UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended ~~March~~June 3130, 2026

      ☐

      Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
For the transition period from                     to

Commission File No.: 001-12933

AUTOLIV, INC.

(Exact name of registrant as specified in its charter)


Delaware		51-0378542
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

Klarabergsviadukten 70, Section D5
Box 70381,
Stockholm, Sweden		SE-107 24
(Address of principal executive offices)		(Zip Code)

+46 8 587 20 600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock (par value $1.00 per share)	ALV	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15-(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes: ☒ No: ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes: ☒ No: ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes: ☐ No: ☒

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date: As of ~~April~~July 910, 2026, there were 7473,~~863~~237,~~338~~217 shares of common stock of Autoliv, Inc., par value $1.00 per share, outstanding.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q 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. (“Autoliv,” the “Company” or “we”) 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 in 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 in Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q, Item 1A “Risk Factors” and Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 19, 2026.

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.

INDEX
PART I - FINANCIAL INFORMATION			4
ITEM 1. FINANCIAL STATEMENTS			4
	Consolidated Statements of Income (unaudited)		4
	Consolidated Statements of Comprehensive Income (unaudited)		5
	Condensed Consolidated Balance Sheets (unaudited)		6
	Consolidated Statements of Cash Flows (unaudited)		7
	Consolidated Statements of Total Equity (unaudited)		8
	Notes to the Condensed Consolidated Financial Statements (unaudited)		9
		Note 1. Basis of Presentation	9
		Note 2. New Accounting Standards	9
		Note 3. Fair Value Measurements	10
		Note 4. Income Taxes	12
		Note 5. Inventories	12
		Note 6. Restructuring	1213
		Note 7. Product-Related Liabilities	13
		Note 8. Contingent Liabilities	13
		Note 9. Earnings Per Share	1516
		Note 10. Revenue Disaggregation	16
		Note 11. Segment Information	1617
		Note 12. Subsequent Events	1617
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			1718
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			3033
ITEM 4. CONTROLS AND PROCEDURES			3033
PART II - OTHER INFORMATION			3134
ITEM 1. LEGAL PROCEEDINGS			3134
ITEM 1A. RISK FACTORS			3134
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			3134
ITEM 3. DEFAULTS UPON SENIOR SECURITIES			3134
ITEM 4. MINE SAFETY DISCLOSURES			3134
ITEM 5. OTHER INFORMATION			3134
ITEM 6. EXHIBITS			3235
SIGNATURE			3336

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in millions, except per share data)

	Three Months Ended March 31,
	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Net sales	$	2,~~753~~803		$	2,~~578~~714		$	5,556		$	5,292
Cost of sales1)		(2,~~227~~294	)		(2,~~100~~213	)		(4,521	)		(4,312	)
Gross profit		~~526~~509			~~478~~501			1,035			980
Selling, general and administrative expenses		(~~161~~138	)		(145	)		(299	)		(290	)
Research, development and engineering expenses, net		(~~120~~122	)		(95107	)		(242	)		(202	)
Other income (expense), net2)		(956	)		15(1	)		(65	)		14
Operating income		~~237~~192			~~254~~247			429			502
Income from equity method investment		1			1			2			3
Interest income		32			2			5			4
Interest expense		(26	)		(2527	)		(53	)		(52	)
Other non-operating items, net		(1215	)		0(3	)		(27	)		(3	)
Income before income taxes		~~202~~154			~~233~~221			356			453
Income tax expense		(6053	)		(6553	)		(113	)		(118	)
Net income3)		~~142~~101			~~167~~168			242			335
Less: Net income attributable to non-controlling interest		0			0			1			1
Net income attributable to controlling interest	$	~~141~~100		$	167		$	242		$	334
Net earnings per share – basic	$	1.8935		$	2.1517		$	3.25		$	4.32
Net earnings per share – diluted	$	1.8835		$	2.1416		$	3.24		$	4.31
Weighted average number of shares outstanding, net of treasury shares (in millions)		74.81			77.61			74.3			77.3
Weighted average number of shares outstanding, assuming dilution and net of treasury shares (in millions)		7574.12			77.93			74.5			77.5
Cash dividend per share – declared	$	0.87		$	0.70
Cash dividend per share – declared4)	$	0.87		$	1.55		$	1.74		$	2.25
Cash dividend per share – paid	$	0.87		$	0.70		$	1.74		$	1.40

1) Including a gain on sale of property in China of $6 million in the first quarter of 2025. Including an impairment loss of $9 million related to the restructuring activities in Türkiye and a reversal of previously recognized supplier compensation of $13 million due to a court ruling in the second quarter of 2026.

2) Including a cumulative translation gain of $11 million related to the sale of the Russian entity in the first quarter of 2025.

3) For the three months periods ended ~~March~~June 3130, 2026 and 2025, the aggregate transaction gain (loss) included in net income for the period was a gain of $60 million and a loss of $7 million, respectively. For the six months periods ended June 30, 2026 and 2025, the aggregate transaction gain (loss) included in net income for the period was a gain of $6 million and a loss of $14 million, respectively.

4) In May 2025, the Company declared a dividend per share of $0.70 for the second quarter of 2025, and in June 2025, the Company declared a dividend per share of $0.85 for the third quarter of 2025.

See Notes to the Condensed Consolidated Financial Statements (unaudited).

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(Dollars in millions)

	Three Months Ended March 31,
	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Net income	$	~~142~~101		$	~~167~~168		$	242		$	335
Other comprehensive income (loss) before tax:
Change in cumulative translation adjustments1)		~~(24~~13	)	$	10114			(11	)		124
Net change in unrealized components of defined benefit plans		09		$	(46	)		9			2
Other comprehensive income (loss), before tax		~~(24~~22	)		6120			(1	)		126
Tax effect allocated to other comprehensive income (loss)		(02	)		(1	)		(2	)		(0	)
Other comprehensive income (loss), net of tax		~~(24~~21	)		7119			(3	)		126
Comprehensive income		~~118~~121			~~175~~287			239			461
Less: Comprehensive income (loss) attributable to non-controlling interest		0			01			1			1
Comprehensive income attributable to controlling interest	$	~~118~~121		$	~~174~~286		$	238		$	460

1) A cumulative translation gain of $11 million related to the sale of the Russian entity in the first quarter of 2025 has been recycled and reported as part of the net change of cumulative translation adjustment in the Comprehensive Income Statement and Equity Statement. In the Statement of Income this gain has been reported as part of Other income (expense), net.

See Notes to the Condensed Consolidated Financial Statements (unaudited).

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in millions)

	As of
	March 31, 2026			December 31, 2025
	June 30, 2026			December 31, 2025
Assets
Cash and cash equivalents	$	~~342~~377		$	604
Receivables, net		2,~~422~~387			2,236
Inventories, net		~~947~~945			992
Prepaid expenses and accrued income		~~206~~224			212
Other current assets		7176			57
Total current assets		34,~~987~~009			4,101
Property, plant and equipment, net		2,~~356~~340			2,417
Operating lease right-of-use assets		~~166~~157			171
Goodwill and intangible assets, net		1,~~392~~394			1,386
Other non-current assets		~~567~~597			568
Total assets		8,~~468~~497			8,644
Liabilities and equity
Short-term debt		~~393~~350			419
Accounts payable1)		1,~~862~~982			2,007
Accrued liabilities		1,~~024~~130			1,050
Operating lease liabilities - current		4341			43
Other current liabilities		~~386~~394			404
Total current liabilities		3,~~708~~897			3,923
Long-term debt		1,~~699~~688			1,734
Pension liability		~~176~~180			169
Operating lease liabilities - non-current		~~117~~110			122
Other non-current liabilities		~~125~~122			113
Total non-current liabilities		2,~~115~~099			2,138
Common stock		7776			77
Additional paid-in capital		~~850~~819			850
Retained earnings		2,~~384~~251			2,308
Accumulated other comprehensive loss2)		(~~541~~521	)		(518	)
Treasury stock		(~~137~~135	)		(146	)
Total controlling interest's equity		2,~~634~~490			2,572
Non-controlling interest		1011			10
Total equity		2,~~644~~501			2,582
Total liabilities and equity	$	8,~~468~~497		$	8,644

1) Amount of obligations confirmed under the Company's Supplier Finance Program that remains unpaid is reported as Accounts Payable in the Condensed Consolidated Balance Sheets. Amount of obligations outstanding as of ~~March~~June 3130, 2026 and December 31, 2025 are $~~308~~324 million and $365 million, respectively.

2) Including cumulative translation adjustment as of ~~March~~June 3130, 2026 and December 31, 2025 to the amount of $(~~513~~500) million and $(487) million, respectively.

See Notes to the Condensed Consolidated Financial Statements (unaudited).

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in millions)

	Three Months Ended March 31,
	Six Months Ended June 30,
	2026			2025
Operating activities
Net income	$	~~142~~242		$	~~167~~335
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization		~~107~~222			95195
Deferred income taxes		(132	)		(924	)
Undistributed earnings from equity method investments, net of dividends		(1	)		(1	)
Gain on divestiture of property		—			(6	)
Other, net		2735			1016
Net change in operating assets and liabilities:
Receivables (gross)		(~~175~~105	)		(166	)
Other operating assets		(3675	)		(24134	)
Inventories, gross		3532			2226
Accounts payable		(~~134~~23	)		2567
Accrued expenses		~~(30~~76	)		~~(46~~25	)
Income taxes		(714	)		1119
Net cash (used in) provided by operating activities		(76	)		77
Net cash provided by operating activities		359			355
Investing activities
Expenditures for property, plant and equipment1)		(85180	)		(~~102~~217	)
Proceeds from sale of property, plant and equipment		1			89
Net cash used in investing activities		(84	)		(93	)
Acquisition of interest in affiliates		(2	)		—
Net cash used in investing activities		(180	)		(208	)
Financing activities
Net (decrease) increase in short-term debt		~~(26~~215	)		~~123~~273
Proceeds from issuance of long-term debt	—	—			3977
Repayment of long-term debt		(2293	)	—	(311	)
Dividends paid		(65130	)		(54108	)
Stock repurchased		—(200	)		(50101	)
Common stock options exercised		—			0
Dividends paid to non-controlling interest		—			—
Net cash used in financing activities		(407	)		(170	)
Net cash (used in) provided by financing activities		(93	)		57
Effect of exchange rate changes on cash and cash equivalents		2			(71	)
Effect of exchange rate changes on cash and cash equivalents		(10	)		(49	)
Decrease in cash and cash equivalents		(227	)		(94	)
Decrease in cash and cash equivalents		(263	)		(8	)
Cash and cash equivalents at beginning of period		604			330
Cash and cash equivalents at end of period		~~342~~377			~~322~~237

1) As of ~~March~~June 3130, 2026 and December 31, 2025, $9099 million and $104 million, respectively, of the Company's capital expenditures for property, plant and equipment during the period were included in Accounts Payable balance, and therefore represents a noncash investing activity.

See Notes to Condensed Consolidated Financial Statements (unaudited).

CONSOLIDATED STATEMENTS OF TOTAL EQUITY (UNAUDITED) (Dollars in millions)

	Commonstock			Additionalpaid-incapital			Retainedearnings			Accumulatedothercomprehensiveloss			Treasurystock			Totalcontrollinginterest'sequity			Non-controllinginterest		Totalequity
Balances at December 31, 2025	$	77		$	850		$	2,308		$	(518	)	$	(146	)	$	2,572		$	10	$	2,582
Comprehensive Loss:
Net income								141									141			0		142
Foreign currency translation adjustment											(24	)					(24	)		0		(24	)
Pension liability											0						0					0
Total Comprehensive Income		—			—			141			(24	)		—			118			0		118
Repurchased and retired shares																	—					—
Stock-based compensation														9			9					9
Cash dividends declared								(65	)								(65	)				(65	)
Other								0									0					0
Balances at March 31, 2026	$	77		$	850		$	2,384		$	(541	)	$	(137	)	$	2,634		$	10	$	2,644
Comprehensive Loss:
Net income								100									100			0		101
Foreign currency translation adjustment											13						13			0		13
Pension liability											7						7					7
Total Comprehensive Loss		—			—			100			20			—			121			0		121
Repurchased and retired shares		(2	)		(31	)		(167	)								(200	)				(200	)
Stock-based compensation														2			2					2
Cash dividends declared								(64	)								(64	)				(64	)
Other								(2	)								(2	)				(2	)
Balances at June 30, 2026	$	76		$	819		$	2,251		$	(521	)	$	(135	)	$	2,490		$	11	$	2,501

	Commonstock			Additionalpaid-incapital			Retainedearnings			Accumulatedothercomprehensiveloss			Treasurystock			Totalcontrollinginterest'sequity			Non-controllinginterest		Totalequity
Balances at December 31, 2024	$	80		$	910		$	2,105		$	(659	)	$	(160	)	$	2,276		$	10	$	2,~~286~~285
Comprehensive Income:
Net income								167									167			0		167
Foreign currency translation adjustment											10						10			0		10
Pension liability											(3	)					(3	)				(3	)
Total Comprehensive Income		—			—			167			7			—			174			0		175
Repurchased and retired shares		(1	)		(10	)		(40	)								(50	)				(50	)
Stock-based compensation														7			7					7
Cash dividends declared								(54	)								(54	)				(54	)
Other								(1	)								(1	)				(1	)
Balances at March 31, 2025	$	80		$	900		$	2,176		$	(652	)	$	(153	)	$	2,351		$	10	$	2,~~362~~361
Comprehensive Income:
Net income								167									167			0		168
Foreign currency translation adjustment											114						114			0		114
Pension liability											5						5					5
Total Comprehensive Income		—			—			167			119			—			286			1		287
Repurchased and retired shares		(1	)		(10	)		(41	)								(51	)				(51	)
Stock-based compensation														2			2					2
Cash dividends declared								(119	)								(119	)				(119	)
Other								(1	)								(1	)				(1	)
Balances at June 30, 2025	$	79		$	890		$	2,183		$	(534	)	$	(151	)	$	2,469		$	11	$	2,480

See Notes to the Condensed Consolidated Financial Statements (unaudited).

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Unless otherwise noted, all amounts are presented in millions of dollars, except for per share amounts)

~~March~~June 3130, 2026

1. BASIS OF PRESENTATION

The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete consolidated financial statements. The unaudited condensed consolidated financial statements have been prepared on the same basis as the prior year audited consolidated financial statements and all adjustments considered necessary for a fair presentation have been included in the consolidated financial statements. All such adjustments are of a normal recurring nature. The results for the interim period are not necessarily indicative of the results to be expected for any future period or for the fiscal year ending December 31, 2026.

The Condensed Consolidated Balance Sheets as of December 31, 2025 ~~has~~have been derived from the audited consolidated financial statements at that date but does not include all the information and footnotes required by U.S. GAAP for complete consolidated financial statements.

The Company has one reportable segment, which includes Autoliv’s airbag and seatbelt products and components.

Certain amounts in the condensed consolidated financial statements and associated notes may not reconcile due to rounding. All percentages have been calculated using unrounded amounts. Certain amounts in prior periods may have been reclassified to conform to current year presentation.

Statements in this report that are not of historical fact are forward-looking statements that involve risks and uncertainties that could affect the actual results of the Company. A description of the important factors that could cause Autoliv’s actual results to differ materially from the forward-looking statements contained in this report may be found in this report and Autoliv’s other reports filed with the Securities and Exchange Commission (the “SEC”). For further information, refer to the consolidated financial statements, footnotes and definitions thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 19, 2026.

2. NEW ACCOUNTING STANDARDS

Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”).

The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on the Company’s consolidated financial statements.

Adoption of new accounting standards

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270), Narrow-Scope Improvements, to provide clarity about the current requirements, rather than evaluate whether to expand or reduce interim disclosure requirements. The amendments in ASU 2025-11 result in a comprehensive list of interim disclosures that are required by GAAP. The amendments in ASU 2025-11 also include a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The amendments in ASU 2025-11 are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments in ASU 2025-11 can be applied either (1) prospectively or (2) retrospectively to any or all prior periods presented in the financial statements. The Company early adopted ASU 2025-11 prospectively in the first quarter of 2026. The adoption of ASU 2025-11 did not have a significant impact on its interim disclosures.

Accounting standards issued but not yet adopted

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), Disaggregation of Income Statement Expenses, to improve financial reporting by requiring additional information about specific expense categories in the notes to the financial statements at interim and annual reporting periods. The amendments in ASU 2024-03 do not change or remove current expense disclosure requirements. The amendments require that at each interim and annual reporting period an entity should disclose the amounts of (a) purchase of inventory, (b) employee compensation, (c) depreciation and (d) intangible asset amortization included in each relevant expense caption. The amendments in ASU 2024-03 are effective for annual reporting periods beginning after December 1, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments in ASU 2024-03 should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of ASU 2024-03 or (2) retrospectively to any or all periods presented in the financial statements. The adoption of ASU 2024-03 is expected to result in incremental disclosures in the Company’s financial statements. The Company will adopt the amendments in ASU 2024-03 prospectively upon the effective date.

In September 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40), Targeted improvements to the Accounting for Internal-Use Software, to modernize the accounting for software costs that are accounted for under Subtopic 350-40. ASU 2025-06 removes all references to prescriptive and sequential software development stages throughout Subtopic 350-40. Therefore, an entity is required to start capitalizing software costs when both of the following occur: 1) Management has authorized and committed to funding the software project and 2) It is probable that the project will be completed and the software will be used to perform the function intended. The amendments in ASU 2025-06 are effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The amendments in ASU 2025-06 ~~permits~~permit entities to use either 1) a prospective transition approach, 2) a modified transition approach, or 3) a retrospective transition approach. The Company is currently assessing the impact that ASU 2025-06 will have on its financial statements and expects to adopt the amendments in this update using the prospective transition approach. The Company expects that its capitalization of internal-use software costs will not change significantly under the amendments in ASU 2025-06.

In May 2026, the FASB issued ASU 2026‑02, Environmental Credits and Environmental Credit Obligations (Topic 818). The ASU establishes a comprehensive accounting framework for the recognition, measurement, presentation, and disclosure of environmental credits and environmental credit obligations (“ECOs”). The guidance requires entities to recognize environmental credits as assets when it is probable that the credits will be used to settle an ECO, transferred in an exchange transaction, or used in a nonreciprocal transfer. Environmental credits are generally measured at cost, with subsequent accounting dependent on their intended use. Environmental credit obligations are recognized as liabilities when events occurring on or before the reporting date create an obligation, and such liabilities are measured based on the amount of credits required to settle the obligation, including both funded and unfunded portions. The ASU 2026-02 also requires entities to present environmental credits and related obligations on a gross basis in the balance sheet and to provide enhanced disclosures regarding the nature of environmental credit programs, the intended use of credits, and activity during the reporting period. The guidance is effective for public business entities for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, with early adoption permitted. Adoption is required to be applied using a modified retrospective approach through a cumulative-effect adjustment to opening retained earnings as of the beginning of the annual reporting period of adoption. The Company is currently evaluating the impact of adopting ASU 2026‑02 on its consolidated financial statements and related disclosures. While the Company is continuing to assess the effect of the new guidance, the adoption may impact the recognition and presentation of environmental credits and related obligations, if applicable, as well as expand related disclosures.

3. FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

The carrying value of cash and cash equivalents, accounts receivable, accounts payable, short-term debt and other current financial assets and liabilities approximate their fair value because of the short-term maturity of these instruments.

The Company uses derivative financial instruments (“derivatives”) as part of its debt management to mitigate the market risk that occurs from its exposure to changes in interest rates and foreign exchange rates. The Company does not enter into derivatives for trading or other speculative purposes. The Company’s use of derivatives is in accordance with the strategies contained in the Company’s overall financial policy. All derivatives are recognized in the consolidated financial statements at fair value. For certain derivatives, hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although each hedge is entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest rates and foreign exchange rates.

The degree of judgment utilized in measuring the fair value of the instruments generally correlates to the level of pricing observability. Pricing observability is impacted by several factors, including the type of asset or liability, whether the asset or liability has an established market and the characteristics specific to the transaction. Instruments with readily active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of pricing observability and a lesser degree of judgment utilized in measuring fair value. Conversely, assets rarely traded or not quoted will generally have less, or no, pricing observability and a higher degree of judgment utilized in measuring fair value.

All the Company’s derivatives are classified as Level 2 financial instruments in the fair value hierarchy. Level 2 pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed.

The carrying value is the same as the fair value as these instruments are recognized in the consolidated financial statements at fair value. Although the Company is party to close-out netting agreements (“ISDA agreements”) with all of its derivative counterparties, the fair values in the tables below and in the Condensed Consolidated Balance Sheets as of ~~March~~June 3130, 2026 and December 31, 2025 have been presented on a gross basis. According to the ISDA agreements, transaction amounts payable to a counterparty on the same date and in the same currency can be netted. The amounts subject to netting agreements that the Company chose not to offset are presented below.

Derivatives designated as hedging instruments

There were no derivatives designated as hedging instruments as of ~~March~~June 3130, 2026 or December 31, 2025 related to the Company's operations.

Derivatives not designated as hedging instruments

Derivatives not designated as hedging instruments relate to economic hedges and are marked to market with all amounts recognized in the Consolidated Statements of Income. The derivatives not designated as hedging instruments outstanding as of ~~March~~June 3130, 2026 and December 31, 2025 were foreign exchange swaps.

For the three months periods ended ~~March~~June 3130, 2026 and 2025, the gains or losses recognized in other non-operating items, net were a loss of $612 million and a gain of $2858 million, respectively, for derivative instruments not designated as hedging instruments. For the six months periods ended June 30, 2026 and 2025, the gains or losses recognized in other non-operating items, net were a loss of $17 million and a gain of $86 million, respectively. The realized part of the gains or losses referred to above is reported under financing activities in the statement of cash flows.

For the three months periods ended ~~March~~June 3130, 2026 and 2025, the gains or losses recognized as interest expense were a ~~loss~~gain of $13 million and a loss of $13 million, respectively. For the six months periods ended June 30, 2026 and 2025, the gains or losses recognized as interest expense were a gain of $2 million and a loss of $4 million, respectively.

The tables below present information about the Company’s derivative financial assets and liabilities measured at fair value on a recurring basis (dollars in millions).

	As of
	March 31, 2026									December 31, 2025
	June 30, 2026									December 31, 2025
				Fair Value Measurements									Fair Value Measurements
Description	Nominalvolume			Derivativeasset(Othercurrent assets)			Derivativeliability(Othercurrentliabilities)			Nominalvolume			Derivativeasset(Othercurrent assets)			Derivativeliability(Othercurrentliabilities)
Derivatives not designated as hedging instruments
Foreign exchange swaps, less than 6 months	$	2,~~896~~417	1)	$	2318	2)	$	4049	3)	$	3,294	4)	$	12	5)	$	24	6)
Total derivatives not designated as hedging instruments	$	2,~~896~~417		$	2318		$	4049		$	3,294		$	12		$	24

1) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $2,~~896~~417 million.

2) Net amount after deducting for offsetting swaps under ISDA agreements is $2318 million.

3) Net amount after deducting for offsetting swaps under ISDA agreements is $4049 million.

4) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $3,294 million.

5) Net amount after deducting for offsetting swaps under ISDA agreements is $12 million.

6) Net amount after deducting for offsetting swaps under ISDA agreements is $24 million.

Fair Value of Debt

The fair value of long-term debt is determined either from quoted market prices as provided by participants in the secondary market or for long-term debt without quoted market prices, estimated using a discounted cash flow method based on the Company’s current borrowing rates for similar types of financing. The Company has determined that each of these fair value measurements of debt reside within Level 2 of the fair value hierarchy.

The fair value and carrying value of debt is summarized in the table below (dollars in millions).

	As of
	March 31, 2026				December 31, 2025
	June 30, 2026				December 31, 2025
	Carryingvalue1)		Fairvalue		Carryingvalue1)		Fairvalue
Long-term debt
Bonds	$	1,~~676~~665	$	1,668	$	1,715	$	1,736
Loans		21		21		17		17
Other		2		2		2		2
Total long-term debt		1,~~699~~688		1,~~690~~691		1,734		1,755
Short-term debt
Short-term portion of long-term debt		~~285~~—		~~290~~—		285		287
Overdrafts and other short-term debt		~~108~~350		~~108~~350		134		134
Total short-term debt	$	~~393~~350	$	~~398~~350	$	419	$	421

1) Debt as reported in balance sheet.

Assets and liabilities measured at fair value on a non-recurring basis

In addition to assets and liabilities that are measured at fair value on a recurring basis, the Company also has assets and liabilities in its balance sheet that are measured at fair value on a nonrecurring basis, including certain long-lived assets, including equity method investments, goodwill and other intangible assets, typically as it relates to impairment.

The Company has determined that the fair value measurements included in each of these assets and liabilities rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets and settlements of liabilities, as observable inputs are not available. The Company has determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy. To determine the fair value of long-lived assets, the Company utilizes the projected cash flows expected to be generated by the long-lived assets, then discounts the future cash flows over the expected life of the long-lived assets.

For the three and six months ~~period~~periods ended ~~March~~June 3130, 2026, the Company ~~did~~recorded ~~not~~an ~~record~~impairment ~~any~~loss ~~material~~of ~~impairment~~$9 ~~charges~~million onfor its long-lived assets ~~for~~in ~~its~~connection ~~operations~~with the restructuring activities in Türkiye in the second quarter of 2026.

4. INCOME TAXES

The effective tax rate for the three months period ended ~~March~~June 3130, 2026 was 2934.95% compared to 2824.01% for the three months period ended ~~March~~June 3130, 2025. Discrete tax items, net for the three months period ended ~~March~~June 3130, 2026 had an unfavorable impact of 25.34%. Discrete tax items, net for the three months period ended ~~March~~June 3130, 2025 ~~were~~had ~~not~~a ~~material~~favorable impact of 4.3%.

The effective tax rate for the six months period ended June 30, 2026 was 31.9% compared to 26.1% for the six months period ended June 30, 2025. Discrete tax items, net for the six months period ended June 30, 2026 had an unfavorable impact of 3.7%. Discrete tax items, net for the six months period ended June 30, 2025 had a favorable impact of 2.1%.

The Company files income tax returns in the U.S. federal jurisdiction, various U.S. states, and non-U.S. jurisdictions. At any given time, the Company is undergoing tax audits in several tax jurisdictions covering multiple years. The Company is no longer subject to income tax examination by the U.S. federal income tax authorities for years prior to 2021. With few exceptions, the Company is no longer subject to income tax examination by U.S. state or local tax authorities or by non-U.S. tax authorities for years before 2016.

As of ~~March~~June 3130, 2026, the Company is not aware of any proposed income tax adjustments resulting from tax examinations that would have a material impact on the Company’s condensed consolidated financial statements. The conclusion of such audits could result in additional increases or decreases to unrecognized tax benefits in some future period or periods.

During the ~~three~~six months period ended ~~March~~June 3130, 2026, the Company recorded a net increase of $24 million to income tax reserves for unrecognized tax benefits based on tax positions related to the current year, including accruing additional interest related to unrecognized tax benefits from prior years.

Of the total unrecognized tax benefits of $4446 million recorded as of ~~March~~June 3130, 2026, $56 million is classified as current tax payable within Other current liabilities and $3940 million is classified as non-current tax payable within Other non-current liabilities on the Condensed Consolidated Balance Sheets.

5. INVENTORIES

Inventories are stated at the lower of cost (“FIFO”) and net realizable value. The components of inventories were as follows (dollars in millions):

	As of
	March 31, 2026			December 31, 2025
	June 30, 2026			December 31, 2025
Raw materials	$	~~443~~450		$	481
Work in progress		~~286~~289			293
Finished products		~~300~~294			304
Inventories		1,~~030~~033			1,078
Inventory valuation reserve		(8388	)		(86	)
Total inventories, net of reserve	$	~~947~~945		$	992

6. RESTRUCTURING

As of ~~March~~June 3130, 2026, the restructuring reserve balance of $73122 million is mainly attributed to structural cost reduction program activities initiated in Europe, the Middle East and Africa (EMEA) in 2023 and the capacity alignment program in Türkiye initiated during the second quarter of 2026. The main part of the remaining balance for the activities initiated in EMEA in 2023 is expected to be concluded in 2026.

Provisions for the three and six months ~~period~~periods ended ~~March~~June 3130, 2026 mainly related to the capacity alignment program in Türkiye and restructuring activities in EMEA. Cash payments for the three and six months ~~period~~periods ended ~~March~~June 3130, 2026 mainly related to the restructuring activities in EMEA that were initiated in 2023. Substantially all cash payments related to the Türkiye program are expected to be made by the end of 2027.

The table below summarizes the change in the balance sheet position of the employee-related restructuring reserves (dollars in millions). The restructuring reserve balances are included within Accrued expenses in the Condensed Consolidated Balance Sheets. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Income. Restructuring costs other than employee related costs are immaterial for all periods presented.

	Three Months Ended March 31,
	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Reserve at beginning of the period	$	8273		$	~~151~~121		$	82		$	151
Provision - charge		667			01			73			2
Provision - reversal		(0	)		(0	)		(0	)		(0	)
Cash payments		(1417	)		(3515	)		(31	)		(50	)
Translation difference		(21	)		59			(3	)		14
Reserve at end of the period	$	73122		$	~~121~~117		$	122		$	117

7. PRODUCT-RELATED LIABILITIES

The Company is exposed to product liability and warranty claims in the event that the Company’s products fail to perform as represented and such failure results, or is alleged to result, in bodily injury, and/or property damage or other loss. The Company has reserves for product risks. Such reserves are related to product performance issues, including recalls, product liability, and warranty issues. For further explanation, see Note 8. Contingent Liabilities below.

For the three months period ended ~~March~~June 3130, 2026, ~~and~~new ~~March~~provisions 31mainly related to warranty related issues. For the three months period ended June 30, 2025, new provisions mainly related to recall and warranty related issues. For the six months periods ended June 30, 2026 and 2025, cash payments mainly related to warranty related issues.

As of ~~March~~June 3130, 2026, the reserve for product related liabilities consisted of warranty and recall related issues.

The table below summarizes the change in the balance sheet position of the product-related liabilities (dollars in millions). The reserve for product-related liabilities is included in accrued expenses and other non-current liabilities on the Condensed Consolidated Balance Sheets. The Company’s product-related liabilities as of ~~March~~June 3130, 2026 are partly covered by insurance. Insurance receivables are included within other current assets and other non-current assets on the Condensed Consolidated Balance Sheets. As of ~~March~~June 3130, 2026, the Company had total insurance receivables of $1514 million.

	Three Months Ended March 31,
	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Reserve at beginning of the period	$	8783		$	6571		$	87		$	65
Net change in reserve		1211			87			23			15
Cash payments		(1511	)		(311	)		(26	)		(14	)
Translation difference		(10	)		12			(1	)		3
Reserve at end of the period	$	8382		$	7169		$	82		$	69

8. CONTINGENT LIABILITIES

Legal Proceedings

Various claims, lawsuits, and proceedings are pending or threatened against the Company and/or its subsidiaries, covering a range of matters that arise in the ordinary course of its business activities with respect to commercial, product liability, and other matters. Litigation is subject to many uncertainties, and the outcome of any litigation cannot be assured. After discussions with counsel, and with the exception of potential future losses resulting from the antitrust proceedings described below, it is the opinion of management that the various legal proceedings and investigations to which the Company currently is a party will not have a material adverse impact on the consolidated financial position of Autoliv, but the Company cannot provide assurance that Autoliv will not experience material litigation, product liability, or other losses in the future.

ANTITRUST MATTERS

Authorities in several jurisdictions have conducted broad, and in some cases, long-running investigations of suspected anti-competitive behavior among parts suppliers in the global automotive vehicle industry. These investigations included, but are not limited to, the products that the Company sells. In addition to concluded matters, authorities of other countries, with significant light vehicle manufacturing or sales may initiate similar investigations. As a result of the outcome of the European Commission investigation of anti-competitive behavior among suppliers of occupant safety systems that the Company resolved in 2019 (the "EC investigation"), the Company is subject to a subsequent civil dispute with a non-governmental third party stemming from the same facts and circumstances underlying the EC investigation. The Company is involved in civil litigation in Germany with respect to alleged anti-competitive behavior that occurred over a decade ago.

On October 31, 2024, BMW filed a complaint against the Company in Germany claiming damages of €63 million plus interest (for a total claim of approximately €95 million) related to the conduct at issue in the EC investigation (the "BMW Complaint"). BMW is one of two European OEMs for which the Company pled guilty in 2017 in relation to the EC investigation. The Company filed its statement of defense on June 27, 2025 and BMW responded in March 2026 and amended its complaint to reduce its claimed damages to €58 million plus interest (for a total claim of approximately €95 million). The Company has determined pursuant to ASC 450 that a loss is reasonably possible with respect to the BMW Complaint. However, the Company continues to evaluate this matter, no accrual has been made, and the estimated range of potential loss is between €0 and €95 million. The Company cannot predict the ultimate outcome of the BMW Complaint. This dispute could result in significant expenses as well as an unfavorable outcome that could have a material adverse impact on our customer relationships, business prospects, reputation, operating results, or cash flows, and our insurance would likely not mitigate such impact. The Company cannot predict the duration, scope, or ultimate outcome of any such disputes.

This dispute could result in significant expenses as well as an unfavorable outcome that could have a material adverse impact on our customer relationships, business prospects, reputation, operating results, cash flows or financial condition, and our insurance would likely not mitigate such impact. The Company cannot predict the duration, scope, or ultimate outcome of any such disputes.

PRODUCT WARRANTY, RECALLS AND INTELLECTUAL PROPERTY

Autoliv is exposed to various claims for damages and compensation if its products fail to perform as expected. Such claims can be made, and result in costs and other losses to the Company, even where the product is eventually found to have functioned properly. Where a product (actually or allegedly) fails to perform as expected or is defective, the Company may face warranty and recall claims. Where such (actual or alleged) failure or defect results, or is alleged to result, in bodily injury and/or property damage, the Company may also face product liability and other claims. There can be no assurance that the Company will not experience material warranty, recall or product (or other) liability claims or losses in the future, or that the Company will not incur significant costs to defend against such claims. The Company may be required to participate in a recall involving its products. Each vehicle manufacturer has its own practices regarding product recalls and other product liability actions relating to its suppliers. As suppliers become more integrally involved in the vehicle design process and assume more of the vehicle assembly functions, vehicle manufacturers are increasingly looking to their suppliers for contribution when faced with recalls and product liability claims. Government safety regulators may also play a role in warranty and recall practices. Recall decisions regarding the Company’s products may require a significant amount of judgment by us, our customers and safety regulators and are influenced by a variety of factors. Once a recall has been made, the cost of a recall is also subject to a significant amount of judgment and discussions between the Company and its customers. A warranty, recall or product-liability claim brought against the Company in excess of its insurance may have a material adverse effect on the Company’s business. Vehicle manufacturers are also increasingly requiring their outside suppliers to guarantee or warrant their products and bear the costs of repair and replacement of such products under new vehicle warranties. A vehicle manufacturer may attempt to hold the Company responsible for some, or all, of the repair or replacement costs of products when the product supplied did not perform as represented by us or expected by the customer in either a warranty or a recall situation. Accordingly, the future costs of warranty or recall claims by the customers may be material. However, the Company believes its established reserves are adequate. Autoliv’s warranty reserves are based upon the Company’s best estimates of amounts necessary to settle future and existing claims. The Company regularly evaluates the adequacy of these reserves and adjusts them when appropriate. However, the final amounts actually due related to these matters could differ materially from the Company’s recorded estimates.

In addition, as vehicle manufacturers increasingly use global platforms and procedures, quality performance evaluations are also conducted on a global basis. Any one or more quality, warranty or other recall issue(s) (including those affecting few units and/or having a small financial impact) may cause a vehicle manufacturer to implement measures such as a temporary or prolonged suspension of new orders, which may have a material impact on the Company’s results of operations.

The Company maintains a program of insurance, which may include commercial insurance, self-insurance, or a combination of both approaches, for potential recall and product liability claims in amounts and on terms that it believes are reasonable and prudent based on our prior claims experience. The Company’s insurance policies generally include coverage of the costs of a recall, although costs related to replacement parts are generally not covered. In addition, a number of the agreements entered into by the Company, including the agreements related to the spin-off of Veoneer, require Autoliv to indemnify the other parties for certain claims. Autoliv cannot assure that the level of coverage will be sufficient to cover every possible claim that can arise in our businesses or with respect to other obligations, now or in the future, or that such coverage always will be available should we, now or in the future, wish to extend, increase or otherwise adjust our insurance.

As noted in Note 7 above, as of ~~March~~June 3130, 2026, the Company has accrued $8382 million for total product-related liabilities. The majority of the total product liability accrual as of ~~March~~June 3130, 2026 relates to recalls, which are generally covered by insurance. Insurance receivables for such recall related liabilities total $1514 million as of ~~March~~June 3130, 2026.

Product Liability:

Autoliv and some of its subsidiaries have been named as one of several defendants in a consolidated class action lawsuit in a multi-district litigation (In Re: ARC Airbag Inflators Products Liability Litigation MDL, No. 3051) in the Northern District of Georgia. The plaintiffs in the multi-district litigation (the "ARC Inflator Class Action") brought claims for fraud, breach of warranty, and violations of consumer protection and trade practices stemming from ARC inflators included in airbag modules that Autoliv or its subsidiaries allegedly supplied after Autoliv acquired certain Delphi assets (the “Delphi Acquisition”) in December 2009. The Company denies these allegations. Autoliv is not aware of any performance issues regarding ARC inflators included with its airbags at the directions of its customers that it shipped following the Delphi Acquisition. The proceedings remain ongoing. The Company has determined pursuant to ASC 450 that a loss is reasonably possible with respect to the ARC Inflator Class Action. However, the Company continues to evaluate this matter, no accrual has been made, and no estimated range of potential loss can be determined at this time. The Company cannot predict the ultimate outcome of the ARC Inflator Class Action.

On September 5, 2023, the National Highway Traffic Safety Administration (“NHTSA”) issued an initial decision to recall approximately 52 million frontal driver and passenger airbag inflators manufactured by ARC and Delphi Automotive Systems because NHTSA determined that the airbag inflators contain a safety defect resulting in field ruptures. Some of the ARC inflators included in the airbag modules that Autoliv or its subsidiaries supplied after the Delphi Acquisition were included in such initial decision. NHTSA has yet to release its final decision. If NHTSA's final decision results in a recall, it is anticipated that such decision will be challenged in US federal court. The Company has determined pursuant to ASC 450 that a loss is reasonably possible with respect to the NHTSA ARC recall. However, the Company continues to evaluate this matter, no accrual has been made, and no estimated range of potential loss can be determined at this time. The Company cannot predict the ultimate outcome of the NHTSA ARC recall.

Specific Recalls:

In the second quarter of 2025, Stellantis initiated a recall of approximately 250,000 vehicles in the U.S. equipped with a certain model of the Company’s side curtain airbag (the “Stellantis Recall”). The Company has determined pursuant to ASC 450 that a loss is reasonably possible with respect to the Stellantis Recall. The Company is cooperating with Stellantis and continues to evaluate this matter with Stellantis. In December 2025, Stellantis provided its calculations for the cost of the Stellantis Recall to the Company. In March 2026, Stellantis included an additional 178,000 vehicles subject to the recall. On April 16, 2026, Stellantis filed a lawsuit against a subsidiary of the Company with claims for the costs relating to the Stellantis Recall. The Company currently estimates a range of $0 to $~~203~~209 million with respect to this potential loss, expects a substantial portion of a potential loss would be covered by insurance, and no accrual has been made. The ultimate amount of the potential loss to the Company cannot be estimated. However, the ultimate costs of a recall, could be significantly different than our current estimate. The main variables affecting the possible costs are the number of vehicles ultimately determined to be affected by the issue, the cost per vehicle associated with a recall, the determination of proportionate responsibility among the customer, the Company, and any relevant sub-suppliers, as well as the actual insurance recoveries. The Company’s insurance policies generally cover the costs of a recall, although costs related to the replacement parts are not covered under its insurance policies. Another customer has contacted the Company to inquire about the details of these incidents of nonconformance and ~~are~~is investigating whether its vehicles may generate similar ~~tests~~test results. If this customer or others generate similar nonconformance test results, it is possible that there may be recalls of additional vehicles in future quarters.

In the fourth quarter of 2020, the Company was made aware of a potential recall by American Honda Motor Co. and the recall of approximately 449,000 vehicles relating to the malfunction of front seat belt buckles was announced on March 9, 2023 (the “Honda Buckle Recall”). The Company determined pursuant to ASC 450 that a loss with respect to the Honda Buckle Recall is probable and accrued an amount that is reflected in the total product liability accrual in the fourth quarter of 2020, increased the accrual in the fourth quarter of 2021, and reduced the accrual in the fourth quarter of 2023 based on vehicle repair cost data. Following the accrual increase in the third quarter of 2024, the amount by which the product liability accrual exceeds the product liability insurance receivable with respect to the Honda Buckle Recall is approximately $12 million and includes self-insurance retention costs and deductibles. The ultimate loss to the Company of the Honda Buckle Recall could be materially different from the amount the Company has accrued.

Intellectual Property:

In its products, the Company utilizes technologies which may be subject to intellectual property rights of third parties. While the Company does seek to procure the necessary rights to utilize intellectual property rights associated with its products, it may fail to do so. Where the Company so fails, the Company may be exposed to material claims from the owners of such rights. Where the Company has sold products which infringe upon such rights, its customers may be entitled to be indemnified by the Company for the claims they suffer as a result thereof. Such claims could be material.

The table in Note 7 above summarizes the change in the balance sheet position of the product-related liabilities.

9. EARNINGS PER SHARE

The computation of basic and diluted earnings per share is set forth in the table below.

	Three Months Ended March 31,
	Three Months Ended June 30,				Six Months Ended June 30,
(In millions, except per share amounts)	2026		2025		2026		2025
Numerator:
Basic and diluted:
Net income attributable to controlling interest	$	~~141~~100	$	167	$	242	$	334
Denominator:
Basic: Weighted average common stock		74.81		77.61		74.3		77.3
Add: Weighted average stock options/share awards		0.31		0.2		0.2		0.2
Diluted weighted average common stock:		7574.12		77.93		74.5		77.5
Net earnings per share - basic	$	1.8935	$	2.1517	$	3.25	$	4.32
Net earnings per share - diluted	$	1.8835	$	2.1416	$	3.24	$	4.31

10. REVENUE DISAGGREGATION

The Company’s disaggregated revenue for the periods presented are as follows (dollars in millions).

Net Sales by Products	Three Months Ended ~~March~~June 3130,				Six Months Ended June 30,
	2026		2025		2026		2025
Airbags, Steering Wheels and Other1)	$	1,~~863~~906	$	1,~~752~~812	$	3,769	$	3,565
Seatbelt Products and Other1)		~~890~~897		~~826~~902		1,787		1,727
Total net sales	$	2,~~753~~803	$	2,~~578~~714	$	5,556	$	5,292
Net Sales by Region	Three Months Ended ~~March~~June 3130,				Six Months Ended June 30,
	2026		2025		2026		2025
Americas	$	~~863~~910	$	~~851~~891	$	1,773	$	1,742
EMEA		~~835~~832		~~764~~828		1,667		1,592
Asia excl. China		~~563~~539		~~515~~519		1,102		1,034
China		~~492~~522		~~447~~477		1,014		924
Total net sales	$	2,~~753~~803	$	2,~~578~~714	$	5,556	$	5,292

1) Including Corporate sales.

11. Segment Information

The Company has a single operating and reportable segment which includes Autoliv’s airbag and steering wheels, and seatbelt products and components. The determination of a single operating segment is consistent with the consolidated financial information regularly provided to the Company’s chief operating decision maker (“CODM”). The basis of segmentation and the basis of measurement of segment profit or loss is consistent with our 2025 annual report on the consolidated financial statements.

The significant expenses that are regularly provided to the CODM are disclosed in the Consolidated Statements of Net Income as a part of the consolidated net income and are as follows.

Significant segment expenses / income (Dollars in millions)	Three Months Ended ~~March~~June 3130,						Six Months Ended June 30,
	2026			2025			2026			2025
Total direct costs	$	(1,~~839~~891	)	$	(1,~~734~~838	)	$	(3,730	)	$	(3,572	)
Total production overhead costs		(~~388~~403	)		(~~365~~375	)		(791	)		(740	)
Cost of sales	$	(2,~~227~~294	)	$	(2,~~100~~213	)	$	(4,521	)	$	(4,312	)
Research, development and engineering expenses (gross)	$	(~~163~~165	)	$	(~~147~~155	)	$	(329	)	$	(302	)
Reimbursements from customer funded engineering projects		4443			5248			87			100
Research, development and engineering expenses, net	$	(~~120~~122	)	$	(95107	)	$	(242	)	$	(202	)

The Company's other significant segment items that are regularly provided to the CODM include selling, general and administrative expenses, and other income (expense), which are disclosed as separate line items in the Consolidated Statements of Income. Other expenses consist of Income from equity method investments, Interest income, Interest expense, Other non-operating items, net, and Income taxes, which are disclosed as separate line items in the Consolidated Statements of Income.

The segment assets are equal to the assets presented in the Consolidated Balance Sheets. Expenditures for long-lived segment assets are equal to the line items Expenditures for property, plant and equipment in the Consolidated Statements of Cash Flow. The segment assets and expenditures for long-lived assets for the periods presented are as follows.

Segment assets and expenditures for long-lived assets (Dollars in millions)	Three Months Ended ~~March~~June 3130,						Six Months Ended June 30,
	2026			2025			2026			2025
Expenditures for long-lived assets	$	(8595	)	$	(~~102~~115	)	$	(180	)	$	(217	)
Total assets		8,~~468~~497			8,~~114~~476			8,497			8,476

12. SUBSEQUENT EVENTS

There were no reportable events subsequent to ~~March~~June 3130, 2026.

1617

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with our Condensed Consolidated Financial Statements and accompanying Notes thereto included elsewhere herein and with our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the United States Securities and Exchange Commission (the “SEC”) on February 19, 2026. Unless otherwise noted, all dollar amounts are in millions.

Autoliv, Inc. (“Autoliv” or the “Company”) is a Delaware corporation with its principal executive offices in Stockholm, Sweden. The Company functions as a holding corporation and owns two principal operating subsidiaries, Autoliv AB and Autoliv ASP, Inc.

Through its operating subsidiaries, Autoliv is a supplier of automotive safety systems with a broad range of product offerings, including modules and components for passenger and driver airbags, side airbags, curtain airbags, seatbelts, steering wheels, and pedestrian protection systems.

Autoliv’s filings with the SEC, including this Quarterly Report on Form 10-Q, annual reports on Form 10-K, current reports on Form 8-K, proxy statements, and all of our other reports and statements, and amendments thereto, are available free of charge on our corporate website at www.autoliv.com as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC (generally the same day as the filing).

The primary exchange market for Autoliv’s securities is the New York Stock Exchange ("NYSE") where Autoliv’s common stock trades under the symbol “ALV”. Autoliv’s Swedish Depositary Receipts ("SDRs") are traded on Nasdaq Stockholm’s list for large market cap companies under the symbol “ALIV SDB”. Options in SDRs trade on Nasdaq Stockholm under the name “Autoliv SDB”. Options in Autoliv shares are traded on Nasdaq OMX PHLX and on NYSE Amex Options under the symbol “ALV”.

Autoliv’s fiscal year ends on December 31.

Non-U.S. GAAP financial measures

Some of the following discussions refer to non-U.S. GAAP financial measures: see reconciliations for “Organic sales,” “Free operating cash flow,” “Cash conversion,” “Net debt,” “Leverage ratio,” “Adjusted net income,” “Adjusted operating income,” “Adjusted operating margin,” “Adjusted other non-operating items, net,” “Adjusted earnings per share, diluted,” “Adjusted return on capital employed,” and “Adjusted return on total equity” provided below. Management believes that these non-U.S. GAAP financial measures provide supplemental information to investors regarding the performance of the Company’s business and assist investors in analyzing trends in the Company's business. Additional descriptions regarding management’s use of these financial measures are included below. Investors should consider these non-U.S. GAAP financial measures in addition to, rather than as substitutes for, financial reporting measures prepared in accordance with U.S. GAAP. These historical non-U.S. GAAP financial measures have been identified as applicable in each section of this report with a tabular presentation reconciling them to the most directly comparable U.S. GAAP financial measures. It should be noted that these measures, as defined, may not be comparable to similarly titled measures used by other companies.

1718

EXECUTIVE OVERVIEW

~~The~~Through focused execution, we maintained the positive momentum from the first quarter. ~~turned~~Globally, ~~out~~our ~~better~~sales grew organically more than we1pp ~~had~~faster ~~anticipated~~than global LVP, ~~with~~outgrowing ~~strong~~LVP ~~sales~~significantly in ~~March~~Asia. Our ~~operational~~sales ~~performance~~to ~~exceeded~~Chinese ~~our~~OEMs ~~expectations,~~grew ~~with~~by ~~solid~~more ~~productivity~~than ~~improvements~~40%, ~~partly~~and ~~supported~~Chinese byOEMs ~~reduced~~accounted ~~call-off~~for ~~volatility.~~55% ~~Underlying~~of ~~profitability~~our ~~improved~~sales in China, ~~with~~compared ~~gross~~to ~~profit~~40% ~~increasing~~a byyear ~~10%,~~ago. ~~although~~Our ~~adjusted~~opportunities ~~operating~~with ~~income~~Chinese ~~(Non-GAAP~~OEMs ~~measure,~~were ~~see~~further ~~reconciliation~~solidified ~~table~~by ~~below)~~signing ~~was~~new ~~slightly~~strategic ~~lower~~cooperation ~~due~~agreements towith ~~temporary~~both ~~lower~~Great ~~R,D&E~~Wall ~~reimbursements~~Motor and ~~the~~XPENG. ~~one-time~~Sales ~~income~~ in Q1India ~~last~~continued ~~year~~to grow by more than 35%.

~~Our~~Well ~~positive~~executed ~~trend~~cost inreduction ~~Asia~~activities ~~continued,~~supported ~~with~~a ~~strong growth in India, South Korea and China. In China, we~~ continued toimprovement ~~grow~~of ~~faster~~underlying ~~than LVP~~profitability, ~~especially~~ with ~~the~~adjusted ~~Chinese~~operating ~~OEMs,~~margin ~~outperforming by 40pp. In India, we grew sales organically~~ (Non-GAAP measure, see reconciliation table below) byincreasing ~~38%, reflecting mainly the trend of increased safety content in vehicles in India, as well as the continued high level of LVP growth. We continue~~ to ~~expand our production capabilities in India, investing in additional inflator production capacity for future growth~~9.6%.

We are pleased that weour incash ~~the~~flow ~~quarter~~improved ~~introduced~~in line with our ~~first~~expectations, ~~airbag~~resulting in record operating cash flow for ~~motorcycles,~~a assecond ~~well~~quarter, asand supporting our ~~first~~ambitious ~~wearable~~shareholder ~~airbag~~return ~~solution~~strategy. ~~for~~Our ~~motorcycle~~leverage ~~riders~~ratio (Non-GAAP measure, ~~building~~see onreconciliation ~~our~~table ~~long~~below) ~~term~~improved ~~strategy~~to of1.2x, ~~growing~~despite ~~business~~repurchasing ~~outside~~around ~~our~~1.65 ~~traditional~~million ~~core~~shares, ~~business~~equal to $200 million, in the quarter.

~~The~~In ~~quarter~~line ~~was~~with ~~characterized~~our byambition ~~ongoing~~to ~~and~~ensure ~~new~~long-term ~~geopolitical~~competitiveness ~~challenges.~~and Atalign ~~this~~production ~~point,~~capacity itwith ismarket ~~difficult to fully assess the likely impacts~~demand, aswe ~~the situation remains fluid. We~~ continue to ~~carefully~~optimize ~~monitor~~our footprint. In the ~~developments~~quarter, ~~while~~we ~~preparing~~announced ~~for~~that ~~various~~we ~~scenarios,~~will ~~including~~discontinue ~~different~~manufacturing ~~mitigation~~operations ~~strategies~~in Türkiye.

~~The~~We ~~business~~continued ~~environment~~to ismanage ~~uncertain~~geopolitical ~~but~~developments ~~our~~successfully ~~current~~in ~~best estimate for~~ the ~~remainder~~quarter, oflimiting the ~~year~~effects ~~is a re-iteration~~ of ~~our~~tariffs, ~~full~~supply ~~year~~chain ~~2026~~challenges ~~guidance of about unchanged organic sales (Non-GAAP measure)~~ and anraw ~~adjusted~~material ~~operating~~price ~~margin (Non-GAAP measure) of around 10~~increases.~~5-11%.~~ ~~This is based on the assumption that LVP will decline by around 1%.~~

~~Our~~The ~~balance~~business ~~sheet~~environment isremains ~~healthy,~~uncertain ~~with~~but ~~debt~~our ~~leverage~~current ~~(Non-GAAP~~best ~~measure,~~estimate ~~see~~for ~~reconciliation~~the ~~table~~remainder ~~below)~~ of ~~1.3x,~~the ~~well~~year ~~below~~is ~~our~~to ~~target~~reiterate ~~limit~~our offull ~~1.5x.~~year ~~Based~~2026 onguidance ~~our~~of ~~guidance~~about ~~for~~unchanged organic sales ~~and~~growth (Non-GAAP measure), adjusted operating margin, we(Non-GAAP ~~continue~~measure) toof ~~expect~~around ~~strong~~10.5-11% and operating cash flow ~~for~~of ~~the~~around ~~year,~~1.2 ~~which~~billion. ~~supports~~This ~~our~~is ~~ambitions~~based toon ~~provide~~the ~~attractive~~assumption ~~shareholder~~that ~~returns,~~LVP ~~including~~will todecline ~~repurchase~~by ~~shares~~around ~~of $300-500 million in 2026~~2.5%.

~~Financial~~Customer ~~highlights~~compensations and other mitigation initiatives are expected to have limited impact in the ~~three~~third ~~months~~quarter, ~~period~~but ~~ended~~significantly ~~March~~greater 31contribution in the fourth quarter. Therefore, we expect third quarter adjusted operating margin to be around the first half 2026 level, with a significant improvement in the fourth quarter.

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.

Financial highlights in the three months period ended June 30, 2026

Change figures below compare to the same period of the previous year, except when stated otherwise.

$2,~~753~~803 million net sales, increase of 63.83%

01.80% organic sales growth (~~Non~~non-GAAP measure, see reconciliation table below)

8.6.8% operating margin, 8.9.6% ~~adjusted~~adj. operating margin (~~Non~~non-GAAP measure, see reconciliation table below)

$1.8835 diluted EPS, 1238% decrease

Key business developments in the three months period ended ~~March~~June 3130, 2026

Change figures below compare to the same period of the previous year, except when stated otherwise.

Net sales increased organically (~~Non~~non-GAAP measure, see reconciliation table below) by 01.80%, which was 41.~~2pp~~3pp higher than the global LVP decrease of 30.43% (S&P Global, ~~April~~July 2026) ~~driven~~ mainly driven by strong ~~progress~~performance in Asia. Regional and customer LVP mix is estimated to have impacted sales ~~positively~~negatively by about ~~1.5pp, while tariff compensations added around~~ 0.~~5pp~~6pp. Our organic sales growth (~~Non~~non-GAAP measure) outperformed LVP significantly in China ~~(15pp)~~ and in Asia excl. China, ~~(6.8pp)~~underperformed ~~and~~slightly ~~performed~~ in ~~line in~~ EMEA and ~~underperformed~~more markedly in Americas (4.~~5pp).~~ Our strong performance in Asia excl. China was mainly due to India, where we outperformed by ~~28pp~~20pp, driven by continued strong market growth in safety content per vehicle, while our China performance was ~~mainly~~due ~~driven~~to bymore ~~further~~than ~~improved~~40pp ~~presence~~outperformance with Chinese OEMs.

~~Profitability~~Underlying ~~was~~profitability remained strong. ~~Supported~~Operating byincome ~~successful~~decreased ~~execution~~substantially ofdue ~~cost~~to ~~reductions~~previously ~~and~~communicated ~~positive~~restructuring ~~foreign~~activities ~~currency~~in ~~effects, gross profit increased by 10%~~Türkiye. ~~Operating~~Adjusted ~~income decreased by 6.7% and adjusted~~ operating income (~~Non~~non-GAAP measure, see reconciliation table below) ~~decreased~~increased by 37.93%, ~~impacted~~despite by adverse effects from foreign currency ~~translation~~exchange ~~effects~~rates and ~~temporary~~raw ~~lower~~material Rprices,~~D&E~~ ~~reimbursements~~mainly asdue to well asexecuted ~~that~~direct Q1material ~~2025~~cost ~~was positively impacted by one-time effects~~savings. Operating margin was 8.6.8% and adjusted operating margin (~~Non~~non-GAAP measure, see reconciliation table below) was 8.9.6%. ROCE was 2217.29% and adjusted ROCE (~~Non~~non-GAAP measure, see reconciliation table below) was 2224.9%.

~~Operating~~Cash ~~cash~~ flow was ~~negative~~the ~~$76~~best ~~million,~~for ~~mainly~~a ~~due~~second toquarter anso ~~increase~~far inwith ~~working~~operating ~~capital~~cash ~~due~~flow toimproving ~~strong~~from ~~sales~~$277 inmillion ~~March,~~to ~~temporary~~$434 ~~effects~~million, ~~expected~~mainly todriven ~~reverse~~by ~~later~~strong inunderlying ~~the~~profitability ~~year~~ and ~~the~~a ~~high~~normalization ~~level~~ of ~~accounts~~working ~~payable at the end of 2025~~capital. Free operating cash flow (~~Non~~non-GAAP measure, see reconciliation table below) ~~thereby~~more ~~decreased~~than doubled to ~~negative~~ $~~159~~340 million. The leverage ratio (~~Non~~non-GAAP measure, see reconciliation table below) ~~was~~improved ~~unchanged compared~~ to ~~a year ago at~~ 1.~~3x, below our target limit of 1~~2x.~~5x.~~ In the quarter, a dividend of $0.87 per share was paid and 1.65 million shares were repurchased and retired.

1819

Business and market condition update

Supply Chain

Call-off ~~volatility~~accuracy improved somewhat compared to ~~both~~the Q4second quarter of 2025, ~~and~~but Q1declined ~~2025~~slightly versus the first quarter of 2026, ~~although~~mainly itdriven ~~still~~by light vehicle market developments in China. Call-off volatility remains higher than pre-pandemic levels. Low customer demand visibility and changes toin customer call-offs with short notice continued to have some negative impact on our production efficiency and profitability. We expect call-off volatility for the full year 2026 on average to be slightly improved compared to 2025 but still remain higher than pre-pandemic levels. However, the continued significant uncertainty in the geopolitical environment and future changes in tariffs and trade restrictions may lead to more negative call-off volatility.

Raw material inflation, geopolitical risks and tariffs

Raw material price changes had ~~only~~ a ~~small~~ negative impact on our profitability in the ~~first~~second quarter, with a gross impact of around $521 million. For the full year 2026, our current assessment is for around $90110 million gross impact from higher raw material prices. We expect to be able to mitigate a majority of this headwind, mainly through internal cost reductions, material mix improvements and commercial negotiations with customers and suppliers. Given the continued uncertainty in the geopolitical environment, the effects of tariffs and trade restrictions may lead to a more adverse inflation environment. We continue to execute on productivity and cost reduction initiatives to offset these cost pressures.

The ~~effects of the~~ new tariffs imposed in 2025 negatively impacted our profitability ~~negatively~~ in the ~~first~~second quarter of 2026. ~~Although~~We we achieved customer ~~compensations~~compensation for more than 7080% of the tariff costs, resulting in a net negative impact after compensation of around $7 million, which was in line with the net amount in Q2 2025. Including the dilution effect, the impact on operating margin was around ~~40bps~~35bps negative,. ~~including~~The recovery of tariffs related to the ~~dilution~~U.S. Supreme Court's ruling regarding the International Emergency Economic Powers Act had a net positive effect of around $3 million. While it is our ambition and expectation to continue passing tariff costs on to our customers, there is significant uncertainty as future recovery levels may vary. For the full year 2026, we estimate the tariff-related dilution on operating margin towill be similar to the around 2020bps ~~bps that it was~~ for full year 2025.

WeOngoing ~~currently~~geopolitical dodevelopments, ~~not~~including ~~expect~~the ~~any~~hostilities ~~material~~in ~~impact~~and ~~from~~around the ~~U.S.~~Persian ~~Supreme~~Gulf, ~~Court's~~have ~~ruling~~added ~~that~~uncertainty into the ~~International~~global ~~Emergency~~economic ~~Economic~~environment. ~~Powers~~These ~~Act~~conditions ~~did~~may ~~not~~affect ~~authorize~~supply ~~the~~chains, ~~imposition~~commodity ofprices, ~~the~~customer ~~tariffs~~demand, inand ~~2025,~~broader asmarket stability. As a result, our ~~gross~~current ~~exposure~~financial isguidance ~~limited~~reflects tothe ~~around~~best ~~$25~~information ~~million~~available ~~and~~today ~~the~~but ~~net~~may ~~exposure~~change isshould ~~well~~these ~~below~~geopolitical ~~$10~~dynamics ~~million~~materially impact our operations or the markets in which we operate.

~~Ongoing~~We ~~geopolitical~~continue ~~developments,~~to ~~including~~closely ~~the~~monitor ~~hostilities~~both ingeopolitical developments and ~~around~~ the ~~Persian~~tariff ~~Gulf,~~policy ~~introduce additional uncertainty into the global economic~~ environment. ~~These~~in ~~conditions~~order ~~may~~to ~~affect~~remain ~~supply~~agile ~~chains, commodity prices, customer demand,~~ and ~~broader~~to ~~market~~adjust ~~stability. As a result,~~ our ~~current~~commercial ~~financial~~and ~~guidance~~operational ~~reflects~~responses ~~the best information available today but may be subject~~ to ~~change~~any ~~should~~such ~~these geopolitical dynamics materially impact our operations or the markets in which we operate~~developments.

WeAutoliv ~~continue~~ to ~~closely~~discontinue ~~monitor~~manufacturing ~~both~~operations ~~geopolitical developments and the tariff policy environment~~ in ~~order to be agile to adjust our commercial and operational responses to any such developments.~~Türkiye

19On May 8, 2026, Autoliv announced an update to its strategy to align production capacity with future EMEA market requirements. As part of this strategy, Autoliv will gradually discontinue its manufacturing operations in Türkiye, which include the production of steering wheels, airbags, and seatbelts, to continue optimizing its manufacturing footprint and ensure long-term competitiveness and operational sustainability. This discontinuation is expected to affect approximately 2,200 employees. Production in Türkiye will be moved to Autoliv's other existing facilities in the EMEA region. The complete closure is anticipated in the first half of 2028. The Company expects to record restructuring charges of approximately $142 million in total, of which $90 million was recognized in the second quarter of 2026. Cash outflow is expected to be approximately $129 million, with a limited impact on the 2026 cash flow. The Company expects to achieve estimated annual pre-tax savings of $40 million, beginning in 2027, reaching the full run-rate benefit in 2028.

RESULTS OF OPERATIONS

Overview

The following table shows some of the key ratios management uses internally to analyze the Company's current and future financial performance and core operations as well as to identify trends in the Company’s financial conditions and results of operations. The Company has provided this information to investors to assist in meaningful comparisons of past and present operating results and to assist in highlighting the results of ongoing core operations. These ratios are more fully explained below and should be read in conjunction with the consolidated financial statements in the Company's Annual Report on Form 10-K and the unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q.

The Company's management uses the Return on capital employed (ROCE) and Return on total equity (ROE) measures for purposes of comparing its financial performance with the financial performance of other companies in the industry and providing useful information regarding the factors and trends affecting the Company’s business. As used by the Company, ROCE is annualized operating income and income from equity method investments relative to average capital employed. The Company believes ROCE is a useful indicator of long-term performance both absolute and relative to the Company's peers as it allows for a comparison of the profitability of the Company’s capital employed in its business relative to that of its peers.

ROE is the ratio of annualized income (loss) relative to average total equity for the periods presented. The Company’s management believes that ROE is a useful indicator of how well management creates value for its shareholders through its operating activities and its capital management.

KEY RATIOS

(Dollars in millions, except per share data)

	Three Months Ended						Six Months Ended
	or As of March 31,
	or As of June 30,						or As of June 30,
	2026			2025			2026			2025
Receivables outstanding relative to sales, %1)		2221.03	%		21.46	%	-			-
Inventory outstanding relative to sales, %2)		8.64	%		8.98	%	-			-
Payables outstanding relative to sales, %3)		1617.97	%		17.89	%	-			-
Gross margin, %4)		1918.12	%		18.65	%		18.6	%		18.5	%
Operating margin, %5)		8.6.8	%		9.91	%		7.7	%		9.5	%
Capital employed6)		4,~~417~~195			4,~~149~~231		-			-
Net debt7)		1,~~773~~695			1,~~787~~752		-			-
Return on total equity, %8)		2115.76	%		2827.87	%		18.8	%		28.2	%
Return on capital employed, %9)		2217.29	%		2523.68	%		20.3	%		24.8	%
Headcount at period-end10)		6463,~~100~~500			65,~~900~~100		-			-

1) Outstanding receivables relative to annualized quarterly sales.

2) Outstanding inventory relative to annualized quarterly sales.

3) Outstanding payables relative to annualized quarterly sales.

4) Gross profit relative to sales.

5) Operating income relative to sales.

6) Total equity and net debt.

7) Net debt adjusted for pension liabilities in relation to EBITDA. See tabular presentation reconciling this non-~~U.S.~~ GAAP measure to ~~U.S.~~ GAAP below.

8) Net income relative to average total equity.

9) Operating income and income from equity method investments, relative to average capital employed.

10) Employees plus temporary, hourly personnel.

2021

three months period ended ~~March~~June 3130, 2026 COMPARED WITH three months period ended ~~March~~June 3130, 2025

Consolidated Sales Development

(dollars in millions)

	Three Months Ended March 31,							Components of change in net sales
	Three Months Ended June 30,							Components of change in net sales
	2026		2025		Reportedchange			Currencyeffects 1)			Organic 3)
Airbags, Steering Wheels and Other2)	$	1,~~863~~906	$	1,~~752~~812		65.32	%		52.62	%		03.70	%
Seatbelt products and Other2)		890		826		7.8	%		6.7	%		1.1	%
Seatbelt Products and Other2)		897		902		(0.5	)%		2.4	%		(3.0	)%
Total	$	2,~~753~~803	$	2,~~578~~714		63.83	%		62.03	%		01.80	%
Americas	$	~~863~~910	$	~~851~~891		12.31	%		6.5.4	%		(53.23	)%
EMEA		~~835~~832		~~764~~828		90.34	%		112.17	%		(12.82	)%
Asia excl. China		~~563~~539		~~515~~519		94.30	%		(17.83	)%		11.1	%
China		~~492~~522		~~447~~477		109.06	%		56.12	%		43.94	%
Total	$	2,~~753~~803	$	2,~~578~~714		63.83	%		62.03	%		01.80	%

1) Effects from currency translations.

2) Including Corporate sales.

3) Non-~~U.S.~~ GAAP measure.

Sales by product - Airbags, Steering Wheels and Other

Sales for Airbags, Steering Wheels and Other grew organically (~~Non~~non-~~U.S.~~ GAAP measure, see reconciliation table above) by 03.70% in the quarter. The largest contributors to the increase were side airbags and center airbags, followed by driver airbags, inflatable curtains and ~~side~~knee airbags, partly offset by declines for ~~passenger~~steering ~~airbags~~wheels and ~~inflatable~~passenger ~~curtains~~airbags.

Sales by product - Seatbelts and Other

Sales for Seatbelt Products and Other ~~grew~~declined organically (~~Non~~non-~~U.S.~~ GAAP measure, see reconciliation table above) by 13.10% in the quarter. Sales ~~increased~~decreased organically in(non-GAAP ~~Asia~~measure) ~~excluding~~in ~~China~~Americas, ~~EMEA~~China and ~~China~~EMEA while ~~sales~~it ~~declined~~increased in ~~Americas~~Asia excluding China.

Sales by region

Our global organic sales (~~Non~~non-~~U.S.~~ GAAP measure, see reconciliation table above) increased by 01.80% compared to the global LVP decrease of 30.43% (according to S&P Global, ~~April~~July 2026). The relative ~~performance~~outperformance was positively impacted by product launches but ~~also~~negatively impacted by ~~positive effects from the~~ regional and model LVP mix development, ~~which we estimate contributed to about 1.5pp outperformance and by tariff compensations of~~ (around 060bps).~~5pp.~~ Our organic sales growth (~~Non~~non-~~U.S.~~ GAAP measure) outperformed LVP growth by ~~15pp~~7.3pp in China and by 65.~~8pp~~9pp in Asia excluding China. We ~~performed~~underperformed ~~in line with~~ LVP in EMEA ~~and~~by ~~underperformed~~1.0pp and by 4.~~5pp~~9pp in Americas, impacted mainly by lower top line effect from tariffs, negative mix due to a high LVP growth in ~~low~~lower content South America and a lower content on some replacement models.

LVP in China declined ~~substantially~~by 4.0%, with ~~global~~Global OEMs LVP declining by ~~8.5~~19% and Chinese OEMs ~~declining~~LVP growing by 113.1%. ~~Our~~Autoliv's sales to domestic OEMs increased organically (non-GAAP measure) by around 3044% while our sales to global OEMs decreased by around 1024%. 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 3836% organic sales growth (~~Non~~non-~~U.S.~~ GAAP measure~~, see reconciliation table above~~) in India, reflecting LVP growth but mainly the trend of increased safety content in vehicles in India.

~~First~~Second quarter of 2026 organic growth1)

	Americas	EMEA	Asia excl. China	China	Global
Autoliv	(53.23)%	(12.82)%	11.13%	43.94%	01.80 %
Main growth drivers	Stellantis, Subaru, ~~Stellantis~~Honda	Mercedes, Renault, ~~Volvo~~JLR	Suzuki, ~~Tata~~Mazda, Indian OEM	Chery, EVNio, ~~COEM~~Geely	Chery, Suzuki, ~~Chery~~Nio
Main decline drivers	Ford, GMHyundai, Nissan	VW, ~~Hyundai~~BMW, Stellantis	~~Toyota~~Subaru, ~~Subaru~~Ford, Isuzu	VW, Honda, Mercedes	VW, Ford, VWHyundai

1) Non-~~U.S.~~ GAAP measure.

Light Vehicle Production Development

Change ~~first~~second quarter of 2026 versus ~~first~~second quarter of 2025

		Americas		EMEA		Asia excl. China		China		Global
LVP1)		(01.6) %		(01.82)%		45.34 %		(104.10)%		(30.43)%

1) Source: S&P Global, ~~April~~July 2026.

2122

Earnings

	Three Months Ended March 31,
	Three Months Ended June 30,
(Dollars in millions, except per share data)	2026			2025			Change
Net Sales	$	2,~~753~~803		$	2,~~578~~714			63.83	%
Gross profit		~~526~~509			~~478~~501			101.05	%
% of sales		1918.12	%		18.65	%		(0.63	)pp
S, G&A		(~~161~~138	)		(145	)		11(4.19	)%
% of sales		(54.89	)%		(5.64	)%		(0.24	)pp
R, D&E, net		(~~120~~122	)		(95107	)		2614	%
% of sales		(4.34	)%		(3.79	)%		(0.74	)pp
Other income (expense), net		(956	)		15(1	)	n/a
Operating income		~~237~~192			~~254~~247			(~~6.7~~22	)%
% of sales		8.6.8	%		9.91	%		(1.2.3	)pp
Adjusted operating income1)		~~245~~270			~~255~~251			(37.93	)%
% of sales		8.9.6	%		9.93	%		~~(1.~~0.4	)pp
Financial and non-operating items, net		(3538	)		(2227	)		~~60.7~~44	%
Income before taxes		~~202~~154			~~233~~221			(~~13.1~~30	)%
Income taxes		(6053	)		(6553	)		(70.2	)%
Tax rate		2934.95	%		2824.01	%		110.94	pp
Net income		~~142~~101			~~167~~168			(~~15.4~~40	)%
Earnings per share, diluted2)		1.8835			2.1416			(1238	)%
Adjusted earnings per share, diluted1,2)		2.0543			2.1521			(510	)%

1) Non-~~U.S.~~ GAAP measure, excluding effects from capacity alignments and antitrust related matters.

2) Net of treasury shares.

~~First~~Second quarter of 2026 financial development

Gross profit increased by $488 million and gross margin ~~increased~~decreased by 0.~~6pp~~3pp compared to the prior year. The drivers behind the gross profit improvement were mainly positive foreign currency translation effects, ~~improved~~and ~~operational~~lower ~~efficiency~~costs ~~with~~for ~~lower~~materials. This was partly offset by $13 million in costs for ~~labor~~a assupplier ~~well~~compensation asreversal ~~positive~~and ~~effects~~$9 ~~from~~million ~~higher~~in ~~sales.~~asset ~~This~~impairment ~~was~~related ~~partly~~to ~~offset~~the byrestructuring ~~increased~~activities ~~tariff~~in ~~costs, net~~Türkiye.

S,G&A costs ~~increased~~decreased by $167 million compared to the prior year, mainly due to $108 million infrom ~~negative~~revised ~~foreign~~estimated ~~currency~~credit ~~translation~~loss ~~effects~~reserve and $51 million in ~~higher~~lower personnel costs, ~~for~~partly ~~personnel~~offset ~~driven~~ by ~~wage~~$3 ~~inflation~~million ~~and~~in anegative ~~non-recurring~~foreign ~~cost~~currency oftranslation $4effects ~~million~~and higher legal costs. S,G&A costs in relation to sales ~~increased~~decreased from 5.64% to 54.89%.

R,D&E, net, costs increased by $2515 million compared to the prior year, mainly due to $115 million in lower engineering income related to timing effects, $54 million in higher personnel costs due to wage inflation and $43 million in negative FXforeign currency translation effects. R,D&E, net, in relation to sales increased from 3.79% to 4.34%.

Other income (expense), net, was negative $956 million, compared to ~~positive~~negative $151 million in the same period last year. The ~~positive~~ $1556 million in ~~2025~~the ~~related~~second ~~mainly~~quarter toof ~~recycled~~2026 ~~accumulated~~consists ~~currency~~mainly ~~translation~~of ~~differences~~around ~~related~~$66 tomillion ~~the~~in ~~divestment~~capacity ofalignments related to our ~~idled~~restructuring ~~operations~~activities in ~~Russia~~Türkiye ~~while~~partly ~~the~~offset ~~negative~~by around $910 million in ~~2026~~government ~~related~~income ~~mainly to restructuring costs~~ in ~~EMEA~~India.

Operating income decreased by $1755 million compared to the prior year, mainly due to ~~the~~ higher capacity alignment costs ~~for~~related to restructuring activities in Türkiye and higher R,D&E, net, ~~Other income (expense) and S~~costs,~~G&A,~~ partly offset by higher gross profit and lower S,G&A costs as outlined above.

Adjusted operating income (~~Non~~non-~~U.S.~~ GAAP measure, see reconciliation table below) ~~decreased~~increased by $1018 million compared to the prior year, due to the higher ~~costs~~gross ~~for~~profit ~~R,D&E,~~and ~~net,~~lower S,G&A ~~and~~costs ~~Other income (expense), partly offset by higher gross profit~~ as outlined above.

Financial and non-operating items, net, was a negative $3538 million compared to a negative $2227 million a year earlier. The cost increase ~~comes~~was ~~from~~driven by $12 million in higher costs for non-operating items mainly related to costs associated with restructuring ~~costs~~activities in ~~Americas~~Türkiye.

Income before taxes decreased by $3067 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 29.9% compared to 28.0% the prior year. Discrete tax items, net, had an unfavorable impact of 2.3pp in the first quarter 2026, while discrete tax items, net were not material in the corresponding quarter last year.23

~~Earnings~~Tax ~~per~~rate ~~share,~~was ~~diluted decreased by $0~~34.265% compared to 24.1% the prior year. ~~The~~Discrete ~~main~~tax ~~drivers~~items, ~~were~~net, ~~$0.16~~had ~~from~~an ~~lower~~unfavorable ~~operating~~impact ~~income,~~of $05.124pp ~~from~~in ~~financial~~the ~~and~~second ~~non-operating~~quarter of 2026, while discrete tax items, ~~$0.05~~net, ~~from~~in ~~taxes~~the ~~partly~~second ~~offset~~quarter byof $02025 had a favorable impact of 4.073pp. ~~from~~Discrete ~~lower~~tax ~~number~~items recorded in the second quarter of ~~outstanding~~2026 ~~shares,~~primarily ~~diluted~~related to negative tax impacts from costs recorded for the capacity alignment for Autoliv’s manufacturing operations in Türkiye.

22Earnings 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.

six months period ended June 30, 2026 COMPARED WITH six months period ended June 30, 2025

Consolidated Sales Development

(dollars in millions)


	Six Months Ended June 30,							Components of change in net sales
	2026		2025		Reported change			Currency effects 1)			Organic 3)
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	%


	Six Months Ended June 30,							Components of change in net sales
	2026		2025		Reported change			Currency effects 1)			Organic 3)
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.

3) Non-GAAP measure.

Sales by product - Airbags, Steering Wheels and Other

Sales for Airbags, Steering Wheels and Other grew organically (non-GAAP measure, see reconciliation table above) 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 - Seatbelts and Other

Sales for Seatbelt Products and Other declined organically (non-GAAP measure, see reconciliation table above) by 1.0% in the period. Sales decreased organically (non-GAAP measure) in Americas, China and EMEA while it increased in Asia excluding China.

Sales by region

Our global organic sales (non-GAAP measure, see reconciliation table above) 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 in 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 (non-GAAP measure) 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 of 2026, 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.

First six months of 2026 organic growth1)


	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

1) Non-GAAP measure.

Light Vehicle Production Development

Change first six months of 2026 versus first six months of 2025


	Americas	EMEA	Asia excl. China	China	Global
LVP1)	0.9 %	(0.3)%	5.5 %	(6.0)%	(1.0)%

1) Source: S&P Global, July 2026.

Earnings


	Six Months Ended June 30,
(Dollars in millions, except per share data)	2026			2025			Change
Net Sales	$	5,556		$	5,292			5.0	%
Gross profit		1,035			980			5.7	%
% of sales		18.6	%		18.5	%		0.1	pp
S, G&A		(299	)		(290	)		3.1	%
% of sales		(5.4	)%		(5.5	)%		0.1	pp
R, D&E, net		(242	)		(202	)		19.9	%
% of sales		(4.4	)%		(3.8	)%		(0.5	)pp
Other income (expense), net		(65	)		14		n/a
Operating income		429			502			(14	)%
% of sales		7.7	%		9.5	%		(1.8	)pp
Adjusted operating income1)		515			506			1.7	%
% of sales		9.3	%		9.6	%		(0.3	)pp
Financial and non-operating items, net		(73	)		(48	)		52	%
Income before taxes		356			453			(22	)%
Income taxes		(113	)		(118	)		(4.1	)%
Tax rate		31.9	%		26.1	%		5.8	pp
Net income		242			335			(28	)%
Earnings per share, diluted2)		3.24			4.31			(25	)%
Adjusted earnings per share, diluted1,2)		4.49			4.36			2.9	%

1) Non-GAAP measure, excluding effects from capacity alignments and antitrust related matters.

2) Net of treasury shares.

First six months of 2026 financial 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 foreign currency 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 foreign currency 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 foreign currency 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 (non-GAAP measure, see reconciliation table below) 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.

LIQUIDITY AND CAPITAL RESOURCES

The Company does not have any off-balance sheet arrangements that have, or are reasonably likely to have, a material current or future effect on its financial position, results of operations or cash flows. The Company’s future contractual obligations have not changed materially from the amounts reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 19, 2026.

~~First~~Second quarter of 2026 development

Changes in operating working capital impacted operating cash flow by $~~349~~240 million ~~negative~~positive compared to ~~an impact of~~ $~~179~~15 million ~~negative~~positive in the prior year. The $~~349~~240 million ~~increase~~decrease in operating working capital ~~mainly~~ comes mainly from $~~175~~120 million ~~increase~~from inaccounts payable, $35 million from receivables, net, and $~~134~~48 million ~~decrease~~from inaccrued ~~accounts~~severance ~~payables~~and restructuring costs. The ~~increase~~decrease in operating working capital is mainly ~~related~~due to ~~high~~an ~~level~~expected normalization of ~~sales~~working incapital ~~March~~following ~~2026,~~the ~~other~~increase ~~temporary~~seen ~~effects~~in ~~that~~the ~~are~~first ~~expected~~quarter, towhich ~~reverse~~was ~~later~~related into ~~the year and the~~ high level of ~~accounts~~sales ~~payable~~in atMarch ~~the~~2026 ~~end~~and ofother ~~December~~temporary ~~2025~~effects.

Operating cash flow ~~decreased~~increased by $~~153~~157 million to $~~(76)~~434 million compared to the prior year, mainly because of the ~~increase~~decrease in operating working capital outlined above ~~and a lower net income~~, partly offset by ~~higher~~a ~~depreciation~~lower ~~and~~net ~~other non-cash adjustments~~income.

Capital expenditure, net, decreased by $1020 million compared to the prior year. The level of capital expenditure, net, in relation to sales declined to 3.04% versus 34.62% 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 (~~Non~~non-~~U.S.~~ GAAP measure, see reconciliation table below) was ~~negative~~positive $~~159~~340 million compared to ~~negative~~positive $16163 million in the prior year. The ~~decrease~~increase was due to the ~~lower~~higher operating cash flow ~~partly~~and ~~offset by the~~ lower capital expenditure, net, as outlined above.

Cash conversion (~~Non~~non-~~U.S.~~ GAAP measure, see reconciliation table below), defined as free operating cash flow (~~Non~~non-~~U.S.~~ GAAP measure) in relation to net income, was ~~n/a~~338% ~~in the quarter~~ compared to ~~n/a~~97% a year earlier as free operating cash flow was ~~negative~~increased ~~both~~while ~~quarters~~net income decreased.

Net debt (~~Non~~non-~~U.S.~~ GAAP measure, see reconciliation table below) was $1,~~773~~695 million as of ~~March~~June 3130, 2026, which was $1457 million lower than a year earlier.

Total equity as of ~~March~~June 3130, 2026, increased by $~~283~~21 million compared to ~~March~~June 3130, 2025. This was mainly due to net income of $~~710~~643 million and $~~103~~27 million in other positive ~~currency translation~~ effects, partly offset by $~~304~~454 million in share repurchases, including taxes, and $~~249~~194 million in dividend payments.

Leverage ratio (~~Non~~non-~~U.S.~~ GAAP measure, see reconciliation table below): On ~~March~~June 3130, 2026, the Company had a leverage ratio of 1.3x2x compared to 1.3x on ~~March~~June 3130, 2025, as the 12 months trailing adjusted EBITDA (~~Non~~non-~~U.S.~~ GAAP measure, see reconciliation table below) increased by $7473 million while net debt (~~Non~~non-~~U.S.~~ GAAP measure) per the policy ~~was~~decreased ~~unchanged~~by $44 million. Our target is to have a leverage ratio not higher than 1.5x.

First six months of 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 (non-GAAP measure, see reconciliation table below) 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 (non-GAAP measure, see reconciliation table below) defined as free operating cash flow (non-GAAP measure) in relation to net income, was 74% compared to 44% a year earlier as free operating cash flow increased while net income decreased.

NON-U.S. GAAP MEASURES

The Company believes that comparability between periods is improved through the exclusion of certain items. To assist investors in understanding the operating performance of Autoliv's business, it is useful to consider certain ~~U.S.~~ GAAP measures exclusive of these items.

The following tables ~~reconciles~~reconcile Income before income taxes, Net income attributable to controlling interest and Capital employed, which are inputs utilized to calculate Return On Capital Employed (“ROCE”), adjusted ROCE, Return On Total Equity (“ROE”), and adjusted ROE. The Company believes this presentation may be useful to investors and industry analysts who utilize these adjusted non-~~U.S.~~ GAAP measures in their ROCE and ROE calculations to exclude certain items for comparison purposes across periods. Autoliv’s management uses the ROCE, adjusted ROCE, ROE and adjusted ROE measures for purposes of comparing its financial performance with the financial performance of other companies in the industry and providing useful information regarding the factors and trends affecting the Company’s business.

As used by the Company, ROCE is annualized operating income and income from equity method investments, relative to average capital employed. Adjusted ROCE is annualized operating income and income from equity method investments, relative to average capital employed as adjusted to exclude certain non-recurring items. See definitions of "annualized operating income" and "average capital employed" in footnote to the tables below. The Company believes ROCE and adjusted ROCE are useful indicators of long-term performance both absolute and relative to the Company's peers as it allows for a comparison of the profitability of the Company’s capital employed in its business relative to that of its peers.

ROE is the ratio of annualized income (loss) relative to average total equity for the periods presented. See definitions of "annualized income" "and "average total equity" in footnote to the tables below. Adjusted ROE is annualized income (loss) relative to average total equity for the periods presented as adjusted to exclude certain non-recurring items. The Company’s management believes that ROE and adjusted ROE are useful indicators of how well management creates value for its shareholders through its operating activities and its capital management.

Accordingly, the tables below reconcile from ~~U.S.~~ GAAP to the equivalent non-~~U.S.~~ GAAP measure.

Reconciliation of GAAP measure "Operating income" to Non-GAAP measure "Adjusted Operating income"

	Three Months Ended March 31,
	Three Months Ended June 30,					Six Months Ended June 30,
(Dollars in millions)	2026		2025			2026		2025
Operating income (GAAP)	$	~~237~~192	$	~~254~~247		$	429	$	502
Non-GAAP adjustments:
Less: Capacity alignments		877		21			85		3
Less: Antitrust related items		0		(13	)		0		1
Total non-GAAP adjustments to operating income		878		14			86		5
Adjusted Operating income (Non-GAAP)	$	~~245~~270	$	~~255~~251		$	515	$	506

Reconciliation of GAAP measure "Operating margin" to Non-GAAP measure "Adjusted Operating margin"

	Three Months Ended March 31,
	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Operating margin (GAAP)		8.6.8	%		9.91	%		7.7	%		9.5	%
Non-GAAP adjustments:
Less: Capacity alignments		02.38	%		0.10	%		1.5	%		0.1	%
Less: Antitrust related items		0.0	%		(0.01	)%		0.0	%		0.0	%
Total non-GAAP adjustments to operating margin		02.38	%		0.01	%		1.5	%		0.1	%
Adjusted Operating margin (Non-GAAP)		8.9.6	%		9.93	%		9.3	%		9.6	%

Reconciliation of GAAP measure "Other non-operating items, net" to Non-GAAP measure "Adjusted Other non-operating items, net"

	Three Months Ended March 31,
	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in millions)	2026			2025			2026			2025
Other non-operating items, net (GAAP)	$	(1215	)	$	0(3	)	$	(27	)	$	(3	)
Non-GAAP adjustments:
Less: Capacity alignments - non-operating1)		914			-			22			0
Total non-GAAP adjustments to Other non-operating items, net		914			-			22			0
Adjusted Other non-operating items, net (Non-GAAP)	$	(32	)	$	0(3	)	$	(5	)	$	(3	)
1) Relates to curtailment loss in connection with restructuring and capacity alignment activities.

Reconciliation of GAAP measure "Income before income taxes" to Non-GAAP measure "Adjusted Income before income taxes"

	Three Months Ended March 31,
	Three Months Ended June 30,					Six Months Ended June 30,
(Dollars in millions)	2026		2025			2026		2025
Income before income taxes (GAAP)	$	~~202~~154	$	~~233~~221		$	356	$	453
Non-GAAP adjustments:
Less: Capacity alignments - operating		877		21			85		3
Less: Capacity alignments - non-operating1)		914		-			22		-
Less: Antitrust related items		0		(13	)		0		1
Total non-GAAP adjustments to Income before income taxes		1791		14			108		5
Adjusted Income before income taxes (Non-GAAP)	$	~~219~~245	$	~~233~~225		$	464	$	458
1) Relates to curtailment loss in connection with restructuring and capacity alignment activities.

Reconciliation of GAAP measure "Net income" to Non-GAAP measure "Adjusted Net income"

	Three Months Ended March 31,
	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in millions)	2026			2025			2026			2025
Net income (GAAP)	$	~~142~~101		$	~~167~~168		$	242		$	335
Non-GAAP adjustments:
Less: Capacity alignments - operating		877			21			85			3
Less: Capacity alignments - non-operating1)		914			-			22			-
Less: Antitrust related items		0			(13	)		0			1
Less: Tax on non-GAAP adjustments		(411	)		(01	)		(15	)		(1	)
Total non-GAAP adjustments to Net income		1280			13			93			4
Adjusted Net income (Non-GAAP)	$	~~154~~181		$	~~168~~171		$	335		$	339
1) Relates to curtailment loss in connection with restructuring and capacity alignment activities.

Reconciliation of GAAP measure "Net income attributable to controlling interest" to Non-GAAP measure "Adjusted Net income attributable to controlling interest"

	Three Months Ended March 31,
	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in millions)	2026			2025			2026			2025
Net income attributable to controlling interest (GAAP)	$	~~141~~100		$	167		$	242		$	334
Non-GAAP adjustments:
Less: Capacity alignments - operating		877			21			85			3
Less: Capacity alignments - non-operating1)		914			-			22			-
Less: Antitrust related items		0			(13	)		0			1
Less: Tax on non-GAAP adjustments		(411	)		(01	)		(15	)		(1	)
Total non-GAAP adjustments to Net income attributable to controlling interest		1280			13			93			4
Adjusted Net income attributable to controlling interest (Non-GAAP)	$	~~154~~181		$	~~167~~170		$	334		$	338
1) Relates to curtailment loss in connection with restructuring and capacity alignment activities.

Reconciliation of GAAP measure "Earnings per share - diluted" to Non-GAAP measure "Adjusted Earnings per share - diluted"

	Three Months Ended March 31,
	Three Months Ended June 30,						Six Months Ended June 30,
(Per share data)	2026			2025			2026			2025
Earnings per share - diluted (GAAP)	$	1.8835		$	2.1416		$	3.24		$	4.31
Non-GAAP adjustments:
Less: Capacity alignments - operating		01.1004			0.02			1.14			0.04
Less: Capacity alignments - non-operating1)		0.1218			-			0.30			-
Less: Antitrust related items		0.00			(0.0203	)		0.00			0.02
Less: Tax on non-GAAP adjustments		(0.0515	)		(0.0001	)		(0.20	)		(0.01	)
Total non-GAAP adjustments to Earnings per share - diluted		01.1708			0.0104			1.25			0.05
Adjusted Earnings per share - diluted (Non-GAAP)	$	2.0543		$	2.1521		$	4.49		$	4.36
Weighted average number of shares outstanding - diluted		7574.12			77.93			74.5			77.5
1) Relates to curtailment loss in connection with restructuring and capacity alignment activities.

Reconciliation of GAAP measure "Return on Capital Employed" to Non-GAAP measure "Adjusted Return on Capital Employed"

	Three Months Ended March 31,
	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Return on capital employed1) (GAAP)		2217.29	%		2523.68	%		20.3	%		24.8	%
Non-GAAP adjustments:
Less: Capacity alignments - operating		06.79	%		0.21	%		3.8	%		0.2	%
Less: Antitrust related items		0.0	%		(0.12	)%		0.0	%		0.1	%
Total non-GAAP adjustments to Return on capital employed1)		0.7.0	%		0.14	%		3.9	%		0.2	%
Adjusted Return on capital employed1) (Non-GAAP)		2224.9	%		2524.61	%		24.1	%		25.0	%
Annualized adjustment2) on Return on capital employed1)	$	31311		$	316		$	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.

Reconciliation of GAAP measure "Return on Total Equity" to Non-GAAP measure "Adjusted Return on Total Equity"

	Three Months Ended March 31,
	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Return on total equity1) (GAAP)		2115.76	%		2827.87	%		18.8	%		28.2	%
Non-GAAP adjustments:
Less: Capacity alignments - operating		111.16	%		0.32	%		6.3	%		0.3	%
Less: Capacity alignments - non-operating2)		12.30	%		-			1.7	%		-
Less: Antitrust related items		0.0	%		(0.24	)%		0.0	%		0.1	%
Less: Tax on non-GAAP adjustments		(01.6	)%		(0.01	)%		(1.1	)%		(0.1	)%
Total non-GAAP adjustments to Return on total equity1)		112.90	%		0.15	%		6.9	%		0.3	%
Adjusted Return on total equity1) (Non-GAAP)		2327.56	%		28.92	%		25.7	%		28.5	%
Annualized adjustment3) on Return on total equity1)	$	50321		$	213		$	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.

Autoliv from time to time enters into “debt-related derivatives” (DRDs) as a part of its debt management and as part of efficiently managing the Company’s overall cost of funds. Creditors and credit rating agencies use net debt adjusted for DRDs in their analyses of the Company’s debt, therefore we provide this non-U.S. GAAP measure. DRDs are fair value adjustments to the carrying value of the underlying debt. Also included in the DRDs is the unamortized fair value adjustment related to a discontinued fair value hedge that will be amortized over the remaining life of the debt. By adjusting for DRDs, the total financial liability of net debt is disclosed without grossing debt up with currency or interest fair values.

Reconciliation of ~~U.S.~~ GAAP financial measure to non-GAAP measure “Net debt”

(Dollars in millions)

	March 31, 2026			December 31, 2025			March 31, 2025
	June 30, 2026			March 31, 2026			June 30, 2025
Short-term debt	$	~~393~~350		$	~~419~~393		$	~~540~~679
Long-term debt		1,~~699~~688			1,~~734~~699			1,~~565~~372
Total debt		2,~~091~~037			2,~~153~~091			2,~~105~~051
Cash and cash equivalents		(~~342~~377	)		(~~604~~342	)		(~~322~~237	)
Debt issuance cost/Debt-related derivatives, net		2334			1723			4(62	)
Net debt	$	1,773		$	1,566		$	1,787
Net debt (non-GAAP)	$	1,695		$	1,773		$	1,752

26The non-GAAP measure “Net debt” is also used in the non-GAAP measure “Leverage ratio”. Management uses the non-GAAP measure “Leverage Ratio” to analyze the amount of debt the Company can incur under its debt policy. Management believes that this policy also provides guidance to credit and equity investors regarding the extent to which the Company would be prepared to leverage its operations. It is Autoliv’s target to operate with a leverage ratio (sum of net debt plus pension liabilities divided by adjusted EBITDA) of 1.5x or below. For details and calculation of leverage ratio (non-GAAP measure), refer to the table below.

~~The~~Calculation ~~non-U.S.~~of ~~GAAP measure “Net debt” is also used in the~~ non-~~U.S.~~ GAAP measure “Leverage ratio”. Management uses the non-U.S. GAAP measure “Leverage Ratio” to analyze the amount of debt the Company can incur under its debt policy. Management believes that this policy also provides guidance to credit and equity investors regarding the extent to which the Company would be prepared to leverage its operations. The Company's long-term target for the leverage ratio (sum of net debt plus pension liabilities divided by EBITDA) is 1.0x with the aim to operate within the range of 0.5x to 1.5x. For details and calculation of leverage ratio, refer to the table below.

Calculation of “Leverage ratio”

(Dollars in millions)

(Dollars in millions)	~~March~~June 3130, 2026			~~December~~March 31, ~~2025~~2026			~~March~~June 3130, 2025
Net debt1)	$	1,773		$	1,566		$	1,787
Net debt1) (non-GAAP)	$	1,695		$	1,773		$	1,752
Pension liabilities		~~176~~180			~~169~~176			~~163~~167
Net debt per the Policy		1,949			1,736			1,950
Net debt per the Policy (non-GAAP)		1,874			1,949			1,919
Net income2)		~~710~~643			~~736~~710			~~688~~717
Income taxes 2)		246			~~250~~246			~~246~~255
Interest expense, net2,3)		93			93			9796
Other non-operating items, net2)		2840			1528			1619
Income from equity method investments2)		(65	)		(6	)		(6	)
Depreciation and amortization of intangibles2)		~~419~~434			~~407~~419			~~386~~390
Capacity alignments2)		28104			2328			196
Antitrust related items2)		42			34			46
Other items2)		—			—			(0—	)
EBITDA per the Policy (Adjusted EBITDA)	$	1,523		$	1,521		$	1,449
EBITDA per the Policy (Adjusted EBITDA) (non-GAAP)	$	1,556		$	1,523		$	1,483
Leverage ratio		1.3			1.1			1.3
Leverage ratio (non-GAAP)		1.2			1.3			1.3

1) Net debt (non-U.S. GAAP measure) is short- and long-term debt and debt-related derivatives, less cash and cash equivalents.

2) Latest 12-months.

3) Interest expense, net including cost for extinguishment of debt, if any, less interest income.

Management uses the non-U.S. GAAP measure “free operating cash flow” to analyze the amount of cash flow being generated by the Company’s operations after capital expenditure, net. This measure indicates the Company’s cash flow generation level that enables strategic value creation options such as dividends or acquisitions. For details on the calculation of free operating cash flow, see the table below. Management uses the non-U.S. GAAP measure “cash conversion” to analyze the proportion of net income that is converted into free operating cash flow. The measure is a tool to evaluate how efficiently the Company utilizes its resources. For details on cash conversion, see the table below.30

~~Reconciliation~~Management ofuses the non-GAAP measure ~~"Operating~~“free operating cash flow"” to ~~"Free~~analyze the amount of cash flow being generated by the Company’s operations after capital expenditure, net. This measure indicates the Company’s cash flow generation level that enables strategic value creation options such as dividends or acquisitions. For details on the calculation of free operating cash flow", ~~and~~see ~~"Cash~~the table below. Management uses the non-GAAP measure “cash conversion"” to analyze the proportion of net income that is converted into free operating cash flow. The measure is a tool to evaluate how efficiently the Company utilizes its resources. For details on cash conversion, see the table below.

Reconciliation of GAAP measure "Operating cash flow" to non-GAAP measures "Free operating cash flow" and "Cash conversion"

(Dollars in millions)

	Three Months Ended March 31,
	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Net income	$	~~142~~101		$	~~167~~168		$	242		$	335
Changes in operating working capital		~~(349~~240	)		~~(179~~15	)		(108	)		(164	)
Depreciation and amortization		~~107~~115			95100			222			195
Gain on divestiture of property		—			(6—	)		0			(6	)
Other, net		25(21	)		(15	)		3			(6	)
Operating cash flow		(76	)		77
Operating cash flow (GAAP)		434			277			359			355
Expenditures for property, plant and equipment		(8595	)		(~~102~~115	)		(180	)		(217	)
Proceeds from sale of property, plant and equipment		10			81			1			9
Capital expenditure, net1)		(8495	)		(93114	)		(178	)		(208	)
Free operating cash flow2)	$	(159	)	$	(16	)
Free operating cash flow2) (non-GAAP)	$	340		$	163		$	180		$	147
Cash conversion3)	n/a			n/a
Cash conversion3) (non-GAAP)		338	%		97	%		74	%		44	%
1) Defined as Expenditures for property, plant and equipment less Proceeds from sale of property, plant and equipment.
2) Operating cash flow less Capital expenditures, net.
3) Free operating cash flow relative to Net income.

Headcount

March 31, 2026

December 31, 2025

March 31, 2025

June 30, 2026

March 31, 2026

June 30, 2025

Total headcount

6463,~~100~~500

64,~~300~~100

65,~~900~~100

Whereof:

Direct personnel in manufacturing

46,~~700~~200

4746,~~300~~700

48,~~800~~000

Indirect personnel

17,~~400~~300

17,~~000~~400

17,100

Temporary personnel

1011

109.3

As of ~~March~~June 3130, 2026, total headcount (Full Time Equivalent) decreased by around 1,~~900~~600, or 2.95%, compared to a year earlier. The indirect workforce increased by around ~~300~~200, or 1.51%, mainly reflecting a change in headcount reporting classification, moving around 300 people from direct to indirect. The direct workforce decreased by approximately 21,~~100~~800, or 43.47%. The decrease was supported by animproved ~~improvement in~~ customer call-off accuracy, which enabled us to accelerate operating efficiency improvements, and also ~~reflecting~~reflected the reclassification mentioned above.

Compared to ~~December~~March 31, ~~2025~~2026, total headcount (Full Time Equivalent) decreased by around ~~200~~600, or 0.49%. Indirect headcount ~~increased~~decreased by around ~~300~~100, while direct headcount decreased by approximately ~~600 impacted by the reclassification mentioned above~~500.

Full year 2026 guidance

In addition to the assumptions below and in our business and market update ~~below~~above, our full year 2026 guidance is based on our customer call-offs and the achievement of our targeted cost compensation adjustments with our customers, including no material changes to tariffs or trade restrictions, as compared to what is in effect as of ~~April~~July 109, 2026, as well as no significant changes in the macro-economic environment, changes toin customer call-off volatility or significant supply chain disruptions.

Full year 2026 Guidance
Organic sales growth	Around 0%
Adjusted operating margin 1)	Around 10.5-11%
Operating cash flow 2)	Around $1.2 billion
Capital expenditures, 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 12.5% negative
Foreign currency impact on net sales	Around 32.5% positive
Tax rate3)	Around 2830%
3) Excluding unusual tax items.

The forward-looking non-~~U.S.~~ GAAP financial measures above are provided on a non-~~U.S.~~ GAAP basis. The Company has not provided a ~~U.S.~~ GAAP reconciliation of these measures because items that impact these measures, such as costs and gains related to capacity alignments and antitrust matters, cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts and the Company is unable to determine the probable significance of the unavailable information.

Other Items

•

On ~~February~~May 198, 2026, Autoliv announced that ~~Mr.~~it ~~Martin Lundstedt, a current member of the Board of Directors, has elected not to stand for re-election. Mr. Lundstedt's service as a director~~ will ~~end~~discontinue atits ~~the~~manufacturing ~~2026~~operations ~~Annual~~in ~~Stockholders Meeting~~Türkiye.

•

On ~~March~~June 63, 2026, Autoliv ~~announced~~inaugurated ~~that its Board of Directors appointed Monika Grama as~~ the ~~new~~Autoliv ~~Chief~~Innovation ~~Financial~~Center ~~Officer~~in ~~and Executive Vice President~~Vårgårda, ~~Finance,~~Sweden. ofIt ~~the~~is ~~Company.~~a ~~Ms.~~significant ~~Grama~~step ~~succeeded~~to ~~Fredrik~~accelerate ~~Westin~~the asdevelopment of ~~April~~life-saving 1,mobility ~~2026.~~solutions ~~Ms.~~through ~~Grama has served as~~ the ~~Vice President, Finance of the~~ Autoliv ~~Europe~~Innovation ~~Middle~~Center ~~East~~- ~~and~~a ~~Africa~~new ~~(EMEA)~~global ~~division~~platform ~~since~~designed ~~2020.~~to ~~Monika~~speed ~~Grama~~up ~~joined Autoliv in 2009 and~~innovation, ~~prior to her current role~~collaboration, ~~she served as Finance Manager~~ and ~~Managing Director of Autoliv Romania, one of Autoliv's largest production hubs globally. Ms. Grama has played a vital role in contributing to the~~ development of ~~the~~advanced ~~Autoliv~~safety ~~EMEA division during a challenging period for the automotive industry~~technologies.

•

On ~~March~~June 626, 2026, Autoliv announced that Kevin Fox notified the ~~renewal~~Company that he is resigning as the President, Autoliv Americas for ~~one~~personal ~~year~~reasons. ofHe ~~its~~will €3remain ~~billion~~in ~~guaranteed~~his ~~euro~~current ~~medium~~position ~~term~~through ~~note~~August ~~program~~31, ~~originally~~2026, ~~established~~and onthereafter ~~April~~will 11serve as executive senior advisor to the CEO through February 28, ~~2019~~2027, to support the transition to his successor, unless otherwise agreed by the parties.

•

On ~~March~~July 126, 2026, Autoliv announced itthat ~~has~~Great ~~together~~Wall ~~with Yamaha~~ Motor ~~Co.~~(GWM), ~~co-developed~~a anleading ~~innovative~~Chinese ~~airbag~~automotive ~~system~~manufacturer, ~~for~~and ~~the~~Autoliv ~~new~~(Shanghai) ~~Tricity~~Management ~~commuter scooter~~Co., ~~This~~Ltd issigned a ~~significant~~Global ~~step~~Strategic ~~toward~~Cooperation ~~making~~Framework ~~advanced safety solutions accessible to a wider range of riders, moving beyond their previous availability solely on high-end motorcycles~~Agreement. The ~~collaboration~~agreement ~~reflects~~marks ~~Autoliv's~~a ~~continued~~new ~~expansion~~phase ~~beyond~~in ~~its core business and supports~~ the ~~company~~companies's long-term ~~strategic~~global ~~direction~~partnership.

•

On ~~March~~July 247, 2026, Autoliv announced itthat ~~has~~XPENG ~~developed~~Inc., ~~its~~a ~~first~~leading ~~complete~~Chinese ~~wearable~~physical ~~protection~~AI ~~for~~technology ~~motorcycle~~company ~~riders:~~with a ~~vest~~growing ~~with~~international anpresence ~~integrated~~and ~~airbag~~innovations ~~system~~in ~~designed~~smart toelectric ~~reduce~~vehicles, ~~critical~~autonomous ~~injury~~driving ~~risks~~and inhumanoid ~~the~~robots, ~~event~~and ofAutoliv a(Shanghai) ~~crash~~Management Co., ~~This~~Ltd. ~~system~~signed isa ~~being~~strategic ~~launched~~cooperation inframework ~~collaboration~~agreement ~~with~~to RSsupport ~~Taichi,~~the adevelopment ~~leading manufacturer~~ of ~~motorcycle~~safer ~~riding~~mobility ~~gear,~~solutions ~~who~~for ~~will~~global ~~bring~~markets. itUnder tothe ~~market.~~agreement, ~~This~~Autoliv ~~initiative~~and ~~complements~~XPENG ~~Autoliv's~~will ~~motorcycle~~expand ~~and~~collaboration ~~bike~~across ~~offer~~several ~~and~~key ~~supports~~areas, ~~its~~including ~~long-term~~technology ~~strategy~~development, todigitalization, ~~explore~~supply ~~opportunities~~chain ~~beyond~~coordination, ~~its~~sustainability, ~~core~~and global business ~~of airbags~~expansion, ~~seatbelts~~combining ~~and~~Autoliv's ~~steering~~worldwide ~~wheels~~safety ~~for~~expertise ~~light~~with ~~vehicles~~XPENG's innovation in smart electric mobility.

•

~~The~~In ~~Board~~the ~~has~~second ~~set~~quarter ~~Thursday~~of 2026, ~~May~~Autoliv 7,repurchased ~~2026~~and asretired ~~the~~1.65 ~~date~~million shares of common stock at an average price of $121.43 per share, for a total of approximately $200 million under the ~~2026~~Autoliv ~~Annual~~2029 ~~Stockholders~~stock ~~Meeting~~repurchase program. Under this program, repurchases may be made from July 1, 2025 through December 31, 2029. The ~~Board~~maximum ~~has~~value ~~decided~~of ~~that~~aggregate ~~the~~repurchases ~~meeting~~under ~~will~~this program is $2.5 billion. Repurchases of stock may be ~~in-person~~made ~~only~~directly on the NYSE.

2932

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As of ~~March~~June 3130, 2026, there have been no material changes to the information related to quantitative and qualitative disclosures about market risk that were provided in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 19, 2026.

ITEM 4. CONTROLS AND PROCEDURES

(a)

Evaluation of Disclosure Controls and Procedures

An evaluation has been carried out, under the supervision and with the participation of the Company's management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of the end of the period covered by this report. Based on such evaluation, the Company's Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company's disclosure controls and procedures are effective.

(b)

Changes in Internal Control over Financial Reporting

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

3033

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In the ordinary course of our business, we are subject to legal proceedings brought by or against us and our subsidiaries.

See Part I, Item 1, "Financial Statements, Note 8 Contingent Liabilities" of this Quarterly Report on Form 10-Q for a summary of certain ongoing legal proceedings. Such information is incorporated into this Part II, Item 1—"Legal Proceedings" by reference.

ITEM 1A. RISK FACTORS

As of ~~March~~June 3130, 2026, there have been no material changes to the risk factors that were previously disclosed in Item 1A in the Company’s Form 10-K for the year ended December 31, 2025 filed with the SEC on February 19, 2026.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Stock repurchase program

NoThe following table provides information with respect to common stock ~~was~~ repurchased by the Company during the three months period ended ~~March~~June 3130, 2026. On June 4, 2025, the Company announced that its Board of Directors approved a new stock repurchase program that authorizes the Company to repurchase up to $2.5 billion of common shares and operates from July 1, 2025 through December 31, 2029.


	New York Stock Exchange (NYSE)
Period	Total Number of Shares Purchased (1)		Average Price Paid per Share (USD) (2)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (3)		Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (USD)
April 1-30, 2026		345,067	$	116.46		2,447,921	$	2,209,812,241
May 1-31, 2026		816,138	$	119.67		3,264,059	$	2,112,147,334
June 1-30, 2026		485,797	$	127.93		3,749,856	$	2,050,000,359

(1) The repurchases are being executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. For accounting purposes, shares repurchased under our stock repurchase programs are recorded based upon the settlement date of the applicable trade.

(2) The average price paid per share in U.S. dollars exclude brokerage commissions and other costs of execution.

(3) On June 4, 2025, the Company announced that its Board of Directors approved a new stock repurchase program that authorizes the Company to repurchase up to $2.5 billion of common shares and operates from July 1, 2025 through December 31, 2029.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

3134

ITEM 6. EXHIBITS

Exhibit No.		Description
3.1		Autoliv’s Restated Certificate of Incorporation, as amended, incorporated herein by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 22, 2015).
3.2		Autoliv’s Third Restated By-Laws, incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K (File No. 001-12933, filing date December 18, 2015).
4.1		Indenture, dated March 30, 2009, between Autoliv, Inc. and U.S. Bank National Association, as trustee, incorporated herein by reference to Exhibit 4.1 to Autoliv’s Registration Statement on Form 8-A (File No. 001-12933, filing date March 30, 2009).
4.2		Second Supplemental Indenture (including Form of Global Note), dated March 15, 2012, between Autoliv, Inc. and U.S. Bank National Association, as trustee, incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K (File No. 001-12933, filing date March 15, 2012).
4.3		Form of Note Purchase and Guaranty Agreement dated April 23, 2014, among Autoliv ASP, Inc., Autoliv, Inc. and the purchasers named therein, incorporated herein by reference to Exhibit 4.6 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 25, 2014).
4.4		Amendment and Waiver 2014 Note Purchase and Guaranty Agreement, dated May 24, 2018, among Autoliv, Inc., Autoliv ASP, Inc. and the noteholders named therein, incorporated herein by reference to Exhibit 4.4 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018).
4.5		Agency Agreement dated June 26, 2018 among Autoliv, Inc., Autoliv ASP, Inc. and HSBC Bank PLC, incorporated herein by reference to Exhibit 4.6 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018).
4.6		Amended and Restated Agency Agreement, dated March 14, 2025, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.4 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 16, 2025).
4.7*		Base Listing Particulars Agreement, dated March 6, 2026, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein.
4.7		Base Listing Particulars Agreement, dated March 6, 2026, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.7 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 17, 2026).
4.8*		Amended and Restated Programme Agreement, dated March 6, 2026, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein.
4.8		Amended and Restated Programme Agreement, dated March 6, 2026, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.8 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 17, 2026).
4.9		General Terms and Conditions for Swedish Depository Receipts in Autoliv, Inc. representing common shares in Autoliv, Inc., effective as of April 8, 2024, with Skandinaviska Enskilda Banken AB (publ) serving as custodian, incorporated herein by reference to Exhibit 4.9 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 26, 2024).
10.1*		~~Employment Agreement~~Autoliv, ~~effective~~Inc. ~~April~~Non-Employee 1,Director ~~2026,~~Compensation byPolicy ~~and~~effective ~~between~~May ~~Autoliv~~1, ~~Inc~~2026. ~~and Monika Grama.~~
10.2*		Amendment to Employment Agreement, effective June 25, 2026, by and between Autoliv, Inc. and Kevin Fox.
10.3*		Addendum to Employment Agreement, effective June 25, 2026, by and between Autoliv, Inc. and Anthony Nellis.
31.1*		Certification of the Chief Executive Officer of Autoliv, Inc. pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.
31.2*		Certification of the Chief Financial Officer of Autoliv, Inc. pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.
32.1*		Certification of the Chief Executive Officer of Autoliv, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*		Certification of the Chief Financial Officer of Autoliv, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*		Inline XBRL Instance Document – The instance document does not appear in the Interactive ~~Date~~Data File because its XBRL tags are embedded within the inline XBRL document.
101.SCH*		Inline XBRL Taxonomy Extension Schema Document.
104*		Cover Page Interactive Data File (embedded within the inline XBRL document).

* Filed herewith.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: ~~April~~July 17, 2026

AUTOLIV, INC.

(Registrant)


By:		/s/ Monika Grama
		Monika Grama
		Chief Financial Officer
		(Duly Authorized Officer and Principal Financial Officer)

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