Autoliv (ALIV) investor relations material

Executive summary

• Q3 net sales were $2.693 billion, down 0.5% reported and 1.1% organically; organic sales outperformed global LVP by 0.8 percentage points.

• Adjusted operating margin was 9.7%; FY26 guidance narrowed to ~10.5%, the low end of the prior range, amid higher cost headwinds.

• Operating cash flow was $239 million; leverage was 1.3x, with $150 million of share repurchases and $63 million in dividends.

Financial highlights

• Q3 gross profit was $496 million, down 5.0% YoY; gross margin was 18.4% versus 19.3%.

• Adjusted operating income declined 3.4% to $262 million; reported operating income was $254 million.

• Net income was $155 million, down 11%; diluted EPS was $2.13 versus $2.28, while adjusted diluted EPS was $2.19 versus $2.32.

• 9M net sales rose 3.1% to $8.249 billion, including 0.2% organic growth; net income fell 22% to $398 million.

• 9M adjusted operating income was $776 million, down 0.1%; adjusted diluted EPS was $6.67, essentially unchanged YoY.

Outlook and guidance

• FY26 guidance: ~0% organic sales growth, ~10.5% adjusted operating margin, ~$1.2 billion operating cash flow and net CapEx of ~4% of sales.

• Assumptions include global LVP down ~2%, positive FX impact of ~2.5% on sales and a tax rate of ~30%, excluding unusual tax items.

• Stronger Q4 performance is expected, supported by higher sales, engineering income, product launches, raw-material recoveries and efficiency measures.

• Guidance assumes no material tariff or trade-restriction changes from Oct. 15 conditions, significant macro or supply disruptions, and achievement of targeted customer cost recoveries.