Autoliv Q2 2026 Net Sales Gain 3.3% to $2.8B; EPS Falls 38% on Restructuring
Autoliv reported a 3.3% net sales increase to $2.8 billion in Q2 2026, but earnings per share dropped 38% to $1.35 due to restructuring costs in Türkiye.
- $2,803 million
- 9.6%
- $434 million
- $1.35 (38% decrease)
What Happened
Autoliv's Q2 2026 net sales reached $2,803 million, a 3.3% increase year-over-year, with organic growth of 1.0%. Operating margin was 6.8% and adjusted operating margin was 9.6%. Diluted EPS fell 38% to $1.35, primarily due to restructuring activities in Türkiye.
9.6%%
Up 7.3% year-over-year despite FX and raw material headwinds.
$434 million
Best Q2 ever, up from $277 million, driven by strong profitability and working capital normalization.
- Net sales organic growth of 1.0%, outperforming global LVP decrease of 0.3% by 1.3pp.
- Strong performance in Asia, especially India with 20pp outperformance and China with over 40pp outperformance with Chinese OEMs.
- Operating income decreased due to restructuring in Türkiye; adjusted operating income up 7.3%.
- Cash flow improved significantly; leverage ratio improved to 1.2x.
Full-year 2026 guidance: around 0% organic sales growth, around 2.5% positive FX impact on net sales, adjusted operating margin of 10.5-11%, and operating cash flow of about $1.2 billion.
Previously from Autoliv Inc.
Autoliv had previously announced the retirement of 1.65 million repurchased shares, reducing its issued share count to 75.7 million (June 30, 2026).
Background drawn from MotorClaw's earlier coverage of Autoliv Inc.'s official releases.
Why this matters
The results show Autoliv's underlying profitability improved, but restructuring in Türkiye hit bottom-line earnings. The company's strong cash flow and reduced leverage signal financial health, while guidance for the full year suggests cautious growth. Investors and suppliers will watch how Autoliv navigates regional performance disparities, particularly in Americas.
Terms in This Story
- Organic sales growth
- Revenue change excluding effects from currency fluctuations, acquisitions, and divestitures.
- Operating margin
- Operating income divided by net sales, a measure of profitability from core operations.
- Adjusted operating margin
- Operating margin excluding certain one-time items, providing a clearer view of ongoing performance.
- Diluted EPS
- Earnings per share calculated assuming all convertible securities are exercised, reflecting potential dilution.
Summarised from the linked release; details can be imperfect — always verify against the original source.