Autoliv, Inc., operating through its global subsidiaries, specializes in the development, production, and supply of passive safety equipment for the automotive sector. ...
Autoliv, Inc. (NYSE: ALV) is widely known as a leading supplier of passive safety equipment for the automotive sector. The company’s core mission centers on improving vehicle occupant protection and reducing injury severity in crashes, supported by extensive engineering and manufacturing capabilities across major vehicle markets worldwide. Business and products: ...Autoliv, Inc. (NYSE: ALV) is widely known as a leading supplier of passive safety equipment for the automotive sector. The company’s core mission centers on improving vehicle occupant protection and reducing injury severity in crashes, supported by extensive engineering and manufacturing capabilities across major vehicle markets worldwide.
Business and products: Autoliv designs, develops, and manufactures protective safety systems used primarily by automakers. Its major product categories include frontal and side-impact airbag systems, seatbelts and related restraint components, steering-wheel and inflator technologies, and battery cut-off switches. The company also supplies advanced safety solutions beyond traditional occupant protection—such as anti-whiplash systems and pedestrian protection technologies—reflecting the broader shift toward “safety for more situations,” including collisions involving vulnerable road users.
Mobility safety and services: In addition to hardware, Autoliv provides mobility safety solutions and connected safety offerings aimed at enhancing overall protection and integration with modern vehicle ecosystems. This combination supports automaker programs where safety systems must meet regulatory requirements as well as performance expectations across different vehicle platforms.
Scale and footprint: Autoliv operates globally, serving Europe, the Americas, China, Japan, and other parts of Asia, supported by significant engineering infrastructure (including technical centers) and manufacturing operations. With roughly 64,000 employees, the company is structured to support long product development cycles and high-volume production demands typical of automotive supply chains.
Cost, BOM, and manufacturing model (high-level): As a tier automotive safety supplier, Autoliv’s typical cost structure is influenced by research and development intensity (materials, sensors/actuation technologies, compliance testing), engineering validation, and manufacturing scale for safety-critical components. Product “bill of materials” complexity varies by module (e.g., airbags and inflators versus restraint systems), but generally includes specialized components, safety qualification requirements, and stringent quality systems.
Financial and market perspective: Based on the provided market data, Autoliv has an enterprise value around $11.0B and shows profitability metrics consistent with a mature industrial supplier (e.g., EBIT/EBITDA margins provided in the source). The company also supports shareholder returns via dividends (dividend yield and per-share dividend values are included in the provided dataset). Liquidity and solvency measures indicate normal operating balance-sheet dynamics for a manufacturing business, with current ratio and cash-related ratios provided.
Key people and governance: Mikael Bratt serves as President and CEO. Historically, the company traces back to its 1953 founding origins and has grown into a global automotive safety leader through technological development and long-term customer relationships.
Overall, Autoliv competes by delivering safety performance, compliance, and manufacturability at automotive scale—while investing in next-generation protective technologies aimed at both occupant and non-occupant injury mitigation.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$10.8B
+4.1%
+1.8%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$735.0M
+13.8%
-29.6%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+19.2%
+3.4%
-5.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+10.1%
+7.0%
-20.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+6.8%
+9.3%
-30.8%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$715.0M
+49.0%
+311.2%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+6.6%
+43.1%
+307.4%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
94.9%
+4.4%
+2.8%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.05x
+9.0%
-4.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, 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 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 Trapp. Please go ahead.
Anders Trapp: 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, Monika Grama, and me, Anders Trapp, 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 initiative in EMEA, an update on the latest market development and 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 P.M. Central European Time, please follow a limit of two questions per person. I now hand it over to our CEO, Mikael Bratt.
Mikael Bratt: Thank you, Anders. Looking on 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. Supported by strong customer partnerships and a relentless focus on continuous improvement, we have built a solid momentum for the rest of the year. During the quarter, we also navigated geopolitical developments effectively, mitigating the impact of tariffs, supply chain disruptions, and raw material cost volatility. As you might have seen in the report and will hear from us during this call, we have several positive and negative one-time items in the quarter. This includes a supplier settlement reversion from Q3 2025, an IEEPA refund, government income in India, an impairment charge related to restructuring activities in Turkey, and a reversed expected credit loss reserve. Combined, these items have virtually no impact on the adjusted …