The guidance narrowing to the low end of the adjusted operating margin range is the key negative signal, driven by rising raw material costs and other headwinds. Monitor Q4 for the promised step-up in customer compensations and raw material recoveries to see if the full-year margin can hold at 10.5%. The strong cash flow and continued buybacks provide a floor, but the deteriorating margin trajectory warrants caution.
Price Chart
Executive Summary
Autoliv reported Q3 2026 results with net sales of $2,693 million (-0.5% YoY), GAAP diluted EPS of $2.13 (-6.8% YoY), and adjusted diluted EPS of $2.19 (-5.7% YoY). The company narrowed its full-year adjusted operating margin guidance to around 10.5% (the low end of the prior 10.5-11% range), citing increased cost headwinds from raw materials, logistics, and flooding in Thailand. Organic sales declined 1.1%, outperforming global LVP decline of 1.9%.
Key Financial Metrics
Key Facts
- Q3 2026 net sales $2,693M, down 0.5% YoY from $2,706M
- GAAP diluted EPS $2.13, down 6.8% YoY from $2.28
- Adjusted diluted EPS $2.19, down 5.7% YoY from $2.32
- Adjusted operating margin 9.7%, down 30bps YoY from 10.0%
- Full-year adjusted operating margin guidance narrowed to around 10.5% (low end of prior 10.5-11% range)
- Organic sales declined 1.1% vs global LVP decline of 1.9%
- Raw material price gross impact of ~$42M in Q3; full-year estimate raised to ~$120M
- Operating cash flow $239M, down 7.3% YoY; free operating cash flow $124M, down 18% YoY
- Share repurchases of $150M in Q3; $350M YTD
- Leverage ratio 1.3x, unchanged YoY
Financial Impact
GAAP EPS $2.13 vs consensus $2.23 (miss of ~4.5%); adjusted EPS $2.19 vs consensus $2.23 (miss of ~1.8%). Revenue $2,693M vs consensus $2,720M (miss of ~1.0%). Full-year guidance narrowed to low end of range.
Risk Factors
- Raw material cost headwinds of ~$120M for full year may not be fully mitigated
- Geopolitical uncertainty and tariff impacts could further pressure margins
- Call-off volatility remains elevated, particularly in China, affecting production efficiency
- Restructuring in Turkey adds ~$142M in charges through 2028
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-429404 |
| Document: alv-20261023.htm | 0001193125-26-429404 |
| Document: 0001193125-26-429404-index-headers.html | 0001193125-26-429404 |
| Document: 0001193125-26-429404-index.html | 0001193125-26-429404 |
| Document: 0001193125-26-429404.txt | 0001193125-26-429404 |
| 8-K Data (Synthetic) | 0001193125-26-429404 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | 8-K | $114.41 | awaiting T+5 | — | $114.67 (−0.23%) |
Aug 15, 2026 10w ago | Institutional Cluster | $120.76 $123.18 | ▲ +2.00% | ▲ +3.19% | $114.67 (−5.04%) |
Aug 13, 2026 10w ago | Press Release | $121.41 $121.69 | ▲ +0.23% | ▲ +2.19% | $114.67 (−5.55%) |
Jul 17, 2026 14w ago | 8-K | $120.26 $115.21 | ▼ −4.20% | ▼ −3.51% | $114.67 (−4.65%) |
Jun 30, 2026 16w ago | 8-K | $116.17 $119.83 | ▲ +3.15% | ▲ +2.55% | $114.67 (−1.29%) |
Jun 12, 2026 19w ago | Institutional Cluster | $128.53 $118.24 | ▼ −8.01% | ▼ −8.68% | $114.67 (−10.78%) |
May 11, 2026 23w ago | 8-K | $120.53 $115.82 | ▼ −3.91% | ▼ −3.82% | $114.67 (−4.86%) |
Apr 17, 2026 27w ago | 8-K | $118.92 $117.81 | ▲ +0.93% | ▲ +1.49% | $114.67 (+3.57%) |
Mar 25, 2026 30w ago | DEFA14A | $105.11 $107.10 | ▲ +1.89% | ▲ +2.14% | $114.67 (+9.10%) |
Feb 24, 2026 34w ago | Insider Cluster | $122.48 $112.20 | ▲ +8.39% | ▲ +7.36% | $114.67 (+6.38%) |
US Market Status
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