Autoliv Q3 Margin Slips to 9.7%, Full-Year Guidance Cut to Low End of Range
ALV sits 15% above its 52-week low of $99.16 on elevated volume (2.0× avg).
Summary
Autoliv reported Q3 2026 net sales of $2,693M (down 1.1% organic) and a 9.7% adjusted operating margin, and narrowed full-year margin guidance to around 10.5%, the low end of its range, on higher raw material and logistics costs.
Key Events · Earnings and Guidance · ALV
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Q3 Sales Roughly Flat, Organic Down 1.1%
Net sales were $2,693M versus $2,706M a year ago, a 0.5% reported decline and 1.1% organic decline, which still beat the 1.9% global LVP drop.
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Adjusted Margin Slips to 9.7%
Adjusted operating income fell 3.4% to $262M and adjusted operating margin fell 0.3pp to 9.7%; diluted EPS was $2.13, down 6.8%, with higher taxes a $0.16 drag.
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Full-Year Margin Guidance Cut to Low End
Management narrowed 2026 adjusted operating margin guidance to around 10.5%, the bottom of the 10.5-11% range, citing raw material, logistics, Thailand flooding and call-off accuracy headwinds; organic sales growth guidance stays around 0% and operating cash flow around $1.2 billion.
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Cash Flow and Buybacks Stay Strong
Q3 operating cash flow was $239M and free operating cash flow $124M; the leverage ratio held at 1.3x while 1.23 million shares were repurchased for $150M at an average of $121.69 and $63M of dividends were paid.
Analysis · ALV · Manufacturing
The margin story got worse: adjusted operating margin fell to 9.7% from 10.0% a year ago, and management narrowed full-year guidance to around 10.5%, the bottom of its 10.5-11% range, citing higher raw material, logistics, Thailand flooding and call-off accuracy costs. Operationally, sales were roughly flat at $2,693M with a 1.1% organic decline, though that still beat a 1.9% drop in global light vehicle production. The offset is cash: $239M operating cash flow, a 1.3x leverage ratio and $150M of buybacks in the quarter show the dividend and repurchase program remain funded. For holders, the key question is whether the cost headwinds are truly transitory — management expects a strong fourth quarter on product launches and raw material recoveries, and the next data point is the Q4 report on January 29, 2027.
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At the time of this filing, ALV was trading at $114.41 on NYSE in the Manufacturing sector, with a market capitalization of approximately $8.7B. The 52-week trading range was $99.16 to $132.17. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.