Autoliv (ALIV) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered record net sales of $2,753 million, up 6.8% year-over-year, driven by strong growth in Asia, especially India and China, and positive currency effects.

• Gross profit rose 10% year-over-year to $526 million (19.1% margin), but adjusted operating income declined slightly due to lower RD&E reimbursements, higher R&D and SG&A costs, and one-time gains in Q1 2025.

• Diluted EPS decreased 12% to $1.88; adjusted EPS was $2.05, down 4.7% year-over-year.

• Dividend of $0.87 per share ($65 million total) paid; $50 million in share repurchases; share buybacks paused during restricted period but $2.5 billion repurchase authorization through 2029 remains.

• Launched first motorcycle airbag and wearable airbag solution, expanding product innovation and diversification beyond core automotive business.

Financial highlights

• Net sales reached $2,753 million, up 6.8% year-over-year, with $154 million positive FX impact and $14 million from tariff compensation.

• Adjusted operating income was $245 million (8.9% margin), down from $255 million (9.9%) in Q1 2025.

• Gross margin improved to 19.1% from 18.6% year-over-year.

• Operating cash flow was negative $76 million, mainly due to increased working capital from strong March sales.

• Free operating cash flow was negative $159 million, reflecting working capital swings.

Outlook and guidance

• Full-year 2026 guidance reiterated: organic sales growth around 0%, adjusted operating margin 10.5–11%, and operating cash flow around $1.2 billion.

• Global light vehicle production expected to decline by about 1%; company expects to outperform by 1 percentage point, with 3% positive FX impact on net sales.

• CapEx forecasted below 5% of sales; tax rate expected around 28%.

• Plans to repurchase $300–500 million in shares during 2026; $2.5 billion repurchase program through 2029.

• Guidance assumes no major changes in tariffs, trade restrictions, or macroeconomic environment as of April 10, 2026.