Autoliv, Inc. Earnings Recaps
Q2 2026
Jul 21, 2026
Autoliv shares fell 6.2% after the quarter as investors reacted negatively to margin compression driven by restructuring-related charges and gross margin headwinds, despite stable sales and reaffirmed guidance.
Key takeaways
- Q2 sales rose modestly by approximately 3% year-over-year, supported by continued outperformance in China and India and favorable currency effects.
- Adjusted operating income increased 7% to $217 million, but adjusted operating margin declined slightly to 9.6%, down 30 basis points, affected by a supplier settlement reversal and impairment charges related to the Turkey restructuring.
- The company recognized $90 million of restructuring charges in the quarter, part of a $142 million total expected charge from exiting Turkish manufacturing operations, which weighed on gross margin (~80 basis points impact combined with other items).
- Operating cash flow improved significantly to $434 million, up $157 million, supporting shareholder returns including $200 million in share repurchases and a $64 million dividend payout.
- Full year guidance was reiterated, including flat organic sales and an adjusted operating margin target around 10.5%–11%, assuming a 2.5% global light vehicle production decline and $110 million raw material headwind.
Q1 2026
Apr 17, 2026
Autoliv delivered a strong first quarter, surpassing expectations with balanced growth and margin stability amid a challenging macro environment, driven by exceptional market outperformance in Asia and strategic product expansion.
Key takeaways
- Q1 sales rose approximately 7% YoY to nearly USD 2.8 billion, driven by organic growth, favorable currency effects, and tariff compensations, with over 4 percentage points of market outperformance globally.
- Operating margin declined slightly to 8.9%, reflecting higher R&D expenses and FX impacts, while gross profit improved by USD 48 million with a margin increase of nearly 60 basis points.
- Asia, particularly China and India, outperformed the market significantly, with China exceeding light vehicle production growth by over 40 percentage points, and India growing sales by 38% organically.
- Market conditions showed a modest 3.4% decline in global light vehicle production, with China notably impacted, but Autoliv maintained positive growth and share gains in key regions.
- The company reaffirmed full-year guidance of flat organic sales with an adjusted operating margin of approximately 10.5–11%, supported by new product launches, including airbags for motorcycles and wearable safety devices.