Autoliv's stock fell sharply by 5.46% in pre-market trading following the release of its second-quarter fiscal 2026 results, which revealed significant pressure on profitability.

The automotive safety systems maker reported a 38% year-over-year decline in diluted earnings per share to USD 1.35. While sales rose 3.3% to USD 2.8 billion, operating income plummeted 22% to USD 192 million, causing the operating margin to contract by 2.3 percentage points to 6.8%.

Management highlighted that operating income took a sharp hit from the previously announced restructuring of its manufacturing operations in Turkey, which will be phased out. The company maintained its full-year outlook for approximately no organic sales growth.