ALV

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

EX-99.1

2 alv-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

Financial Report

October- December 2025

Stockholm, Sweden, January 30, 2026 (NYSE: ALV and SSE: ALIV.sdb)

Financial Report October - December 2025

Q4 2025: Our best quarter yet

Financial highlights Q4 2025

$2,817 million net sales

7.7% net sales increase

4.2% organic sales growth*

11.3% operating margin

12.0% adjusted operating margin*

$2.98 diluted EPS, 4% decrease

$3.19 adjusted diluted EPS*, 5% increase

Full year 2026 guidance

Around 0% organic sales growth

Around 1% positive FX effect on net sales

Around 10.5-11.0% 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 fourth quarter of 2025

• Net sales increased organically* by 4.2%, which was 2.9pp higher than the global LVP increase of 1.3% (S&P Global Jan 2026) driven mainly by new product launches. Regional and customer LVP mix is estimated to have negatively impacted sales by about 1.5pp, while tariff compensations added around 1pp. We outperformed in all regions; by 5.3pp in China, by 4.8pp in Asia ex. China, by 3.7pp in Americas and by 1.5pp in Europe. Driven mainly by new product launches, our organic sales growth* to Chinese OEMs (COEMs) was close to 40%. We expect continued strong sales performance with COEMs in 2026.

• Profitability was strong, with the highest quarterly gross profit and second highest operating income so far. This was mainly due to organic sales growth* and successful execution of cost reductions. Operating income decreased by 9.6% to $319 million and adjusted operating income* decreased by 3.6% to $337 million mainly from lower out-of-period customer compensations and lower engineering income. Operating margin was 11.3% and adjusted operating margin* was 12.0%. ROCE was 30.3% and adjusted ROCE* was 31.8%.

• Operating cash flow increased by 30%, to a new quarterly record of $544 million, taking the full year operating cash flow to a new record of $1,157 million. Free operating cash flow* increased substantially and was a record-high for both the quarter and the full year. The leverage ratio* improved to 1.1x, well below our target limit of 1.5x. In the quarter, a dividend of $0.87 per share (2.4% increase from Q3 ‘25) was paid and 1.26 million shares were repurchased and retired.

*For Non-GAAP measures see enclosed reconciliation tables.

Key Figures

(Dollars in millions, except per share data)

Q4 2025

Q4 2024

Change

FY 2025

FY 2024

Change

Net sales

$2,817

$2,616

7.7%

$10,815

$10,390

4.1%

Operating income

319

353

(9.6)%

1,088

979

11%

Adjusted operating income1)

337

349

(3.6)%

1,114

1,007

11%

Operating margin

11.3%

13.5%

(2.2)pp

10.1%

9.4%

0.6pp

Adjusted operating margin1)

12.0%

13.4%

(1.4)pp

10.3%

9.7%

0.6pp

Earnings per share - diluted

2.98

3.10

(3.8)%

9.55

8.04

19%

Adjusted earnings per share - diluted1)

3.19

3.05

4.7%

9.85

8.32

18%

Operating cash flow

544

420

30%

1,157

1,059

9.2%

Return on capital employed2)

30.3%

35.8%

(5.5)pp

26.4%

25.0%

1.5pp

Adjusted return on capital employed1,2)

31.8%

35.2%

(3.4)pp

27.0%

25.6%

1.5pp

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 reached new record high sales for a quarter and a full year, driven mainly by strong growth in India and with Chinese OEMs. Sales to COEMs grew by almost 40% in the quarter and by 23% for the full year. Our organic sales growth outperformed LVP in all regions in Q4. We recovered close to 100% of the tariff costs in Q4 and more than 80% for the full year.

In 2025, we reached several significant milestones: operating income exceeded $1 billion for the first time, earnings per share rose above $9 and we paid more than $3 per share in dividends. Our ability to continue delivering attractive shareholder returns remains strong. In the fourth quarter, we accelerated shareholder returns while also improving our leverage ratio - demonstrating both financial strength and disciplined capital management.

Our 2026 guidance, assuming 1% GLVP decline, is organic growth of around 0% and adjusted operating margin of around 10.5-11.0%. We expect Q1 2026 adjusted operating margin to be considerably weaker than Q1 2025, with improvements in the following three quarters.

Our solid position and strong performance in Asia are instrumental to our continued progress. I am confident that together with our demonstrated ability to improve performance in a low-growth environment, we have a solid foundation for continued attractive shareholder returns and a clear path towards our 12% adjusted operating margin target.

Our profit development and