AUTOLIV INC
For the period ended Mar 31, 2026. Filed Apr 17, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed Apr 17, 2026
ALV$123.47-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-17.
0001193125-25-242063
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-17.
0001193125-26-160472
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 185 previous paragraphs and 134 current paragraphs.
75 unchanged; 31 reworded; 28 added; 72 removed; 7 previous and 0 current paragraphs rearranged.
Tables are not compared: 22 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (28)
Current report
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 (Non-GAAP measure, see reconciliation table below) was slightly lower due to temporary lower R,D&E reimbursements and the one-time income in Q1 last year.
Current report
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 (Non-GAAP measure, see reconciliation table below) 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.
Current report
We are 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.
Current report
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.
Current report
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 (Non-GAAP measure) and an adjusted operating margin (Non-GAAP measure) of around 10.5-11%. This is based on the assumption that LVP will decline by around 1%.
Current report
Our balance sheet is healthy, with debt leverage (Non-GAAP measure, see reconciliation table below) 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.
Current report
$2,753 million net sales, increaseof 6.8%
Current report
0.8% organic sales growth (Non-GAAP measure, see reconciliation table below)
Current report
8.6% operating margin,8.9% adjusted. operating margin (Non-GAAP measure, see reconciliation table below)
Current report
$1.88 diluted EPS,12% decrease
Current report
Profitability was strong. Supported by successful execution of cost reductions and positive foreign currency effects, gross profit increased by 10%. Operating income decreased by 6.7% and adjusted operating income (Non-GAAP measure, see reconciliation table below) decreased by 3.9%, impacted by adverse foreign currency 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 (Non-GAAP measure, see reconciliation table below) was 8.9%. ROCE was 22.2% and adjusted ROCE (Non-GAAP measure, see reconciliation table below) was 22.9%.
Current report
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 (Non-GAAP measure, see reconciliation table below) thereby decreased to negative $159 million. The leverage ratio (Non-GAAP measure, see reconciliation table below) 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.
Current report
Raw material price changes had only a small negative impact on our profitability in the first quarter, with a gross impact of around $5 million. For the full year 2026, our current assessment is for around $90 million gross impact from higher raw material prices. We expect to be able to mitigate a majority of this headwind, mainly through internal cost reductions, material mix improvements and commercial negotiations with customers and suppliers. Given the continued uncertainty in the geopolitical environment, the effects of tariffs and trade restrictions may lead to a more adverse inflation environment. We continue to execute on productivity and cost reduction initiatives to offset these cost pressures.
Current report
The effects of the new tariffs imposed in 2025 impacted our profitability negatively in the first quarter 2026. Although we achieved customer compensations for more than 70% of tariff costs, the net effect on operating margin was around 40bps negative, including the dilution effect. While it is our ambition and expectation to continue passing tariff costs on to our customers, there is significant uncertainty as future recovery levels may vary. For the full year 2026, we estimate the tariff-related dilution on operating margin to be similar to the around 20 bps that it was for full year 2025.
Current report
We currently do not expect any material impact from the U.S. Supreme Court's ruling that the International Emergency Economic Powers Act did not authorize the imposition of the tariffs in 2025, as our gross exposure is limited to around $25 million and the net exposure is well below $10 million.
Current report
Ongoing geopolitical developments, including the hostilities in and around the Persian Gulf, introduce additional uncertainty into the global economic environment. These conditions may affect supply chains, commodity prices, customer demand, and broader market stability. As a result, our current financial guidance reflects the best information available today but may be subject to change should these geopolitical dynamics materially impact our operations or the markets in which we operate.
Current report
We continue to closely monitor both geopolitical developments and the tariff policy environment in order to be agile to adjust our commercial and operational responses to any such developments.
Current report
LVP in China declined substantially with global OEMs declining by 8.5% and Chinese OEMs declining by 11%. Our sales to domestic OEMs increased by around 30% while our sales to global OEMs decreased by around 10%. We expect continued strong sales growth in China in 2026, driven mainly by our performance with domestic OEMs. Our strong sales growth in Asia excluding China was mainly due to 38% organic sales growth (Non-U.S. GAAP measure, see reconciliation table above) in India, reflecting LVP growth but mainly the trend of increased safety content in vehicles in India.
Current report
Income before taxes decreased by $30 million compared to the prior year, mainly due to the lower operating income and higher costs for financial and non-operating items, net.
Current report
First quarter of 2026 development
Current report
Changes in operating working capital impacted operating cash flow by $349 million negative compared to an impact of $179 million negative in the prior year. The $349 million increase in operating working capital mainly comes from $175 million increase in receivables and $134 million decrease in accounts payables. The increase in operating working capital is mainly related to high level of sales in March 2026, other temporary effects that are expected to reverse later in the year and the high level of accounts payable at the end of December 2025.
Current report
Reconciliation of GAAP measure "Other non-operating items, net" to Non-GAAP measure "Adjusted Other non-operating items, net"
Current report
On February 19, 2026, Autoliv announced that Mr. Martin Lundstedt, a current member of the Board of Directors, has elected not to stand for re-election. Mr. Lundstedt's service as a director will end at the 2026 Annual Stockholders Meeting.
Current report
On March 6, 2026, Autoliv announced that its Board of Directors appointed Monika Grama as the new Chief Financial Officer and Executive Vice President, Finance, of the Company. Ms. Grama succeeded Fredrik Westin as of April 1, 2026. Ms. Grama has served as the Vice President, Finance of the Autoliv Europe Middle East and Africa (EMEA) division since 2020. Monika Grama joined Autoliv in 2009 and, prior to her current role, she served as Finance Manager and Managing Director of Autoliv Romania, one of Autoliv's largest production hubs globally. Ms. Grama has played a vital role in contributing to the development of the Autoliv EMEA division during a challenging period for the automotive industry.
Current report
On March 6, 2026, Autoliv announced the renewal for one year of its €3 billion guaranteed euro medium term note program, originally established on April 11, 2019.
Current report
On March 12, 2026, Autoliv announced it has together with Yamaha Motor Co. co-developed an innovative airbag system for the new Tricity commuter scooter. This is a significant step toward making advanced safety solutions accessible to a wider range of riders, moving beyond their previous availability solely on high-end motorcycles. The collaboration reflects Autoliv's continued expansion beyond its core business and supports the company's long-term strategic direction.
Current report
On March 24, 2026, Autoliv announced it has developed its first complete wearable protection for motorcycle riders: a vest with an integrated airbag system designed to reduce critical injury risks in the event of a crash. This system is being launched in collaboration with RS Taichi, a leading manufacturer of motorcycle riding gear, who will bring it to market. This initiative complements Autoliv's motorcycle and bike offer and supports its long-term strategy to explore opportunities beyond its core business of airbags, seatbelts and steering wheels for light vehicles.
Current report
The Board has set Thursday, May 7, 2026 as the date for the 2026 Annual Stockholders Meeting. The Board has decided that the meeting will be in-person only.
Removed paragraphs (72)
Previous report
We are pleased to, once again, report a record breaking quarter. This quarter is the best third quarter so far, for sales, operating income and EPS. The performance was driven by better than expected sales, especially in Americas and Europe, and successful actions to reduce costs and achieve tariff compensation. We are pleased that we had a solid outperformance with the domestic Chinese OEMs. The ramp-up of certain models started slower than expected, but improved gradually during the quarter. We expect increased outperformance in China in the fourth quarter. Driven by increased penetration of automotive safety, our high growth in India continued, accounting for around one third of our global organic growth in the third quarter.
Previous report
We invest for continued success in China. We started building a second R&D Center in China to support our growing business with Chinese OEMs both in China and globally. In addition, in October we signed a strategic agreement with CATARC, the leading research institution setting standards in China’s automotive sector, to jointly advance automotive safety standards and innovation. Furthermore, we recently announced our plans to form a joint venture with HSAE, a leading Chinese automotive electronics developer, to develop and manufacture advanced safety electronics to increase vertical integration of our product portfolio.
Previous report
We recovered around 75% of tariff costs in the third quarter, and expect to recover most of what remains in the fourth quarter. We continue to closely monitor the situation, and remain adaptive and agile.
Previous report
Our focus on operational efficiency, commercial excellence and our cost reduction programs continue to yield results. In the quarter, sales grew organically by 4% (Non-U.S. GAAP measure, see reconciliation table below), gross profit by 14%, operating income by 18% and EPS by 31%. Supported by strong balance sheet control, operating cash flow increased by 46%, and with a lower capex, net, free cash flow (Non-U.S. GAAP measure, see reconciliation table below) improved substantially. As a result, we kept our leverage ratio (Non-U.S. GAAP measure, see reconciliation table below) at 1.3x, despite increasing the dividend by 21% and repurchasing shares for $100 million in the quarter.
Previous report
We remain confident in achieving our full year guidance of an adjusted operating margin (Non-U.S. GAAP measure) of around 10-10.5%, currently expecting to come in at the midpoint of the range.
Previous report
$2,706 millionnet sales
Previous report
5.9% net sales increase
Previous report
3.9% organic sales growth (Non-U.S. GAAP measure, see reconciliation table below)
Previous report
9.9% operating margin
Previous report
10.0% adjusted operating margin (Non-U.S. GAAP measure, see reconciliation table below)
Previous report
$2.28 diluted EPS, 31% increase
Previous report
$2.32 adjusted diluted EPS (Non-U.S. GAAP measure, see reconciliation table below), 26% increase
Previous report
Profitability improved significantly, mainly due to organic sales growth, successful execution of cost reductions, and positive effects from supplier settlement and compensation. We estimate that the negative impact from U.S. tariffs was around 20bps on operating margin, as we managed to pass on most of the tariff costs to our customers. Operating income increased by 18% to $267 million and adjusted operating income (Non-U.S. GAAP measure, see reconciliation table below) increased by 14% to $271 million. Operating margin was 9.9% and adjusted operating margin (Non-U.S. GAAP measure, see reconciliation table below) was 10.0%. ROCE was 25.1% and adjusted ROCE (Non-U.S. GAAP measure, see reconciliation table below) was 25.5%.
Previous report
Operating cash flow increased by 46%, reflecting improved profit and working capital. Capital expenditure, net, was significantly reduced, and free operating cash flow (Non-U.S. GAAP measure, see reconciliation table below) increased substantially. The leverage ratio (Non-U.S. GAAP measure, see reconciliation table below) of 1.3x is below our target limit of 1.5x. In the quarter, a dividend of $0.85 per share (21% increase from the second quarter of 2025) was paid and 0.84 million shares were repurchased and retired.
Previous report
Inflation
Previous report
In the third quarter, cost pressure from labor and other items impacted our profitability negatively, although to a lesser degree than in the third quarter of 2024. Most of the inflationary cost pressure was offset by price increases and other customer compensations in the quarter. Raw material price changes did not have a meaningful impact on our profitability during the quarter. The continued uncertainty regarding the effects of tariffs and trade restrictions may lead to a more adverse inflation environment. We continue to execute on productivity and cost reduction initiatives to offset these cost pressures.
Previous report
The effects from the new tariffs imposed in the first nine months of the year did not have a material impact on our profitability in the third quarter, as we achieved customer compensations for most tariff costs. It is our ambition and expectation that we will continue to pass on tariff costs to our customers, although there is significant uncertainty. We recovered around 75% of the tariffs in the third quarter, and we expect to recover most of what remains later in the year. The impact of the tariffs not yet recovered on our operating income was around $5 million negative in the quarter. Including the dilutive effect of tariffs recovered, operating margin was negatively impacted by around 20bps. For the full year 2025, we expect the tariff dilution on our operating margin to be around 20 bps. Geopolitical uncertainties will continue to create a challenging operating environment. Any new, increased or changed tariffs or other related trade restrictions imposed during the remainder of 2025 may impact our operations and contribute to the uncertainty of industry expectations. We continue to closely monitor the tariff policy environment and are prepared to remain agile in responding to any such developments.
Previous report
LVP growth in China was driven by domestic OEMs with typically lower safety content. LVP for global OEMs was unchanged while it increased by 15% for domestic OEMs. Autoliv's sales growth with domestic OEMs grew by 23% while our sales with global OEMs decreased by 5%. Our sales performance relative to LVP in China in the quarter is a significant improvement over recent quarters.
Previous report
We expect that our strong order intake with domestic OEMs and a record high number of new launches will further improve our relative sales performance in China in the fourth quarter of 2025.
Previous report
Change third quarter of 2025 versus third quarter of 2024
Previous report
Gross profit increased by $63 million, and gross margin increased by 1.3pp compared to the prior year. The drivers behind the gross profit improvement were mainly positive effects from higher sales and improved operational efficiency with lower costs for labor and waste and scrap. The gross profit improvement was also due to a third quarter of 2024 $14 million cost related to a supplier settlement and a third quarter of 2025 $15 million (unrelated) supplier compensation (of which around $13 million impacted gross profit) as well as lower material costs. This was partly offset by negative effects from recalls and warranty, depreciation and un-recovered tariff costs.
Previous report
Other income (expense), netwas negative $1 million, compared to negative $9 million in the same period last year. The difference compared to last year is almost entirely due to lower restructuring costs.
Previous report
Adjusted operating income(Non-U.S. GAAP measure, see reconciliation table below) increased by $34 million compared to the prior year, due to the higher gross profit, partly offset by the higher costs for R,D&E, net, and S,G&A, as outlined above.
Previous report
Income before taxes increased by $43 million compared to the prior year, mainly due to the higher operating income.
Previous report
Earnings per share, diluted increased by $0.54 compared to the prior year. The main drivers were $0.36 from higher operating income, $0.09 from taxes, $0.08 from lower number of outstanding shares, diluted, and $0.02 from financial items.
Previous report
nine months period ended September 30, 2025 compared with nine months period ended September 30, 2024
Previous report
Consolidated Sales Development
Previous report
(dollars in millions)
Previous report
1)Effects from currency translations.
Previous report
2)Including Corporate sales.
Previous report
Sales for Airbags, Steering Wheels and Other grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 2.8% in the period. The largest contributor to the increase was inflatable curtains and side airbags, followed by center airbags, steering wheels and driver airbags. This was partly offset by declines for knee airbags while sales of passenger airbags were close to unchanged.
Previous report
Sales for Seatbelt Products and Other grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 3.9% in the period. Sales growth was mainly driven by Americas and Asia excluding China followed by Europe and China.
Previous report
Sales by region
Previous report
Our global organic sales (Non-U.S. GAAP measure, see reconciliation table above) increased by 3.1% compared to the global LVP increase of 3.9% (according to S&P Global, October 2025). The relative performance was positively impacted by product launches and tariff compensations. This was more than offset by negative effects from the regional and model LVP mix development, which we estimate contributed to about 3pp underperformance. This was particularly accentuated in China. Our organic sales growth (Non-U.S. GAAP measure, see reconciliation table above) outperformed LVP growth by 3.5pp in Americas, by 3.4pp in Europe and by 3.0pp in Asia excluding China, while we underperformed by 9.3pp in China.
Previous report
LVP growth in China in the first nine months was driven by domestic OEMs with typically lower safety content. LVP for global OEMs declined by 2.3% while it increased by 20% for domestic OEMs. Autoliv's sales to domestic OEMs increased by 16% in the first nine months of 2025, while it decreased by 5.7% to global OEMs in China. We expect that our strong order intake with domestic OEMs and a record number of new launches will improve Autoliv's sales performance in China in the fourth quarter of 2025.
Previous report
Light Vehicle Production Development
Previous report
Source: S&P Global, October 2025.
Previous report
Earnings
Previous report
2)Net of treasury shares.
Previous report
First nine months 2025 financial development
Showing the first 40 of 72 passages. Open the source sections for the rest.
Reworded paragraphs (31)
Previous wording
Some of the following discussions refer to non-U.S. GAAP financial measures: see reconciliations for “Organic sales,” “Free operating cash flow,” “Cash conversion,” “Net debt,” “Leverage ratio,” “Adjusted net income,” “Adjusted operating income,” “Adjusted operating margin,” “Adjusted earnings per share, diluted,” “Adjusted return on capital employed,” and “Adjusted return on total equity” provided below. Management believes that these non-U.S. GAAP financial measures provide supplemental information to investors regarding the performance of the Company’s business and assist investors in analyzing trends in the Company's business. Additional descriptions regarding management’s use of these financial measures are included below. Investors should consider these non-U.S. GAAP financial measures in addition to, rather than as substitutes for, financial reporting measures prepared in accordance with U.S. GAAP. These historical non-U.S. GAAP financial measures have been identified as applicable in each section of this report with a tabular presentation reconciling them to the most directly comparable U.S. GAAP financial measures. It should be noted that these measures, as defined, may not be comparable to similarly titled measures used by other companies.
Current wording
Some of the following discussions refer to non-U.S. GAAP financial measures: see reconciliations for “Organic sales,” “Free operating cash flow,” “Cash conversion,” “Net debt,” “Leverage ratio,” “Adjusted net income,” “Adjusted operating income,” “Adjusted operating margin,” “Adjusted other non-operating items,net,” “Adjusted earnings per share, diluted,” “Adjusted return on capital employed,” and “Adjusted return on total equity” provided below. Management believes that these non-U.S. GAAP financial measures provide supplemental information to investors regarding the performance of the Company’s business and assist investors in analyzing trends in the Company's business. Additional descriptions regarding management’s use of these financial measures are included below. Investors should consider these non-U.S. GAAP financial measures in addition to, rather than as substitutes for, financial reporting measures prepared in accordance with U.S. GAAP. These historical non-U.S. GAAP financial measures have been identified as applicable in each section of this report with a tabular presentation reconciling them to the most directly comparable U.S. GAAP financial measures. It should be noted that these measures, as defined, may not be comparable to similarly titled measures used by other companies.
Previous wording
Net sales increased organically (Non-U.S. GAAP measure, see reconciliation table below) by 3.9%, which was 0.7pp lower than the global LVP increase of 4.6% (S&P Global Oct 2025). Regional and customer LVP mix is estimated to have negatively impacted sales by about 1pp, while tariff compensations added around 0.5pp. We outperformed in Asia, excl. China and Americas and underperformed in China and Europe. Our organic sales growth (Non-U.S. GAAP measure) in China to Chinese OEMs was about 8pp higher than COEM LVP growth. We expect that our record number of new launches will continue to support our sales performance in China in the fourth quarter.
Current wording
Net sales increased organically (Non-GAAP measure, see reconciliation table below) by 0.8%, which was 4.2pp higher than the global LVP decrease of 3.4% (S&P Global, April 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 (Non-GAAP measure) 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.
Previous wording
In the third quarter of 2025, global LVP increased by 4.6% year-over-year (according to S&P Global Oct 2025). Call-off volatility improved slightly compared to a year earlier, although it remains higher than pre-pandemic levels. Low customer demand visibility and changes to customer call-offs with short notice, although they improved, continued to have some negative impact on our production efficiency and profitability. We expect call-off volatility for the full year 2025 on average to be slightly lower than it was in 2024 but still remain higher than pre-pandemic levels. However, the continued uncertainty regarding future changes in tariffs and trade restrictions may lead to a more negative call-off volatility environment.
Current wording
Call-off volatility improved somewhat compared to both Q4 2025 and Q1 2025, although it still remains higher than pre-pandemic levels. Low customer demand visibility and changes to customer call-offs with short notice continued to have some negative impact on our production efficiency and profitability. We expect call-off volatility for the full year 2026 on average to be slightly improved compared to 2025 but still remain higher than pre-pandemic levels. However, the continued significant uncertainty in the geopolitical environment and future changes in tariffs and trade restrictions may lead to more negative call-off volatility.
Previous wording
Geopolitical risks and tariffs
Current wording
Raw material inflation, geopolitical risks and tariffs
Previous wording
Sales for Airbags, Steering Wheels and Other grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 3.6% in the quarter. The largest contributors to the increase was inflatable curtains, side airbags, driver airbags and center airbags, followed by smaller increases for passenger airbags and knee airbags. This was partly offset by a decline for steering wheels.
Current wording
Sales for Airbags, Steering Wheels and Other grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 0.7% in the quarter. The largest contributors to the increase were center airbags, driver airbags and side airbags, partly offset by declines for passenger airbags and inflatable curtains.
Previous wording
Sales for Seatbelt Products and Other grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 4.5% in the quarter. Sales increased organically in all regions, led by strong growth in Europe and Americas followed by China and Asia excluding China.
Current wording
Sales for Seatbelt Products and Other grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 1.1% in the quarter. Sales increased organically in Asia excluding China, EMEA and China while sales declined in Americas.
Previous wording
Our global organic sales (Non-U.S. GAAP measure, see reconciliation table above) increased by 3.9% compared to the global LVP increase of 4.6% (according to S&P Global, October 2025). The relative performance was positively impacted by product launches and tariff compensations. This was more than offset by negative effects from the regional and model LVP mix development, which we estimate contributed to about 1pp underperformance. This was particularly accentuated in China. Our organic sales growth (Non-U.S. GAAP measure, see reconciliation table above) underperformed LVP growth by 3.5pp in China and by 1.2pp in Europe, while we outperformed by 4.2pp in Asia, excl. China and by 0.5pp in Americas.
Current wording
Our global organic sales (Non-U.S. GAAP measure, see reconciliation table above) increased by 0.8% compared to the global LVP decrease of 3.4% (according to S&P Global, April 2026). The relative performance was positively impacted by product launches but also by positive effects from the regional and model LVP mix development, which we estimate contributed to about 1.5pp outperformance and by tariff compensations of around 0.5pp. Our organic sales growth (Non-U.S. GAAP measure) outperformed LVP growth by 15pp in China and by 6.8pp in Asia excluding China. We performed in line with LVP in EMEA and underperformed by 4.5pp in Americas, impacted mainly by negative mix due to a high LVP growth in low content South America and a lower content on some replacement models.
Previous wording
Third quarter of 2025 organic growth 1)
Current wording
First quarter of 2026 organic growth 1)
Previous wording
Change first nine months of 2025 versus first nine months of 2024
Current wording
Change first quarter of 2026 versus first quarter of 2025
Previous wording
Third quarter of 2025 financial development
Current wording
First quarter of 2026 financial development
Previous wording
Gross profit increased by $125 million, and gross margin increased by 1.1pp compared to the prior year. The drivers behind the gross profit improvement were mainly improved operational efficiency with lower costs for labor, logistics, premium freight and waste and scrap. We also had positive effects from the organic sales growth and lower material costs partly offset by negative effects from recall and warranty costs and un-recovered tariffs.
Current wording
Gross profit increased by $48 million and gross margin increased by 0.6pp compared to the prior year. The drivers behind the gross profit improvement were mainly positive foreign currency effects, improved operational efficiency with lower costs for labor as well as positive effects from higher sales. This was partly offset by increased tariff costs, net.
Previous wording
S,G&A costs increased by $8 million compared to the prior year, mainly due to higher costs for personnel. S,G&A costs in relation to sales increased from 5.0% to 5.1%.
Current wording
S,G&A costs increased by $16 million compared to the prior year, mainly due to $10 million in negative foreign currency translation effects and $5 million in higher costs for personnel driven by wage inflation and a non-recurring cost of $4 million. S,G&A costs in relation to sales increased from 5.6% to 5.8%.
Previous wording
R,D&E, net costs increased by $22 million compared to the prior year, mainly due to lower engineering income. R,D&E, net, in relation to sales increased from 3.7% to 4.3%.
Current wording
R,D&E, net, costs increased by $25 million compared to the prior year, mainly due to $11 million in lower engineering income related to timing effects, $5 million in higher personnel costs due to wage inflation and $4 million in negative FX translation effects. R,D&E, net, in relation to sales increased from 3.7% to 4.3%.
Previous wording
Other income (expense), net was positive $13 million, compared to negative $27 million in the same period last year. The improvement compared to last year is due to lower restructuring costs and the recycled accumulated currency translation differences related to the divestment of our idled operations in Russia in Q1 2025.
Current wording
Other income (expense), net, was negative $9 million, compared to positive $15 million in the same period last year. The positive $15 million in 2025 related mainly to recycled accumulated currency translation differences related to the divestment of our idled operations in Russia while the negative $9 million in 2026 related mainly to restructuring costs in EMEA.
Previous wording
Operating income increased by $41 million compared to the prior year, due to the higher gross profit and improvement in Other income (expense), net, partly offset by the higher costs for R,D&E, net, and S,G&A, as outlined above.
Current wording
Operating income decreased by $17 million compared to the prior year, due to the higher costs for R,D&E, net, Other income (expense) and S,G&A, partly offset by higher gross profit as outlined above.
Previous wording
Adjusted operating income (Non-U.S. GAAP measure, see reconciliation table below) increased by $120 million compared to the prior year, due to the higher gross profit, lower costs for R,D&E, net, and the improvement in Other income (expense), partly offset by higher costs for S,G&A, as outlined above.
Current wording
Adjusted operating income(Non-U.S. GAAP measure, see reconciliation table below) decreased by $10 million compared to the prior year, due to the higher costs for R,D&E, net, S,G&A and Other income (expense), partly offset by higher gross profit as outlined above.
Previous wording
Financial and non-operating items, net was negative $27 million compared to negative $29 million a year earlier. The improvement comes from $2 million in lower interest expense.
Current wording
Financial and non-operating items, net, was negative $35 million compared to negative $22 million a year earlier. The cost increase comes from $12 million in higher costs for non-operating items mainly related to restructuring costs in Americas.
Previous wording
Tax rate decreased to 26.9% compared to 29.6% the prior year. Discrete tax items, net, had a favorable impact of 1.3pp in the third quarter of 2025, while discrete tax items, net had a favorable impact of 1.2pp in the corresponding quarter last year.
Current wording
Tax rate was 29.9% compared to 28.0% the prior year. Discrete tax items, net, had an unfavorable impact of 2.3pp in the first quarter 2026, while discrete tax items, net were not material in the corresponding quarter last year.
Previous wording
Earnings per share, diluted increased by $1.61 compared to the prior year. The main drivers were $1.28 from higher operating income and $0.29 from lower number of outstanding shares, diluted, and $0.06 from taxes partly offset by $0.02 from financial items.
Current wording
Earnings per share, diluted decreased by $0.26 compared to the prior year. The main drivers were $0.16 from lower operating income, $0.12 from financial and non-operating items, $0.05 from taxes partly offset by $0.07 from lower number of outstanding shares, diluted.
Previous wording
Operating cash flow decreased by $27 million to $613 million compared to the prior year, mainly because the increase in operating working capital was larger than the increase in net income.
Current wording
Operating cash flow decreased by $153 million to $(76) million compared to the prior year, mainly because of the increase in operating working capital outlined above and a lower net income, partly offset by higher depreciation and other non-cash adjustments.
Previous wording
Capital expenditure, net decreased by $40 million compared to the prior year. The level of capital expenditure, net, in relation to sales declined to 3.9% versus 5.7% a year earlier. The lower level of capital expenditure, net is mainly related to the lower activity level of footprint optimization in Europe and Americas and less capacity expansion, especially in Asia.
Current wording
Capital expenditure, net, decreased by $10 million compared to the prior year. The level of capital expenditure, net, in relation to sales declined to 3.0% versus 3.6% a year earlier. The lower level of capital expenditure, net is mainly related to the lower activity level of footprint optimization and less capacity expansion.
Previous wording
Free operating cash flow (Non-U.S. GAAP measure, see reconciliation table below) was positive $300 million compared to positive $208 million in the prior year. The increase was due to the lower capital expenditure, net, partly offset by the lower operating cash flow, as outlined above.
Current wording
Free operating cash flow(Non-U.S. GAAP measure, see reconciliation table below) was negative $159 million compared to negative $16 million in the prior year. The decrease was due to the lower operating cash flow partly offset by the lower capital expenditure, net, as outlined above.
Previous wording
Cash conversion (Non-U.S. GAAP measure, see reconciliation table below) defined as free operating cash flow (Non-U.S. GAAP measure, see reconciliation table below) in relation to net income, was 87% in the quarter compared to 23% a year earlier. The increase occurred because free operating cash flow increased more than net income.
Current wording
Cash conversion (Non-U.S. GAAP measure, see reconciliation table below) defined as free operating cash flow (Non-U.S. GAAP measure) in relation to net income, was n/a in the quarter compared to n/a a year earlier as free operating cash flow was negative both quarters.
Previous wording
Net debt (Non-U.S. GAAP measure, see reconciliation table below) was $1,772 million as of September 30, 2025, which was $15 million lower than a year earlier, mainly due to that in the last twelve months, free operating cash flow was higher than dividends paid and share repurchases.
Current wording
Net debt (Non-U.S. GAAP measure, see reconciliation table below) was $1,773 million as of March 31, 2026, which was $14 million lower than a year earlier.
Previous wording
Total equityas of September 30, 2025, increased by $261 million compared to September 30, 2024. This was mainly due to net income of $754 million and $33 million in positive currency translation effects, partly offset by $306 million in share repurchases, including taxes and $228 million in dividend payments.
Current wording
Total equity as of March 31, 2026, increased by $283 million compared to March 31, 2025. This was mainly due to net income of $710 million and $103 million in positive currency translation effects, partly offset by $304 million in share repurchases, including taxes, and $249 million in dividend payments.
Previous wording
Leverage ratio: On September 30, 2025, the Company had a leverage ratio (Non-U.S. GAAP measure, see reconciliation table below) of 1.3x compared to 1.4x on September 30, 2024, as the 12 months trailing adjusted EBITDA (Non-U.S. GAAP measure, see reconciliation table below) increased by $148 million while net debt (Non-U.S. GAAP measure, see reconciliation table below) per the policy increased by $5 million.
Current wording
Leverage ratio (Non-U.S. GAAP measure, see reconciliation table below): On March 31, 2026, the Company had a leverage ratio of 1.3x compared to 1.3x on March 31, 2025, as the 12 months trailing adjusted EBITDA (Non-U.S. GAAP measure, see reconciliation table below) increased by $74 million while net debt (Non-U.S. GAAP measure) per the policy was unchanged. Our target is to have a leverage ratio not higher than 1.5x.
Previous wording
The following tables reconciles Income before income taxes, Net income attributable to controlling interest, Capital employed, which are inputs utilized to calculate Return On Capital Employed (“ROCE”), adjusted ROCE and Return On Total Equity (“ROE”). The Company believes this presentation may be useful to investors and industry analysts who utilize these adjusted non-U.S. GAAP measures in their ROCE and ROE calculations to exclude certain items for comparison purposes across periods. Autoliv’s management uses the ROCE, adjusted ROCE and ROE measures for purposes of comparing its financial performance with the financial performance of other companies in the industry and providing useful information regarding the factors and trends affecting the Company’s business.
Current wording
The following tables reconciles Income before income taxes, Net income attributable to controlling interest and Capital employed, which are inputs utilized to calculate Return On Capital Employed (“ROCE”), adjusted ROCE, Return On Total Equity (“ROE”), and adjusted ROE. The Company believes this presentation may be useful to investors and industry analysts who utilize these adjusted non-U.S. GAAP measures in their ROCE and ROE calculations to exclude certain items for comparison purposes across periods. Autoliv’s management uses the ROCE, adjusted ROCE, ROE and adjusted ROE measures for purposes of comparing its financial performance with the financial performance of other companies in the industry and providing useful information regarding the factors and trends affecting the Company’s business.
Previous wording
ROE is the ratio of annualized income (loss) relative to average total equity for the periods presented. See definitions of "annualized income" "and "average total equity" in footnote to the tables below. The Company’s management believes that ROE is a useful indicator of how well management creates value for its shareholders through its operating activities and its capital management.
Current wording
ROE is the ratio of annualized income (loss) relative to average total equity for the periods presented. See definitions of "annualized income" "and "average total equity" in footnote to the tables below. Adjusted ROE is annualized income (loss) relative to average total equity for the periods presented as adjusted to exclude certain non-recurring items. The Company’s management believes that ROE and adjusted ROE are useful indicators of how well management creates value for its shareholders through its operating activities and its capital management.
Previous wording
As of September 30, 2025, total headcount Full Time Equivalent (FTE) decreased by around 2,000, or 3.0%, compared to a year earlier, despite that organic sales (Non-U.S. GAAP measure, see reconciliation table above) increased by 3.9% and that we in-sourced about 250 FTEs (mainly indirects). The indirect workforce decreased by around 100, or 0.5%, mainly reflecting our structural reduction initiatives, partly offset by the above mentioned in-sourcing. The direct workforce decreased by approximately 1,900, or 3.8%. The decrease was supported by an improvement in customer call-off accuracy which enabled us to accelerate operating efficiency improvements.
Current wording
As of March 31, 2026, total headcount (Full Time Equivalent) decreased by around 1,900, or 2.9%, compared to a year earlier. The indirect workforce increased by around 300, or 1.5%, mainly reflecting a change in headcount reporting classification, moving around 300 people from direct to indirect. The direct workforce decreased by approximately 2,100, or 4.4%. The decrease was supported by an improvement in customer call-off accuracy which enabled us to accelerate operating efficiency improvements and also reflecting the reclassification mentioned above.
Previous wording
Compared to June 30, 2025, total headcount (FTE) increased by around 100, or 0.2%. Indirect headcount increased by around 200 (due to the in-sourced personnel mentioned previously), while direct headcount decreased by approximately 100.
Current wording
Compared to December 31, 2025, total headcount (Full Time Equivalent) decreased by around 200, or 0.4%. Indirect headcount increased by around 300, while direct headcount decreased by approximately 600 impacted by the reclassification mentioned above.
Previous wording
In addition to the assumptions and our business and market update noted below, our full year 2025 guidance is based on our customer call-offs, as well as the achievement of our targeted cost compensation adjustments with our customers, including for the new tariffs, no further material changes to tariffs or trade restrictions, as compared to what is in effect as of October 15, 2025, as well as no significant changes in the macro-economic environment, changes to customer call-off volatility or significant supply chain disruptions.
Current wording
In addition to the assumptions below and in our business and market update below, our full year 2026 guidance is based on our customer call-offs and the achievement of our targeted cost compensation adjustments with our customers, including no material changes to tariffs or trade restrictions, as compared to what is in effect as of April 10, 2026, as well as no significant changes in the macro-economic environment, changes to customer call-off volatility or significant supply chain disruptions.
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
3)Non-U.S. GAAP measure.
Previous report — wording carried elsewhere
Sales by product - Airbags, Steering Wheels and Other
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Sales by product - Seatbelts and Other
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First nine months 2025 organic growth 1)
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1)Non-U.S. GAAP measure.
Previous report — wording carried elsewhere
1)Non-U.S. GAAP measure, excluding effects from capacity alignments and antitrust related matters.
Previous report — wording carried elsewhere
Capital expenditure, netdecreased by $118 million compared to the prior year. The level of capital expenditure, net, in relation to sales declined to 3.9% versus 5.5% a year earlier. The lower level of capital expenditure, net is mainly related to the lower activity level of footprint optimization in Europe and Americas and less capacity expansion, especially in Asia.