Autoliv: Financial Report January - March 2026

Rhea-AI Summary

Autoliv (NYSE: ALV) reported Q1 2026 results with $2,753 million net sales, up 6.8% year‑over‑year and 0.8% organic growth. Operating margin was 8.6% and adjusted operating margin 8.9%. Diluted EPS was $1.88 (down 12%). Operating cash flow was negative $76 million, and free operating cash flow was negative $159 million. Leverage remained 1.3x. Full‑year 2026 guidance reiterates about unchanged organic sales and adjusted operating margin around 10.5–11%, and share repurchases of $300–500 million planned.

AI-generated analysis. Not financial advice.

Positive

• Net sales $2,753M (+6.8% YoY)
• Gross profit increased by 10%
• Guidance reiterates adjusted operating margin 10.5–11%
• Share repurchase plan $300–500M for 2026

Negative

• Diluted EPS $1.88 (down 12% YoY)
• Operating cash flow negative $76M in Q1
• Free operating cash flow negative $159M in Q1

News Market Reaction – ALV

+6.82%

35 alerts

+6.82% News Effect

+7.9% Peak in 3 hr 30 min

+$603M Valuation Impact

$9.44B Market Cap

0.1x Rel. Volume

On the day this news was published, ALV gained 6.82%, reflecting a notable positive market reaction. Argus tracked a peak move of +7.9% during that session. Our momentum scanner triggered 35 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $603M to the company's valuation, bringing the market cap to $9.44B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Net sales: $2,753M Organic sales growth: 0.8% Operating margin: 8.6% +5 more

8 metrics

Net sales $2,753M Q1 2026 vs $2,578M in Q1 2025 (6.8% increase)

Organic sales growth 0.8% Q1 2026 organic net sales growth

Operating margin 8.6% Q1 2026 vs 9.9% in Q1 2025

Adjusted operating margin 8.9% Q1 2026 vs 9.9% in Q1 2025

Diluted EPS $1.88 Q1 2026 vs $2.14 in Q1 2025 (12% decrease)

Operating cash flow -$76M Q1 2026 vs $77M in Q1 2025

Leverage ratio 1.3x Q1 2026, unchanged vs prior year and below 1.5x target limit

Dividend per share $0.87 Dividend paid in the quarter

Market Reality Check

Price: $128.23 Vol: Volume 1,087,551 is about...

normal vol

$128.23 Last Close

Volume Volume 1,087,551 is about 1.25x the 20-day average of 871,495, showing elevated interest into the print. normal

Technical Shares at $111.35 are trading below the 200-day MA of $118.47 and about 14.4% under the 52-week high of $130.14.

Peers on Argus

ALV is up about 2.0% with mixed peer moves: BWA +1.52%, LKQ +1.19%, ALSN +0.78%,...

ALV is up about 2.0% with mixed peer moves: BWA +1.52%, LKQ +1.19%, ALSN +0.78%, GNTX +0.41%, while MOD is down 1.04%, pointing to a stock-specific reaction.

Historical Context

5 past events · Latest: Mar 24 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 24	Product expansion	Positive	+0.6%	Launch of RS Taichi wearable motorcycle airbag vest with Autoliv technology.
Mar 12	Product launch	Positive	-3.6%	Introduction of airbag for Yamaha Tricity 300 commuter scooter broadening two-wheeler focus.
Mar 06	Financing programme	Neutral	+0.5%	One-year renewal of €3,000,000,000 EMTN debt programme for flexible funding.
Mar 06	Management change	Neutral	+0.5%	Appointment of Monika Grama as CFO and EVP Finance effective April 1, 2026.
Feb 19	Board change	Neutral	-1.6%	Announcement that director Martin Lundstedt will not stand for re-election.

Pattern Detected

Recent news flow has been dominated by strategic and product announcements with relatively modest single-day price reactions, often under 4% in either direction, suggesting the stock typically adjusts incrementally to company updates rather than making extreme moves.

Recent Company History

Over the last few months, Autoliv has highlighted strategic expansion and governance continuity. In Feb–Mar 2026 it announced motorcycle airbag products with RS Taichi and Yamaha, renewed a €3,000,000,000 EMTN programme, and made executive and board changes, including a new CFO effective April 1, 2026. Price reactions to these items were modest, with moves from about -3.6% to +0.6%. Today’s Q1 2026 report fits into that trajectory of incremental operational and strategic updates.

Market Pulse Summary

The stock moved +6.8% in the session following this news. A strong positive reaction aligns with mod...

Analysis

The stock moved +6.8% in the session following this news. A strong positive reaction aligns with modest top-line growth and reiterated full-year guidance, even though Q1 margins and EPS softened. Historically, Autoliv’s news flow produced relatively small one-day moves, so a gain above 5% would have stood out against prior reactions between about -3.6% and +0.6%. Investors would need to weigh sustainability of organic growth, cash flow normalization after the -$76M quarter, and execution in Asia.

Key Terms

operating margin, organic sales growth, light vehicle production, return on capital employed, +4 more

8 terms

operating margin financial

"8.6% operating margin, 8.9% adj. operating margin*"

Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.

organic sales growth financial

"Around 0% organic sales growthAround 3% positive FX impact"

Organic sales growth measures how much a company’s revenue rises from its regular business activity — like selling more products, charging higher prices, or selling to more customers — without counting money from buying other businesses or one-time currency effects. Investors watch it because it shows whether demand and the company’s core operations are genuinely getting stronger, similar to judging a garden by how much the plants you planted yourself are growing rather than by adding bought potted plants.

light vehicle production technical

"higher than the global LVP decrease of 3.4% (S&P Global Apr 2026)"

The number of passenger cars, small trucks and SUVs built by automakers during a given period; it measures the actual output coming off assembly lines. Think of it like a bakery’s daily loaf count: higher production signals stronger consumer demand, fuller factory schedules and more work for suppliers, while drops can warn of weaker sales, inventory gluts or supply problems—making it a key indicator for investors watching auto makers, parts suppliers and related commodity and employment trends.

return on capital employed financial

"ROCE was 22.2% and adjusted ROCE* was 22.9%."

Return on capital employed (ROCE) is a percentage that shows how much operating profit a company generates from the money invested in its business — including equity and long‑term debt. Investors use it to judge whether a company uses its resources efficiently, similar to measuring how much output a factory gets from its equipment; a higher ROCE suggests management is getting more profit from each dollar of capital, which can indicate better long‑term value.

free operating cash flow financial

"Free operating cash flow* thereby decreased to negative $159 million."

Free operating cash flow is the cash a business generates from its normal operations after paying for the upkeep and replacement of the equipment, buildings, or other assets needed to run the business. Think of it like the money left in your household after paying for groceries and necessary home repairs — cash available for growth, debt repayment, dividends, or savings. Investors watch it because it shows how much real, spendable cash the company produces beyond day‑to‑day running costs.

leverage ratio financial

"The leverage ratio* was unchanged compared to a year ago at 1.3x"

Leverage ratio measures how much a company relies on borrowed money compared with its own funds or assets, typically expressed as debt relative to equity or total assets. Like a homeowner with a mortgage, higher leverage can amplify returns when business is strong but also raises the chance of big losses or default if revenue falls, so investors use it to judge financial risk and resilience.

restricted stock units financial

"received a grant of 14.8887 restricted stock units (RSUs)"

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

performance-based RSUs financial

"Performance-based RSUs from 2024 and 2025 cover 451.1361 and 288.9844"

Performance-based restricted stock units (RSUs) are promises to deliver company shares to employees only if the business meets specific goals, such as revenue, profit, stock-price targets, or strategic milestones. For investors, they matter because they change future share supply and align management incentives with company results—like a salesperson whose bonus only pays out when sales targets are hit—so they can affect earnings, dilution, and confidence in leadership.

AI-generated analysis. Not financial advice.

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STOCKHOLM, April 17, 2026 /PRNewswire/ -- (NYSE: ALV) (SSE: ALIV.sdb)

Q1 2026: Solid operational performance and sales

Financial highlights Q1 2026

$2,753 million net sales, increase of 6.8%
0.8% organic sales growth*
8.6% operating margin, 8.9% adj. operating margin*
$1.88 diluted EPS, 12% decrease

Full year 2026 guidance

Around 0% organic sales growth
Around 3% positive FX impact on net sales
Around 10.5-11% adjusted operating margin
Around $1.2 billion operating cash flow

All change figures in this release compare to the same period of the previous year except when stated otherwise.

Key business developments in the first quarter of 2026

• Net sales increased organically* by 0.8%, which was 4.2pp higher than the global LVP decrease of 3.4% (S&P Global Apr 2026) driven mainly by strong progress in Asia. Regional and customer LVP mix is estimated to have impacted sales positively by about 1.5pp, while tariff compensations added around 0.5pp. Our organic sales growth* outperformed LVP significantly in China (15pp) and Asia excl. China (6.8pp) and performed in line in EMEA and underperformed in Americas (4.5pp). Our strong performance in Asia excl. China was mainly due to India, where we outperformed by 28pp, driven by continued strong market growth in safety content per vehicle, while our China performance was mainly driven by further improved presence with Chinese OEMs.
• Profitability was strong. Supported by successful execution of cost reductions and positive FX effects, gross profit increased by 10%. Operating income decreased by 6.7% and adjusted operating income* decreased by 3.9%, impacted by adverse FX translation effects and temporary lower R,D&E reimbursements as well as that Q1 2025 was positively impacted by one-time effects. Operating margin was 8.6% and adjusted operating margin* was 8.9%. ROCE was 22.2% and adjusted ROCE* was 22.9%.
• Operating cash flow was negative $76 million, mainly due to an increase in working capital due to strong sales in March, temporary effects expected to reverse later in the year and the high level of accounts payable at the end of 2025. Free operating cash flow* thereby decreased to negative $159 million. The leverage ratio* was unchanged compared to a year ago at 1.3x, below our target limit of 1.5x. In the quarter, a dividend of $0.87 per share was paid.

*For Non-GAAP measures see enclosed reconciliation tables.

Key Figures

(Dollars in millions, except per share data)	Q1 2026	Q1 2025	Change
Net sales	$2,753	$2,578	6.8 %
Operating income	237	254	(6.7) %
Adjusted operating income1)	245	255	(3.9) %
Operating margin	8.6 %	9.9 %	(1.2)pp
Adjusted operating margin1)	8.9 %	9.9 %	(1.0)pp
Earnings per share - diluted	1.88	2.14	(12) %
Adjusted earnings per share - diluted1)	2.05	2.15	(4.7) %
Operating cash flow	(76)	77	n/a
Return on capital employed2)	22.2 %	25.6 %	(3.3)pp
Adjusted return on capital employed1,2)	22.9 %	25.6 %	(2.7)pp
Dividends paid	(65)	(54)	20 %
Share repurchases	-	(50)	(100) %
1) Excluding effects from capacity alignments and antitrust related matters. Non-GAAP measure, see reconciliation table. 2) Annualized operating income and income from equity method investments, relative to average capital employed.

 

Comments from Mikael Bratt, President & CEO

The first quarter turned out better than we had anticipated, with strong sales in March. Our operational performance exceeded our expectations, with solid productivity improvements, partly supported by reduced call-off volatility. Underlying profitability improved, with gross profit increasing by 10%, although adjusted operating income was slightly lower due to temporary lower R,D&E reimbursements and the one-time income in Q1 last year.

Our positive trend in Asia continued, with strong growth in India, South Korea and China. In China, we continued to grow faster than LVP, especially with the Chinese OEMs, outperforming by 40pp. In India, we grew sales organically by 38%, reflecting mainly the trend of increased safety content in vehicles in India, as well as the continued high level of LVP growth. We continue to expand our production capabilities in India, investing in additional inflator production capacity for future growth.

I am pleased that we in the quarter introduced our first airbag for motorcycles, as well as our first wearable airbag solution for motorcycle riders, building on our long term strategy of growing business outside our traditional core business.

The quarter was characterized by ongoing and new geopolitical challenges. At this point, it is difficult to fully assess the likely impacts, as the situation remains fluid. We continue to carefully monitor the developments while preparing for various scenarios, including different mitigation strategies. 

The business environment is uncertain but our current best estimate for the remainder of the year is a re-iteration of our full year 2026 guidance of about unchanged organic sales and an adjusted operating margin of around 10.5-11%. This is based on the assumption that LVP will decline by around 1%.

Our balance sheet is healthy, with debt leverage of 1.3x, well below our target limit of 1.5x. Based on our guidance for sales and adjusted operating margin, we continue to expect strong cash flow for the year, which supports our ambitions to provide attractive shareholder returns, including to repurchase shares of $300-500 million in 2026.

Next Report

Autoliv intends to publish the quarterly earnings report for the second quarter of 2026 on Friday, July 17, 2026.

Inquiries: Investors and Analysts

Anders Trapp
Vice President Investor Relations
Tel +46 (0)709 578 171

Henrik Kaar
Director Investor Relations
Tel +46 (0)709 578 114

Inquiries: Media

Gabriella Etemad
Senior Vice President Communications
Tel +46 (0)70 612 6424

Autoliv, Inc. is obliged to make this information public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the VP of Investor Relations set out above, at 12.00 CET on April 17, 2026.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/autoliv/r/financial-report-january---march-2026,c4336339

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The full report (PDF)

 

View original content:https://www.prnewswire.com/news-releases/autoliv-financial-report-january---march-2026-302745844.html

SOURCE Autoliv

FAQ

What were Autoliv's Q1 2026 net sales and organic growth (ALV)?

Autoliv reported $2,753 million in net sales and 0.8% organic growth for Q1 2026. According to the company, sales benefited from strong Asia performance and favorable regional/customer mix and tariff compensations in March.

Why did Autoliv's diluted EPS (ALV) fall 12% in Q1 2026?

Diluted EPS declined to $1.88, a 12% decrease versus prior year. According to the company, adverse FX translation, temporary lower R&D reimbursements and one‑time prior‑year effects weighed on profitability.

What guidance did Autoliv give for full‑year 2026 adjusted operating margin (ALV)?

Autoliv reiterated an adjusted operating margin target of around 10.5–11% for 2026. According to the company, this guidance assumes about unchanged organic sales and an LVP decline of roughly 1%.

How did Autoliv's cash flow look in Q1 2026 and why (ALV)?

Operating cash flow was negative $76 million and free operating cash flow negative $159 million in Q1. According to the company, higher working capital from strong March sales and temporary timing effects caused the decline.

What shareholder returns did Autoliv (ALV) announce for 2026?

Autoliv plans to repurchase $300–500 million of shares in 2026 and paid a Q1 dividend of $0.87 per share. According to the company, expected strong cash flow for the year supports these return plans.