# Autoliv Shares Fall 3.5% as Margin Outlook Narrows to 10.5%

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/39504
Published: 2026-10-24T01:25:53.000Z
Updated: 2026-10-24T01:25:53.000Z
Section: Business

> Third-quarter net income fell 11% to $155 million. Autoliv maintained its 2026 targets for about 0% organic sales growth and $1.2 billion in operating cash flow.

Autoliv shares fell about 3.5% Friday, closing near $114.70, after the vehicle-safety supplier posted lower third-quarter earnings and narrowed its 2026 adjusted operating-margin outlook to about 10.5%, the low end of its previous range.

Autoliv makes airbags, seatbelts and steering wheels. Its July-September results showed declines in net income, sales and adjusted operating margin.

Net income fell 11% to $155 million from $175 million a year earlier. Diluted earnings per share declined 6.8% to $2.13 from $2.28. Adjusted diluted earnings per share, a non-GAAP measure, dropped 5.7% to $2.19 from $2.32.

Net sales decreased 0.5% to $2.693 billion from $2.706 billion, while organic sales fell 1.1%. Adjusted operating margin came in at 9.7%, down from 10.0% a year earlier.

Operating income declined 5%. Autoliv attributed most of that decrease to supplier-settlement compensation it received in the third quarter of 2025. Adjusted operating income fell 3.4%.

Autoliv cited raw-material prices, logistics costs, recent flooding in Thailand and lower customer call-off accuracy since the first quarter as cost pressures. Raw-material price changes created an estimated $42 million gross third-quarter profit headwind, with Autoliv projecting about $120 million for 2026. The company expects to mitigate most of the raw-material headwind.

“We have been able to offset the majority of these cost headwinds mainly through labor efficiency, material savings through Value Engineering and successful negotiations with customers and suppliers,” President and CEO Mikael Bratt said.

Autoliv narrowed its full-year adjusted operating-margin outlook to about 10.5%, the bottom of its previous 10.5% to 11% range. It maintained its outlook for about 0% organic sales growth and approximately $1.2 billion in operating cash flow for 2026.