Autoliv Q2 sales beat estimates on strong Asia demand

Overview

• Automotive safety supplier's Q2 sales rose 3.3%, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations; adjusted operating margin improved to 9.6%

• Company repurchased 1.65 mln shares and posted record Q2 operating cash flow

Outlook

• Autoliv sees full-year 2026 organic sales growth around 0%

• Company expects 2026 adjusted operating margin of about 10.5-11%

• Autoliv forecasts 2026 operating cash flow of around $1.2 bln

Result Drivers

• ASIA OUTPERFORMANCE - Sales in Asia, particularly China and India, outpaced local vehicle production and drove overall organic growth

• COST REDUCTIONS - Adjusted operating income increased due to direct material cost savings despite FX and raw material price headwinds

• RESTRUCTURING IMPACT - Operating income fell substantially due to restructuring activities in Türkiye

Company press release: ID:nWkr8kMShF

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Autoliv Inc is $134.00, about 7.2% above its July 16 closing price of $124.99

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)