Autoliv, Inc. reported financial results for the third quarter of 2026, revealing a decrease in net sales and adjusted earnings per share compared to the same period in 2025. The company reported net sales of $2,693 million for the quarter, a decrease of 0.5% year-over-year. On an organic basis, sales decreased by 1.1%, which management noted outperformed global light vehicle production (LVP) decreases of 1.9%.
Profitability metrics showed a decline. Operating income decreased by 5.0% to $254 million, while adjusted operating income decreased by 3.4% to $262 million. Consequently, the operating margin was 9.4% and the adjusted operating margin was 9.7%. Earnings per share, both diluted and adjusted, also saw declines, with diluted EPS falling 6.8% to $2.13 and adjusted EPS falling 5.7% to $2.19.
The company provided full-year 2026 guidance, anticipating organic sales growth of around 0% and an adjusted operating margin of around 10.5%. Management noted that cost headwinds have increased materially due to raw materials, logistics, flooding in Thailand, and lower call-off accuracy. These factors have narrowed the adjusted operating margin expectation to the low end of the previously stated range of 10.5% to 11%.
Despite the sales decline, Autoliv maintained a solid cash flow position. Operating cash flow was $239 million, and free operating cash flow was $124 million. The company repurchased 1.23 million shares for approximately $150 million and paid a dividend of $0.87 per share during the quarter. The leverage ratio remained at 1.3x. The company also announced its 2027 Investor Day will take place in Shanghai, China, on April 26 and 27, 2027.
