Financial Report July

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Financial Report July – September 2026

STOCKHOLM, Oct. 23, 2026 /PRNewswire/ —

Q3 2026: Solid performance in a tough environment

$2,693 millionnet sales, adecrease of0.5%
1.1%organic sales decrease*
9.4% operating margin,9.7% adj. operating margin*
$2.13diluted EPS, a 6.8% decrease

Around 0% organic sales growth
Around 2.5% positive FX impact on net sales
Around 10.5% adjusted operating margin
Around $1.2 billion operating cash flow
All change figures in this release compare to the same period of the previous year except when stated otherwise.

Key business developments in the third quarter of 2026

• Net sales decreased organically* by 1.1%, which was 0.8pp <a href="https://bitcomme.com/in-higher-education-the-race-is-on-to-offer-ai-as-an-undergraduate-major/” title=”In higher education, the race is on to offer AI as an undergraduate major”>higher than the global LVP decrease of 1.9% (Mobility Global, Oct 2026) mainly driven by strong performance in Asia. Regional and customer LVP mix is estimated to have impacted sales negatively by around 0.9pp. Our organic sales* outperformed LVP in Asia excl. China and in China, while it underperformed in EMEA and was about in line with LVP in the Americas. Our strong performance in Asia excl. China was mainly due to India, where we outperformed by 11pp, driven by continued strong market growth in safety content per vehicle, while in China, we outperformed by around 20pp with Chinese OEMs.

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

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