ALV

EX-99.1

2 alv-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

Financial Report

July - September 2026

Stockholm, Sweden, October 23, 2026 (NYSE: ALV and SSE: ALIV.sdb)

Financial Report July - September 2026

Q3 2026: Solid performance in a tough environment

Financial highlights Q3 2026

$2,693 million net sales, a decrease of 0.5%

1.1% organic sales decrease*

9.4% operating margin, 9.7% adj. operating margin*

$2.13 diluted EPS, a 6.8% decrease

Full year 2026 guidance

Around 0% organic sales growth

Around 2.5% positive FX impact on net sales

Around 10.5% adjusted operating margin

Around $1.2 billion operating cash flow

All change figures in this release compare to the same period of the previous year except when stated otherwise.

Key business developments in the third quarter of 2026 • Net sales decreased organically* by 1.1%, which was 0.8pp higher than the global LVP decrease of 1.9% (Mobility Global, Oct 2026) mainly driven by strong performance in Asia. Regional and customer LVP mix is estimated to have impacted sales negatively by around 0.9pp. Our organic sales* outperformed LVP in Asia excl. China and in China, while it underperformed in EMEA and was about in line with LVP in the Americas. Our strong performance in Asia excl. China was mainly due to India, where we outperformed by 11pp, driven by continued strong market growth in safety content per vehicle, while in China, we outperformed by around 20pp with Chinese OEMs.

• Profitability remained strong. Operating income decreased by 5.0% mainly due to the supplier settlement compensation received in Q3 2025. Adjusted operating income* decreased by 3.4%. Operating margin was 9.4% and adjusted operating margin* was 9.7%. ROCE was 24.1% and adjusted ROCE* was 24.4%.

• Cash flow remained solid. Operating cash flow was $239 million compared to $258 million in 2025. Free operating cash flow* was $124 million compared to $153 million in 2025. The leverage ratio* was 1.3x. In the quarter, a dividend of $0.87 per share was paid and 1.23 million shares were repurchased and retired.

*For Non-GAAP measures see enclosed reconciliation tables.

Key Figures

(Dollars in millions, except per share data)

Q3 2026

Q3 2025

Change

9M 2026

9M 2025

Change

Net sales

$2,693

$2,706

(0.5)%

$8,249

$7,998

3.1%

Operating income

254

267

(5.0)%

683

769

(11)%

Adjusted operating income1)

262

271

(3.4)%

776

777

(0.1)%

Operating margin

9.4%

9.9%

(0.4)pp

8.3%

9.6%

(1.3)pp

Adjusted operating margin1)

9.7%

10.0%

(0.3)pp

9.4%

9.7%

(0.3)pp

Earnings per share - diluted

2.13

2.28

(6.8)%

5.36

6.59

(19)%

Adjusted earnings per share - diluted1)

2.19

2.32

(5.7)%

6.67

6.67

(0.1)%

Operating cash flow

239

258

(7.3)%

598

613

(2.5)%

Return on capital employed2)

24.1%

25.1%

(1.0)pp

21.5%

24.9%

(3.4)pp

Adjusted return on capital employed1,2)

24.4%

25.5%

(1.0)pp

24.2%

25.2%

(1.0)pp

Dividends paid

(63)

(65)

(2.7)%

(192)

(173)

11%

Share repurchases

(150)

(100)

50%

(350)

(201)

74%

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

Comments from Mikael Bratt, President & CEO

We continued to deliver well across all key areas in the third quarter. Our sales in India grew by nearly 30% and our sales to Chinese OEMs grew by more than 20%. Strong sales growth in Japan contributed to our sales in Asia exceeding China in the quarter. Globally, our organic sales performance exceeded global LVP by around 1pp, significantly outpacing LVP growth in India, Japan and with Chinese OEMs.

To support our growing partnerships with Chinese OEMs, our innovation capabilities, global competitiveness and long term growth, we opened our second R&D center in China in Q3.

The business environment remains uncertain but we anticipate a strong fourth quarter supported by an increasing number of product launches and significant raw material recoveries.

Throughout the year, cost headwinds have increased materially, mainly related to raw materials, logistics, the recent flooding in Thailand and lower call off accuracy since Q1. We have been able to offset the majority of these cost headwinds mainly through labor efficiency, material savings through Value Engineering and successful negotiations with customers and suppliers. However, the additional headwinds narrows our full year adjusted operating margin expectation to around 10.5%, the low end of our range of around 10.5-11%. We continue to expect unchanged organic sales growth and an operating cash flow of around $1.2 billion.

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 through share repurchases and dividends.

Finally, I would like to invite you to our 2027 Investor Day, which will take place

EX-99.1

2 alv-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

Financial Report

April - June 2026

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

Financial Report April - June 2026

Q2 2026: Positive momentum continued in second quarter

Financial highlights Q2 2026

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

1.0% organic sales growth*

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

$1.35 diluted EPS, 38% decrease

Full year 2026 guidance

Around 0% organic sales growth

Around 2.5% positive FX impact on net sales

Around 10.5-11% adjusted operating margin

Around $1.2 billion operating cash flow

All change figures in this release compare to the same period of the previous year except when stated otherwise.

Key business developments in the second quarter of 2026 • Net sales increased organically* by 1.0%, which was 1.3pp higher than the global LVP decrease of 0.3% (S&P Global July 2026) mainly driven by strong performance in Asia. Regional and customer LVP mix is estimated to have impacted sales negatively by about 0.6pp. Our organic sales growth* outperformed LVP significantly in China and in Asia excl. China, underperformed slightly in EMEA and more markedly in Americas. Our strong performance in Asia excl. China was mainly due to India, where we outperformed by 20pp, driven by continued strong market growth in safety content per vehicle, while our China performance was due to more than 40pp outperformance with Chinese OEMs.

• Underlying profitability remained strong. Operating income decreased substantially due to previously communicated restructuring activities in Türkiye. Adjusted operating income* increased by 7.3%, despite adverse effects from FX and raw material prices, mainly due to well executed direct material cost savings. Operating margin was 6.8% and adjusted operating margin* was 9.6%. ROCE was 17.9% and adjusted ROCE* was 24.9%.

• Cash flow was the best for a second quarter so far with operating cash flow improving from $277 million to $434 million, mainly driven by strong underlying profitability and a normalization of working capital. Free operating cash flow* more than doubled to $340 million. The leverage ratio* improved to 1.2x. In the quarter, a dividend of $0.87 per share was paid and 1.65 million shares were repurchased and retired.

*For Non-GAAP measures see enclosed reconciliation tables.

Key Figures

(Dollars in millions, except per share data)

Q2 2026

Q2 2025

Change

6M 2026

6M 2025

Change

Net sales

$2,803

$2,714

3.3%

$5,556

$5,292

5.0%

Operating income

192

247

(22)%

429

502

(14)%

Adjusted operating income1)

270

251

7.3%

515

506

1.7%

Operating margin

6.8%

9.1%

(2.3)pp

7.7%

9.5%

(1.8)pp

Adjusted operating margin1)

9.6%

9.3%

0.4pp

9.3%

9.6%

(0.3)pp

Earnings per share - diluted

1.35

2.16

(38)%

3.24

4.31

(25)%

Adjusted earnings per share - diluted1)

2.43

2.21

10%

4.49

4.36

2.9%

Operating cash flow

434

277

57%

359

355

1.1%

Return on capital employed2)

17.9%

23.8%

(5.8)pp

20.3%

24.8%

(4.5)pp

Adjusted return on capital employed1,2)

24.9%

24.1%

0.8pp

24.1%

25.0%

(0.9)pp

Dividends paid

(64)

(54)

19%

(130)

(108)

20%

Share repurchases

(200)

(51)

293%

(200)

(101)

97%

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

Comments from Mikael Bratt, President & CEO

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

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

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

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

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

Based on our full year guidance, we continue to expect strong cash flow for the year, which supports our ambition to provide attractive shareholder returns, includin

EX-99.1

2 alv-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

Financial Report

January - March 2026

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

Financial Report January - March 2026

Q1 2026: Solid operational performance and sales

Financial highlights Q1 2026

$2,753 million net sales, increase of 6.8%

0.8% organic sales growth*

8.6% operating margin, 8.9% adj. operating margin*

$1.88 diluted EPS, 12% decrease

Full year 2026 guidance

Around 0% organic sales growth

Around 3% positive FX impact on net sales

Around 10.5-11% adjusted operating margin

Around $1.2 billion operating cash flow

All change figures in this release compare to the same period of the previous year except when stated otherwise.

Key business developments in the first quarter of 2026 • Net sales increased organically* by 0.8%, which was 4.2pp higher than the global LVP decrease of 3.4% (S&P Global Apr 2026) driven mainly by strong progress in Asia. Regional and customer LVP mix is estimated to have impacted sales positively by about 1.5pp, while tariff compensations added around 0.5pp. Our organic sales growth* outperformed LVP significantly in China (15pp) and Asia excl. China (6.8pp) and performed in line in EMEA and underperformed in Americas (4.5pp). Our strong performance in Asia excl. China was mainly due to India, where we outperformed by 28pp, driven by continued strong market growth in safety content per vehicle, while our China performance was mainly driven by further improved presence with Chinese OEMs.

• Profitability was strong. Supported by successful execution of cost reductions and positive FX effects, gross profit increased by 10%. Operating income decreased by 6.7% and adjusted operating income* decreased by 3.9%, impacted by adverse FX translation effects and temporary lower R,D&E reimbursements as well as that Q1 2025 was positively impacted by one-time effects. Operating margin was 8.6% and adjusted operating margin* was 8.9%. ROCE was 22.2% and adjusted ROCE* was 22.9%.

• Operating cash flow was negative $76 million, mainly due to an increase in working capital due to strong sales in March, temporary effects expected to reverse later in the year and the high level of accounts payable at the end of 2025. Free operating cash flow* thereby decreased to negative $159 million. The leverage ratio* was unchanged compared to a year ago at 1.3x, below our target limit of 1.5x. In the quarter, a dividend of $0.87 per share was paid.

*For Non-GAAP measures see enclosed reconciliation tables.

Key Figures

(Dollars in millions, except per share data)

Q1 2026

Q1 2025

Change

Net sales

$2,753

$2,578

6.8%

Operating income

237

254

(6.7)%

Adjusted operating income1)

245

255

(3.9)%

Operating margin

8.6%

9.9%

(1.2)pp

Adjusted operating margin1)

8.9%

9.9%

(1.0)pp

Earnings per share - diluted

1.88

2.14

(12)%

Adjusted earnings per share - diluted1)

2.05

2.15

(4.7)%

Operating cash flow

(76)

77

n/a

Return on capital employed2)

22.2%

25.6%

(3.3)pp

Adjusted return on capital employed1,2)

22.9%

25.6%

(2.7)pp

Dividends paid

(65)

(54)

20%

Share repurchases

-

(50)

(100)%

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

Comments from Mikael Bratt, President & CEO

The first quarter turned out better than we had anticipated, with strong sales in March. Our operational performance exceeded our expectations, with solid productivity improvements, partly supported by reduced call-off volatility. Underlying profitability improved, with gross profit increasing by 10%, although adjusted operating income was slightly lower due to temporary lower

I am pleased that we in the quarter introduced our first airbag for motorcycles, as well as our first wearable airbag solution for motorcycle riders, building on our long term strategy of growing business outside our traditional core business.

The quarter was characterized by ongoing and new geopolitical challenges. At this point, it is difficult to fully assess the likely impacts, as the situation remains fluid. We continue to carefully monitor the developments while preparing for various scenarios, including different mitigation strategies.

The business environment is uncertain but our current best estimate for the remainder of the year is a re-iteration of our full year 2026 guidance of about unchanged organic sales and an adjusted operating margin of around 10.5-11%. This is based on the assumption that LVP will decline by around 1%.

Our balance sheet is healthy, with debt leverage of 1.3x, well below our target limit of 1.5x. Based on our guidance for sales and adjusted operating margin, we continue to expect strong cash flow for the year, which supports our ambitions to provide attractive shareholder returns, including to repurchase shares of