Autoliv Stock Earnings Reports

Q1 2026 highlights: Autoliv delivered a stronger-than-expected quarter with net sales up ~7% YoY (almost $2.8bn), driven by March strength and significant outperformance versus light vehicle production in China and India. Gross profit rose and gross margin improved (~60 bps), although adjusted operating income slipped 4% to $245m and the adjusted operating margin was 8.9% (down ~1 ppt) due to timing of RD&E reimbursements, one‑time items and tariff effects. Operating cash flow was negative $76m in Q1 driven by temporary working capital timing (expected to normalize); full‑year operating cash flow guidance remains ~$1.2bn and CapEx below 5% of sales. Management reiterated full‑year guidance: flat organic sales (with ~1 pp outperformance vs. LVP) and adjusted operating margin of ~10.5%–11%. Key headwinds include a revised gross raw‑material cost impact (~$90m), tariff‑recovery timing and geopolitical risks around the Persian Gulf; mitigants are productivity initiatives, customer price compensation and FX tailwinds. Capital return: $0.87/share dividend paid in Q1, buybacks paused during a restricted period but a $2.5bn repurchase authorization remains in place with an ambition of $300–$500m per year through 2029. Strategic items: continued footprint build in India, strong Chinese OEM wins/launches (notably high front‑center airbag content), and early steps into motorcycle and wearable airbag markets. Management emphasizes operational flexibility and disciplined capital allocation as levers if market conditions deteriorate.