Investing.com -- Autoliv Inc. (NYSE: ALV) reported second-quarter results that missed earnings expectations despite topping revenue estimates, as restructuring costs weighed on profitability.

The automotive safety supplier posted adjusted earnings per share of $2.43, falling short of the analyst consensus of $2.46. Revenue reached $2.8 billion, exceeding the $2.77 billion estimate and marking a 3.3% increase from $2.71 billion in the prior-year quarter. Organic sales grew 1.0%, outpacing the global light vehicle production decline of 0.3%, driven by strong performance in Asia where the company significantly outperformed in China and India.

Shares have fallen 5% premarket following the results. Operating margin declined to 6.8% from 9.1% in the prior-year period, though adjusted operating margin improved to 9.6% from 9.3%, supported by direct material cost savings despite headwinds from foreign exchange and raw material prices.

"Through focused execution, we maintained the positive momentum from the first quarter," said Mikael Bratt, President and CEO. "Globally, our sales grew organically more than 1pp faster than global LVP, outgrowing LVP significantly in Asia."

The company's sales to Chinese original equipment manufacturers grew by more than 40%, with Chinese OEMs now accounting for 55% of sales in China compared to 40% a year ago. Sales in India continued to grow by more than 35%.

Operating cash flow reached $434 million, up 57% from $277 million in the prior-year quarter, marking the best second quarter performance to date. The company repurchased 1.65 million shares for $200 million during the quarter.

For fiscal 2026, Autoliv maintained its guidance of around 0% organic sales growth and adjusted operating margin of around 10.5-11%, with operating cash flow of around $1.2 billion. The midpoint of the margin guidance at 10.75% compares to the company's first-half adjusted operating margin of 9.3%. The company expects third quarter adjusted operating margin to be around the first-half level, with significant improvement in the fourth quarter.