Financial Report July - September 2026
Key Highlights
- ➤Q3 net sales $2,693 million, down 0.5% year over year
- ➤Q3 adjusted operating margin 9.7%, down 0.3 percentage points
- ➤Full-year adjusted operating margin guidance narrowed to around 10.5%
- ➤Full-year organic sales growth guidance remains around 0%
- ➤Q3 share repurchases totaled $150 million, with 1.23 million shares retired
Expert Statements
Mikael Bratt, President & CEO of Autoliv
“We continued to deliver well across all key areas in the third quarter.”
Mikael Bratt, President & CEO of Autoliv
“Our sales in India grew by nearly 30% and our sales to Chinese OEMs grew by more than 20%.”
Mikael Bratt, President & CEO of Autoliv
“Strong sales growth in Japan contributed to our sales in Asia exceeding China in the quarter.”
Mikael Bratt, President & CEO of Autoliv
“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 of Autoliv
“Well-executed cost reduction initiatives and increased engineering income contributed to a third quarter adjusted operating margin of 9.7%.”
Mikael Bratt, President & CEO of Autoliv
“Our cash flow remained strong, supporting our ambitious shareholder return strategy.”
Mikael Bratt, President & CEO of Autoliv
“To support our growing partnerships with Chinese OEMs, our innovation capabilities, global competitiveness and long term growth, we opened our second R&D center in China in Q3.”
Mikael Bratt, President & CEO of Autoliv
“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 of Autoliv
“Throughout the year, cost headwinds have increased materially, mainly related to raw materials, logistics, the recent flooding in Thailand and lower call off accuracy since Q1.”
Mikael Bratt, President & CEO of Autoliv
“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 of Autoliv
“We continue to expect unchanged organic sales growth and an operating cash flow of around $1.2 billion.”
Mikael Bratt, President & CEO of Autoliv
“Based on our full year guidance, we continue to expect strong cash flow for the year, which supports our ambition to provide attractive shareholder returns through share repurchases and dividends.”
Mikael Bratt, President & CEO of Autoliv
“Finally, I would like to invite you to our 2027 Investor Day, which will take place in Shanghai, China, on April 26 and 27, 2027.”
$2,693 million net sales, a decrease of 0.5% 1.1% organic sales decrease* 9.4% operating margin, 9.7% adj. operating margin* $2.13 diluted EPS, a 6.8% decrease
Around 0% organic sales growth Around 2.5% positive FX impact on net sales Around 10.5% 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 third quarter of 2026* Net sales decreased organically* by 1.1%, which was 0.8pp higher than the global LVP decrease of 1.9% (Mobility Global, Oct 2026) mainly driven by strong performance in Asia. Regional and customer LVP mix is estimated to have impacted sales negatively by around 0.9pp. Our organic sales* outperformed LVP in Asia excl. China and in China, while it underperformed in EMEA and was about in line with LVP in the Americas. Our strong performance in Asia excl. China was mainly due to India, where we outperformed by 11pp, driven by continued strong market growth in safety content per vehicle, while in China, we outperformed by around 20pp with Chinese OEMs. * Profitability remained strong. Operating income decreased by 5.0% mainly due to the supplier settlement compensation received in Q3 2025. Adjusted operating income* decreased by 3.4%. Operating margin was 9.4% and adjusted operating margin* was 9.7%. ROCE was 24.1% and adjusted ROCE* was 24.4%. * Cash flow remained solid. Operating cash flow was $239 million compared to $258 million in 2025. Free operating cash flow* was $124 million compared to $153 million in 2025. The leverage ratio* was 1.3x. In the quarter, a dividend of $0.87 per share was paid and 1.23 million shares were repurchased and retired. *For Non-GAAP measures see enclosed reconciliation tables. Key Figures
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