The underlying business is performing well with strong cash generation and a healthy balance sheet, but restructuring costs and tariff uncertainty cap upside. Watch Q3 commentary for timing of the expected Q4 margin improvement—a miss on that trajectory could trigger a sell-off. The $200M share repurchase in Q2 signals management confidence.
Price Chart
Executive Summary
Autoliv reported Q2 2026 adjusted EPS of $2.43, slightly below consensus of $2.46, with revenue of $2.803B edging estimates. Underlying operations were solid: adjusted operating income rose 7.3%, operating cash flow surged 57% to $434M, and the full-year guidance was reiterated. However, GAAP results were hit by $90M in restructuring charges from the Türkiye closure, dragging GAAP EPS down 38% to $1.35. The mixed picture—operational strength offset by near-term restructuring costs and a more cautious LVP assumption—keeps the stock range-bound near term.
Key Financial Metrics
Key Facts
- Adjusted EPS $2.43 vs consensus $2.46 (-1.2% miss); revenue $2.803B vs $2.77B (+1.2% beat)
- Adjusted operating margin improved 0.4pp to 9.6%; GAAP operating margin fell to 6.8%
- Operating cash flow $434M (+57% YoY); free cash flow $340M (+108% YoY)
- Recorded $90M restructuring charge in Q2 for Türkiye discontinuation; total charges ~$142M
- Full-year guidance maintained: adj. op. margin 10.5-11%, ~$1.2B op. cash flow; LVP now expected -2.5%
- Repurchased 1.65M shares for $200M in Q2; leverage ratio improved to 1.2x
Financial Impact
Restructuring charges of $90M in Q2 (total $142M) weigh on earnings; annual pre-tax savings of $40M expected from 2027. Strong cash flow provides buffer.
Risk Factors
- Geopolitical/tariff volatility could further pressure margins
- Raw material cost inflation ($110M gross impact expected for FY2026)
- Execution risk on Türkiye restructuring and achieving $40M annual savings
- Light vehicle production decline of 2.5% assumed for 2026
- Higher tax rate (34.5% in Q2 vs 24.1% prior year) due to discrete items
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-306698 |
| Document: alv-20260717.htm | 0001193125-26-306698 |
| Document: 0001193125-26-306698-index-headers.html | 0001193125-26-306698 |
| Document: 0001193125-26-306698-index.html | 0001193125-26-306698 |
| Document: 0001193125-26-306698.txt | 0001193125-26-306698 |
| 8-K Data (Synthetic) | 0001193125-26-306698 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | 8-K | $114.41 | awaiting T+5 | — | $114.68 (−0.23%) |
Aug 15, 2026 10w ago | Institutional Cluster | $120.76 $123.18 | ▲ +2.00% | ▲ +3.19% | $114.68 (−5.04%) |
Aug 13, 2026 10w ago | Press Release | $121.41 $121.69 | ▲ +0.23% | ▲ +2.19% | $114.68 (−5.55%) |
Jul 17, 2026 14w ago | 8-K | $120.26 $115.21 | ▼ −4.20% | ▼ −3.51% | $114.68 (−4.64%) |
Jun 30, 2026 16w ago | 8-K | $116.17 $119.83 | ▲ +3.15% | ▲ +2.55% | $114.68 (−1.29%) |
Jun 12, 2026 19w ago | Institutional Cluster | $128.53 $118.24 | ▼ −8.01% | ▼ −8.68% | $114.68 (−10.78%) |
May 11, 2026 23w ago | 8-K | $120.53 $115.82 | ▼ −3.91% | ▼ −3.82% | $114.68 (−4.86%) |
Apr 17, 2026 27w ago | 8-K | $118.92 $117.81 | ▲ +0.93% | ▲ +1.49% | $114.68 (+3.57%) |
Mar 25, 2026 30w ago | DEFA14A | $105.11 $107.10 | ▲ +1.89% | ▲ +2.14% | $114.68 (+9.10%) |
Feb 24, 2026 34w ago | Insider Cluster | $122.48 $112.20 | ▲ +8.39% | ▲ +7.36% | $114.68 (+6.37%) |
US Market Status
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