ALV

A month has gone by since the last earnings report for QuantumScape Corporation (QS). Shares have added about 11.4% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is QuantumScape due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for QuantumScape Corporation before we dive into how investors and analysts have reacted as of late. QuantumScape reported second-quarter 2026 loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 18 cents. The company delivered an earnings surprise of 11.1%. The company had incurred a loss of 20 cents per share a year earlier. QuantumScape did not report GAAP revenues. The quarter featured lower operating expenses, improving Eagle Line productivity and $10.8 million in customer billings. The company also expanded its automotive relationships and established business verticals targeting electric vehicles, AI data centers, aerospace and defense. GAAP net loss narrowed 14.4% year over year to $98.24 million from $114.70 million. Total operating expenses fell 14.1% to $106.13 million, supporting the improvement in the bottom line. Research and development expenses declined 18.4% to $82.53 million. General and administrative expenses increased 5.3% to $23.59 million. Interest income was $8.36 million, down from $8.94 million in the prior-year quarter. The company announced a multi-year partnership with Honda to advance its solid-state lithium-metal battery technology for automotive and other applications. The agreement followed an extensive evaluation of QuantumScape’s technology and adds another top-10 global automaker to its customer portfolio. QS also updated its collaboration and licensing arrangement with Volkswagen Group’s PowerCo. The revised milestones focus on automotive cell development, larger-format cells and QuantumScape’s future technology roadmap. The company is working with four top-10 automakers and shipped cells to another automotive customer during the quarter. QuantumScape continued to ramp the Eagle Line, its automated pilot production line in San Jose. Core tools achieved uptime above 90%, while key productivity measures reached management’s targets. The company is increasing cell volumes and shipping samples to customers. QS aims to double cell output further in the second half of 2026. Higher production is expected to accelerate customer shipments, shorten development cycles and provide a foundation for transferring manufacturing processes to future high-volume facilities. QS continues to work with Murata Manufacturing and Corning on scaling ceramic separator production through the Cobra process. The company created three business verticals. QSEV will focus on electric vehicles, QSDC will pursue AI data centers, and QSAS will address advanced applications such as aerospace and defense. QSDC is working with original design manufacturers and data center architects on solutions based on the QSE-5 platform. QSAS shipped QSE-5 cells to a major U.S. defense contractor and is engaging other aerospace and defense customers. Management believes the technology’s energy density, power capability and safety profile can support these markets. Increased Eagle Line output enabled broader safety testing of QSE-5 cells. Testing included nail penetration, external short circuits and thermal stability at temperatures up to 300 degrees Celsius. Management said the larger test set replicated findings from earlier prototypes. The company also demonstrated that its Cobra process can produce larger ceramic separators. Larger-format cells can improve packaging efficiency and raise cell-level energy density, while giving QS greater flexibility to meet varying customer requirements. Adjusted EBITDA loss was $64.19 million compared with a loss of $63.01 million a year earlier. QuantumScape maintained its full-year 2026 adjusted EBITDA loss guidance of $250-$275 million. Capital expenditures totaled $4.62 million, down 46.2% from $8.59 million in the prior-year quarter. QS lowered its 2026 capex guidance to $27-$37 million from $40-$60 million, reflecting capital discipline and savings on specific projects. Net cash used in operating activities improved to $56.75 million from $61.84 million a year ago. Customer billings totaled $21.8 million during the first half of 2026, surpassing the $19.5 million recorded for all of 2025. QuantumScape ended June with $859 million in liquidity, comprising $132.87 million in cash and cash equivalents and $726.13 million in marketable securities. The balance sheet provides funding as the company scales the Eagle Line, develops larger-format cells and pursues commercialization across its three business verticals. Since the earnings release, investors have witnessed a upward trend in estimates review. At this time, QuantumScape has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, QuantumScape has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. QuantumScape is part of the Zacks Automotive - Original Equipment industry. Over the past month, Autoliv, Inc. (ALV), a stock from the same industry, has gained 5.6%. The company reported its results for the quarter ended June 2026 more than a month ago. Autoliv reported revenues of $2.8 billion in the last reported quarter, representing a year-over-year change of +3.3%. EPS of $2.43 for the same period compares with $2.21 a year ago. Autoliv is expected to post earnings of $2.21 per share for the current quarter, representing a year-over-year change of -4.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -7%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Autoliv. Also, the stock has a VGM Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QuantumScape Corporation (QS) : Free Stock Analysis Report Autoliv, Inc. (ALV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

STOCKHOLM, Aug. 13, 2026 /PRNewswire/ -- Autoliv, Inc. (NYSE: ALV) (SSE: ALIV.sdb), the worldwide leader in automotive safety systems, today announced that its Board of Directors has declared a quarterly dividend of 87 cents for the third quarter of 2026. To holders of record on the close of business on Friday, August 28, the dividend will be payable on: Tuesday, September 15, 2026 to holders of Autoliv common stock listed on the New York Stock Exchange (Common Stock); and Wednesday, September 16, 2026 to holders of Autoliv Swedish Depository Receipts listed on Nasdaq Stockholm (SDRs). The ex-date will be: Friday, August 28, for holders of Common Stock; and Thursday, August 27, for holders of SDRs. Inquiries:Investors & Analysts: Anders Trapp, Tel +46 (0)709 578 170Investors & Analysts: Henrik Kaar, Tel +46 (0)709 578 114Media: Gabriella Etemad, Tel +46 (0)706 126 424 This information is information that Autoliv, Inc. is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication by Henrik Kaar at 3:10 p.m. CET on August 13, 2026. About Autoliv Autoliv, Inc. (NYSE: ALV) (Nasdaq Stockholm: ALIV.sdb) is the worldwide leader in automotive safety systems. Through our group companies, we develop, manufacture and market protective systems, such as airbags, seatbelts, and steering wheels for all major automotive manufacturers in the world, as well as mobility safety solutions, such as commercial vehicles and electrical safety solutions. At Autoliv, we challenge and re-define the standards of mobility safety to sustainably deliver leading solutions. In 2025, our products saved approximately 40,000 lives and reduced around 600,000 injuries. We have operations in 25 countries, and we drive innovation, research, and development at our 13 technical centers. Our 64,000 employees are passionate about our vision of Saving More Lives and quality is at the heart of everything we do. Sales in 2025 amounted to $10.8 billion. For more information go to www.autoliv.com. Safe Harbor Statement 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 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. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those set out in the forward-looking statements, including general economic conditions and fluctuations in the global automotive market. 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 such statements in light of new information or future events, except as required by law. This information was brought to you by Cision http://news.cision.com. https://news.cision.com/autoliv/r/autoliv-declares-quarterly-dividend,c4382882 The following files are available for download: View original content:https://www.prnewswire.com/apac/news-releases/autoliv-declares-quarterly-dividend-302850983.html

QuantumScape Corporation QS reported second-quarter 2026 loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 18 cents. The company delivered an earnings surprise of 11.1%. The company had incurred a loss of 20 cents per share a year earlier.QuantumScape did not report GAAP revenues. The quarter featured lower operating expenses, improving Eagle Line productivity and $10.8 million in customer billings. The company also expanded its automotive relationships and established business verticals targeting electric vehicles, AI data centers, aerospace and defense. QuantumScape Corporation price-consensus-eps-surprise-chart | QuantumScape Corporation Quote GAAP net loss narrowed 14.4% year over year to $98.24 million from $114.70 million. Total operating expenses fell 14.1% to $106.13 million, supporting the improvement in the bottom line.Research and development expenses declined 18.4% to $82.53 million. General and administrative expenses increased 5.3% to $23.59 million. Interest income was $8.36 million, down from $8.94 million in the prior-year quarter. The company announced a multi-year partnership with Honda to advance its solid-state lithium-metal battery technology for automotive and other applications. The agreement followed an extensive evaluation of QuantumScape’s technology and adds another top-10 global automaker to its customer portfolio.QS also updated its collaboration and licensing arrangement with Volkswagen Group’s PowerCo. The revised milestones focus on automotive cell development, larger-format cells and QuantumScape’s future technology roadmap. The company is working with four top-10 automakers and shipped cells to another automotive customer during the quarter. QuantumScape continued to ramp the Eagle Line, its automated pilot production line in San Jose. Core tools achieved uptime above 90%, while key productivity measures reached management’s targets. The company is increasing cell volumes and shipping samples to customers.QS aims to double cell output further in the second half of 2026. Higher production is expected to accelerate customer shipments, shorten development cycles and provide a foundation for transferring manufacturing processes to future high-volume facilities. QS continues to work with Murata Manufacturing and Corning on scaling ceramic separator production through the Cobra process. The company created three business verticals. QSEV will focus on electric vehicles, QSDC will pursue AI data centers, and QSAS will address advanced applications such as aerospace and defense.QSDC is working with original design manufacturers and data center architects on solutions based on the QSE-5 platform. QSAS shipped QSE-5 cells to a major U.S. defense contractor and is engaging other aerospace and defense customers. Management believes the technology’s energy density, power capability and safety profile can support these markets. Increased Eagle Line output enabled broader safety testing of QSE-5 cells. Testing included nail penetration, external short circuits and thermal stability at temperatures up to 300 degrees Celsius. Management said the larger test set replicated findings from earlier prototypes.The company also demonstrated that its Cobra process can produce larger ceramic separators. Larger-format cells can improve packaging efficiency and raise cell-level energy density, while giving QS greater flexibility to meet varying customer requirements. Adjusted EBITDA loss was $64.19 million compared with a loss of $63.01 million a year earlier. QuantumScape maintained its full-year 2026 adjusted EBITDA loss guidance of $250-$275 million.Capital expenditures totaled $4.62 million, down 46.2% from $8.59 million in the prior-year quarter. QS lowered its 2026 capex guidance to $27-$37 million from $40-$60 million, reflecting capital discipline and savings on specific projects. Net cash used in operating activities improved to $56.75 million from $61.84 million a year ago. Customer billings totaled $21.8 million during the first half of 2026, surpassing the $19.5 million recorded for all of 2025.QuantumScape ended June with $859 million in liquidity, comprising $132.87 million in cash and cash equivalents and $726.13 million in marketable securities. The balance sheet provides funding as the company scales the Eagle Line, develops larger-format cells and pursues commercialization across its three business verticals. QS currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. General Motors Company GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.Autoliv ALV reported second-quarter 2026 adjusted earnings of $2.43 per share, which increased 10% year over year and came above the Zacks Consensus Estimate of $2.34 by 3.85%. Net sales rose 3.3% to $2.80 billion, topping the consensus estimate of $2.76 billion by 1.45%. Autoliv maintained its 2026 guidance for roughly flat organic sales, an adjusted operating margin of 10.5-11% and operating cash flow of around $1.2 billion. Autoliv’s capital expenditure, net, is expected to remain below 5% of sales.Genuine Parts GPC reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended June with $2.3 billion of liquidity, including $559 million in cash. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QuantumScape Corporation (QS) : Free Stock Analysis Report Genuine Parts Company (GPC) : Free Stock Analysis Report Autoliv, Inc. (ALV) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Tesla, Inc. TSLA reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%.Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Record second-quarter vehicle deliveries and growth across the energy and services businesses supported the top line. Deliveries increased 25% to 480,126 vehicles. Tesla, Inc. price-consensus-eps-surprise-chart | Tesla, Inc. Quote Automotive revenues rose 23% year over year to $20.52 billion. Automotive sales increased to $20.01 billion from $15.79 billion, while leasing revenues declined to $364 million from $435 million. Regulatory credit revenues fell sharply to $146 million from $439 million.Energy Generation and Storage revenues grew 13% to $3.14 billion. Services and Other revenues jumped 50% to $4.58 billion, reflecting higher activity across used vehicles, Supercharging, service centers and insurance. Higher Full Self-Driving subscriptions also aided automotive ancillary sales. Tesla produced 451,758 vehicles, up 10% from the prior-year quarter. Model 3/Y production increased 12% to 442,936 units, while production of other models declined 34% to 8,822 units.Model 3/Y deliveries rose 25% to 467,762 vehicles, while other-model deliveries increased 19% to 12,364 units. Global vehicle inventory improved to 15 days of supply from 24 days a year earlier. The company exited the quarter with its largest order backlog since 2023. Active paid FSD subscriptions increased 56% year over year to 1.48 million. Tesla achieved record FSD subscription additions and more than 55% of its North American deliveries included an FSD subscription at the time of purchase.Energy storage deployments climbed 41% to 13.5 GWh, marking Tesla’s second-highest quarterly deployment volume. The company also expanded its charging network to 8,704 Supercharger stations and 82,357 connectors, representing increases of 18% and 17%, respectively. Gross profit rose 23% to $4.75 billion, but the GAAP gross margin contracted 41 basis points to 16.8%. Operating expenses surged 47% to $4.35 billion, driven by research and development spending related to AI, Cybercab, Optimus and Tesla Semi, as well as higher stock-based compensation and selling and administrative costs.Operating income declined 57% to $398 million, reducing the operating margin to 1.4% from 4.1%. Automotive gross margin excluding regulatory credits was 16.3% compared with 15% a year earlier and 19.2% in the preceding quarter.Energy gross margin fell to 20.4%, partly due to a roughly $240 million warranty charge tied to vendor battery-cell issues and the absence of prior-quarter tariff benefits. Services and Other gross margin improved sequentially to a record 14.1%, supported by higher volumes and better fleet cost management. Net cash provided by operating activities increased 85% to $4.70 billion. However, capital expenditures more than doubled to $5.79 billion from $2.39 billion, resulting in negative free cash flow of $1.09 billion.As of June 30, 2026, cash, cash equivalents and short-term investments totaled $43.52 billion, up 18% year over year but down $1.22 billion sequentially. Long-term debt and finance leases, excluding the current portion, were $7.92 billion. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years. Planned investments include Robotaxi fleet expansion, Optimus production capacity, semiconductor manufacturing, solar production and AI computing infrastructure.Cybercab production has begun at Gigafactory Texas, while Tesla Semi and Megapack 3 remain scheduled to enter production in 2026. The company is installing first-generation Optimus production lines and expanding Robotaxi operations.TSLA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. General Motors Company GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.Autoliv ALV reported second-quarter 2026 adjusted earnings of $2.43 per share, which increased 10% year over year and came above the Zacks Consensus Estimate of $2.34 by 3.85%. Net sales rose 3.3% to $2.80 billion, topping the consensus estimate of $2.76 billion by 1.45%. Autoliv maintained its 2026 guidance for roughly flat organic sales, an adjusted operating margin of 10.5-11% and operating cash flow of around $1.2 billion. Autoliv’s capital expenditure, net, is expected to remain below 5% of sales.Genuine Parts GPC reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended June with $2.3 billion of liquidity, including $559 million in cash. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA) : Free Stock Analysis Report Genuine Parts Company (GPC) : Free Stock Analysis Report Autoliv, Inc. (ALV) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Genuine Parts Company GPC reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter.Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Comparable sales increased 3.4%, led by strong demand in the Industrial business, while acquisitions and favorable currency movements also supported growth. Genuine Parts Company price-consensus-eps-surprise-chart | Genuine Parts Company Quote The revenue increase included a 1.2% contribution from acquisitions and a 1.4% favorable foreign currency impact. Growth was recorded across North America Automotive, International Automotive and Industrial, reflecting a broad-based improvement in demand.Adjusted gross margin expanded 20 basis points to 37.9%. However, adjusted selling, administrative and other expenses represented 29.1% of sales, up from 28.7% a year earlier, partly offsetting the gross-margin benefit. Industrial sales advanced 7.1% year over year to $2.41 billion. Comparable sales climbed 6.1%, while favorable currency movements added 0.8% and acquisitions contributed 0.2%.The segment generated EBITDA of $316 million, up 9.8% from the prior-year period. EBITDA margin expanded 30 basis points to 13.1%. Growth was recorded in 11 of 14 end markets, while 10 markets improved sequentially. Maintenance, repair and operations sales grew approximately 7%, supported by large corporate accounts and small and medium-sized local customers. North America Automotive sales increased 3.8% to $2.54 billion, driven by a 2.6% comparable-sales gain and a 1.3% acquisition contribution. Segment EBITDA rose 6% to $208 million, while EBITDA margin improved 20 basis points to 8.2%.Company-owned stores in the United States delivered comparable-sales growth of approximately 4%, including roughly 5.5% growth in the commercial business. The Benson acquisition also remained ahead of the company’s financial and operational targets.International Automotive revenues rose 8.2% to $1.59 billion. Foreign currency contributed 4.9%, acquisitions added 2.7% and comparable sales increased 0.6%. Segment EBITDA improved 6% to $150 million, but margin contracted 20 basis points to 9.4%. Europe improved sequentially, particularly in the United Kingdom and Germany. GAAP net income declined to $228 million, or $1.65 per share, from $255 million, or $1.83 per share, a year earlier. The difference between GAAP and adjusted results reflected $69 million of after-tax adjustments tied to restructuring and separation activities.Adjusted net income rose to $296 million from $292 million in the year-ago period. Adjusted EBITDA increased 3.6% year over year to $567 million, though adjusted EBITDA margin declined 20 basis points to 8.7%.Restructuring and other costs totaled $76 million before taxes, while separation costs were $16 million. GPC remains on track to separate its Global Automotive and Global Industrial businesses into two publicly traded companies in the first quarter of 2027. GPC reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. The company reduced its GAAP earnings forecast to $5.90-$6.40 per share from the previous estimate of $6.10-$6.60. North America Automotive sales growth is now expected at 2.5-4.5%, down from the previous estimate of 3-5%, while International Automotive growth was raised to 5-8% from the previous estimate of 3-6%. Industrial sales growth remains projected at 3-6%. Cash from operations totaled $464 million in the first half of 2026, up from $169 million a year earlier. Free cash flow was $259 million against negative $80 million in the prior-year period.Genuine Parts ended June with $2.3 billion of liquidity, including $559 million in cash. Year-to-date capital expenditures were $205 million, acquisition spending totaled $38 million and cash dividends reached $288 million. The company continues to expect full-year operating cash flow of $1-$1.2 billion and free cash flow of $550-$700 million.GPC stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Autoliv, Inc. ALV reported second-quarter 2026 adjusted earnings of $2.43 per share, which increased 10% year over year and came above the Zacks Consensus Estimate of $2.34 by 3.85%. Direct material cost savings and organic sales growth supported the result. Net sales rose 3.3% to $2.80 billion, topping the consensus estimate of $2.76 billion by 1.45%. Autoliv maintained its 2026 guidance for roughly flat organic sales, an adjusted operating margin of 10.5-11% and operating cash flow of around $1.2 billion. Capital expenditure, net, is expected to remain below 5% of sales.General Motors Company GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Better-than-expected adjusted EBITDA from North America and International segments led to the outperformance. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Genuine Parts Company (GPC) : Free Stock Analysis Report Autoliv, Inc. (ALV) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

General Motors GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Better-than-expected adjusted EBITDA from North America and International segments led to the outperformance. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. Global wholesale volume rose to 990,000 vehicles from 974,000 a year earlier. Adjusted earnings before interest and taxes increased 29.8% year over year to $3.94 billion. The adjusted EBIT margin expanded to 8.2% from 6.4%, reflecting stronger core operating performance. Price contributed $700 million to the year-over-year improvement in adjusted EBIT, supported by GM’s product portfolio and incentive discipline. Cost performance added $300 million, primarily due to lower warranty expenses, reduced tariff exposure and emissions-related regulatory savings. Commodity inflation, logistics expenses, higher memory-chip costs and manufacturing costs tied to U.S. production onshoring partly offset the gains. General Motors Company price-consensus-eps-surprise-chart | General Motors Company Quote GM North America generated revenues of $39.91 billion, up 1.1% from the prior-year quarter. Wholesale volume was nearly flat at 848,000 units as a 31,000-unit decline in electric vehicle volume was offset by higher internal-combustion-engine vehicle shipments. The segment’s adjusted EBIT surged 42.7% to $3.45 billion, surpassing the Zacks Consensus Estimate of $3.12 billion. Adjusted EBIT margin improved 250 basis points to 8.6%, aided by pricing, incentive discipline and operating efficiencies. U.S. dealer inventory ended the quarter at 511,000 vehicles, down about 3% year over year and within management’s targeted range of 50-60 days. GM International revenues climbed 11% year over year to $3.69 billion, while wholesale volume increased to 142,000 vehicles from 125,000. Strong execution in South America supported the top line, though shipping disruptions reduced wholesale volume in the Middle East. Adjusted EBIT for the segment declined 6.6% to $190 million, surpassing the consensus mark of $176 million. Meanwhile, GM’s China joint ventures generated equity income of $83 million, up 16.9%. The China business delivered its seventh consecutive profitable quarter, supported by cost efficiencies and product-mix optimization. GM Financial revenues edged up to $4.27 billion from $4.26 billion. Higher net financing revenues and insurance premiums supported results. However, adjusted earnings before taxes fell 14% to $605 million. Increased lease depreciation, higher costs related to insurance operations and a larger provision for loan losses offset the revenue benefits. GM Financial paid a $250 million dividend to its parent during the quarter, bringing first-half dividends to $900 million. OnStar ended the quarter with deferred revenues of $6.3 billion, up nearly 50% year over year. Recognized revenues reached $800 million, increasing more than 20%. The company remained on track to add about 1 million subscribers in 2026. Super Cruise recognized revenues grew roughly 70%, and GM added about 70,000 subscribers during the quarter. The company expects to exceed 850,000 Super Cruise subscribers by year-end, while the attach rate after the three-year prepaid period remained in the 30-40% range. Automotive operating cash flow increased 9% to $5.07 billion. Adjusted automotive free cash flow jumped 78% to $5.03 billion, driven by higher automotive earnings, tariff reimbursement timing and lower capital spending. Capital expenditures totaled $1.92 billion in the quarter. GM repurchased $2 billion of stock and retired approximately 24.9 million shares. The company also distributed about $200 million in dividends. Automotive cash and marketable securities totaled $19.7 billion at quarter-end, while automotive liquidity was $33.6 billion. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50. The company also increased its adjusted automotive free cash flow forecast to $9.5-$11.5 billion from $9-$11 billion. GM continues to expect an 8-10% adjusted EBIT margin in North America and capital spending, including battery joint-venture investments, of $10-$12 billion. Management attributed the improved outlook to strong pricing and warranty performance, along with a slightly better commodity-cost environment. The board also declared a quarterly dividend of 18 cents per share, to be paid out on Sept. 17, 2026, to shareholders of record as of Sept. 4. GM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Autoliv ALV reported second-quarter 2026 adjusted earnings of $2.43 per share, which increased 10% year over year and came above the Zacks Consensus Estimate of $2.34 by 3.85%. Net sales rose 3.3% to $2.80 billion, topping the consensus estimate of $2.76 billion by 1.45%. Autoliv maintained its 2026 guidance for roughly flat organic sales, an adjusted operating margin of 10.5-11% and operating cash flow of around $1.2 billion. Autoliv’s capital expenditure, net, is expected to remain below 5% of sales. Genuine Parts GPC reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended the June quarter with $2.3 billion of liquidity, including $559 million in cash. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report General Motors Company (GM) : Free Stock Analysis Report Genuine Parts Company (GPC) : Free Stock Analysis Report Autoliv, Inc. (ALV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The second-quarter earnings season for the Auto-Tires-Trucks sector kicked off on Friday, with Autoliv exceeding top and bottom line estimates. This week, three S&P 500 sector components— Tesla, General Motors and Genuine Parts— will report quarterly numbers. Per the Earnings Trend report dated July 15, the auto sector’s earnings and revenues for second-quarter 2026 are expected to grow 6.2% and 0.8%, respectively, on a year-over-year basis. We have identified — with the help of the Zacks Stock Screener — a few auto players that are set to outshine the Zacks Consensus Estimate this earnings season. These include General Motors GM, Tesla TSLA,Cummins CMI and BorgWarner BWA. Before we discuss the companies, let’s take a look at the factors shaping the quarterly performance. The U.S. auto market held up better than many expected in the second quarter of 2026. Despite geopolitical tensions, elevated fuel prices, and an uncertain policy environment, demand for new vehicles remained resilient, with buyers continuing to make purchases. Uncertainty is no longer stopping them from buying vehicles. Many have adapted to years of inflation, high interest rates, and policy changes, choosing to adjust their budget or vehicle preference instead of delaying purchases. Per Cox Automotive, second-quarter sales crossed 4.1 million, representing a double-digit percentage growth relative to the first quarter of 2026. June vehicle sales were solid, with the seasonally adjusted average rate (SAAR) at 16.5 million, the highest level in 2026. That said, second-quarter sales were still down on a yearly basis amid affordability pressures. New vehicle prices continued to edge higher, with the average listing price reaching $49,336 in June, up 1.4% year over year. Meanwhile, higher fuel costs are driving buyers toward fuel-efficient models, prompting automakers to broaden their hybrid lineups. While it is not possible to be sure about which companies are well-positioned to beat earnings estimates, our proprietary methodology — Earnings ESP — makes it relatively simple. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can see the complete list of today’s Zacks #1 Rank stocks here. Our research shows that for stocks with the abovementioned combination, the chances of an earnings beat are as high as 70%. General Motors: While General Motors held its title of best-selling automaker in the United States, its second-quarter deliveries in the country declined 4% year over year. We expect GM North America (GMNA) revenues to be $37.8 billion, suggesting a year-over-year decline of 4.3%. But supported by pricing discipline, cost control and low incentives, our estimate for the GMNA segment’s operating income is $3.03 billion, which suggests a rise of 35.7% year over year. In China, General Motors’ sales remained strong with 357,000 units, thanks to new launches, resilient demand and favorable product mix. Buick Electra E7 emerged as a top seller, while the Wuling Bin Guo and Baojun Huajing S gained traction following new launches. Premium MPVs and SUVs also performed well, with the GL8, Envision and Cadillac XT5 posting solid sales. Meanwhile, the Wuling Hong Guang MINIEV and Bin Guo remained GM's best-selling models in China. GM has an Earnings ESP of +5.17% and a Zacks Rank #3. The company is scheduled to release second-quarter results tomorrow. The Zacks Consensus Estimate for General Motors’ to-be-reported quarter’s earnings and revenues is pegged at $3.13 per share and $46.5 billion, respectively. EPS estimates for the second quarter have moved up by 2 cents in the past seven days. General Motors surpassed earnings estimates in each of the trailing four quarters. General Motors Company price-eps-surprise | General Motors Company Quote Tesla: In the second quarter, Tesla delivered 480,126 vehicles (including 467,762 Model 3/Y and 12,364 other models), beating our model estimate of 400,133 units. Deliveries increased 34% sequentially and 25% on a year-over-year basis. It was Tesla’s strongest quarter for EV sales since the third quarter of 2025. We expect the company’s automotive revenues and gross margins to improve year over year on the back of strong deliveries. The company’s energy business revenues are also expected to increase as Tesla deployed 13.5 GWh of energy storage in the second quarter, reflecting an uptick of 53% and 40% on a sequential and year-over-year basis, respectively. The number also came ahead of our model projection of 12.66 GWh.The outperformance was driven by stronger-than-expected demand for Megapack and Powerwall. Tesla has an Earnings ESP of +5.31% and a Zacks Rank #3. The company is scheduled to release second-quarter results on Wednesday. The Zacks Consensus Estimate for Tesla’s to-be-reported quarter’s earnings and revenues is pegged at 50 cents per share and $29 billion, respectively. EPS estimates for the second quarter have moved up by 3 cents in the past seven days. Tesla surpassed earnings estimates in three of the trailing four quarters and missed once. Tesla, Inc. price-eps-surprise | Tesla, Inc. Quote Cummins: The company is increasingly benefiting from its Power Systems segment. Demand for backup power generators and data center power infrastructure is growing, providing Cummins with a stronger and less cyclical revenue stream. The Zacks Consensus Estimate for Power Systems segment sales for the to-be-reported quarter is pegged at $2.18 billion, implying an uptick both on a sequential and a yearly basis. The Distribution segment is riding the same wave. The Zacks Consensus Estimate for segment sales for the to-be-reported quarter is pegged at $3.35 billion, implying an uptick both on a sequential and a yearly basis.  Since the Distribution unit also carries a meaningful mix of parts and service revenues, this growth adds a layer of earnings resilience that isn't tied to new equipment cycles alone. Encouragingly, loss from the Accelera unit is also expected to reduce significantly compared to the first quarter of 2026 and the second quarter of 2025. Cummins has an Earnings ESP of +0.78% and a Zacks Rank #3. The company is scheduled to release second-quarter results on Aug. 4. The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $7.33 per share and $9.3 billion, respectively. EPS estimates for the second quarter have moved up by 6 cents in the past 60 days. Cummins surpassed earnings estimates in each of the trailing four quarters. Cummins Inc. price-eps-surprise | Cummins Inc. Quote BorgWarner: The company is benefiting from strong new business wins across hybrid, ICE, and EV platforms, expanding exposure to Chinese OEM exports, and improving operational efficiency that continues to support margin growth. The company is also leveraging its automotive expertise to expand into high-growth data center power infrastructure through turbine generators, battery energy storage systems and microgrid inverters. Aggressive cost controls, operational discipline and the exit from weaker charging business are helping the company’s overall margins. BWA also continues winning new hybrid and drivetrain business with Chinese automakers. The company’s localized manufacturing footprint and long-standing OEM relationships in Asia provide an advantage as Chinese brands scale internationally. The Zacks Consensus Estimate for BorgWarner’s revenues from PowerDrive and Drivetrain & Morse segments is pegged at $596 million and $1.43 billion, respectively, indicating an upside on both a sequential and yearly basis. BorgWarner has an Earnings ESP of +0.62% and a Zacks Rank #3. The company is scheduled to release second-quarter results on Aug. 5. The Zacks Consensus Estimate for BorgWarner’s to-be-reported quarter’s earnings and revenues is pegged at $1.26 per share and $3.6 billion, respectively. EPS estimates for the second quarter have moved up by a cent in the past 30 days. BorgWarner surpassed earnings estimates in each of the trailing four quarters. BorgWarner Inc. price-eps-surprise | BorgWarner Inc. Quote Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BorgWarner Inc. (BWA) : Free Stock Analysis Report Cummins Inc. (CMI) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Autoliv, Inc. ALV reported second-quarter 2026 adjusted earnings of $2.43 per share, which increased 10% year over year and came above the Zacks Consensus Estimate of $2.34 by 3.85%. Direct material cost savings and organic sales growth supported the result.Net sales rose 3.3% to $2.80 billion, topping the consensus estimate of $2.76 billion by 1.45%. Organic sales increased 1% even as global light vehicle production declined 0.3%, reflecting strong performance in Asia. Autoliv, Inc. price-consensus-eps-surprise-chart | Autoliv, Inc. Quote Asia, excluding China, led regional growth with an 11.3% organic sales increase. China delivered 3.4% growth, while EMEA declined 2.2% and the Americas fell 3.3%.The company outperformed light vehicle production by 7.3 percentage points in China and 5.9 percentage points in Asia, excluding China. Sales to Chinese automakers rose around 44%, while India posted 36% organic growth as safety content per vehicle continued to increase.Chinese automakers accounted for 55% of Autoliv’s sales in China, up from 40% a year earlier. The company also signed strategic cooperation agreements with Great Wall Motor and XPENG. Airbags, Steering Wheels and Other sales increased 5.2% to $1.91 billion, including 3% organic growth. Side airbags and center airbags were the largest contributors, followed by driver airbags, inflatable curtains and knee airbags.Seatbelt Products and Other sales slipped 0.5% to $897 million and declined 3% organically. Sales in this category decreased in the Americas, China and EMEA but increased in Asia, excluding China.Product volumes showed similar divergence. Side airbag deliveries increased 11% year over year, frontal airbags rose 1%, and steering wheels grew 2%. Seatbelt volumes declined 2%. Gross profit increased 1.5% to $509 million, while gross margin narrowed 0.3 percentage points to 18.2%. Positive foreign exchange effects and lower material costs were partly offset by supplier compensation reversal costs and an asset impairment tied to the Türkiye restructuring.Adjusted operating income rose 7.3% to $270 million, and adjusted operating margin improved to 9.6% from 9.3%. Reported operating income fell 22% to $192 million, with operating margin declining to 6.8% from 9.1% because of capacity-alignment charges. Selling, general and administrative expenses declined 4.9% to $138 million, helped by a revised credit-loss reserve and lower personnel costs. Research, development and engineering expenses, net, increased 14% to $122 million due to lower engineering income, wage inflation and unfavorable currency translation.Other expenses, net, widened to $56 million from $1 million, mainly reflecting costs related to the planned closure of manufacturing operations in Türkiye. Net income decreased 40% to $101 million, while the tax rate rose to 34.5% from 24.1%.Autoliv expects the Türkiye restructuring to generate around $40 million in annual pretax savings, beginning in 2027 and reaching the full run-rate benefit in 2028. The complete closure is anticipated in the first half of 2028. Operating cash flow climbed 57% to a second-quarter record of $434 million. The improvement reflected a $240 million positive working-capital contribution as temporary first-quarter effects normalized.Capital expenditure, net, declined 17% to $95 million, lifting free operating cash flow to $340 million from $163 million. As of June 30, 2026, ALV’s cash & cash equivalents totaled $377 million and $1.70 billion in net debt.The company repurchased $200 million of shares and paid $64 million in dividends. The quarterly dividend was 87 cents per share, up from 70 cents a year earlier. Autoliv maintained its 2026 guidance for roughly flat organic sales, an adjusted operating margin of 10.5-11% and operating cash flow of around $1.2 billion. Capital expenditure, net, is expected to remain below 5% of sales.The outlook assumes global light vehicle production will decline around 2.5%, with foreign exchange adding about 2.5% to net sales. The company expects third-quarter adjusted operating margin near the first-half level, followed by significant improvement in the fourth quarter as customer compensation, engineering income and mitigation benefits increase.Autoliv expects roughly $110 million of gross raw material cost pressure for the year but aims to offset most of the impact. The company also expects full-year tariff-related margin dilution to be similar to the roughly 20 basis points recorded in 2025. Autoliv currently has a Zacks Rank #3 (Hold).Some better-ranked stocks in the auto space are Yamaha Motor Co., Ltd. YMHAY and Gentex Corporation GNTX. While YMHAY sports a Zacks Rank #1 (Strong Buy) at present, GNTX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for YMHAY’s 2026 sales and earnings implies year-over-year growth of 0.8% and 586.4%, respectively. The EPS estimate for 2026 and 2027 has fallen 2 cents each over the past 30 days.The Zacks Consensus Estimate for GNTX’s 2026 sales and earnings implies year-over-year growth of 5.7% and 8.8%, respectively. The EPS estimate for 2026 and 2027 has improved by a penny each over the past 30 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Autoliv, Inc. (ALV) : Free Stock Analysis Report Gentex Corporation (GNTX) : Free Stock Analysis Report Yamaha Motor Co., Ltd. (YMHAY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). 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This article first appeared on GuruFocus. Net Sales: $2.8 billion, a 3% increase year-over-year. Gross Profit: Increased by $8 million. Gross Margin: Decreased by 30 basis points to 18.2%. Adjusted Operating Income: Increased by 7% to $270 million. Adjusted Operating Margin: 9.6%, up 30 basis points. Operating Cash Flow: $434 million, an increase of $157 million. Free Operating Cash Flow: Improved by $177 million to $340 million. Leverage Ratio: Improved to 1.2 times. Adjusted Earnings Per Share (EPS) Diluted: Increased by $0.23 to $2.43. Share Repurchase: $200 million. Dividend Paid: $0.87 per share. Restructuring Charges: $142 million expected, with $90 million recognized in Q2 2026. Annual Pretax Savings from Restructuring: Expected to be $40 million starting in 2027. Organic Sales Growth in India: 36% increase. Sales Outperformance in China: Outperformed light vehicle production by over 40 percentage points. Adjusted Return on Capital Employed: 25%. Adjusted Return on Equity: 28%. Is ALV fairly valued? Test your thesis with our free DCF calculator. Release Date: July 17, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Autoliv Inc (NYSE:ALV) delivered a record second quarter for sales and adjusted operating income, showcasing resilience and strong market position. The company outperformed light vehicle production in China and India, with sales growth of over 40% and 36% respectively. Autoliv Inc (NYSE:ALV) improved its leverage ratio to 1.2 times despite significant shareholder returns, indicating strong financial management. The company announced strategic cooperation agreements with leading Chinese vehicle manufacturers, Great Wall Motor and XPENG, enhancing its growth prospects. Autoliv Inc (NYSE:ALV) reported a strong operating cash flow of USD 434 million, an increase of USD 157 million, supporting its shareholder return strategy. The company faced geopolitical challenges and raw material cost volatility, particularly higher helium prices, impacting its operations. Autoliv Inc (NYSE:ALV) had to navigate several negative onetime items, including an impairment charge related to restructuring activities in Turkey. The gross margin decreased by 30 basis points due to a supplier compensation reversion and asset impairments. The company announced the gradual discontinuation of its manufacturing operations in Turkey, affecting approximately 2,200 employees. Global light vehicle production is expected to decline by 2.5% in 2026, posing a challenge to Autoliv Inc (NYSE:ALV)'s growth outlook. Q: What has changed in Autoliv's margin expectations for the year, and how should we think about raw material costs? A: Mikael Bratt, President and CEO, explained that the margin expectations have shifted to be more back-end loaded due to inflationary pressures in the value chain, particularly from the Persian Gulf. The company is managing these pressures through negotiations with suppliers and customers, and internal efficiency improvements. They expect to recover a significant portion of raw material costs by the end of the year. Q: Can you clarify the impact of the IEEPA refund on your earnings and expectations for the full year? A: Monika Grama, CFO, stated that the company received a $12 million refund from the government, of which $9 million was passed on to customers, resulting in a $3 million net positive impact. The aim is to recover the net impact of tariffs to a similar rate as the previous year, around 5%. Q: What is the rationale behind moving production from Turkey to EMEA, and how does it relate to your automation program? A: Mikael Bratt explained that the decision is part of a continuous review to optimize the global manufacturing footprint. The move allows consolidation into more competitive sites in Europe, such as Tunisia and Romania, leveraging automation and efficiency improvements. Q: How does the growing mix of Chinese OEMs in your sales impact your content per vehicle and profitability? A: Mikael Bratt noted that the growth with Chinese OEMs is crucial for future growth and securing market position. While specific profitability details weren't disclosed, the partnerships with companies like XPENG and Great Wall are seen as opportunities to drive innovation and content growth. Q: What are the drivers behind the expected acceleration in outperformance in the second half of the year? A: Mikael Bratt mentioned that the acceleration is driven by favorable FX effects, a positive regional mix, and customer compensation activities. The company expects to outperform light vehicle production by around 2.5 percentage points for the full year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Autoliv, Inc.? Here are five stocks we like better. Autoliv posted a record second quarter for sales and adjusted operating income, with net sales up 3% to $2.8 billion and adjusted operating margin improving to 9.6%. Adjusted diluted EPS rose to $2.43, and the company also generated stronger cash flow. Asia drove the company’s outperformance, especially China and India, where Autoliv beat local light vehicle production by wide margins. The company also signed strategic cooperation agreements with Great Wall Motor and XPENG to deepen ties with Chinese automakers. Autoliv kept its full-year guidance unchanged despite softer vehicle production expectations and a $110 million raw material headwind. It still expects roughly flat organic sales, adjusted operating margin of 10.5% to 11%, and about $1.2 billion in operating cash flow. Smart Money Is Buying Auto Suppliers, Not Car Brands Autoliv (NYSE:ALV) reported what executives described as a record second quarter for sales and adjusted operating income, while maintaining its full-year outlook despite weaker global vehicle production expectations, raw material headwinds and geopolitical uncertainty. President and Chief Executive Officer Mikael Bratt said the automotive safety supplier delivered “a record second quarter, both for sales and adjusted operating income,” citing strong customer partnerships, cost efficiency efforts and growth in Asia. He said the company navigated tariffs, supply chain disruptions and raw material volatility during the quarter. → Why ASML’s AI Monopoly Is Still Getting Stronger 3 Stocks With Major Buyback Power: AI & Auto in Focus Chief Financial Officer Monika Grama said second-quarter net sales were $2.8 billion, up 3% from the prior-year period. Adjusted operating income rose to $270 million from $251 million, and adjusted operating margin increased to 9.6% from 9.3%. Adjusted diluted earnings per share rose by $0.23 to $2.43, helped by higher operating income and a lower diluted share count, partly offset by higher taxes. The company said reported operating income was $192 million, which was $78 million below adjusted operating income, mainly due to capacity alignment activities. Gross profit increased by $8 million, while gross margin declined 30 basis points, reflecting a supplier compensation reversal and asset impairments related to restructuring activity. → Cintas Keeps Beating Expectations—And the Story Isn’t Over Xpeng Nails Excellent Results on 62% Sales Growth with Margins Autoliv said organic sales grew 1% in the quarter, including a negative impact from tariff-related compensation. Based on S&P Global light vehicle production data, the company outperformed the global market by more than one percentage point. Bratt highlighted particularly strong performance in Asia. In China, Autoliv outperformed light vehicle production by more than seven percentage points, supported by sales growth with Chinese automakers. Chinese OEMs accounted for 55% of Autoliv’s China sales in the quarter, up from 40% a year earlier. Bratt said the company’s sales to Chinese OEMs outperformed by more than 40 percentage points. → Blueprint for a Billion: Nebius Group Secures the AI Floor In India, Autoliv’s organic sales grew 36%, which Bratt attributed mainly to increased safety content in vehicles. The company said it outperformed India light vehicle production by about 20 percentage points. Asia excluding China outperformed the market by six percentage points, with Japan and South Korea also contributing. Autoliv also announced strategic cooperation agreements with Great Wall Motor and XPENG. Bratt said the agreements support the company’s strategy to expand with leading Chinese vehicle manufacturers and create a platform for longer-term growth as those automakers expand globally. Autoliv detailed additional structural cost actions in Europe, the Middle East and Africa, including a plan to gradually discontinue manufacturing operations in Turkey. The Turkish operations currently produce steering wheels, airbags and seat belts. Production will be transferred to existing Autoliv facilities across EMEA. The decision is expected to affect approximately 2,200 employees, with the full closure anticipated during the first half of 2028. The company expects total restructuring charges of about $142 million, including $90 million recognized in the second quarter of 2026. Cash outflow is expected to total about $129 million, with limited impact on 2026 cash flow. Autoliv expects the action to generate approximately $40 million in annual pretax savings, with benefits beginning in 2027 and reaching full run rate in 2028. During the question-and-answer session, Bratt said the Turkey decision reflected ongoing efforts to optimize the company’s manufacturing footprint rather than overcapacity at the Turkish site alone. He said production would move to other facilities, including operations in Tunisia and Romania. Autoliv reported operating cash flow of $434 million in the second quarter, up $157 million from the prior-year period. Free operating cash flow improved by $177 million to $340 million. Grama said the operating cash flow improvement was primarily driven by a $240 million positive working capital impact, reflecting normalization after a first-quarter increase tied to high March sales and one-time adverse impacts. She cited improvements in accounts payable, net receivables and accrued severance and restructuring costs. The company repurchased more than 1.6 million shares for $200 million and paid $64 million in dividends during the quarter. Grama said Autoliv’s leverage ratio improved to 1.2 times from 1.3 times despite $264 million of shareholder returns. Net debt decreased by about $75 million during the quarter. Autoliv reiterated its full-year 2026 guidance. The company expects organic sales to be flat and global light vehicle production to decline by about 2.5%, implying outperformance of roughly 2.5 percentage points. It expects a positive net currency translation effect on sales of about 2.5%. The company maintained its adjusted operating margin guidance of around 10.5% to 11%. Operating cash flow is expected to be around $1.2 billion, capital expenditures are expected to be below 5% of sales, and the tax rate is expected to be about 30%. Bratt said the outlook assumes no material changes to tariffs or trade restrictions in effect as of July 9, 2026, and no significant deterioration in macroeconomic conditions, customer call-off stability or supply chains. Autoliv’s guidance includes an expected gross raw material headwind of about $110 million. Bratt said geopolitical tension in and around the Persian Gulf could affect supply chains, raw material costs and vehicle demand. Executives said third-quarter adjusted operating margin is expected to be similar to the first-half level, with profitability stepping up significantly in the fourth quarter. Bratt said customer compensation, engineering income and other initiatives are expected to be weighted toward the fourth quarter, creating an earnings trajectory similar to 2023 and 2024. Asked by analysts about raw material recoveries, Bratt said Autoliv would use a combination of supplier negotiations, internal cost reductions and customer price adjustments. He said the process is detailed and typically handled at the component level. Grama said Autoliv recovered approximately 83% of its U.S. tariff costs in the second quarter, excluding IEPFA-related recoveries, bringing the year-to-date recovery rate to 78%. She also said the company received about $12 million from the government related to IEPFA, passed about $9 million to customers and retained a $3 million positive net impact. Bratt closed the call by highlighting Autoliv’s new innovation center in Vårgårda, Sweden, which opened in June. He said the facility brings together research, testing, prototyping and pilot production to accelerate innovation and shorten development cycles. Autoliv Inc (NYSE: ALV) is a leading global supplier of automotive safety systems, specializing in the design, development and manufacture of passive and active safety products. Its core product portfolio includes airbags, seatbelts, steering wheels, restraint control modules and pedestrian protection systems. In recent years, the company has also expanded into active safety technologies, offering radar, camera and sensor solutions that support advanced driver assistance systems (ADAS) and autonomous driving applications. Founded in 1997 following the spin-off of Electrolux's automotive safety business, Autoliv has evolved into a multinational organization with a presence in over 27 countries. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Autoliv Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.