Autoliv trims margin outlook to low end as cost headwinds mount

Autoliv narrowed its full-year profitability target to the bottom of its range on Friday, saying rising costs have outpaced its offsets, according to the airbag and seatbelt maker's 8-K earnings report.

Net sales for the July-to-September quarter slipped 0.5% to $2.69 billion, with organic sales down 1.1%. That still beat global light vehicle production, which fell 1.9%, the company said. Diluted EPS fell 6.8% to $2.13, and adjusted EPS fell 5.7% to $2.19.

Margin target narrowed

Autoliv now expects a full-year adjusted operating margin of around 10.5%, the low end of its prior range of about 10.5% to 11%. CEO Mikael Bratt said cost headwinds had increased materially this year, mainly from raw materials, logistics, recent flooding in Thailand and less accurate customer orders.

The company kept its other targets: organic sales growth of around 0%, a positive currency effect of about 2.5% on sales, and operating cash flow of around $1.2 billion. Bratt said he expects a strong fourth quarter helped by more product launches and significant raw material recoveries.

Asia carries the quarter

Sales in India grew nearly 30%, sales to Chinese automakers rose more than 20%, and Autoliv said its sales in Asia excluding China exceeded its China sales in the quarter. Organic sales lagged production in Europe, the Middle East and Africa, and roughly matched it in the Americas.

Operating income fell 5.0% to $254 million, mostly because the year-ago quarter included compensation from a supplier settlement. Adjusted operating margin was 9.7%, down from 10.0%.

Cash and buybacks

Operating cash flow was $239 million, compared with $258 million a year earlier. Autoliv paid a dividend of $0.87 a share, spent $150 million on buybacks and retired 1.23 million shares during the quarter.

By the numbers

• Net sales: $2.69 billion, down 0.5%
• Diluted EPS: $2.13; adjusted EPS: $2.19
• Adjusted operating margin: 9.7%
• 2026 adjusted margin outlook: around 10.5%
• Q3 share repurchases: $150 million

Sources

1. Autoliv, Inc., Form 8-K with Exhibit 99.1 filed Oct. 23, 2026, accession 0001193125-26-429404

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