A Swedish company and one of the world's largest makers of automotive passive safety gear, Autoliv produces the airbags, steering wheels, and seatbelts that protect drivers in nearly every major car brand. It began in 1953 in Vårgårda, Sweden, when brothers Lennart and Stig Lindblad turned a small auto-repair shop toward safety, making their first seatbelt in 1956. The name blends "auto" with the Swedish word "liv," meaning "life"—fitting for a firm whose products save lives on the road.
Autoliv books $90M in restructuring charges for Türkiye exit, driving a 38% drop in Q2 GAAP EPS despite record operating cash flow.
Autoliv's earnings fell sharply on a one-off , but the underlying business strengthened. rose 6.8% to $2.75 billion and expanded to 9.6% as cost efficiencies and a normalization drove to a Q2 record of $434 million. The company is exiting manufacturing in Türkiye, a move that obscures an otherwise solid quarter and leaves full-year margin intact.
Key takeaways
fell 6.7% to $237 million, as $90 million in restructuring charges for discontinuing manufacturing in Türkiye more than offset operational gains; adjusted operating income rose 7.3% to $270 million.
rose 6.8% to $2.75 billion, with of 1.0% outperforming a 0.3% decline in global light vehicle production, driven by Asia where sales to Chinese OEMs rose over 40% organically and India grew more than 35%.
Section summaries
Management's Discussion and Analysis
Q2 sales grew 3.3% to $2.8B; adjusted operating margin rose to 9.6%, but GAAP EPS fell 38% on Türkiye restructuring charges.
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increased 3.3% to $2,803 million, with of 1.0% outpacing a 0.3% decline in global light vehicle production, driven by strong performance in Asia.
improved 0.6 percentage points to 19.1%, supported by operational efficiencies and favorable currency effects, continuing a multi-year recovery from the 13.6% trough in Q1 2022.
reached a Q2 record of $434 million, and more than doubled to $340 million, driven by higher profitability and a $240 million normalization that reversed the Q1 build.
Full-year 2026 was reiterated: around 0% , an of 10.5–11%, and approximately $1.2 billion in , now assuming a 2.5% decline in global light vehicle production.
What changed
The Q1 watch item on generation resolved positively: after Q1's $161 million outflow, Q2 delivered a record $434 million in as the build reversed, bringing first-half operating cash flow to $358 million.
The Q1 watch item on ramp is on track: adjusted margin rose to 9.6% in Q2 from 8.9% in Q1, as R,D&E reimbursement timing normalized and structural savings accumulated.
The Türkiye is a new development not flagged in prior filings, introducing a $90 million -only that will continue to create a gap between reported and adjusted results as the exit proceeds.
Global light vehicle production assumptions worsened: the full-year planning assumption shifted to a 2.5% decline from the prior 1% decline, yet was held at around 0%, implying continued outperformance is expected.
What to watch
Whether the can reach the 10.5–11% full-year range, which requires a second-half ramp from the 9.6% achieved in Q2 as further structural savings and R,D&E reimbursements materialize.
The pace and total cost of the Türkiye manufacturing exit beyond the initial $90 million charge, and whether additional restructuring costs will weigh on results in coming quarters.
generation in the second half against the reiterated $1.2 billion full-year target, after first-half operating cash flow of $358 million leaves roughly $842 million to be generated.
China against local vehicle production, to see whether the over-40% growth to Chinese OEMs can be sustained and whether the mix shift toward domestic OEMs continues to dilute content per vehicle.
Sales to Chinese OEMs surged over 40% organically, representing 55% of Autoliv's China sales, while sales in India grew more than 35% organically.
fell 22% to $192 million due to $90 million in restructuring charges for discontinuing manufacturing in Türkiye; adjusted operating income rose 7.3% to $270 million.
reached a Q2 record of $434 million, and more than doubled to $340 million, driven by profitability and a $240 million normalization.
Full-year 2026 was reiterated: around 0% , of 10.5-11%, and of around $1.2 billion, assuming a 2.5% LVP decline.
Quantitative and Qualitative Disclosures About Market Risk
As of June 30, 2026, there have been no material changes to the information related to quantitative and qualitative disclosures about market risk that were provided in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 19…
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As of June 30, 2026, there have been no material changes to the information related to quantitative and qualitative disclosures about market risk that were provided in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 19, 2026.
In the ordinary course of our business, we are subject to legal proceedings brought by or against us and our subsidiaries. See Part I, Item 1, "Financial Statements, Note 8 Contingent Liabilities" of this Quarterly Report on Form 10-Q for a summary of certain ongoing legal proce…
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In the ordinary course of our business, we are subject to legal proceedings brought by or against us and our subsidiaries.
See Part I, Item 1, "Financial Statements, Note 8 Contingent Liabilities" of this Quarterly Report on Form 10-Q for a summary of certain ongoing legal proceedings. Such information is incorporated into this Part II, Item 1—"Legal Proceedings" by reference.
As of June 30, 2026, there have been no material changes to the risk factors that were previously disclosed in Item 1A in the Company’s Form 10-K for the year ended December 31, 2025 filed with the SEC on February 19, 2026.
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As of June 30, 2026, there have been no material changes to the risk factors that were previously disclosed in Item 1A in the Company’s Form 10-K for the year ended December 31, 2025 filed with the SEC on February 19, 2026.