Autoliv, Inc. Earnings Summary — Q1 FY2026

• Net sales increased 6.8% to $2.75 billion, driven by a 0.8% organic growth that significantly outperformed a 3.4% decline in global Light Vehicle Production (LVP).
• Organic sales growth in China outperformed LVP by 15 percentage points, largely due to a 30% increase in sales to domestic Chinese OEMs.
• Gross profit rose 10% supported by cost reductions and favorable foreign exchange, though operating income fell 6.7% due to temporary R,D&E reimbursement timing and prior-year one-time gains.
• Operating cash flow was a negative $76 million, primarily attributed to increased working capital from strong March sales and high year-end 2025 accounts payable.
• The regional performance in India was a major highlight, with organic sales growing 38% due to increased safety content per vehicle and strong market growth.
• New product expansion is underway with the introduction of the first motorcycle airbags and wearable airbag solutions, targeting growth beyond the traditional automotive core.
• Profitability was weighed down by a 40 bps negative impact from new 2025 tariffs, despite achieving customer compensation for over 70% of those costs.

For full year 2026, Autoliv reaffirmed its guidance for around 0% organic sales growth and an adjusted operating margin between 10.5-11.0%. Operating cash flow is expected to be approximately $1.2 billion, supported by anticipated strong performance in the coming quarters to reverse current working capital trends.

Stable

While net income and margins saw year-over-year compression due to timing of reimbursements and one-off comparisons, the core operational performance and outperformance vs. LVP remain robust, leading to a maintained full-year outlook.

The company anticipates a 1% decline in global LVP for the full year. Despite geopolitical uncertainties and tariff pressures, management expects to mitigate cost headwinds through internal productivity initiatives, material mix improvements, and continued commercial negotiations.