AUTOLIV INC (ALV): Financial highlights Q3 2026 $2,693 million net sales, a decrease of 0.5%
AUTOLIV INC (ALV) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Financial Report July - September 2026 Stockholm, Sweden, October 23, 2026 (NYSE: ALV and SSE: ALIV.sdb) Financial Report July - September 2026 Q3 2026: Solid performance in a tough environment Financial highlights Q3 2026 $2,693 million net sales, a decrease of 0.5%
How this was made
The 30-second read
Why it matters
The quarter showed a marginal sales decline and lower EPS, with operating margins slipping slightly. Guidance remains near prior expectations, suggesting limited immediate catalyst.
Market read
The filing provides fresh earnings data for a major auto safety supplier, offering traders a basis for short‑term positioning.
What to watch
The opening of a second R&D center in China and solid growth in India and Japan may drive future upside not reflected in the current quarter.
Q3 2026: Solid performance in a tough environment
Q3 profitability and cash generation remained solid, but net sales, operating income, diluted EPS, gross margin and adjusted operating margin all declined from Q3 2025, while full-year adjusted operating margin guidance was narrowed to around 10.5%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net salesGAAP | $2.69B | – | (0.5)% |
| Q3 2026 organic sales changenon-GAAP | (1.1)% | – | (1.1)% |
| Q3 2026 gross profitGAAP | $496M | – | (5.0)% |
| Q3 2026 gross marginGAAP | 18.4% | – | (0.9)pp |
| Q3 2026 S,G&AGAAP | −$138M | – | 0.9% |
| Q3 2026 S,G&A, in relation to salesGAAP | (5.1)% | – | (0.1)pp |
| Q3 2026 R,D&E, netGAAP | −$99M | – | (16)% |
| Q3 2026 R,D&E, net in relation to salesGAAP | (3.7)% | – | 0.7pp |
| Q3 2026 other income (expense), netGAAP | −$5M | – | 559% |
| Q3 2026 operating incomeGAAP | $254M | – | (5.0)% |
| Q3 2026 adjusted operating incomenon-GAAP | $262M | – | (3.4)% |
| Q3 2026 operating marginGAAP | 9.4% | – | (0.4)pp |
| Q3 2026 adjusted operating marginnon-GAAP | 9.7% | – | (0.3)pp |
| Q3 2026 financial and non-operating items, netGAAP | −$24M | – | (13)% |
| Q3 2026 income before taxesGAAP | $230M | – | (4.0)% |
| Q3 2026 income taxesGAAP | −$75M | – | 16% |
| Q3 2026 tax rateGAAP | 32.5% | – | 5.6pp |
| Q3 2026 net incomeGAAP | $155M | – | (11)% |
| Q3 2026 adjusted net incomenon-GAAP | $160M | – | – |
| Q3 2026 earnings per share - dilutedGAAP | $2.13 | – | (6.8)% |
| Q3 2026 adjusted earnings per share - dilutednon-GAAP | $2.19 | – | (5.7)% |
| Q3 2026 operating cash flowGAAP | $239M | – | (7.3)% |
| Q3 2026 capital expenditure, netother | −$115M | – | 8.7% |
| Q3 2026 free operating cash flownon-GAAP | $124M | – | (18)% |
| Q3 2026 cash conversionnon-GAAP | 80% | – | (6.9)pp |
| Q3 2026 return on capital employedGAAP | 24.1% | – | (1.0)pp |
| Q3 2026 adjusted return on capital employednon-GAAP | 24.4% | – | (1.0)pp |
| 9M 2026 net salesGAAP | $8.25B | – | 3.1% |
| 9M 2026 operating incomeGAAP | $683M | – | (11)% |
| 9M 2026 adjusted operating incomenon-GAAP | $776M | – | (0.1)% |
| 9M 2026 gross marginGAAP | 18.6% | – | (0.2)pp |
| 9M 2026 operating marginGAAP | 8.3% | – | (1.3)pp |
| 9M 2026 adjusted operating marginnon-GAAP | 9.4% | – | (0.3)pp |
| 9M 2026 net incomeGAAP | $398M | – | (22)% |
| 9M 2026 earnings per share - dilutedGAAP | $5.36 | – | (19)% |
| 9M 2026 adjusted earnings per share - dilutednon-GAAP | $6.67 | – | (0.1)% |
| 9M 2026 operating cash flowGAAP | $598M | – | (2.5)% |
| 9M 2026 free operating cash flownon-GAAP | $305M | – | 1.7% |
| September 30, 2026 cash & cash equivalentsGAAP | $197M | – | (12)% |
| September 30, 2026 gross debtGAAP | $1.93B | – | (4.6)% |
| September 30, 2026 net debtnon-GAAP | $1.76B | – | (0.5)% |
| September 30, 2026 leverage rationon-GAAP | 1.3 | – | (0.0) |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q3 2026 Airbags, Steering Wheels and OtherOrganic sales grew by 0.2%; side airbags, center airbags, driver airbags and steering wheels were the largest contributors, partly offset by passenger airbags, inflatable curtains and knee airbags. | $1.85B | – | 0.9% |
| Q3 2026 Seatbelt Products and OtherOrganic sales declined by 3.9%; sales decreased organically in China, Americas and EMEA while they increased in Asia excluding China. | $845M | – | (3.5)% |
| Q3 2026 AmericasOrganic sales change was (2.9)%; performance overall was in line with LVP, while North America outperformed LVP by close to 2 percentage points. | $901M | – | 0.4% |
| Q3 2026 EMEAOrganic sales change was (2.9)%; Autoliv underperformed LVP by 3.7pp. | $711M | – | (4.5)% |
| Q3 2026 Asia excl. ChinaOrganic sales growth was 8.8%, mainly due to 29% organic sales growth in India. | $553M | – | 2.7% |
| Q3 2026 ChinaOrganic sales change was (5.8)%; sales to domestic OEMs increased organically by around 21% while sales to global OEMs decreased by around 29%. | $528M | – | 0.4% |
| 9M 2026 Airbags, Steering Wheels and OtherOrganic sales grew by 1.3%, led by side airbags and center airbags, followed by driver airbags. | $5.62B | – | 4.1% |
| 9M 2026 Seatbelt Products and OtherOrganic sales declined by 2.0%; sales decreased organically in Americas, China and EMEA while they increased in Asia excluding China. | $2.63B | – | 1.1% |
| 9M 2026 AmericasOrganic sales change was (3.8)%, with underperformance versus LVP of 3.5pp mainly from negative mix due to high LVP growth in lower content South America and lower content on some replacement models. | $2.67B | – | 1.3% |
| 9M 2026 EMEAOrganic sales change was (2.3)%; Autoliv underperformed LVP by 3.7pp. | $2.38B | – | 1.8% |
| 9M 2026 Asia excl. ChinaOrganic sales growth was 10%, mainly due to 34% organic sales growth in India. | $1.66B | – | 5.3% |
| 9M 2026 ChinaOrganic sales growth was 0.5%; sales to domestic OEMs increased organically by around 31% while sales to global OEMs decreased by around 21%. | $1.54B | – | 6.4% |
Full year 2026 outlook
- RevenueAround 0% organic sales growth
- Tax rateAround 30%
- NoteAdjusted operating margin: Around 10.5%
- NoteOperating cash flow: Around $1.2 billion
- NoteCapex, net, % of sales: Around 4%
- NoteLVP growth: Around 2%
- NoteFX impact on net sales: Around 2.5% positive
Capital returns
- Q3 2026 dividends paid: $(63) million, compared to $(65) million in Q3 2025.
- Q3 2026 share repurchases: $(150) million, compared to $(100) million in Q3 2025.
- Q3 2026 cash dividend paid per share: $(0.87), compared to $(0.85) in Q3 2025.
- In Q3 2026, Autoliv repurchased and retired 1.23 million shares of common stock at an average price of $121.69 per share.
- 9M 2026 dividends paid: $(192) million, compared to $(173) million in 9M 2025.
- 9M 2026 share repurchases: $(350) million, compared to $(201) million in 9M 2025.
- Over the last 12 months, Autoliv repurchased 4.14 million shares for $500 million, in addition to paying $258 million in dividends.
What drove it
- Global organic sales decreased by 1.1% versus a global LVP decrease of 1.9%; product launches positively affected relative performance, while regional and model LVP mix negatively affected it by around 90 bps.
- Asia excluding China delivered 8.8% organic sales growth in Q3, driven mainly by India, where organic sales growth was 29%.
- Sales to Chinese OEMs grew by more than 20%, while Chinese OEMs accounted for 58% of sales in China in the quarter, compared to around 46% a year ago.
- Q3 R,D&E, net costs decreased by $18 million, mainly due to $26 million of higher engineering income related to timing effects.
- Labor efficiency, Value Engineering material savings, customer and supplier negotiations, well-executed cost reduction initiatives and increased engineering income supported profitability.
Concerns
- Q3 net sales decreased by 0.5% and organic sales decreased by 1.1%.
- Q3 gross margin decreased to 18.4% from 19.3%, mainly reflecting the $13 million gross profit impact of supplier settlement compensation reported in Q3 2025, lower net sales and higher logistics costs.
- Raw material price changes had a gross negative impact of around $42 million in Q3, and the company estimates a gross impact of around $120 million for full-year 2026.
- Tariffs imposed in 2025 had a net negative impact after compensation of around $6 million in Q3 and an around 35 bps negative impact on operating margin including dilution.
- Customer call-off accuracy deteriorated slightly compared with Q3 2025 and Q2 2026, driven by development in China.
- Q3 tax rate was 32.5% compared with 26.9%, with discrete tax items having an unfavorable impact of 4.9pp.
- Capacity alignment costs related to restructuring activities in Türkiye contributed to negative $5 million of other income (expense), net in Q3 and to the 9M decline in GAAP operating income.
What to watch
- Full-year organic sales growth guidance of around 0% against the expected strong fourth quarter supported by product launches and significant raw material recoveries.
- Delivery of full-year adjusted operating margin of around 10.5%, narrowed to the low end of the previous range of around 10.5-11%.
- Achievement of targeted cost compensation adjustments with customers, including recovery of raw-material and tariff costs.
- Call-off volatility, geopolitical developments, tariffs, trade restrictions, supply-chain conditions and raw-material prices.
- Continued growth with Chinese OEMs and the mix shift in China, where Chinese OEMs represented 58% of quarterly sales in China.
- Full-year operating cash flow guidance of around $1.2 billion and capex, net, % of sales guidance of around 4%.
Balance sheet and cash flow
- Q3 2026 operating cash flow was $239 million, compared to $258 million in Q3 2025.
- Q3 2026 free operating cash flow was $124 million, compared to $153 million in Q3 2025.
- 9M 2026 operating cash flow was $598 million, compared to $613 million in 9M 2025.
- 9M 2026 free operating cash flow was $305 million, compared to $300 million in 9M 2025.
- September 30, 2026 cash & cash equivalents were $197 million, gross debt was $1,934 million, and net debt was $1,763 million.
- September 30, 2026 trade working capital was $1,451 million, compared to $1,504 million at September 30, 2025.
- September 30, 2026 total equity was $2,470 million, compared to $2,559 million at September 30, 2025.
- September 30, 2026 leverage ratio was 1.3, compared to 1.3 at September 30, 2025. The long-term target is equal to or below 1.5x.
Analysis
Autoliv reported Q3 net sales of $2,693 million, down 0.5% from Q3 2025, with organic sales declining 1.1%. This nevertheless exceeded the global LVP decrease of 1.9%. Asia excluding China was the main growth engine, with 8.8% organic growth, led by 29% organic growth in India. China organic sales declined 5.8% as LVP declined 6.9%, but sales to domestic OEMs increased organically by around 21% and Chinese OEMs reached 58% of sales in China. Americas and EMEA both posted 2.9% organic sales declines.
Profitability remained positive but stepped down from the prior-year quarter. Gross profit declined to $496 million from $522 million and gross margin declined to 18.4% from 19.3%. Operating income was $254 million, down 5.0%, while adjusted operating income was $262 million, down 3.4%. Adjusted operating margin was 9.7%, down from 10.0%. The company identified prior-year supplier settlement compensation, lower sales, higher logistics costs and capacity alignment costs as pressures, partly offset by lower R,D&E, net costs that included $26 million of higher engineering income related to timing effects.
Below operating income, the tax rate increased to 32.5% from 26.9%, driven in part by an unfavorable 4.9pp effect from discrete tax items related primarily to closure of tax audits. Net income fell to $155 million from $175 million and diluted EPS fell to $2.13 from $2.28. On an adjusted basis, diluted EPS was $2.19 compared with $2.32. For the first nine months, GAAP operating income declined 11% to $683 million, although adjusted operating income was nearly flat at $776 million versus $777 million, underscoring the impact of capacity alignment costs related to restructuring activities in Türkiye.
Cash flow stayed solid despite lower quarterly earnings. Q3 operating cash flow was $239 million and free operating cash flow was $124 million, compared with $258 million and $153 million, respectively, in Q3 2025. The company repurchased and retired 1.23 million shares for $150 million and paid $63 million of dividends in the quarter. Net debt was $1,763 million at September 30, 2026, while leverage ratio was 1.3, within the stated target of equal to or below 1.5x.
Management maintained full-year organic sales growth guidance of around 0% and operating cash flow guidance of around $1.2 billion. It narrowed adjusted operating margin guidance to around 10.5%, citing increased raw-material, logistics, Thailand flooding and call-off-accuracy headwinds. The guide assumes achievement of targeted customer cost-compensation adjustments, no material changes to tariffs or trade restrictions from October 15, 2026, and no significant changes in the macro-economic environment, customer call-off volatility or supply-chain disruptions.
Management, verbatim
The business environment remains uncertain but we anticipate a strong fourth quarter supported by an increasing number of product launches and significant raw material recoveries.
Mikael Bratt, President & CEO
However, the additional headwinds narrows our full year adjusted operating margin expectation to around 10.5%, the low end of our range of around 10.5-11%.
Mikael Bratt, President & CEO
We continued to successfully manage geopolitical developments during the quarter, limiting the effects of tariffs, supply chain challenges and raw material price increases.
Mikael Bratt, President & CEO
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison of reported results with prior guidance is unavailable.
- Q3 2026 prior-quarter comparisons are not reported for most income-statement and cash-flow metrics.
- Full-year 2026 GAAP revenue, GAAP gross margin, GAAP operating income, GAAP EPS, free operating cash flow and capital return guidance are not provided.
- Q3 2026 adjusted gross margin is not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Autoliv Inc. (NYSE: ALV) filed a Form 8‑K reporting its third‑quarter 2026 financial results and reaffirmed its full‑year outlook.
Ticker impact
Autoliv reported Q3 2026 net sales of $2,693M, a 0.5% decrease and lowered diluted EPS to $2.13, with full‑year guidance reaffirmed at around 0% organic sales growth and adjusted operating margin near 10.5%.
likely modest downside as the market prices in the slight sales decline and EPS decrease
The 8‑K filing is the first public disclosure of the quarter's results and guidance; the numbers are below prior‑year levels, prompting traders to adjust positions.
Market effects
Auto safety‑systems sector may see modest pressure as Autoliv's sales dip, but strong Asia performance could offset broader concerns.
European and Asian markets may react slightly to the mixed results, especially in Sweden where Autoliv is listed.
Limited global impact; the release is company‑specific without broader macro implications.
Counterpoint
Despite the slight decline, Autoliv's strong cash flow and share repurchases could support a rebound if investors focus on the dividend and buyback.
Key entities
- ExecutiveMikael Bratt
President & CEO of Autoliv, provided commentary on results and outlook.
