Autoliv Q2 2026 – Net Sales Up 3.3%, Operating Income Down 22%

By Bobby Samwell • Friday, July 17 10:50 • Permanent Link

Autoliv reported second-quarter 2026 net sales of $2.803 billion, up 3.3% from $2.714 billion a year earlier, as organic sales rose 1.0%.

Operating income fell to $192 million from $247 million, a drop of 22%, while adjusted operating income increased 7.3% to $270 million from $251 million. Operating margin narrowed to 6.8% from 9.1%, but adjusted operating margin improved to 9.6% from 9.3%.

Diluted earnings per share declined 38% to $1.35 from $2.16. Adjusted diluted EPS rose 10% to $2.43 from $2.21.

Cash generation strengthened sharply. Operating cash flow climbed 57% to $434 million from $277 million, the highest second-quarter level the company said it has recorded. Free operating cash flow more than doubled to $340 million. The leverage ratio improved to 1.2x.

For the first half, net sales increased 5.0% to $5.556 billion from $5.292 billion. Operating income fell 14% to $429 million from $502 million, while adjusted operating income rose 1.7% to $515 million from $506 million. First-half diluted EPS dropped 25% to $3.24 from $4.31, while adjusted diluted EPS increased 2.9% to $4.49 from $4.36.

First-half operating cash flow was $359 million, up slightly from $355 million. Return on capital employed fell to 17.9% from 23.8% in the quarter and to 20.3% from 24.8% in the first half. Adjusted ROCE was 24.9% in the quarter, up from 24.1%, and 24.1% in the first half, down from 25.0%.

By region in the quarter, sales in China rose 9.6% to $522 million from $477 million, Asia excluding China rose 4.0% to $539 million from $519 million, the Americas increased 2.1% to $910 million from $891 million, and EMEA rose 0.4% to $832 million from $828 million.

By product, airbags, steering wheels and other sales increased 5.2% to $1.906 billion from $1.812 billion, while seatbelt products and other slipped 0.5% to $897 million from $902 million.

Autoliv paid $64 million in dividends in the quarter, up from $54 million, and repurchased $200 million of shares versus $51 million a year earlier. For the first half, dividends paid rose to $130 million from $108 million, and share repurchases reached $200 million from $101 million. As a result of these announcements, the company's shares have moved -2.89% on the market, and are now trading at a price of $121.38. Check out the company's full 8-K submission here.

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