Autoliv reports Q2 2026 organic sales growth of 1.0%, reiterates full-year guidance
Autoliv Inc. reported second-quarter 2026 net sales of $2,803 million, with organic sales growth of 1.0%, outperforming global light vehicle production which declined 0.3%. Adjusted operating margin expanded to 9.6% despite headwinds from foreign exchange and raw material costs. The company reiterated full-year 2026 guidance for around 0% organic sales growth, adjusted operating margin of around 10.5–11%, and operating cash flow of around $1.2 billion. Operating cash flow improved to $434 million in the quarter from $277 million in the prior year, and the company repurchased 1.65 million shares for approximately $200 million.
Key facts
- Discontinuing manufacturing operations in Türkiye with approximately 2,200 employees affected; complete closure anticipated in first half of 2028; total restructuring charges of approximately $142 million, of which $90 million was recognized in Q2 2026
- Q2 2026 organic sales growth 1.0%, outperforming global LVP decline of 0.3%; sales to Chinese OEMs grew more than 40%, comprising 55% of China sales versus 40% a year ago
- Adjusted operating margin improved to 9.6% in Q2 2026; adjusted ROCE was 24.9%; leverage ratio improved to 1.2x
- Operating cash flow of $434 million in Q2 2026 versus $277 million in Q2 2025; free operating cash flow more than doubled to $340 million
- Raw material price changes had gross impact of around $21 million in Q2 2026; estimated around $110 million gross impact for full year 2026
- Tariff-related net negative impact after customer compensation of around $7 million in Q2 2026, in line with Q2 2025; net positive effect of around $3 million from U.S. Supreme Court ruling recovery
- Full year 2026 guidance: around 0% organic sales growth, adjusted operating margin of around 10.5–11%, operating cash flow of around $1.2 billion, capex net less than 5% of sales
- Dividend of $0.87 per share paid in Q2 2026; share repurchases of approximately $200 million (1.65 million shares) in the quarter; ambition for share repurchases of $300–500 million in full year 2026
- Signed new strategic cooperation agreements with Great Wall Motor and XPENG; India sales continued to grow by more than 35%
- Earnings per share diluted $1.35 in Q2 2026 versus $2.16 in Q2 2025; first six months 2026 diluted EPS $3.24 versus $4.31 in first six months 2025
Why it matters
Autoliv's Türkiye closure—affecting 2,200 employees and generating $142 million in restructuring charges—represents a significant capacity realignment in EMEA, though the company expects $40 million in annual pre-tax savings starting in 2027. Reiterated full-year guidance signals management confidence despite tariff and raw material headwinds, and the substantial improvement in operating cash flow and leverage ratio supports the company's stated $300–500 million share repurchase program for 2026.
Share
Derived from 8-K filed 2026-07-17. Not investment advice. View the source filing on SEC.gov →