Autoliv Q2 2026 Earnings Call Transcript

Autoliv (NYSE: ALV ) released second-quarter financial results and hosted an earnings call on Friday.

Read the complete transcript below.

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For comprehensive financial data and transcripts, visit Access the full call at Summary Autoliv delivered record second-quarter sales and adjusted operating income, demonstrating resilience and a strong market position despite a challenging environment.

The company announced strategic cooperation agreements with leading Chinese vehicle manufacturers to bolster growth and competitiveness in China and globally.

Autoliv plans to discontinue its manufacturing operations in Turkey by 2028, affecting 2,200 employees, with production being consolidated in other EMEA facilities to optimize costs.

Full-year 2026 guidance is maintained, with expectations of flat organic sales and an adjusted operating margin of 10.5% to 11%, despite a predicted global light vehicle production decline of 2.5%.

Cash flow improved significantly, with a record operating cash flow for Q2 of $434 million, supporting shareholder returns through share repurchases and dividends.

The company is focusing on managing geopolitical risks and raw material cost pressures, with anticipated recovery of costs and compensations in the fourth quarter.

Sales growth was driven by strong performance in Asia, notably a 40% outperformance in China and 36% organic sales growth in India.

Autoliv's leverage ratio improved, and the company has a strong balance sheet to support continued shareholder returns.

Operational highlights include a new Innovation Center in Sweden to accelerate innovation and support long-term growth.

Full Transcript OPERATOR Good day and thank you for standing by.

Welcome to the Autoliv Second Quarter 2026 Financial Results Conference call.

At this time all participants are in a listen-only mode.

After the speaker's presentation, there will be a question and answer session.

To ask a question during the session you will need to press Star one one on your telephone.

You will then hear an automated message advising your hand is raised.

To withdraw your question, please press Star one and one again.

Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Anders Strap.

Please go ahead.

Anders Strap, VP Investor Relations Thank you, Sandra.

Welcome everyone to our second quarter 2026 earnings call.

On this call we have our President and Chief Executive Officer Mikael Bratt, our Chief Financial Officer Monica Girama, and me, Anders Strap, VP, Investor Relations.

During today's earnings call, we will highlight several key areas including our strong performance despite the challenging market environment.

We will provide an update on our structural cost reduction initiatives in EMEA, an update on the latest market development, our full-year guidance, and the potential impact of ongoing geopolitical challenges.

Following the presentation, we will be available to answer your questions as usual.

The slides are available on autoliv.com.

Turning to the next slide, we have the Safe Harbor Statement which is an integrated part of this presentation and includes the Q&A that follows.

During the presentation, we will reference non-GAAP measures.

The reconciliations of historical GAAP to non-GAAP measures are disclosed in our quarterly earnings release available on Autoliv.com and in the 10-Q that will be filed with the SEC and also at the end of this presentation.

Lastly, I should mention that this call is intended to conclude at 3:00 pm Central European Time, so please follow a limit of two questions per person.

I now hand it over to our CEO, Mikael Bratt.

Mikael Bratt, President and CEO Thank you, Anders.

Looking at the next slide, we delivered a record second quarter both for sales and adjusted operating income, underscoring the resilience of our company and the strength of our market position.