July 17, 2026

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Autoliv Inc. (NYSE: ALV) reported second-quarter 2026 results with higher revenue, record second-quarter sales, stronger adjusted operating income, and record operating cash flow, but shares fell in premarket trading as investors focused on margin timing, restructuring charges, and a back-end-loaded profit outlook.
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Autoliv is an automotive safety supplier that develops and manufactures airbags, seatbelts, steering wheels, and other safety systems for global automakers.
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The dashboard showed adjusted EPS of $2.43, above estimates of $2.34, representing a 3.8% earnings surprise. Revenue came in at $2.80 billion, above estimates of $2.76 billion, with revenue growth of 3.3%.
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One note before publishing: the supplied text says adjusted EPS of $2.43 was in line with Wall Street estimates, while the dashboard shows a beat versus $2.34. The reported EPS figure is consistent, but the consensus estimate should be verified before publication.

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Results Showed Higher Sales and Cash Flow

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Net sales increased 3% year-over-year to $2.8 billion.
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Organic sales increased 1%, excluding currency and tariff effects.
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Adjusted operating income increased 7% to $217 million.
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Adjusted operating margin improved 30 basis points to 9.6%.
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Adjusted diluted EPS was $2.43, up $0.23 from the prior-year quarter.
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Operating cash flow increased by $157 million to $434 million, while free operating cash flow increased by $177 million to $340 million.
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The company’s trailing 12-month cash conversion rate was 119%, above its target of at least 80%.

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China and India Supported Growth

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Autoliv said it outperformed global light vehicle production by more than one percentage point during the quarter.
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Sales growth was strongest in China and India.
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In China, sales to Chinese automakers rose to 55% of Autoliv’s China sales, up from 40% a year earlier.
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Management said sales to Chinese OEMs outperformed light vehicle production by more than 40 percentage points.
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In India, organic growth reached 36%.
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The company said it remains focused on defending its roughly 45% global market share while expanding with fast-growing Chinese manufacturers.

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Guidance Was Reaffirmed

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Autoliv reiterated its full-year 2026 outlook.
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The company expects flat organic sales and adjusted operating margin of 10.5% to 11.0%.
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Management expects global light vehicle production to decline about 2.5%, implying Autoliv expects to outperform production by roughly 2.5 percentage points.
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The company also expects operating cash flow of about $1.2 billion, capital expenditures below 5% of sales, and a tax rate of about 30%.
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Profit growth is expected to be weighted toward the fourth quarter, helped by customer compensation, engineering income, and litigation-related items.

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Restructuring Adds Near-Term Pressure

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Autoliv announced a restructuring plan in Turkey expected to affect about 2,200 employees.
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The plan is expected to generate annual pre-tax savings of about $40 million.
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Benefits are expected to begin in 2027 and reach full run rate in 2028.
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The restructuring may improve longer-term efficiency, but the related charges and timing likely added to near-term investor caution.

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The Bigger Picture

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Autoliv delivered a steady quarter, but the market focused on timing.
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The company reported record second-quarter sales and operating cash flow, continued to grow in China and India, and reaffirmed full-year guidance. Cash generation was strong, and the company continued to outperform global vehicle production.
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The concern is that the earnings story depends more heavily on the fourth quarter, while restructuring actions add near-term noise.
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