Financial Report (Form 8-K)

Financial Report

April - June 2026

Stockholm, Sweden, July 17, 2026
(NYSE: ALV and SSE: ALIV.sdb)

Financial Report April - June 2026

Financial highlights Q2 2026

$2,803 million net sales, increase of 3.3%

1.0% organic sales growth*

6.8% operating margin, 9.6% adj. operating margin*

$1.35 diluted EPS, 38% decrease

Full year 2026 guidance

Around 0% organic sales growth

Around 2.5% positive FX impact on net sales

Around 10.5-11% adjusted operating margin

Around $1.2 billion operating cash flow

*For Non-GAAP measures see enclosed reconciliation tables.

(Dollars in millions, except per share data)

Q2 2026

Q2 2025

Change

6M 2026

6M 2025

Change

Net sales

$2,803

$2,714

3.3%

$5,556

$5,292

5.0%

Operating income

192

247

(22)%

429

502

(14)%

Adjusted operating income1)

270

251

7.3%

515

506

1.7%

Operating margin

6.8%

9.1%

(2.3)pp

7.7%

9.5%

(1.8)pp

Adjusted operating margin1)

9.6%

9.3%

0.4pp

9.3%

9.6%

(0.3)pp

Earnings per share - diluted

1.35

2.16

(38)%

3.24

4.31

(25)%

Adjusted earnings per share - diluted1)

2.43

2.21

10%

4.49

4.36

2.9%

Operating cash flow

434

277

57%

359

355

1.1%

Return on capital employed2)

17.9%

23.8%

(5.8)pp

20.3%

24.8%

(4.5)pp

Adjusted return on capital employed1,2)

24.9%

24.1%

0.8pp

24.1%

25.0%

(0.9)pp

Dividends paid

(64)

(54)

19%

(130)

(108)

20%

Share repurchases

(200)

(51)

293%

(200)

(101)

97%

1) Excluding effects from capacity alignments and antitrust related matters. Non-GAAP measure, see reconciliation table.
2) Annualized operating income and income from equity method investments, relative to average capital employed.

Comments from Mikael Bratt, President & CEO

Through focused execution, we maintained the positive momentum from the first quarter. Globally, our sales grew organically more than 1pp faster than global LVP, outgrowing LVP significantly in Asia. Our sales to Chinese OEMs grew by more than 40%, and Chinese OEMs accounted for 55% of our sales in China, compared to 40% a year ago. Our opportunities with Chinese OEMs were

to optimize our footprint. In the quarter, we announced that we will discontinue manufacturing operations in Türkiye.

We continued to manage geopolitical developments successfully in the quarter, limiting the effects of tariffs, supply chain challenges and raw material price increases.

The business environment remains uncertain but our current best estimate for the remainder of the year is to reiterate our full year 2026 guidance of about unchanged organic sales growth, adjusted operating margin of around 10.5-11% and operating cash flow of around 1.2 billion. This is based on the assumption that LVP will decline by around 2.5%.

Customer compensations and other mitigation initiatives are expected to have limited impact in Q3, but significantly greater contribution in Q4. Therefore, we expect third quarter adjusted operating margin to be around the first half 2026 level, with a significant improvement in Q4.

Based on our full year guidance, we continue to expect strong cash flow for the year, which supports our ambition to provide attractive shareholder returns, including share repurchases of $300-500 million in 2026.

further solidified by signing new strategic cooperation agreements with both Great Wall Motor and XPENG. Sales in India continued to grow by more than 35%.

Well executed cost reduction activities supported a continued improvement of underlying profitability, with adjusted operating margin increasing to 9.6%.

I am pleased that our cash flow improved in line with our expectations, resulting in record operating cash flow for a second quarter, and supporting our ambitious shareholder return strategy. Our leverage ratio improved to 1.2x, despite repurchasing around 1.65 million shares, equal to $200 million, in the quarter.

In line with our ambition to ensure long-term competitiveness and align production capacity with market demand, we continue

Financial Report April - June 2026

Full year 2026 Guidance

Organic sales growth

Around 0%

Adjusted operating margin1)

Around 10.5-11%

Operating cash flow2)

Around $1.2 billion

Capex, net, % of sales

Less than 5%

1) Excluding effects from capacity alignments, antitrust related matters and other discrete items. 2) Excluding unusual items.

Full year 2026 Assumptions

LVP growth

Around 2.5% negative

FX impact on net sales

Around 2.5% positive

Tax rate3)

Around 30%

3) Excluding unusual tax items.

Financial Report April - June 2026

Financial Report April - June 2026

Sales Development by region

Operating and adjusted* operating income and margins

Operating cash flow and capex, net

Shareholder returns

Return on Capital Employed

Cash Conversion*

Adj. operating income and margin*: Operating income adjusted for capacity alignments, antitrust related matters and for FY 2023 the Andrews litigation settlement. Capacity alignments include non-recurring costs related to our structural efficiency and business cycle management programs.

Capex, net: Capital Expenditure, net, defined as Expenditures for Property, Plant and Equipment less Proceeds from sale of Property, Plant and Equipment.

Cash conversion*: Free operating cash flow* in relation to net income. Free operating cash flow defined as operating cash flow less capital expenditure, net.

Financial Report April - June 2026

Consolidated sales

Second quarter

Reported change

Currency

Organic

(Dollars in millions)

2026

2025

(U.S. GAAP)

effects1)

change*

Airbags, Steering Wheels and Other2)

$1,906

$1,812

5.2%

2.2%

3.0%

Seatbelt Products and Other2)

897

902

(0.5)%

2.4%

(3.0)%

Total

$2,803

$2,714

3.3%

2.3%

1.0%

Americas

$910

$891

2.1%

5.4%

(3.3)%

EMEA

832

828

0.4%

2.7%

(2.2)%

Asia excl. China

539

519

4.0%

(7.3)%

11%

China

522

477

9.6%

6.2%

3.4%

Total

$2,803

$2,714

3.3%

2.3%

1.0%

1) Effects from currency translations. 2) Including Corporate sales.

Sales by product - Airbags, Steering Wheels and Other

Sales for Airbags, Steering Wheels and Other grew organically* by 3.0% in the quarter. The largest contributors to the increase were side airbags and center airbags, followed by driver airbags, inflatable curtains and knee airbags, partly offset by declines for steering wheels and passenger airbags.

Sales by product - Seatbelt Products and Other

Sales for Seatbelt Products and Other declined organically* by 3.0% in the quarter. Sales decreased organically in Americas, China and EMEA while it increased in Asia excluding China.

Sales by region

Our global organic sales* increased by 1.0% compared to the global LVP decrease of 0.3% (according to S&P Global, July 2026). The relative outperformance was positively impacted by product launches but negatively impacted by regional and model LVP mix development (around 60bps). Our organic sales growth* outperformed LVP growth by 7.3pp in China and by 5.9pp in Asia excluding China. We underperformed LVP in EMEA by 1.0pp and by 4.9pp in Americas, impacted mainly by lower top line effect from tariffs, negative mix due to high LVP growth in lower content South America and a lower content on some replacement models.

LVP in China declined by 4.0%, with Global OEMs LVP declining by 19% and Chinese OEMs LVP growing by 3.1%. Autoliv's sales to domestic OEMs increased organically by around 44% while our sales to global OEMs decreased by around 24%. Chinese OEMs accounted for 55% of our sales in China in the quarter, compared to around 40% a year ago. We expect continued strong sales growth in China in 2026, driven mainly by our performance with domestic OEMs. Our strong sales growth in Asia excluding China was mainly due to 36% organic sales growth in India, reflecting LVP growth but mainly the trend of increased safety content in vehicles in India.

Q2 2026 organic growth*

Americas

EMEA

Asia excl. China

China

Global

Autoliv

(3.3)%

(2.2)%

11.3%

3.4%

1.0%

Main growth drivers

Stellantis, Subaru, Honda

Mercedes, Renault, JLR

Suzuki, Mazda, Indian OEM

Chery, Nio, Geely

Chery, Suzuki, Nio

Main decline drivers

Ford, Hyundai, Nissan

VW, BMW, Stellantis

Subaru, Ford, Isuzu

VW, Honda, Mercedes

VW, Ford, Hyundai

Q2 2026

Americas

EMEA

Asia excl. China

China

Global

LVP (Jul 2026)

1.6%

(1.2)%

5.4 %

(4.0)%

(0.3)%

LVP (Apr 2026)

(2.5)%

(3.7)%

(0.1)%

(0.6)%

(1.9)%

Financial Report April - June 2026

Consolidated sales

First six months

Reported change

Currency

Organic

(Dollars in millions)

2026

2025

(U.S. GAAP)

effects1)

change*

Airbags, Steering Wheels and Other2)

$

3,769

$

3,565

5.7

%

3.9

%

1.8

%

Seatbelt Products and Other2)

1,787

1,727

3.5

%

4.5

%

(1.0

)%

Total

$

5,556

$

5,292

5.0

%

4.1

%

0.9

%

Americas

$

1,773

$

1,742

1.7

%

6.0

%

(4.2

)%

EMEA

1,667

1,592

4.7

%

6.7

%

(2.0

)%

Asia excl. China

1,102

1,034

6.6

%

(4.6

)%

11

%

China

1,014

924

9.8

%

5.7

%

4.1

%

Total

$

5,556

$

5,292

5.0

%

4.1

%

0.9

%

1) Effects from currency translations. 2) Including Corporate sales.

Sales by product - Airbags, Steering Wheels and Other

Sales for Airbags, Steering Wheels and Other grew organically* by 1.8% in the period. The largest contributors to the increase were side airbags and center airbags, followed by driver airbags, partly offset by declines for passenger airbags and steering wheels.

Sales by product - Seatbelt Products and Other

Sales for Seatbelt Products and Other declined organically* by 1.0% in the period. Sales decreased organically in Americas, China and EMEA while it increased in Asia excluding China.

Sales by region

Our global organic sales* increased by 0.9% compared to the global LVP decrease of 1.0% (according to S&P Global, July 2026). The relative outperformance was mainly driven by new product launches. Our organic sales growth outperformed LVP growth by 10pp in China and by 5.8pp in Asia excluding China. We underperformed LVP in EMEA by 1.8pp and by 5.1pp in Americas, impacted mainly by lower top line effect from tariffs, negative mix due to high LVP growth in lower content South America and a lower content on some replacement models.

LVP in China declined by 6.0%, with Global OEMs LVP declining by 12% and Chinese OEMs LVP decreased by 3.1%. Autoliv's sales to domestic OEMs increased organically by around 37% while our sales to global OEMs decreased by around 17%. Chinese OEMs accounted for 51% of our sales in China in the first half year, compared to 39% a year ago. Our strong sales growth in Asia excluding China was mainly due to 37% organic sales growth in India, reflecting LVP growth but mainly the trend of increased safety content in vehicles in India.

6M 2026 organic growth*

Americas

EMEA

Asia excl. China

China

Global

Autoliv

(4.2)%

(2.0)%

11.2%

4.1%

0.9%

Main growth drivers

Stellantis, Subaru, Honda

Mercedes, Renault, Volvo

Suzuki, Indian OEM, Mazda

Chery, Nio, Geely

Suzuki, Chery, Nio

Main decline drivers

Ford, Hyundai, GM

VW, Hyundai, Ford

Subaru, Ford, Isuzu

VW, Honda, Mercedes

VW, Ford, Toyota

First six months 2026

Americas

EMEA

Asia excl. China

China

Global

LVP (Jul 2026)

0.9%

(0.3)%

5.5 %

(6.0)%

(1.0)%

LVP (Jan 2026)

(1.0)%

(1.4)%

0.9%

(2.3)%

(1.2)%

Financial Report April - June 2026

Condensed Income Statement

Second quarter

First six months

(Dollars in millions, except per share data)

2026

2025

Change

2026

2025

Change

Net sales

$2,803

$2,714

3.3%

$5,556

$5,292

5.0%

Cost of sales

(2,294)

(2,213)

3.7%

(4,521)

(4,312)

4.8%

Gross profit

509

501

1.5%

1,035

980

5.7%

S,G&A

(138)

(145)

(4.9)%

(299)

(290)

3.1%

R,D&E, net

(122)

(107)

14%

(242)

(202)

20%

Other income (expense), net

(56)

(1)

n/a

(65)

14

n/a

Operating income

192

247

(22)%

429

502

(14)%

Adjusted operating income1)

270

251

7.3%

515

506

1.7%

Financial and non-operating items, net

(38)

(27)

44%

(73)

(48)

52%

Income before taxes

154

221

(30)%

356

453

(22)%

Income taxes

(53)

(53)

(0.2)%

(113)

(118)

(4.1)%

Net income

$101

$168

(40)%

$242

$335

(28)%

Earnings per share - diluted2)

$1.35

$2.16

(38)%

$3.24

$4.31

(25)%

Adjusted earnings per share - diluted1,2)

$2.43

$2.21

10%

$4.49

$4.36

2.9%

Gross margin

18.2%

18.5%

(0.3)pp

18.6%

18.5%

0.1pp

S,G&A, in relation to sales

(4.9)%

(5.4)%

0.4pp

(5.4)%

(5.5)%

0.1pp

R,D&E, net in relation to sales

(4.4)%

(3.9)%

(0.4)pp

(4.4)%

(3.8)%

(0.5)pp

Operating margin

6.8%

9.1%

(2.3)pp

7.7%

9.5%

(1.8)pp

Adjusted operating margin1)

9.6%

9.3%

0.4pp

9.3%

9.6%

(0.3)pp

Tax Rate

34.5%

24.1%

10.4pp

31.9%

26.1%

5.8pp

Other data

No. of shares at period-end in millions2)

73.2

76.8

(4.6)%

73.2

76.8

(4.6)%

Weighted average no. of shares in millions, basic2)

74.1

77.1

(3.9)%

74.3

77.3

(3.8)%

Weighted average no. of shares in millions, diluted2)

74.2

77.3

(3.9)%

74.5

77.5

(3.8)%

1) Non-GAAP measure, excluding effects from capacity alignments and antitrust related matters. See reconciliation table. 2) Net of treasury shares.

Second quarter 2026 development

Gross profit increased by $8 million and gross margin decreased by 0.3pp compared to the prior year. The drivers behind the gross profit improvement were mainly positive FX effects and lower costs for materials. This was partly offset by $13 million in costs for a supplier compensation reversal and $9 million in asset impairment related to the restructuring activities in Türkiye.

S,G&A costs decreased by $7 million compared to the prior year, mainly due to $8 million from revised estimated credit loss reserve and $1 million in lower personnel costs, partly offset by $3 million in negative FX translation effects and higher legal costs. S,G&A costs in relation to sales decreased from 5.4% to 4.9%.

R,D&E, net, costs increased by $15 million compared to the prior year, mainly due to $5 million in lower engineering income related to timing effects, $4 million in higher personnel costs due to wage inflation and $3 million in negative FX translation effects. R,D&E, net, in relation to sales increased from 3.9% to 4.4%.

Other income (expense), net, was negative $56 million, compared to negative $1 million in the same period last year. The $56 million in Q2 2026 consists mainly of around $66 million in capacity alignments related to our restructuring activities in Türkiye partly offset by around $10 million in government income in India.

Operating income decreased by $55 million compared to the prior year, mainly due to higher capacity alignment costs related to restructuring activities in Türkiye and higher R,D&E, net, costs, partly offset by higher gross profit and lower S,G&A costs as outlined above.

Adjusted operating income* increased by $18 million compared to the prior year, due to the higher gross profit and lower S,G&A costs as outlined above.

Financial and non-operating items, net, was a negative $38 million compared to a negative $27 million a year earlier. The cost increase was driven by $12 million in higher costs for non-operating items mainly related to costs associated with restructuring activities in Türkiye.

Income before taxes decreased by $67 million compared to the prior year, mainly due to the lower operating income and higher costs for financial and non-operating items, net, as outlined above.

Tax rate was 34.5% compared to 24.1% the prior year. Discrete tax items, net, had an unfavorable impact of 5.4pp in Q2 2026, while discrete tax items, net, in Q2 2025 had a favorable impact of 4.3pp. Discrete tax items recorded in Q2 2026 primarily related to negative tax impacts from costs recorded for the capacity alignment for Autoliv's manufacturing operations in Türkiye.

Earnings per share, diluted decreased by $0.81 compared to the prior year. The main drivers were $0.55 from lower operating income, $0.21 from higher taxes and $0.11 from financial and non-operating items, partly offset by $0.05 from lower number of outstanding shares, diluted.

Financial Report April - June 2026

First six months 2026 development

Gross profit increased by $56 million and gross margin increased by 0.1pp compared to the prior year. The drivers behind the gross profit improvement were mainly positive FX translation effects and lower costs for materials. This was partly offset by costs for a supplier compensation reversal and asset impairment related to the restructuring activities in Türkiye.

S,G&A costs increased by $9 million compared to the prior year, mainly due to negative FX translation effects and higher personnel costs, partly offset by reversal of estimated credit loss reserve. S,G&A costs in relation to sales decreased from 5.5% to 5.4%.

R,D&E, net, costs increased by $40 million compared to the prior year, mainly due to lower engineering income, higher personnel costs and negative FX translation effects. R,D&E, net, in relation to sales increased from 3.8% to 4.4%.

Other income (expense), net, was negative $65 million, compared to positive $14 million in the same period last year. The increase in costs were mainly due to higher capacity alignment costs related to restructuring activities in Türkiye.

Operating income decreased by $73 million compared to the prior year, mainly due to higher capacity alignment costs related to restructuring activities in Türkiye, higher R,D&E, net, costs and higher S,G&A costs, partly offset by higher gross profit as outlined above.

Adjusted operating income* increased by $8 million compared to the prior year, due to the higher gross profit, partly offset by the higher costs for R,D&E, net and S,G&A.

Financial and non-operating items, net, was negative $73 million compared to negative $48 million a year earlier. The cost increase comes from higher costs for non-operating items mainly related to costs associated with restructuring activities in Türkiye and Mexico.

Income before taxes decreased by $98 million compared to the prior year, mainly due to the lower operating income and higher costs for financial and non-operating items, net, as outlined above.

Tax rate was 31.9% compared to 26.1% the prior year. Discrete tax items, net, for the period had an unfavorable impact of 3.7pp. Discrete tax items, net, for the prior year period had a favorable impact of 2.1pp. Discrete tax items recorded in the first six months of 2026 primarily related to negative tax impacts from costs recorded for the capacity alignment for Autoliv's manufacturing operations in Türkiye.

Earnings per share, diluted decreased by $1.07 compared to the prior year. The main drivers were $0.69 from lower operating income, $0.26 from higher tax and $0.23 from financial and non-operating items, partly offset by $0.12 from lower number of outstanding shares, diluted.

Financial Report April - June 2026

Selected Cash Flow items

Second quarter

First six months

(Dollars in millions)

2026

2025

Change

2026

2025

Change

Net income

$101

$168

(40)%

$242

$335

(28)%

Depreciation and amortization

115

100

15%

222

195

13%

Other non-cash adjustments, net

(21)

(5)

294%

3

(12)

n/a

Changes in operating working capital

240

15

n/a

(108)

(164)

(34)%

Operating cash flow

434

277

57%

359

355

1.1%

Capital expenditure, net1)

(95)

(114)

(17)%

(178)

(208)

(14)%

Free operating cash flow2)

$340

$163

108%

$180

$147

23%

Cash conversion3)

338%

97%

241pp

74%

44%

31pp

Shareholder returns

- Dividends paid

(64)

(54)

19%

(130)

(108)

20%

- Share repurchases

(200)

(51)

293%

(200)

(101)

97%

Cash dividend paid per share

$(0.87)

$(0.70)

24%

$(1.74)

$(1.40)

24%

Capital expenditures, net in relation to sales

3.4%

4.2%

(0.8)pp

3.2%

3.9%

(0.7)pp

1) Defined as Expenditures for property, plant and equipment less Proceeds from sale of property, plant and equipment. 2) Operating cash flow less Capital expenditure, net. Non-GAAP measure. See enclosed reconciliation table. 3) Free operating cash flow relative to Net income. Non-GAAP measure. See reconciliation table.

Selected Balance Sheet items

Second quarter

(Dollars in millions)

2026

2025

Change

Trade working capital1)

$1,350

$1,354

(0.3)%

Trade working capital in relation to sales2)

12.0%

12.5%

(0.4)pp

- Receivables outstanding in relation to sales3)

21.3%

21.6%

(0.3)pp

- Inventory outstanding in relation to sales4)

8.4%

8.8%

(0.4)pp

- Payables outstanding in relation to sales5)

17.7%

17.9%

(0.2)pp

Cash & cash equivalents

377

237

60%

Gross Debt6)

2,037

2,051

(0.6)%

Net Debt7)

1,695

1,752

(3.3)%

Capital employed8)

4,195

4,231

(0.8)%

Return on capital employed9)

17.9%

23.8%

(5.8)pp

Total equity

2,501

2,480

0.9%

Return on total equity10)

15.6%

27.7%

(12.0)pp

Leverage ratio11)

1.2

1.3

(0.1)

1) Outstanding receivables and outstanding inventory less outstanding payables. Non-GAAP measure, see reconciliation table. 2) Outstanding receivables and outstanding inventory less outstanding payables relative to annualized quarterly sales. Non-GAAP measure, see reconciliation table. Annualized quarterly sales is calculated as the quarterly sales amount multiplied by four. 3) Outstanding receivables relative to annualized quarterly sales. 4) Outstanding inventory relative to annualized quarterly sales. 5) Outstanding payables relative to annualized quarterly sales. 6) Short- and long-term interest-bearing debt. 7) Short- and long-term debt less cash and cash equivalents and debt-related derivatives. Non-GAAP measure. See reconciliation table. 8) Total equity and net debt. 9) Annualized operating income and income from equity method investments, relative to average capital employed. See definitions of "Annualized operating income" in footnote to the reconciliation tables below. 10) Annualized net income relative to average total equity. See definitions of "Annualized net income" in footnote to the reconciliation tables below. 11) Net debt adjusted for pension liabilities in relation to EBITDA. Non-GAAP measure. See reconciliation table.

Second quarter 2026 development

Changes in operating working capital impacted operating cash flow by $240 million positive compared to $15 million positive in the prior year. The $240 million decrease in operating working capital comes mainly from $120 million from accounts payable, $35 million from receivables, net, and $48 million from accrued severance and restructuring costs. The decrease in operating working capital is mainly due to an expected normalization of working capital following the increase seen in the first quarter, which was related to high level of sales in March 2026 and other temporary effects.

Operating cash flow increased by $157 million to $434 million compared to the prior year, mainly because of the decrease in operating working capital outlined above, partly offset by a lower net income.

Capital expenditure, net, decreased by $20 million compared to the prior year. The level of capital expenditure, net, in relation to sales declined to 3.4% versus 4.2% a year earlier. The lower level of capital expenditure, net is mainly related to the lower activity level of footprint optimization and less capacity expansion.

Free operating cash flow* was positive $340 million compared to positive $163 million in the prior year. The increase was due to the higher operating cash flow and lower capital expenditure, net, as outlined above.

Cash conversion* defined as free operating cash flow* in relation to net income, was 338% compared to 97% a year earlier as free operating cash flow was increased while net income decreased.

Financial Report April - June 2026

Trade working capital* in relation to sales decreased from 12.5% to 12.0%. Compared to the high level of 13.7% in the first quarter of 2026, which was related to high level of sales in March 2026 and other temporary effects, was an expected normalization.

Net debt* was $1,695 million as of June 30, 2026, which was $57 million lower than a year earlier.

Total equity as of June 30, 2026, increased by $21 million compared to June 30, 2025. This was mainly due to net income of $643 million and $27 million in other positive effects, partly offset by $454 million in share repurchases, including taxes, and $194 million in dividend payments.

Leverage ratio*: On June 30, 2026, the Company had a leverage ratio of 1.2x compared to 1.3x on June 30, 2025, as the 12 months trailing adjusted EBITDA* increased by $73 million while net debt* per the policy decreased by $44 million. Our target is to have a leverage ratio not higher than 1.5x.

First six months 2026 development

Operating cash flow increased by $4 million to $359 million compared to the prior year, mainly because the positive effects from working capital and depreciations were almost offset by the lower net income.

Capital expenditure, net, decreased by $29 million compared to the prior year. The level of capital expenditure, net, in relation to sales was 3.2% versus 3.9% a year earlier. The lower level of capital expenditure, net was mainly related to the lower activity level of footprint optimization and less capacity expansion.

Free operating cash flow* was positive $180 million compared to positive $147 million in the prior year. The increase was mainly due to the lower level of capital expenditure, net.

Cash conversion* defined as free operating cash flow* in relation to net income, was 74% compared to 44% a year earlier as free operating cash flow increased while net income decreased.

Jun 30

Mar 31

Jun 30

2026

2026

2025

Total headcount

63,500

64,100

65,100

Whereof: Direct headcount in manufacturing

46,200

46,700

48,000

Indirect headcount

17,300

17,400

17,100

Temporary personnel

11%

10%

9%

As of June 30, 2026, total headcount (Full Time Equivalent) decreased by around 1,600, or 2.5%, compared to a year earlier. The indirect workforce increased by around 200, or 1.1%, mainly reflecting a change in headcount reporting classification, moving around 300 people from direct to indirect. The direct workforce decreased by approximately 1,800, or 3.7%. The decrease was supported by improved customer call-off accuracy, which enabled us to accelerate operating efficiency improvements, and also reflected the reclassification mentioned above.

Compared to March 31, 2026, total headcount (Full Time Equivalent) decreased by around 600, or 0.9%. Indirect headcount decreased by around 100, while direct headcount decreased by approximately 500.

Financial Report April - June 2026

Next Report

Autoliv intends to publish the quarterly earnings report for the third quarter of 2026 on Friday, October 23, 2026.

Footnotes

*Non-GAAP measures, see enclosed reconciliation tables.

Inquiries: Investors and Analysts

Anders Trapp

Vice President Investor Relations

Tel +46 (0)709 578 171

Henrik Kaar

Director Investor Relations

Tel +46 (0)709 578 114

Inquiries: Media

Gabriella Etemad

Senior Vice President Communications

Tel +46 (0)70 612 6424

Autoliv, Inc. is obliged to make this information public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the VP of Investor Relations set out above, at 12.00 CET on July 17, 2026.

Definitions and SEC Filings

Please refer to www.autoliv.com or to our Annual Report for definitions of terms used in this report. Autoliv's annual report to stockholders, annual report on Form 10-K, quarterly reports on Form 10-Q, proxy statements, management certifications, press releases, current reports on Form 8-K and other documents filed with the SEC can be obtained free of charge from Autoliv at the Company's address. These documents are also available at the SEC's website www.sec.gov and at Autoliv's corporate website www.autoliv.com.

This report includes content supplied by S&P Global; Copyright © Light Vehicle Production Forecast, January, April and July 2026. All rights reserved. S&P Global is a global supplier of independent industry information. The permission to use S&P Global copyrighted reports, data and information does not constitute an endorsement or approval by S&P Global of the manner, format, context, content, conclusion, opinion or viewpoint in which S&P Global reports, data and information or its derivations are used or referenced herein.

Financial Report April - June 2026

This report contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include those that address activities, events or developments that Autoliv, Inc. or its management believes or anticipates may occur in the future. All forward-looking statements are based upon our current expectations, various assumptions and/or data available from third parties. Our expectations and assumptions are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. In some cases, you can identify these statements by forward-looking words such as "estimates", "expects", "anticipates", "projects", "plans", "intends", "believes", "may", "likely", "might", "would", "should", "could", or the negative of these terms and other comparable terminology, although not all forward-looking statements contain such words. Because these forward-looking statements involve risks and uncertainties, the outcome could differ materially from those set out in the forward-looking statements for a variety of reasons, including without limitation: general global and regional economic conditions, including the impact of inflation; changes in light vehicle production; fluctuation in vehicle production schedules for which the Company is a supplier; global supply chain disruptions, including port, transportation, and distribution delays or interruptions; supply chain disruptions, and component shortages specific to the automotive industry or the Company; potential changes to beneficial free trade agreements and regulations, such as the United States-Mexico-Canada Agreement; changes in geopolitical and other economic and political conditions or developments, including inflation, changes trade policies, tariff regimes, and other developments in and by countries in which we do business that could materially impact supply chains, margins, access to capital, or overall business performance; political stability or geopolitical conflicts; changes in general industry or market conditions, including regional economic growth or decline; changes in and the successful execution of our capacity alignment, restructuring, cost reduction, and efficiency initiatives and the market reaction thereto; loss of business from increased competition; volatility or increases in raw material, fuel, and energy costs; changes in consumer and customer preferences for end products; loss of customers or sales; legislative or regulatory changes; customer bankruptcies, consolidations or restructuring or divestiture of customer brands; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; market acceptance of our new products; costs or difficulties related to the integration of any new or acquired businesses and technologies; continued uncertainty in pricing and other negotiations with

customers, including inflation and tariff compensations; successful integration of acquisitions and operations of joint ventures; successful implementation of strategic partnerships and collaborations; our ability to be awarded new business; product liability, warranty and recall claims and investigations and other litigation, civil judgments or financial penalties and customer reactions thereto; higher expenses for our pension and other postretirement benefits, including higher funding needs for our pension plans; work stoppages or other labor issues; possible adverse results of pending or future litigation or infringement claims, and the availability of insurance with respect to such matters; our ability to protect our intellectual property rights; negative impacts of antitrust investigations or other governmental investigations and associated litigation relating to the conduct of our business; tax assessments or results of tax audits by governmental authorities and changes in our effective tax rate; dependence on key personnel; our ability to meet our sustainability targets, goals and commitments; dependence on and relationships with customers and suppliers; the conditions necessary to hit our financial targets; and other risks and uncertainties identified under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Reports and Quarterly Reports on Forms 10-K and 10-Q and any amendments thereto. For any forward-looking statements contained in this or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we assume no obligation to update publicly or revise any forward-looking statements in light of new information or future events, except as required by law.

Financial Report April - June 2026

Second quarter

First six months

Latest 12

Full Year

(Dollars in millions, except per share data, unaudited)

2026

2025

2026

2025

months

2025

Airbags, Steering Wheels and Other1)

$1,906

$1,812

$3,769

$3,565

$7,507

$7,302

Seatbelt products and Other1)

897

902

1,787

1,727

3,572

3,513

Total net sales

2,803

2,714

5,556

5,292

11,079

10,815

Cost of sales

(2,294)

(2,213)

(4,521)

(4,312)

(8,949)

(8,741)

Gross profit

509

501

1,035

980

2,130

2,074

Selling, general & administrative expenses

(138)

(145)

(299)

(290)

(580)

(571)

Research, development & engineering expenses, net

(122)

(107)

(242)

(202)

(454)

(413)

Other income (expense), net

(56)

(1)

(65)

14

(81)

(2)

Operating income

192

247

429

502

1,016

1,088

Income from equity method investments

1

1

2

3

5

6

Interest income

2

2

5

4

11

10

Interest expense

(26)

(27)

(53)

(52)

(103)

(103)

Other non-operating items, net

(15)

(3)

(27)

(3)

(39)

(15)

Income before income taxes

154

221

356

453

889

986

Income taxes

(53)

(53)

(113)

(118)

(246)

(250)

Net income

101

168

242

335

643

736

Less: Net income attributable to non-controlling interest

0

0

1

1

1

1

Net income attributable to controlling interest

$100

$167

$242

$334

$642

$735

Earnings per share - diluted

$1.35

$2.16

$3.24

$4.31

$8.52

$9.55

1) Including Corporate sales.

Financial Report April - June 2026

Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

(Dollars in millions, unaudited)

2026

2026

2025

2025

2025

Assets

Cash & cash equivalents

$377

$342

$604

$225

$237

Receivables, net

2,387

2,422

2,236

2,357

2,341

Inventories, net

945

947

992

1,036

957

Prepaid expenses

224

206

212

226

249

Other current assets

76

71

57

102

146

Total current assets

4,009

3,987

4,101

3,946

3,929

Property, plant & equipment, net

2,340

2,356

2,417

2,402

2,399

Operating leases right-of-use assets

157

166

171

167

171

Goodwill and intangible assets, net

1,394

1,392

1,386

1,387

1,389

Investments and other non-current assets

597

567

568

561

588

Total assets

8,497

8,468

8,644

8,463

8,476

Liabilities and equity

Short-term debt

350

393

419

654

679

Accounts payable

1,982

1,862

2,007

1,889

1,945

Accrued liabilities

1,130

1,024

1,050

1,172

1,138

Operating lease liabilities - current

41

43

43

44

44

Other current liabilities

394

386

404

383

430

Total current liabilities

3,897

3,708

3,923

4,141

4,235

Long-term debt

1,688

1,699

1,734

1,374

1,372

Pension liability

180

176

169

167

167

Operating lease liabilities - non-current

110

117

122

118

121

Other non-current liabilities

122

125

113

105

102

Total non-current liabilities

2,099

2,115

2,138

1,763

1,762

Total parent shareholders' equity

2,490

2,634

2,572

2,549

2,469

Non-controlling interest

11

10

10

10

11

Total equity

2,501

2,644

2,582

2,559

2,480

Total liabilities and equity

$8,497

$8,468

$8,644

$8,463

$8,476

Financial Report April - June 2026

Second quarter

First six months

Latest 12

Full Year

(Dollars in millions, unaudited)

2026

2025

2026

2025

months

2025

Net income

$101

$168

$242

$335

$643

$736

Depreciation and amortization

115

100

222

195

434

407

Gain on divestiture of property

-

-

-

(6)

(0)

(6)

Other non-cash adjustments, net

(21)

(5)

3

(6)

41

32

Net change in operating working capital:

Receivables

71

(0)

(105)

(166)

(36)

(98)

Other current assets

(39)

(110)

(75)

(134)

33

(26)

Inventories

(3)

4

32

26

(2)

(8)

Accounts payable

112

42

(23)

67

29

119

Accrued expenses

106

71

76

25

22

(30)

Income taxes

(7)

9

(14)

19

(3)

30

Net cash provided by operating activities

434

277

359

355

1,161

1,157

Expenditures for property, plant and equipment

(95)

(115)

(180)

(217)

(404)

(441)

Proceeds from sale of property, plant and equipment

0

1

1

9

11

18

Acquisition of interest in Affiliates

(2)

-

(2)

-

(2)

-

Net cash used in investing activities

(97)

(114)

(180)

(208)

(396)

(423)

Net increase (decrease) in short term debt

241

151

215

273

(47)

11

Decrease in long-term debt

(291)

(273)

(293)

(311)

(293)

(311)

Increase in long-term debt

-

-

-

77

445

521

Dividends paid

(64)

(54)

(130)

(108)

(260)

(238)

Share repurchases

(200)

(51)

(200)

(101)

(450)

(351)

Common stock options exercised

-

-

-

0

-

0

Dividend paid to non-controlling interests

-

-

-

-

(1)

(1)

Net cash used in financing activities

(314)

(227)

(407)

(170)

(606)

(369)

Effect of exchange rate changes on cash

12

(22)

2

(71)

(18)

(90)

Increase (decrease) in cash and cash equivalents

36

(86)

(227)

(94)

141

274

Cash and cash equivalents at period-start

342

322

604

330

237

330

Cash and cash equivalents at period-end

$377

$237

$377

$237

$377

$604

Financial Report April - June 2026

Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

(Dollars in millions)

2026

2026

2025

2025

2025

Total current assets

$4,009

$3,987

$4,101

$3,946

$3,929

Total current liabilities

(3,897)

(3,708)

(3,923)

(4,141)

(4,235)

Working capital (GAAP)

113

278

178

(195)

(305)

Less: Cash and cash equivalents

(377)

(342)

(604)

(225)

(237)

Prepaid expenses

(224)

(206)

(212)

(226)

(249)

Other current assets

(76)

(71)

(57)

(102)

(146)

Less: Short-term debt

350

393

419

654

679

Accrued expenses

1,130

1,024

1,050

1,172

1,138

Operating lease liabilities - current

41

43

43

44

44

Other current liabilities

394

386

404

383

430

Trade working capital (Non-GAAP)

$1,350

$1,506

$1,221

$1,504

$1,354

Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

(Dollars in millions)

2026

2026

2025

2025

2025

Receivables, net

$2,387

$2,422

$2,236

$2,357

$2,341

Inventories, net

945

947

992

1,036

957

Accounts payable

(1,982)

(1,862)

(2,007)

(1,889)

(1,945)

Trade working capital (Non-GAAP)

$1,350

$1,506

$1,221

$1,504

$1,354

Quarterly sales

$2,803

$2,753

$2,817

$2,706

$2,714

Annualized quarterly sales1)

11,213

11,012

11,269

10,822

10,857

Trade working capital (Non-GAAP) in relation to annualized quarterly sales

12.0%

13.7%

10.8%

13.9%

12.5%

1) Calculated as the current quarterly sales multiplied by four.

Financial Report April - June 2026

Dec 31

Dec 31

Dec 31

Dec 31

(Dollars in millions)

2024

2023

2022

2021

Total current assets

$3,483

$3,974

$3,714

$3,675

Total current liabilities

(3,633)

(4,035)

(3,642)

(2,821)

Working capital (GAAP)

(150)

(61)

72

853

Less: Cash and cash equivalents

(330)

(498)

(594)

(969)

Prepaid expenses

(167)

(173)

(160)

(164)

Other current assets

(72)

(93)

(84)

(65)

Less: Short-term debt

387

538

711

346

Accrued expenses

1,056

1,135

915

996

Operating lease liabilities - current

41

39

39

38

Other current liabilities

351

345

283

297

Trade working capital (Non-GAAP)

$1,115

$1,232

$1,183

$1,332

Dec 31

Dec 31

Dec 31

Dec 31

(Dollars in millions)

2024

2023

2022

2021

Receivables, net

$1,993

$2,198

$1,907

$1,699

Inventories, net

921

1,012

969

777

Accounts payable

(1,799)

(1,978)

(1,693)

(1,144)

Trade working capital (Non-GAAP)

$1,115

$1,232

$1,183

$1,332

Quarterly sales

$2,616

$2,751

$2,335

$2,119

Annualized quarterly sales1)

10,463

11,006

9,340

8,476

Trade working capital (Non-GAAP) in relation to annualized quarterly sales

10.7%

11.2%

12.7%

15.7%

1) Calculated as the fourth quarterly sales multiplied by four.

Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

(Dollars in millions)

2026

2026

2025

2025

2025

Short-term debt

$350

$393

$419

$654

$679

Long-term debt

1,688

1,699

1,734

1,374

1,372

Total debt (GAAP)

2,037

2,091

2,153

2,027

2,051

Cash & cash equivalents

(377)

(342)

(604)

(225)

(237)

Debt issuance cost/Debt-related derivatives, net

34

23

17

(30)

(62)

Net debt (Non-GAAP)

$1,695

$1,773

$1,566

$1,772

$1,752

Dec 31

Dec 31

Dec 31

Dec 31

(Dollars in millions)

2024

2023

2022

2021

Short-term debt

$387

$538

$711

$346

Long-term debt

1,522

1,324

1,054

1,662

Total debt (GAAP)

1,909

1,862

1,766

2,008

Cash & cash equivalents

(330)

(498)

(594)

(969)

Debt issuance cost/Debt-related derivatives, net

(24)

3

12

13

Net debt (Non-GAAP)

$1,554

$1,367

$1,184

$1,052

Financial Report April - June 2026

Jun 30

Mar 31

Jun 30

(Dollars in millions)

2026

2026

2025

Net debt1) (Non-GAAP)

$1,695

$1,773

$1,752

Pension liabilities

180

176

167

Net debt per the Policy (Non-GAAP)

$1,874

$1,949

$1,919

Net income2)

$643

$710

$717

Income taxes2)

246

246

255

Interest expense, net2, 3)

93

93

96

Other non-operating items, net2)

40

28

19

Income from equity method investments2)

(5)

(6)

(6)

Depreciation and amortization of intangibles2)

434

419

390

Capacity alignments2)

104

28

6

Antitrust related items2)

2

4

6

Other items2)

-

-

-

EBITDA per the Policy (Adjusted EBITDA) (Non-GAAP)

$1,556

$1,523

$1,483

Leverage ratio (Non-GAAP)

1.2

1.3

1.3

1) Short- and long-term debt less cash and cash equivalents and debt-related derivatives. 2) Latest 12 months. 3) Interest expense, including cost for extinguishment of debt, if any, less interest income.

Financial Report April - June 2026

Second quarter

First six months

Latest 12

Full Year

(Dollars in millions)

2026

2025

2026

2025

months

2025

Net income

$101

$168

$242

$335

$643

$736

Depreciation and amortization

115

100

222

195

434

407

Gain on divestiture of property

-

-

-

(6)

(0)

(6)

Other, net

(21)

(5)

3

(6)

41

32

Changes in operating working capital, net

240

15

(108)

(164)

43

(12)

Operating cash flow (GAAP)

434

277

359

355

1,161

1,157

Expenditures for property, plant and equipment

(95)

(115)

(180)

(217)

(404)

(441)

Proceeds from sale of property, plant and equipment

0

1

1

9

11

18

Capital expenditure, net1)

(95)

(114)

(178)

(208)

(394)

(423)

Free operating cash flow2) (Non-GAAP)

$340

$163

$180

$147

$767

$734

Cash conversion3) (Non-GAAP)

338%

97%

74%

44%

119%

100%

1) Defined as Expenditures for property, plant and equipment less Proceeds from sale of property, plant and equipment. 2) Operating cash flow less Capital expenditure, net.
3) Free operating cash flow relative to Net income.

Full year

Full year

Full year

Full year

(Dollars in millions)

2024

2023

2022

2021

Net income

$648

$489

$425

$437

Depreciation and amortization

387

378

363

394

Gain on divestiture of property

(4)

-

(80)

-

Other, net

(24)

(119)

(54)

(15)

Changes in operating working capital, net

53

235

58

(63)

Operating cash flow (GAAP)

1,059

982

713

754

Expenditures for property, plant and equipment

(579)

(572)

(585)

(458)

Proceeds from sale of property, plant and equipment

17

4

101

4

Capital expenditure, net1)

(563)

(569)

(485)

(454)

Free operating cash flow2) (Non-GAAP)

$497

$414

$228

$300

Cash conversion3) (Non-GAAP)

77%

85%

54%

69%

1) Defined as Expenditures for property, plant and equipment less Proceeds from sale of property, plant and equipment. 2) Operating cash flow less Capital expenditure, net.
3) Free operating cash flow relative to net income.

Financial Report April - June 2026

Second quarter

First six months

Latest 12

Full year

(Dollars in millions)

2026

2025

2026

2025

months

2025

Operating income (GAAP)

$192

$247

$429

$502

$1,016

$1,088

Non-GAAP adjustments:

Less: Capacity alignments

77

1

85

3

104

23

Less: Antitrust related items

0

3

0

1

2

3

Total non-GAAP adjustments to operating income

78

4

86

5

107

26

Adjusted Operating income (Non-GAAP)

$270

$251

$515

$506

$1,122

$1,114

(Dollars in millions)

2024

2023

2022

2021

Operating income (GAAP)

$979

$690

$659

$675

Non-GAAP adjustments:

Less: Capacity alignments1)

19

218

(61)

8

Less: The Andrews litigation settlement

-

8

-

-

Less: Antitrust related items

8

4

-

-

Total non-GAAP adjustments to operating income

27

230

(61)

8

Adjusted Operating income (Non-GAAP)

$1,007

$920

$598

$683

1) For 2022, including a gain on divestiture of property of $80 million.

Financial Report April - June 2026

Second quarter

First six months

Latest 12

Full year

2026

2025

2026

2025

months

2025

Operating margin (GAAP)

6.8%

9.1%

7.7%

9.5%

9.2%

10.1%

Non-GAAP adjustments:

Less: Capacity alignments

2.8%

0.0%

1.5%

0.1%

0.9%

0.2%

Less: Antitrust related items

0.0%

0.1%

0.0%

0.0%

0.0%

0.0%

Total non-GAAP adjustments to operating margin

2.8%

0.1%

1.5%

0.1%

1.0%

0.2%

Adjusted Operating margin (Non-GAAP)

9.6%

9.3%

9.3%

9.6%

10.1%

10.3%

2024

2023

2022

2021

Operating margin (GAAP)

9.4%

6.6%

7.5%

8.2%

Non-GAAP adjustments:

Less: Capacity alignments

0.2%

2.1%

(0.7)%

0.1%

Less: The Andrews litigation settlement

-

0.1%

-

-

Less: Antitrust related items

0.1%

0.0%

-

-

Total non-GAAP adjustments to operating margin

0.3%

2.2%

(0.7)%

0.1%

Adjusted Operating margin (Non-GAAP)

9.7%

8.8%

6.8%

8.3%

Second quarter

First six months

2026

2025

2026

2025

Other non-operating items, net (GAAP)

$(15)

$(3)

$(27)

$(3)

Non-GAAP adjustments:

Less: Capacity alignments - non-operating1)

14

-

22

-

Total non-GAAP adjustments to other non-operating items, net

14

-

22

-

Adjusted Other non-operating items, net (Non-GAAP)

$(2)

$(3)

$(5)

$(3)

1) Relates to curtailment loss in connection with restructuring and capacity alignment activities.

Second quarter

First six months

(Dollars in millions)

2026

2025

2026

2025

Income before income taxes (GAAP)

$154

$221

$356

$453

Non-GAAP adjustments:

Less: Capacity alignments - operating

77

1

85

3

Less: Capacity alignments - non-operating1)

14

-

22

-

Less: Antitrust related items

0

3

0

1

Total non-GAAP adjustments to Income before income taxes

91

4

108

5

Adjusted Income before income taxes (Non-GAAP)

$245

$225

$464

$458

1) Relates to curtailment loss in connection with restructuring and capacity alignment activities.

Second quarter

First six months

(Dollars in millions)

2026

2025

2026

2025

Net income (GAAP)

$101

$168

$242

$335

Non-GAAP adjustments:

Less: Capacity alignments - operating

77

1

85

3

Less: Capacity alignments - non-operating1)

14

-

22

-

Less: Antitrust related items

0

3

0

1

Less: Tax on non-GAAP adjustments

(11)

(1)

(15)

(1)

Total non-GAAP adjustments to Net income

80

3

93

4

Adjusted Net income (Non-GAAP)

$181

$171

$335

$339

1) Relates to curtailment loss in connection with restructuring and capacity alignment activities.

Financial Report April - June 2026

Second quarter

First six months

(Dollars in millions)

2026

2025

2026

2025

Net income attributable to controlling interest (GAAP)

$100

$167

$242

$334

Non-GAAP adjustments:

Less: Capacity alignments - operating

77

1

85

3

Less: Capacity alignments - non-operating1)

14

-

22

-

Less: Antitrust related items

0

3

0

1

Less: Tax on non-GAAP adjustments

(11)

(1)

(15)

(1)

Total non-GAAP adjustments to Net income attributable to controlling interest

80

3

93

4

Adjusted Net income attributable to controlling interest (Non-GAAP)

$181

$170

$334

$338

1) Relates to curtailment loss in connection with restructuring and capacity alignment activities.

Second quarter

First six months

2026

2025

2026

2025

Earnings per share - diluted (GAAP)

$1.35

$2.16

$3.24

$4.31

Non-GAAP adjustments:

Less: Capacity alignments - operating

1.04

0.02

1.14

0.04

Less: Capacity alignments - non-operating1)

0.18

-

0.30

-

Less: Antitrust related items

0.00

0.03

0.00

0.02

Less: Tax on non-GAAP adjustments

(0.15)

(0.01)

(0.20)

(0.01)

Total non-GAAP adjustments to Earnings per share - diluted

1.08

0.04

1.25

0.05

Adjusted Earnings per share - diluted (Non-GAAP)

$2.43

$2.21

$4.49

$4.36

Weighted average number of shares outstanding - diluted

74.2

77.3

74.5

77.5

1) Relates to curtailment loss in connection with restructuring and capacity alignment activities.

Second quarter

First six months

2026

2025

2026

2025

Return on capital employed1) (GAAP)

17.9%

23.8%

20.3%

24.8%

Non-GAAP adjustments:

Less: Capacity alignments - operating

6.9%

0.1%

3.8%

0.2%

Less: Antitrust related items

0.0%

0.2%

0.0%

0.1%

Total non-GAAP adjustments to Return on capital employed1)

7.0%

0.4%

3.9%

0.2%

Adjusted Return on capital employed1) (Non-GAAP)

24.9%

24.1%

24.1%

25.0%

Annualized adjustment2) on Return on capital employed1)

$311

$16

$216

$9

1) Annualized operating income and income from equity method investments, relative to average capital employed. The average capital employed amount is calculated as an average of the opening balance amount and the closing balance amounts for each quarter included in the period.

2) The quarterly annualized adjustment to the operating income and income from equity method investments amount is calculated as the quarterly amount multiplied by four. The year-to-date annualized adjustment to the operating income and income from equity method investments amount is calculated as the year-to-date amount divided by the quarterly period number (two, three or four) multiplied by four.

Financial Report April - June 2026

Second quarter

First six months

2026

2025

2026

2025

Return on total equity1) (GAAP)

15.6%

27.7%

18.8%

28.2%

Non-GAAP adjustments:

Less: Capacity alignments - operating

11.6%

0.2%

6.3%

0.3%

Less: Capacity alignments - non-operating2)

2.0%

-

1.7%

-

Less: Antitrust related items

0.0%

0.4%

0.0%

0.1%

Less: Tax on non-GAAP adjustments

(1.6)%

(0.1)%

(1.1)%

(0.1)%

Total non-GAAP adjustments to Return on total equity1)

12.0%

0.5%

6.9%

0.3%

Adjusted Return on total equity1) (Non-GAAP)

27.6%

28.2%

25.7%

28.5%

Annualized adjustment3) on Return on total equity1)

$321

$13

$186

$8

1) Annualized net income relative to average total equity. The average total equity amount is calculated as an average of the opening balance amount and the closing balance amounts for each quarter included in the period.

2) Relates to curtailment loss in connection with restructuring and capacity alignment activities.

3) The quarterly annualized adjustment to net income amount is calculated as the quarterly amount multiplied by four. The year-to-date annualized adjustment to the net income amount is calculated as the year-to-date amount divided by the quarterly period number (two, three or four) multiplied by four.

Financial Report April - June 2026

(Dollars in millions, except per share data, unaudited)

2025

2024

2023

2022

2021

Sales and Income

Net sales

$10,815

$10,390

$10,475

$8,842

$8,230

Airbags, Steering Wheels and Other1)

7,302

7,023

7,055

5,807

5,380

Seatbelt Products and Other1)

3,513

3,367

3,420

3,035

2,850

Operating income

1,088

979

690

659

675

Net income attributable to controlling interest

735

646

488

423

435

Earnings per share - basic2)

9.59

8.06

5.74

4.86

4.97

Earnings per share - diluted2)

9.55

8.04

5.72

4.85

4.96

Gross margin3)

19.2%

18.5%

17.4%

15.8%

18.4%

S,G&A in relation to sales

(5.3)%

(5.1)%

(4.8)%

(4.9)%

(5.3)%

R,D&E net in relation to sales

(3.8)%

(3.8)%

(4.1)%

(4.4)%

(4.7)%

Operating margin4)

10.1%

9.4%

6.6%

7.5%

8.2%

Adjusted operating margin5,6)

10.3%

9.7%

8.8%

6.8%

8.3%

Balance Sheet

Trade working capital6,7)

1,221

1,115

1,232

1,183

1,332

Trade working capital in relation to sales8)

10.8%

10.7%

11.2%

12.7%

15.7%

Receivables outstanding in relation to sales9)

19.8%

19.0%

20.0%

20.4%

20.0%

Inventory outstanding in relation to sales10)

8.8%

8.8%

9.2%

10.4%

9.2%

Payables outstanding in relation to sales11)

17.8%

17.2%

18.0%

18.1%

13.5%

Total equity

2,582

2,285

2,570

2,626

2,648

Total parent shareholders' equity per share

34.43

29.26

30.93

30.30

30.10

Current assets excluding cash

3,497

3,153

3,475

3,119

2,705

Property, plant and equipment, net

2,419

2,239

2,192

1,960

1,855

Goodwill and Intangible assets

1,386

1,375

1,385

1,382

1,395

Capital employed

4,148

3,840

3,937

3,810

3,700

Net debt6)

1,566

1,554

1,367

1,184

1,052

Total assets

8,644

7,804

8,332

7,717

7,537

Long-term debt

1,734

1,522

1,324

1,054

1,662

Return on capital employed12)

26.4%

25.0%

17.7%

17.5%

18.3%

Return on total equity13)

30.0%

27.2%

19.0%

16.3%

17.1%

Total equity ratio

30%

29%

31%

34%

35%

Cash flow and other data

Operating cash flow

1,157

1,059

982

713

754

Depreciation and amortization

407

387

378

363

394

Capital expenditure, net

423

563

569

485

454

Capital expenditure, net in relation to sales

3.9%

5.4%

5.4%

5.5%

5.5%

Free operating cash flow6,14)

734

497

414

228

300

Cash conversion6,15)

100%

77%

85%

54%

69%

Direct shareholder return16)

590

771

577

339

165

Cash dividends paid per share

3.12

2.74

2.66

2.58

1.88

Number of shares outstanding (millions)17)

74.7

77.7

82.6

86.2

87.5

Number of employees, December 31

58,000

59,500

62,900

61,700

55,900

1) Including Corporate sales 2) Net of treasury shares. 3) Gross profit relative to sales. 4) Operating income relative to sales. 5) Excluding effects from capacity alignments, antitrust related matters and for FY 2023 the Andrews litigation settlement. 6) Non-GAAP measure, for reconciliation see tables above. 7) Outstanding receivables and outstanding inventory less outstanding payables. 8) Outstanding receivables and outstanding inventory less outstanding payables relative to annualized fourth quarter sales. 9) Outstanding receivables relative to annualized fourth quarter sales. 10)Outstanding inventory relative to annualized fourth quarter sales. 11) Outstanding payables relative to annualized fourth quarter sales. 12) Operating income and income from equity method investments, relative to average capital employed. 13) Income relative to total equity. 14) Operating cash flow less Capital expenditure, net. 15) Free operating cash flow relative to Net income. 16) Dividends paid and Shares repurchased.
17) At year end, excluding dilution and net of treasury shares.