliv shares are traded on Nasdaq OMX PHLX and on NYSE Amex Options under the symbol “ALV”.
Current wording
The primary exchange market for Autoliv’s securities is the New York Stock Exchange ("NYSE") where Autoliv’s common stock trades under the symbol “ALV”. Autoliv’s Swedish Depositary Receipts ("SDRs") are traded on Nasdaq Stockholm’s list for large market cap companies under the symbol “ALIV SDB”. Options in SDRs trade on Nasdaq Stockholm under the name “Autoliv SDB”. Options in Autoliv shares are traded on Nasdaq PHLX and on NYSE American Options under the symbol “ALV”.
Previous wording
We continued to manage geopolitical developments successfully in the quarter, limiting the effects of tariffs, supply chain challenges and raw material price increases.
Current wording
We continued to successfully manage geopolitical developments during the quarter, limiting the effects of tariffs, supply chain challenges and raw material price increases. Well-executed cost reduction initiatives and increased engineering income contributed to a third quarter adjusted operating margin of 9.7%.
Previous 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.
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 through share repurchases and dividends.
Previous 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.
Current wording
Net sales decreased organically(Non-GAAP measure, see reconciliation table below)by 1.1%, which was 0.8pp higher than the global LVP decrease of 1.9% (Mobility Global, October 2026) mainly driven by strong performance in Asia. Regional and customer LVP mix is estimated to have impacted sales negatively by around 0.9pp. Our organic sales (Non-GAAP measure) outperformed LVP in Asia excl. China and in China, while it underperformed in EMEA and was about in line with LVP in the Americas. Our strong performance in Asia excl. China was mainly due to India, where we outperformed by 11pp, driven by continued strong market growth in safety content per vehicle, while in China, we outperformed by around 20pp with Chinese OEMs.
Previous wording
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 wording
Profitability remained strong. Operating income decreased by 5.0% mainly due to the supplier settlement compensation received in the third quarter of 2025. Adjusted operating income (Non-GAAP measure, see reconciliation table below) decreased by 3.4%. Operating margin was 9.4% and adjusted operating margin (Non-GAAP measure, see reconciliation table below) was 9.7%. ROCE was 24.1% and adjusted ROCE (Non-GAAP measure, see reconciliation table below) was 24.4%.
Previous wording
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 wording
Cash flow remained solid. Operating cash flow was $239 million compared to $258 million in 2025. Free operating cash flow (Non-GAAP measure, see reconciliation table below) was $124 million compared to $153 million in 2025. The leverage ratio (Non-GAAP measure, see reconciliation table below) was 1.3x. In the quarter, a dividend of $0.87 per share was paid and 1.23 million shares were repurchased and retired.
Previous 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.
Current wording
Customer call-off accuracy deteriorated slightly compared to the third quarter of 2025 as well as compared to the second quarter of 2026, driven by development in China. We expect call-off volatility for the full year 2026 on average to be slightly improved compared to 2025. 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 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.
Current wording
Raw material price changes had a negative impact on our profitability in the third quarter, with a gross impact of around $42 million. For the full year 2026, we currently estimate a gross impact of around $120 million from higher raw material prices. We expect to be able to continue 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, tariffs and trade restrictions may contribute to a more adverse inflationary environment. We continue to implement productivity and cost-reduction initiatives to offset these cost pressures.
Previous 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.
Current wording
The tariffs imposed in 2025 negatively impacted our profitability in the third 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 $6 million, in line with the net impact in the third quarter of 2025. Including the dilution effect, the impact on operating margin was around 35bps negative. 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 20 bps experienced for full year 2025.
Previous 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.
Current wording
Ongoing geopolitical developments, including hostilities in and around the Persian Gulf, have increased uncertainty in 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 if these geopolitical dynamics materially affect our operations or the markets in which we operate.
Previous 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.
Current wording
Sales for Airbags, Steering Wheels and Other grew organically (Non-GAAP measure, see reconciliation table above) by 0.2% in the quarter. The largest contributors to the increase were side airbags, center airbags, driver airbags and steering wheels, partly offset by declines for passenger airbags, inflatable curtains and knee airbags.
Previous 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.
Current wording
Sales for Seatbelt Products and Other declined organically (Non-GAAP measure, see reconciliation table above) by 3.9% in the quarter. Sales decreased organically in China, Americas and EMEA while they increased in Asia excluding China.
Previous 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.
Current wording
Our global organic sales (Non-GAAP measure, see reconciliation table above) decreased by 1.1% compared to the global LVP decrease of 1.9% (according to Mobility Global, October 2026). The relative outperformance was positively impacted by product launches but negatively impacted by regional and model LVP mix development (around 90bps). Our organic sales growth (Non-GAAP measure) outperformed LVP growth by 2.5pp in Asia excluding China and by 1.1pp in China. We underperformed LVP in EMEA by 3.7pp. Performance in the Americas overall was in line with LVP, while North America delivered stronger results, outperforming LVP by close to 2 percentage points. LVP in China declined by 6.9%, with Global OEMs LVP declining by 25% and Chinese OEMs LVP growing by 1.4%. Autoliv's sales to domestic OEMs increased organically by around 21% while our sales to global OEMs decreased by around 29%. Chinese OEMs accounted for 58% of our sales in China in the quarter, compared to around 46% a year ago. We expect continued strong 2026 sales performance with domestic OEMs. Our strong sales growth in Asia excluding China was mainly due to 29% organic sales growth in India, reflecting strong LVP growth and the trend of increased safety content in vehicles in India.
Previous wording
Second quarter of 2026 organic growth 1)
Current wording
Third quarter of 2026 organic growth 1)
Previous wording
Second quarter of 2026 financial development
Current wording
Third quarter of 2026 financial development
Previous wording
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 wording
S,G&A costs increased by $1 million compared to the prior year, mainly due to slightly higher IT expenses and professional services costs partly offset by slightly lower personnel costs. S,G&A costs in relation to sales were unchanged at 5.1%.
Previous wording
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 wording
Other income (expense), net, was negative $5 million, compared to negative $1 million in the same period last year. The negative $5 million in the third quarter of 2026 consisted mainly of capacity alignment costs related to our restructuring activities in Türkiye.
Previous wording
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 wording
Operating income decreased by $13 million compared to the prior year, mainly due to lower gross profit and higher capacity alignment costs, partly offset by lower R,D&E, net, costs, as outlined above.
Previous wording
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 wording
Financial and non-operating items, net, was a negative $24 million compared to a negative $27 million a year earlier. The improvement was mainly due to lower costs for non-operating items mainly related to positive foreign currency translation effects.
Previous wording
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 wording
Income before taxes decreased by $10 million compared to the prior year, mainly due to lower operating income, partly offset by lower costs for financial and non-operating items, net, as outlined above.
Previous 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.
Current wording
Tax ratewas 32.5% compared to 26.9% in the prior year. Discrete tax items, net, had an unfavorable impact of 4.9pp in the third quarter of 2026, while discrete tax items, net, had a favorable impact of 1.3pp in the third quarter of 2025. Discrete tax items recorded in the third quarter of 2026 primarily related to negative tax impacts from the closure of tax audits during the quarter.
Previous 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.
Current wording
Earnings per share, diluted decreased by $0.15 compared to the prior year. The main drivers were negative impacts of $0.16 from higher taxes and $0.13 from lower operating income partly offset by $0.11 from a lower number of outstanding shares, diluted and $0.05 from lower financial and non-operating items.
Previous wording
six months period ended June 30, 2026 COMPARED WITH six months period ended June 30, 2025
Current wording
nine months period ended September 30, 2026 COMPARED WITH nine months period ended September 30, 2025
Previous wording
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 wording
Sales for Airbags, Steering Wheels and Other grew organically (Non-GAAP measure, see reconciliation table above) by 1.3% 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, steering wheels and inflatable curtains.
Previous wording
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 wording
Sales for Seatbelt Products and Other declined organically (Non-GAAP measure, see reconciliation table above) by 2.0% in the period. Sales decreased organically in Americas, China and EMEA while they increased in Asia excluding China.
Previous wording
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 wording
Our global organic sales (Non-GAAP measure, see reconciliation table above) increased by 0.2% compared to the global LVP decrease of 0.9% (according to Mobility Global, October 2026). The relative outperformance was mainly driven by new product launches. Our organic sales growth outperformed LVP growth by 6.9pp in China and by 4.3pp in Asia excluding China. We underperformed LVP in EMEA by 3.7pp and by 3.5pp in Americas, impacted mainly by negative mix due to high LVP growth in lower content South America and a lower content on some replacement models. LVP in China declined by 6.3%, with Global OEMs LVP declining by 16% and Chinese OEMs LVP decreased by 1.6%. Autoliv's sales to domestic OEMs increased organically by around 31% while our sales to global OEMs decreased by around 21%. Chinese OEMs accounted for 53% of our sales in China in the first nine months of 2026, compared to 41% a year ago. Our strong sales growth in Asia excluding China was mainly due to 34% organic sales growth in India, reflecting strong LVP growth but mainly the trend of increased safety content in vehicles in India.
Previous wording
First six months of 2026 organic growth 1)
Current wording
First nine months of 2026 organic growth 1)
Previous wording
Change first six months of 2026 versus first six months of 2025
Current wording
Change first nine months of 2026 versus first nine months of 2025
Previous wording
First six months of 2026 financial development
Current wording
First nine months of 2026 financial development
Previous wording
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 wording
Gross profit increased by $30 million while gross margin decreased by 0.2pp compared to the prior year. The drivers behind the gross profit improvement were mainly positive effects of higher sales and positive currency translation effects. This was partly offset by $25 million impact from a supplier compensation booked in the third quarter of 2025 which was reversed in the second quarter of 2026, and asset impairment related to the restructuring activities in Türkiye.
Previous wording
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 wording
S,G&Acosts increased by $10 million compared to the prior year, mainly due to negative foreign currency translation effects and higher personnel costs, partly offset by the revision of an estimated credit loss reserve. S,G&A costs in relation to sales were unchanged at 5.3%.
Previous wording
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%.
Current wording
R,D&E, net, costs increased by $22 million compared to the prior year, mainly due to higher personnel costs and negative foreign currency translation effects, partly offset by higher engineering income. R,D&E, net, in relation to sales increased from 4.0% to 4.1%.
Previous wording
Other income (expense), net, was negative $65 million, compared to positive $14 million in the same period last year. The increase in costs were mainly due to higher capacity alignment costs related to restructuring activities in Türkiye.
Current wording
Other income (expense), net, was negative $70 million, compared to positive $13 million in the same period last year. The increase in costs was mainly due to higher capacity alignment costs related to restructuring activities in Türkiye.
Previous 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.
Current wording
Operating income decreased by $86 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-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.
Current wording
Adjusted operating income (Non-GAAP measure, see reconciliation table below) decreased by $1 million compared to the prior year, due to the higher costs for R,D&E, net and S,G&A offset by the higher gross profit, as outlined above.
Previous 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.
Current wording
Financial and non-operating items, net, was negative $97 million compared to negative $76 million a year earlier. The increase in costs was mainly due to higher non-operating items, mainly related to costs associated with restructuring activities in Türkiye and Mexico.
Previous 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.
Current wording
Income before taxes decreased by $107 million compared to the prior year, mainly due to lower operating income and higher costs for financial and non-operating items, net, as outlined above.
Previous wording
Tax rate was 31.9% compared to 26.1% the prior year. Discrete tax items, net, for the period had an unfavorable impact of 3.7pp. Discrete tax items, net, for the prior year period had a favorable impact of 2.1pp. Discrete tax items recorded in the first six months of 2026 primarily related to negative tax impacts from costs recorded for the capacity alignment for Autoliv’s manufacturing operations in Türkiye.
Current wording
Tax rate was 32.2% compared to 26.4% in the prior year. Discrete tax items, net, for the period had an unfavorable impact of 4.2pp. Discrete tax items, net, for the prior year period had a favorable impact of 1.8pp. Discrete tax items recorded in the first nine months of 2026 primarily related to negative tax impacts from closure of tax audits during the third quarter and negative tax impacts recorded in the first half year from costs recorded for the capacity alignment activities for Autoliv’s manufacturing operations in Türkiye.
Previous wording
Earnings per share, diluted decreased by $1.07 compared to the prior year. The main drivers were $0.69 from lower operating income, $0.26 from higher tax and $0.23 from financial and non-operating items, partly offset by $0.12 from lower number of outstanding shares, diluted.
Current wording
Earnings per share, diluted decreased by $1.23 compared to the prior year. The main drivers were negative impacts of $0.82 from lower operating income, $0.43 from higher tax and $0.18 from financial and non-operating items, partly offset by $0.22 from a lower number of outstanding shares, diluted.
Previous 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.
Current wording
Operating cash flow decreased by $19 million to $239 million compared to the prior year, mainly because of lower net income, partly offset by a smaller increase in operating working capital compared to last year.
Showing the first 40 of 54 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
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.