Financial Report

     April - June 2025

        Stockholm, Sweden, July 18, 2025
        (NYSE: ALV and SSE: ALIV.sdb)

Financial highlights Q2 2025

$2,714 million net sales

4.2% net sales increase

3.4% organic sales growth*

9.1% operating margin

9.3% adjusted operating margin*

$2.16 diluted EPS, 27% increase

$2.21 adjusted diluted EPS*, 18% increase

Full year 2025 guidance

Around 3% organic sales growth

Around 0% FX effect on net sales

Around 10-10.5% adjusted operating margin

Around $1.2 billion operating cash flow

*For non-U.S. GAAP measures see enclosed reconciliation tables.

(Dollars in millions, except per share data)

Q2 2025

Q2 2024

Change

6M 2025

6M 2024

Change

Net sales

$2,714

$2,605

4.2%

$5,292

$5,220

1.4%

Operating income

247

206

20%

502

400

25%

Adjusted operating income1)

251

221

14%

506

420

21%

Operating margin

9.1%

7.9%

1.2pp

9.5%

7.7%

1.8pp

Adjusted operating margin1)

9.3%

8.5%

0.8pp

9.6%

8.0%

1.5pp

Earnings per share - diluted

2.16

1.71

27%

4.31

3.23

34%

Adjusted earnings per share - diluted1)

2.21

1.87

18%

4.36

3.45

27%

Operating cash flow

277

340

(18)%

355

462

(23)%

Return on capital employed2)

23.8%

21.0%

2.7pp

24.8%

20.4%

4.3pp

Adjusted return on capital employed1,2)

24.1%

22.5%

1.6pp

25.0%

21.4%

3.6pp

1) Excluding effects from capacity alignments and antitrust related matters. Non-U.S. 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

I am pleased to, in a turbulent market environment, report a record breaking second quarter for sales, operating income and margin as well as EPS. The performance was driven by good sales development coupled with successful actions to reduce costs and achieve tariff compensations. We outperformed in Americas, Europe and Asia

together with continued repurchases of shares, contributed to a 27% increase in EPS. We remain confident that we can continue to successfully receive compensation from our customers for tariffs, although the industry outlook for tariffs is uncertain. We recovered around 80% of tariff costs in the second quarter, and we expect to recover most of what remains later in the year. We continue to closely monitor and evaluate the situation, focusing on being adaptive and agile.

At our Capital Markets Day in June, we reiterated our financial targets and communicated a new share repurchase program of up to $2.5 billion until the end of 2029 as well as announced a 21% dividend increase for the third quarter to $0.85 per share. Our increased shareholder return ambitions are supported by our strong balance sheet and cash conversion.

Our 2025 guidance for organic sales growth has increased to around 3% due to tariff compensations, and we reiterate our guidance of an adjusted operating margin of around 10-10.5%.

excl. China and continued to outperform global LVP despite strong headwinds from LVP mix shifts, particularly in China. Based on a positive trend during the second quarter and a record number of new launches we continue to expect significantly improved sales vs. LVP in China in the second half year.

We remain focused on operational efficiency, commercial excellence and our cost reduction programs. Direct headcount was reduced by 6% while sales grew 3% organically, which

Full year 2025 Guidance

Organic sales growth

Around 3%

Adjusted operating margin1)

Around 10-10.5%

Operating cash flow2)

Around $1.2 billion

Capex, net, % of sales

Around 5%

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

Full year 2025 Assumptions

LVP growth

Around 0.5% negative

FX impact on net sales

Around 0%

Tax rate3)

Around 28%

3) Excluding unusual tax items.

Net Sales Development by region

Operating and adjusted* operating income and margins

Capex, net and D&A

Operating cash flow

Return on Capital Employed

Cash Conversion*

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

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

D&A: Depreciation and Amortization.

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

Consolidated sales

Second quarter

Reported change

Currency

Organic

(Dollars in millions)

2025

2024

(U.S. GAAP)

effects1)

change*

Airbags, Steering Wheels and Other2)

$1,812

$1,747

3.8%

0.7%

3.1%

Seatbelt Products and Other2)

902

858

5.1%

1.1%

4.0%

Total

$2,714

$2,605

4.2%

0.8%

3.4%

Americas

$891

$893

(0.2)%

(4.3)%

4.1%

Europe

828

761

8.7%

5.4%

3.3%

China

477

468

1.9%

0.2%

1.7%

Asia excl. China

519

483

7.4%

3.6%

3.8%

Total

$2,714

$2,605

4.2%

0.8%

3.4%

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

Sales by product – Airbags, Steering Wheels and Other

Sales grew organically* by 3.1% in the quarter. The largest contributor to the increase was inflatable curtains, side airbags and steering wheels, followed by center airbags. This was partly offset by a decline for knee airbags, while sales of driver airbags and passenger airbags were close to unchanged.

Sales by product - Seatbelt Products and Other

Sales for Seatbelt Products and Other grew organically* by 4.0% in the quarter. Sales increased organically in all regions, led by strong growth in Americas followed by Asia excluding China, Europe and China.

Sales by region

Our global organic sales* increased by 3.4% compared to the global LVP increase of 2.7% (according to S&P Global, July 2025). The 0.7pp .outperformance was mainly driven by product launches and tariff compensations. We estimate that the regional and model LVP mix contributed to about 2.5pp underperformance. This was particularly accentuated in China. Our organic sales growth* outperformed LVP growth by 5.0pp in Americas, by 4.9pp in Europe and by 1.4pp in Asia excluding China, while we underperformed by 7.0pp in China.

LVP growth in China was driven by domestic OEMs with typically lower safety content. LVP for global OEMs declined by 4% while it increased by 16% for domestic OEMs. Autoliv's sales growth with domestic OEMs also grew by 16%. Our sales performance relative to LVP in China in Q2 is a significant improvement over recent quarters, and in June, we outperformed LVP in China.

We expect that our strong order intake with domestic OEMs and a record high number of new launches will improve our relative sales performance in China in 2025 in the second half of 2025.

Q2 2025 organic growth*

Americas

Europe

China

Asia excl. China

Global

Autoliv

4.1%

3.3%

1.7%

3.8%

3.4%

Main growth drivers

Toyota, Nissan, Honda

Stellantis, BMW, Renault

GM, Changan, Chery

Suzuki, Toyota, Hyundai

Toyota, Ford, Stellantis

Main decline drivers

EV OEM, Hyundai, GM

Toyota, Volvo, Nissan

Nissan, Mercedes,
EV OEM

Mazda, Mitsubishi, GM

EV OEM, Hyundai, Volvo

Q2 2025

Americas

Europe

China

Asia excl. China

Global

LVP (Jul 2025)

(0.9)%

(1.6)%

8.8 %

2.5%

2.7%

LVP (Mar 2025)

(3.0)%

(3.4)%

7.0%

(0.5)%

0.6%

Consolidated sales

First 6 months

Reported change

Currency

Organic

(Dollars in millions)

2025

2024

(U.S. GAAP)

effects1)

change*

Airbags, Steering Wheels and Other2)

$

3,565

$

3,528

1.0

%

(1.3

)%

2.4

%

Seatbelt Products and Other2)

1,727

1,692

2.1

%

(1.5

)%

3.6

%

Total

$

5,292

$

5,220

1.4

%

(1.4

)%

2.8

%

Americas

$

1,742

$

1,786

(2.5

)%

(5.2

)%

2.7

%

Europe

1,592

1,531

4.0

%

1.4

%

2.6

%

China

924

928

(0.5

)%

(0.5

)%

0.1

%

Asia excl. China

1,034

975

6.1

%

0.3

%

5.8

%

Total

$

5,292

$

5,220

1.4

%

(1.4

)%

2.8

%

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

Sales by product – Airbags, Steering Wheels and Other

Sales grew organically* by 2.4% in the quarter. The largest contributor to the increase was side airbags and inflatable curtains, followed by steering wheels and center airbags. This was partly offset by declines for knee airbags and modest declines for driver airbags and passenger airbags.

Sales by product - Seatbelt Products and Other

Sales for Seatbelt Products and Other grew organically* by 3.6% in the quarter. Sales growth was mainly driven by Americas and Asia excluding China while Europe and China was close to unchanged.

Sales by region

Our global organic sales* increased by 2.8% compared to the global LVP increase of 3.1% (according to S&P Global, July 2025). The relative performance was positively impacted by product launches and pricing. This was more than offset by negative effects from the regional and model LVP mix development, which we estimate contributed to about 3pp underperformance. This was particularly accentuated in China. Our organic sales growth outperformed LVP growth by 5.7pp in Europe, by 4.7pp in Americas and by 2.6pp in Asia excluding China, while we underperformed by 11pp in China.

LVP growth in China in the first six months was driven by domestic OEMs with typically lower safety content. LVP for global OEMs declined by 4% while it increased by 21% for domestic OEMs. Autoliv's sales to domestic OEMs increased by 17% in the first half of 2025. We expect that our strong order intake with domestic OEMs and a record number of new launches will significantly improve Autoliv's sales performance in China in the second half of 2025.

6M 2025 organic growth*

Americas

Europe

China

Asia excl. China

Global

Autoliv

2.7%

2.6%

0.1%

5.8%

2.8%

Main growth drivers

Toyota, Honda, Ford

Renault, BMW, Ford

Changan, Chery, Nio

Toyota, Suzuki, Subaru

Toyota, Ford, Suzuki

Main decline drivers

EV OEM, Hyundai, BMW

Volvo, EV OEM, Toyota

EV OEM, Nissan, Volvo

Mitsubishi, Honda, Mazda

EV OEM, Volvo, Hyundai

First 6 months 2025

Americas

Europe

China

Asia excl. China

Global

LVP (Jul 2025)

(2.0)%

(3.1)%

11.4 %

3.2%

3.1%

LVP (Jan 2025)

(2.3)%

(6.6)%

6.2%

0.7%

0.0%

Deepal S09

Honda Ye P7

Nio Firefly

Nissan Roox

Changan Avatr 06

Chery Fengyun A9

Nissan Leaf

Renault 4

Suzuki eVitara

Daihatsu Move

Lynk & Co 900

Mitsubishi XFORCE

Driver/Passenger Airbags

Seatbelts

Side Airbags

Head/Inflatable Curtain Airbags

Steering Wheel

Knee Airbag

Front Center Airbag

Bag-in-Belt

Pyrotechnical Safety Switch

Pedestrian Airbag

Hood Lifter

Available as EV/PHEV

Condensed Income Statement

Second quarter

First 6 months

(Dollars in millions, except per share data)

2025

2024

Change

2025

2024

Change

Net sales

$2,714

$2,605

4.2%

$5,292

$5,220

1.4%

Cost of sales

(2,213)

(2,130)

3.9%

(4,312)

(4,303)

0.2%

Gross profit

501

475

5.7%

980

917

6.8%

S,G&A

(145)

(138)

5.3%

(290)

(270)

7.4%

R,D&E, net

(107)

(116)

(7.8)%

(202)

(229)

(12)%

Other income (expense), net

(1)

(14)

(90)%

14

(18)

n/a

Operating income

247

206

20%

502

400

25%

Adjusted operating income1)

251

221

14%

506

420

21%

Financial and non-operating items, net

(27)

(23)

15%

(48)

(43)

12%

Income before taxes

221

183

21%

453

356

27%

Income taxes

(53)

(44)

21%

(118)

(91)

30%

Net income

$168

$139

21%

$335

$266

26%

Earnings per share - diluted2)

$2.16

$1.71

27%

$4.31

$3.23

34%

Adjusted earnings per share - diluted1,2)

$2.21

$1.87

18%

$4.36

$3.45

27%

Gross margin

18.5%

18.2%

0.3pp

18.5%

17.6%

0.9pp

S,G&A, in relation to sales

(5.4)%

(5.3)%

(0.1)pp

(5.5)%

(5.2)%

(0.3)pp

R,D&E, net in relation to sales

(3.9)%

(4.5)%

0.5pp

(3.8)%

(4.4)%

0.6pp

Operating margin

9.1%

7.9%

1.2pp

9.5%

7.7%

1.8pp

Adjusted operating margin1)

9.3%

8.5%

0.8pp

9.6%

8.0%

1.5pp

Tax Rate

24.1%

24.1%

(0.0)pp

26.1%

25.5%

0.6pp

Other data

No. of shares at period-end in millions2)

76.8

80.1

(4.1)%

76.8

80.1

(4.1)%

Weighted average no. of shares in millions, basic2)

77.1

80.9

(4.7)%

77.3

81.6

(5.3)%

Weighted average no. of shares in millions, diluted2)

77.3

81.1

(4.8)%

77.5

82.1

(5.6)%

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

Second quarter 2025 development

Gross profit increased by $27 million, and the gross margin increased by 0.3pp compared to the prior year. The drivers behind the gross profit improvement were mainly improved operational efficiency with lower costs for labor, premium freight, waste and scrap and logistics. We also had positive effects from the organic sales growth partly offset by negative effects from un-recovered tariff costs.

S,G&A costs increased by $7 million compared to the prior year, mainly due to higher costs for personnel and increased credit loss reserves following generally increased default risk rate for the automotive industry. S,G&A costs in relation to sales increased from 5.3% to 5.4%.

R,D&E, net costs decreased by $9 million compared to the prior year, mainly due to higher engineering income and positive FX translation effects. R,D&E, net, in relation to sales decreased from 4.5% to 3.9%.

Other income (expense), net was negative $1 million, compared to negative $14 million in the same period last year. The difference compared to last year is almost entirely due to lower restructuring costs.

Operating income increased by $41 million compared to the prior year, due to the higher gross profit, lower costs for R,D&E, net, and the improvement in Other income (expense), partly offset by higher costs for S,G&A, as outlined above.

Adjusted operating income* increased by $30 million compared to the prior year, due to the higher gross profit, lower costs for R,D&E, net, and the improvement in Other income (expense), partly offset by higher costs for S,G&A, as outlined above.

Financial and non-operating items, net, was negative $27 million compared to negative $23 million a year earlier. The increase comes mainly from other non-operating items, net, which was negative $3 million for Q2 2025 compared to positive $1 million in Q2 2024.

Income before taxes increased by $38 million compared to the prior year, mainly due to the higher operating income.

Tax rate was unchanged at 24.1%. Discrete tax items, net, had a favorable impact of 4.3pp in the second quarter of 2025, while discrete tax items, net had a favorable impact of 4.9pp in the corresponding quarter last year.

Earnings per share, diluted increased by $0.46 compared to the prior year. The main drivers were $0.39 from higher operating income and $0.10 from lower number of outstanding shares, diluted, partly offset by $0.03 from financial items and $0.01 from taxes.

First six months 2025 development

Gross profit increased by $63 million, and the gross margin increased by 0.9pp compared to the prior year. The drivers behind the gross profit improvement were mainly improved operational efficiency with lower costs for labor, premium freight, logistics and waste and scrap. We also had positive effects from the organic sales growth partly offset by negative effects from material costs and un-recovered tariffs.

S,G&A costs increased by $20 million compared to the prior year, mainly due to increased credit loss reserves following generally higher default risk rate for the automotive industry and higher IT costs, as well as minor cost increases for other items, including personnel costs, partly offset by positive FX translation effects. S,G&A costs in relation to sales increased from 5.2% to 5.5%.

R,D&E, net costs decreased by $27 million compared to the prior year, with $10 million of the improvement coming from higher engineering income. The decrease was also driven by $7 million from positive FX translation effects and $4 million in lower personnel costs and $4 million in lower costs for professional services. R,D&E, net, in relation to sales decreased from 4.4% to 3.8%.

Other income (expense), net was positive $14 million, compared to negative $18 million in the same period last year. The improvement compared to last year is due to lower restructuring costs and the recycled accumulated currency translation differences related to the divestment of our idled operations in Russia in Q1 2025.

Operating income increased by $102 million compared to the prior year, due to the higher gross profit, lower costs for R,D&E, net, and the improvement in Other income (expense), partly offset by higher costs for S,G&A, as outlined above.

Adjusted operating income* increased by $86 million compared to the prior year, due to the higher gross profit, lower costs for R,D&E, net, and the improvement in Other income (expense), partly offset by higher costs for S,G&A, as outlined above.

Financial and non-operating items, net, was negative $48 million compared to negative $43 million a year earlier. The increase was mainly due to higher interest income in 2024 due to higher cash holdings, and lower other non-operating items, net, in 2025.

Income before taxes increased by $97 million compared to the prior year, mainly due to the higher operating income.

Tax rate was 26.1% compared to 25.5% in the prior year. Discrete tax items, net, had a favorable impact of 2.1pp in the first six months of 2025 compared to 3.7pp favorable impact in the same period last year.

Earnings per share, diluted increased by $1.09 compared to the prior year. The main drivers were $0.92 from higher operating income and $0.24 from lower number of outstanding shares, diluted, partly offset by $0.04 from financial items and $0.03 from taxes.

Selected Cash Flow items

Second quarter

First 6 months

(Dollars in millions)

2025

2024

Change

2025

2024

Change

Net income

$168

$139

21%

$335

$266

26%

Depreciation and amortization

100

96

4.1%

195

192

1.7%

Other non-cash adjustments, net

(5)

(23)

(76)%

(12)

(9)

26%

Changes in operating working capital

15

128

(88)%

(164)

14

n/a

Operating cash flow

277

340

(18)%

355

462

(23)%

Capital expenditure, net1)

(114)

(146)

(22)%

(208)

(286)

(27)%

Free operating cash flow2)

$163

$194

(16)%

$147

$176

(16)%

Cash conversion3)

97%

140%

(43)pp

44%

66%

(22)pp

Shareholder returns

- Dividends paid

(54)

(55)

(2.0)%

(108)

(111)

(2.1)%

- Share repurchases

(51)

(160)

(68)%

(101)

(320)

(68)%

Cash dividend paid per share

$(0.70)

$(0.68)

3.7%

$(1.40)

$(1.36)

2.6%

Capital expenditures, net in relation to sales

4.2%

5.6%

(1.4)pp

3.9%

5.5%

(1.6)pp

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

Selected Balance Sheet items

Second quarter

(Dollars in millions)

2025

2024

Change

Trade working capital1)

$1,354

$1,169

16%

Trade working capital in relation to sales2)

12.5%

11.2%

1.3pp

- Receivables outstanding in relation to sales3)

21.6%

20.1%

1.5pp

- Inventory outstanding in relation to sales4)

8.8%

9.0%

(0.2)pp

- Payables outstanding in relation to sales5)

17.9%

17.8%

0.1pp

Cash & cash equivalents

237

408

(42)%

Gross Debt6)

2,051

1,996

2.8%

Net Debt7)

1,752

1,579

11%

Capital employed8)

4,231

3,890

9%

Return on capital employed9)

23.8%

21.0%

2.7pp

Total equity

2,480

2,311

7.3%

Return on total equity10)

27.7%

23.4%

4.3pp

Leverage ratio11)

1.3

1.2

0.0

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

Second quarter 2025 development

Changes in operating working capital impacted operating cash flow by $15 million positive compared to an impact of $128 million positive in the prior year. The relatively large positive effects from working capital in Q2 last year was related to timing effects while the impact from working capital in Q2 2025 can be considered to be more within normal variations and impacted by higher sales towards the end of the quarter. The working capital decrease in the quarter of $15 million was mainly a result of $113 million in positive effects from accounts payables and accrued expenses, $9 million from deferred income taxes and $4 million from lower inventories. This was partly offset by $110 million in increased receivables partly due to tariff recoveries not yet paid.

Operating cash flow decreased by $63 million to $277 million compared to the prior year, mainly because of less favorable effects from changes in operating working capital, as outlined above.

Capital expenditure, net decreased by $32 million compared to the prior year. The level of capital expenditure, net, in relation to sales declined to 4.2% versus 5.6% a year earlier. The lower level of capital expenditure, net is mainly related to the lower activity level of footprint optimization in Europe and Americas and less capacity expansion, especially in Asia.

Free operating cash flow* was positive $163 million compared to positive $194 million in the prior year. The decrease was due to the lower operating cash flow partly offset by the lower capital expenditure, net, as outlined above.

Cash conversion* defined as free operating cash flow* in relation to net income, was 97% in the quarter compared to 140% a year earlier. The decline was a result of the lower free operating cash flow and higher net income.

Trade working capital* increased by $185 million compared to the prior year, where the main drivers were $251 million in higher accounts receivables, $87 million in higher accounts payable and $21 million in higher inventories. In relation to sales, trade working capital increased from 11.2% to 12.5%. The increase in trade working capital is mainly due to tariffs and increased sales and timing effects last year.

Net debt* was $1,752 million as of June 30, 2025, which was $172 million higher than a year earlier, mainly due to that in the last twelve months, dividends paid and share repurchases were higher than free operating cash flow as well as due to FX effects.

Total equity as of June 30, 2025, increased by $169 million compared to June 30, 2024. This was mainly due to net income of $717 million and $69 million in positive currency translation effects, partly offset by $337 million in share repurchases, including taxes and $282 million in dividend payments.

Leverage ratio*: On June 30, 2025, the Company had a leverage ratio of 1.3x compared to 1.2x on June 30, 2024, following that the 12 months trailing adjusted EBITDA* increased by around $103 million while net debt* per the policy increased by around $324 million.

First six months 2025 development

Operating cash flow decreased by $107 million to $355 million compared to the prior year, mainly because the increase in operating working capital was larger than the increase in net income.

Capital expenditure, net decreased by $78 million compared to the prior year. The level of capital expenditure, net, in relation to sales declined to 3.9% versus 5.5% a year earlier. The lower level of capital expenditure, net is mainly related to the lower activity level of footprint optimization in Europe and Americas and less capacity expansion, especially in Asia.

Free operating cash flow* was positive $147 million compared to positive $176 million in the prior year. The decrease was due to the lower operating cash flow partly offset by the lower capital expenditure, net, as outlined above.

Cash conversion* defined as free operating cash flow* in relation to net income, was 44% for the period, compared to 66% in the prior year. The decline was a result of the lower free operating cash flow and higher net income.

Jun 30

Mar 31

Jun 30

2025

2025

2024

Headcount

65,100

65,900

68,700

Whereof: Direct headcount in manufacturing

48,000

48,800

51,100

                 Indirect headcount

17,100

17,100

17,500

Temporary personnel

9%

10%

9%

As of June 30, 2025, total headcount (Full Time Equivalent) decreased by around 3,600, or 5.2%, compared to a year earlier, despite that organic sales* increased by 3.4%. The indirect workforce decreased by around 400, or 2.3%, mainly reflecting our structural reduction initiatives. The direct workforce decreased by approximately 3,200, or 6.2%. The decrease was supported by an improvement in customer call-off accuracy which enabled us to accelerate operating efficiency improvements.

Compared to March 31, 2025, total headcount (Full Time Equivalent) decreased by around 800, or 1.3%. Indirect headcount was unchanged while direct headcount decreased by approximately 900, or 1.8%.

Next Report

Autoliv intends to publish the quarterly earnings report for the third quarter of 2025 on Friday, October 17, 2025.

Footnotes

*Non-U.S. GAAP measure, see enclosed reconciliation tables.

Inquiries: Investors and Analysts

Anders Trapp

Vice President Investor Relations

Tel +46 (0)8 5872 0671

Henrik Kaar

Director Investor Relations

Tel +46 (0)8 5872 0614

Inquiries: Media

Gabriella Etemad

Senior Vice President Communications

Tel +46 (0)70 612 6424

Autoliv, Inc. is obliged to make this information public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the VP of Investor Relations set out above, at 12.00 CET on July 18, 2025.

Definitions and SEC Filings

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

This report includes content supplied by S&P Global; Copyright © Light Vehicle Production Forecast, January, March and July 2025. All rights reserved. S&P Global is a global supplier of independent industry information. The permission to use S&P Global copyrighted reports, data and information does not constitute an endorsement or approval by S&P Global of the manner, format, context, content, conclusion, opinion or viewpoint in which S&P Global reports, data and information or its derivations are used or referenced herein.

This report contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include those that address activities, events or developments that Autoliv, Inc. or its management believes or anticipates may occur in the future. All forward-looking statements are based upon our current expectations, various assumptions and/or data available from third parties. Our expectations and assumptions are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “estimates”, “expects”, “anticipates”, “projects”, “plans”, “intends”, “believes”, “may”, “likely”, “might”, “would”, “should”, “could”, or the negative of these terms and other comparable terminology, although not all forward-looking statements contain such words. Because these forward-looking statements involve risks and uncertainties, the outcome could differ materially from those set out in the forward-looking statements for a variety of reasons, including without limitation, general economic conditions, including 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; geopolitical instability, including the ongoing war between Russia and Ukraine and the hostilities in the Middle East; changes in general industry and market conditions or regional 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; higher raw material, fuel and energy costs; changes in consumer and customer preferences for end products;

customer losses; changes in regulatory conditions; 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; 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 by governmental authorities and changes in our effective tax rate; dependence on key personnel; legislative or regulatory changes impacting or limiting our business; including changes in trade policy and tariffs, our ability to meet our sustainability targets, goals and commitments; political conditions; dependence on and relationships with customers and suppliers; the conditions necessary to hit our financial targets; and other risks and uncertainties identified under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Reports and Quarterly Reports on Forms 10-K and 10-Q and any amendments thereto. For any forward-looking statements contained in this or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we assume no obligation to update publicly or revise any forward-looking statements in light of new information or future events, except as required by law.

Second quarter

First 6 months

Latest 12

Full Year

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

2025

2024

2025

2024

months

2024

Airbags, Steering Wheels and Other1)

$1,812

$1,747

$3,565

$3,528

$7,060

$7,023

Seatbelt products and Other1)

902

858

1,727

1,692

3,402

3,367

Total net sales

2,714

2,605

5,292

5,220

10,463

10,390

Cost of sales

(2,213)

(2,130)

(4,312)

(4,303)

(8,473)

(8,463)

Gross profit

501

475

980

917

1,990

1,927

Selling, general & administrative expenses

(145)

(138)

(290)

(270)

(550)

(530)

Research, development & engineering expenses, net

(107)

(116)

(202)

(229)

(371)

(398)

Other income (expense), net

(1)

(14)

14

(18)

13

(19)

Operating income

247

206

502

400

1,081

979

Income from equity method investments

1

2

3

3

6

7

Interest income

2

3

4

7

10

13

Interest expense

(27)

(28)

(52)

(54)

(106)

(107)

Other non-operating items, net

(3)

1

(3)

(0)

(19)

(16)

Income before income taxes

221

183

453

356

972

875

Income taxes

(53)

(44)

(118)

(91)

(255)

(227)

Net income

168

139

335

266

717

648

Less: Net income attributable to non-controlling interest

0

0

1

1

1

1

Net income attributable to controlling interest

$167

$138

$334

$265

$716

$646

Earnings per share - diluted

$2.16

$1.71

$4.31

$3.23

$9.15

$8.04

1) Including Corporate sales.

Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

(Dollars in millions, unaudited)

2025

2025

2024

2024

2024

Assets

Cash & cash equivalents

$237

$322

$330

$415

$408

Receivables, net

2,341

2,205

1,993

2,192

2,090

Inventories, net

957

913

921

997

936

Prepaid expenses

249

184

167

172

193

Other current assets

146

75

72

90

76

Total current assets

3,929

3,699

3,483

3,865

3,703

Property, plant & equipment, net

2,399

2,286

2,239

2,317

2,197

Operating leases right-of-use assets

171

168

158

173

167

Goodwill and intangible assets, net

1,389

1,380

1,375

1,386

1,379

Investments and other non-current assets

588

581

548

565

564

Total assets

8,476

8,114

7,804

8,306

8,010

Liabilities and equity

Short-term debt

679

540

387

624

455

Accounts payable

1,945

1,839

1,799

1,881

1,858

Accrued expenses

1,138

1,053

1,056

1,189

1,120

Operating lease liabilities - current

44

42

41

44

41

Other current liabilities

430

327

351

297

312

Total current liabilities

4,235

3,800

3,633

4,034

3,785

Long-term debt

1,372

1,565

1,522

1,586

1,540

Pension liability

167

163

153

147

140

Operating lease liabilities - non-current

121

120

118

130

127

Other non-current liabilities

102

103

92

110

106

Total non-current liabilities

1,762

1,952

1,885

1,974

1,913

Total parent shareholders’ equity

2,469

2,351

2,276

2,288

2,298

Non-controlling interest

11

10

10

10

13

Total equity

2,480

2,361

2,285

2,298

2,311

Total liabilities and equity

$8,476

$8,114

$7,804

$8,306

$8,010

Second quarter

First 6 months

Latest 12

Full Year

(Dollars in millions, unaudited)

2025

2024

2025

2024

months

2024

Net income

$168

$139

$335

$266

$717

$648

Depreciation and amortization

100

96

195

192

390

387

Gain on divestiture of property

-

-

(6)

-

(10)

(4)

Other non-cash adjustments, net

(5)

(23)

(6)

(9)

(21)

(24)

Net change in operating working capital:

   Receivables

(0)

74

(166)

33

(153)

47

   Other current assets

(110)

(27)

(134)

(7)

(59)

67

   Inventories

4

39

26

31

22

28

   Accounts payable

42

39

67

(55)

40

(83)

   Accrued expenses

71

7

25

34

(22)

(12)

   Income taxes

9

(5)

19

(22)

47

6

Net cash provided by operating activities

277

340

355

462

952

1,059

Expenditures for property, plant and equipment

(115)

(154)

(217)

(294)

(502)

(579)

Proceeds from sale of property, plant and equipment

1

8

9

8

18

17

Net cash used in investing activities

(114)

(146)

(208)

(286)

(484)

(563)

Net increase (decrease) in short term debt

151

160

273

(67)

214

(126)

Decrease in long-term debt

(273)

(306)

(311)

(306)

(311)

(306)

Increase in long-term debt

-

-

77

534

69

526

Dividends paid

(54)

(55)

(108)

(111)

(216)

(219)

Share repurchases

(51)

(160)

(101)

(320)

(333)

(552)

Common stock options exercised

-

0

0

0

1

1

Dividend paid to non-controlling interests

-

(1)

-

(1)

(4)

(5)

Net cash used in financing activities

(227)

(362)

(170)

(269)

(581)

(680)

Effect of exchange rate changes on cash

(22)

6

(71)

3

(58)

16

Decrease in cash and cash equivalents

(86)

(161)

(94)

(90)

(171)

(168)

Cash and cash equivalents at period-start

322

570

330

498

408

498

Cash and cash equivalents at period-end

$237

$408

$237

$408

$237

$330

Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

(Dollars in millions)

2025

2025

2024

2024

2024

Total current assets

$3,929

$3,699

$3,483

$3,865

$3,703

Total current liabilities

(4,235)

(3,800)

(3,633)

(4,034)

(3,785)

Working capital (U.S. GAAP)

(305)

(101)

(150)

(169)

(83)

Less: Cash and cash equivalents

(237)

(322)

(330)

(415)

(408)

          Prepaid expenses

(249)

(184)

(167)

(172)

(193)

          Other current assets

(146)

(75)

(72)

(90)

(76)

Less: Short-term debt

679

540

387

624

455

          Accrued expenses

1,138

1,053

1,056

1,189

1,120

          Operating lease liabilities - current

44

42

41

44

41

          Other current liabilities

430

327

351

297

312

Trade working capital (non-U.S. GAAP)

$1,354

$1,279

$1,115

$1,307

$1,169

Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

(Dollars in millions)

2025

2025

2024

2024

2024

Receivables, net

$2,341

$2,205

$1,993

$2,192

$2,090

Inventories, net

957

913

921

997

936

Accounts payable

(1,945)

(1,839)

(1,799)

(1,881)

(1,858)

Trade working capital (non-U.S. GAAP)

$1,354

$1,279

$1,115

$1,307

$1,169

Dec 31

Dec 31

Dec 31

Dec 31

(Dollars in millions)

2023

2022

2021

2020

Total current assets

$3,974

$3,714

$3,675

$4,269

Total current liabilities

(4,035)

(3,642)

(2,821)

(3,147)

Working capital (U.S. GAAP)

(61)

72

853

1,122

Less: Cash and cash equivalents

(498)

(594)

(969)

(1,178)

          Prepaid expenses

(173)

(160)

(164)

(164)

          Other current assets

(93)

(84)

(65)

(307)

Less: Short-term debt

538

711

346

302

          Accrued expenses

1,135

915

996

1,270

          Operating lease liabilities - current

39

39

38

37

          Other current liabilities

345

283

297

284

Trade working capital (non-U.S. GAAP)

$1,232

$1,183

$1,332

$1,366

Dec 31

Dec 31

Dec 31

Dec 31

(Dollars in millions)

2023

2022

2021

2020

Receivables, net

$2,198

$1,907

$1,699

$1,822

Inventories, net

1,012

969

777

798

Accounts payable

(1,978)

(1,693)

(1,144)

(1,254)

Trade working capital (non-U.S. GAAP)

$1,232

$1,183

$1,332

$1,366

Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

(Dollars in millions)

2025

2025

2024

2024

2024

Short-term debt

$679

$540

$387

$624

$455

Long-term debt

1,372

1,565

1,522

1,586

1,540

Total debt

2,051

2,105

1,909

2,210

1,996

Cash & cash equivalents

(237)

(322)

(330)

(415)

(408)

Debt issuance cost/Debt-related derivatives, net

(62)

4

(24)

(9)

(8)

Net debt

$1,752

$1,787

$1,554

$1,787

$1,579

Dec 31

Dec 31

Dec 31

Dec 31

(Dollars in millions)

2023

2022

2021

2020

Short-term debt

$538

$711

$346

$302

Long-term debt

1,324

1,054

1,662

2,110

Total debt

1,862

1,766

2,008

2,411

Cash & cash equivalents

(498)

(594)

(969)

(1,178)

Debt issuance cost/Debt-related derivatives, net

3

12

13

(19)

Net debt

$1,367

$1,184

$1,052

$1,214

Jun 30

Mar 31

Jun 30

(Dollars in millions)

2025

2025

2024

Net debt1)

$1,752

$1,787

$1,579

Pension liabilities

167

163

140

Net debt per the Policy

$1,919

$1,950

$1,720

Net income2)

$717

$688

$627

Income taxes2)

255

246

150

Interest expense, net2, 3)

96

97

89

Other non-operating items, net2)

19

16

8

Income from equity method investments2)

(6)

(6)