Autoliv : File (2914011) (Autoliv Inc Earnings Call Q1 2026 presentation)

Published: 2026-04-17 06:32:13 ET ALV

Published on 04/17/2026 at 06:32 am EDT

1st Quarter 2026

April 17, 2026

Q1'26 Key Highlights - Record First Quarter Sales Supported by Growth in Asia and Positive Currency Effects

Strong Quarterly Sales - Driven by Strong Growth in India and China as well as positive currency effects

Sales exceeded expectations in most regions, led by a particularly strong March

India was the largest contributor to growth

Sales to Chinese OEMs increased by almost 30% - driven by recent launches

Underlying profitability improved, reflected in stronger gross profit relative to sales, while the adjusted operating income* declined slightly Y-o-Y

The adjusted operating margin* development negatively affected by lower customer RDEE reimbursements and the divestiture of assets in Russia in Q1´25

Cash flow was temporarily impacted by working capital effects, primarily driven by strong March sales and other short-term factors

We paid a dividend of $0.87 per share, representing a total payout of $65 million

Limited impact from the hostilities around the Persian Gulf this quarter. We are monitoring any potential wide-reaching impact on the industry

FY 2026 Adjusted operating margin* guidance unchanged

Introduced the first commercially ready airbag for motorcycles

* Non-US GAAP excluding effects from capacity alignment and antitrust related matters

** Light Vehicle Production (LVP up to 3.5 tons) according to SGP Global @ April 2026

Autoliv has taken a significant step forward in motorcycle rider protection, reinforcing its vision of Saving More Lives by launching the first airbag specifically developed for commuter scooters, alongside a comprehensive on-rider wearable inflatable protection system.

Q1'26 Financial Overview

Record sales for a first quarter

Consolidated Sales

US$ -Millions

Adjusted Operating Income*

US$ -Millions

Operating Cash Flow

US$ -Millions

-4%

-153

$77

Q1´25

Q1´26

$2,578

$2,753

8.9% Adj.

Op. Margin*

9.9% Adj.

Op. Margin*

$255 $245

Q1´25 Q1´26 Q1´25 Q1´26

-$76

* Non-US GAAP excluding effects from capacity alignment and antitrust related matters

Cost Efficiency

Partly offset by lower engineering income due to timing and currency translation effects

Direct Labor Productivity Index

Sales in relations to Average Headcount

Gross Margin

SGEA and RDEE, net

US$ -Millions and in relations to sales

Operating Cash flow LTM

US$ -Millions

160

140

120

Index

100

22%

20%

18%

16%

14%

12%

10%

300

250

200

150

100

11.0%

10.0%

9.0%

8.0%

7.0%

6.0%

5.0%

1,250

1,050

850

650

450

250

Q1'26 Light Vehicle Market Development

LVP*

Customer Call-off Accuracy**

Rest

6% of Asia

S. America

100% Normal

Level

-2%

-4%

-6%

-8%

-10%

E.Europe

W.Europe

Japan

N. America

China GOEMs*

Global Total

-3.4%

80%

60%

-12%

China

COEMs*

Higher safety content markets

Approximately 150 bps of tailwinds from regional and market mix

Improved call-off accuracy both Y-o-Y and sequentially

* Light Vehicle Production (LVP up to 3.5 tons) according to SGP Global @ April 2026. COEMs: Chinese OEMs excluding Volvo and Polestar ; GOEMs: other vehicle manufacturers operating in China

** Company estimate

Q1'26 Sales Growth and Regional Sales Split

Sales Bridge

US$ millions

Organic Sales1 vs. LVP2

$2,578

$14

$154 $2,753

China COEMs3

20 pp

+41pp

Rest of Asia

Outperformance

+4 pp

Europe

China GOEMs3

15 pp

10 pp

5 pp

0 pp

-5 pp

Q1´25 Price volume mix Tarrif compensations Currency Q1´26

-10 pp

Americas

1% Organic growth1

Non-US GAAP measure

Light Vehicle Production (LVP up to 3.5 tons) according to SGP Global @ April 2026.

COEMs: Chinese OEMs excluding Volvo and Polestar ; GOEMs: other vehicle manufacturers operating in China

India: A Key Driver of Autoliv's Growth

Autoliv in India

Sales Development E LVP

$ million E million units

Autoliv Sales by Customer

New Dehli

Steering Wheels Airbags

Maharashtra

Cushions Airbags

Bangalore Airbags Seatbelts Tech Center

Cheyyar

Inflators

Mysuru Karnataka

Webbing Cushions

600

500

400

$ million

300

200

100

7.0

Other

MAHINDRA

MARUTI SUZUKI

HYUNDAI

INDIAN OEM

6.0

5.0

Million Units

4.0

3.0

2.0

1.0

2020 2021 2022 2023 2024 2025 LTM

0.0

Q1'26 Model Launches

Zeekr 8X

Nissan Versa

Lepas L4

Yamaha Tricity 300

Product Launches per quarter

250

200

150

100

Q1 Q2 Q3 Q4

Q1'26 Financial Overview

US$ Millions unless specified

Q1'26

Q1'25

Sales

$2,753

$2,578

Gross Profit

$526

19.1%

$478

18.6%

Adj. Operating Income1

$245

8.9%

$255

9.9%

Adj. EPS -assuming dilution1

$2.05

$2.15

Adj. RoCE1,2

22.9%

25.6%

Adj. RoE1,2

23.5%

28.9%

Operating cash flow

-$76

$77

Dividend paid per share

$0.87

$0.70

Stock repurchases

$50

Global LVP3

~20.9M

~21.6M

Non-US GAAP excluding effects from capacity alignment and antitrust related matters

Return on Capital Employed -RoCE and Return on Equity (RoE)

Light Vehicle Production (LVP up to 3.5 tons) according to SGP Global @ April 2026

Q1'26 Adjusted Operating Income* Bridge

-$10

$255

-$12

$15

$245

-$28

-$8

-$5

$28

300

250

Operations Primarily driven by higher operational efficiency and organic sales growth

RDEE and SGEA presented exclude ~$13 million from FX translation effects

Unrecovered tariffs and the dilutive effect from the recovered tariffs had a negative impact of around 40 bps

200

US$ Millions

150

100

* Non-US GAAP excluding effects from capacity alignment and antitrust related matters

Cash Flow

Continued solid performance from higher net income

-US$ Millions unless specified

Q1´26

Q1´25

LTM

2025

Net Income

$142

$167

$710

$736

Depreciation E Amortization

107

419

407

Other, net

-6

Change in operating WC

-349

-179

-182

-12

Net cash provided by operating activities

-76

1,004

1,157

Capital Expenditures, net

-84

-93

-413

-423

Free Operating cash flow*

-159

-16

590

734

Cash conversion*

n/a

83%

100%

Dividends paid

249

238

Stock repurchases

$50

$301

$351

* Non-US GAAP measure

Capex E Net cash provided by operating activities

Net cash provided by operating activities

Cash Conversion*

Resilient Track Record of Cash Flow and Returns

Unlocking Liquidity and Value

Net cash provided by operating activities E Free Operating Cash Flow*

Strong Cash Flow supporting Growth E Shareholder Returns

1,400

1,200

1,000

$ millions

800

600

400

200

900

Financial

Crisis

Covid

Pandemic

Spin-off

Electronics

800

700

600

$ millions

500

400

300

200

100

Financial

Crisis

Covid

Pandemic

Spin-off

Electronics

0 0

Free Operating Cash Flow* Net cash provided by operating activities

* Non-US GAAP measures

Resilient Track Record of Cash Flow and Returns continued

Driving Value Through Efficient Capital Utilization

Return on Capital Employed (ROCE)

Financial

Crisis

Covid

Pandemic

Spin-off

Electronics

30.0%

25.0%

20.0%

15.0%

10.0%

Autoliv has consistently delivered strong ROCE also in periods of challenging environment, reflecting a disciplined capital management.

The high ROCE is further supported by scale advantages and limited exposure to capital-intensive investments

Returns have improved since the COVID period, driven by margin expansion and tight control of working capital and capex.

5.0%

0.0%

Return on capital employed, %

Debt Leverage Ratio*

Remains below our target limit of 1.5x

Net Debt * / EBITDA **

Times

Net Debt* and EBITDA** per the Policy

US$ Millions

1.3x

Long-Term Target: ≤1.5x

Net Debt

EBITDA LTM

2.0

2,000

1.5

1,500

1.0

0.5

1,000

0.0

Q1´23 Q3´23 Q1´24 Q3´24 Q1´25 Q3´25 Q1´26

500

Q1´23 Q3´23 Q1´24 Q3´24 Q1´25 Q3´25 Q1´26

Change vs. previous quarter

Net Debt*

EBITDA** LTM

$213 million higher

$2 million lower

* Non-US GAAP measure, Leverage Ratio and Net Debt includes Pension Liability, see reconsolidation table at the end of this presentation.

** Non-US GAAP measure, see reconsolidation table at the end of this presentation.

Light Vehicle Production Outlook

Global Light Vehicle Production* according to SEP Global in April 2026

LVP* per Quarter

Million units

-3.4%

-1.9% -0.6%

-2.0%

Global Total

-2% Autoliv guidance is based on global LVP decreasing around -1% in 2026

Q1 Q2 Q3 Q4 2024 2025 2026

* Light Vehicle Production (LVP up to 3.5 ton) according to SGP Global @ April 2026

Raw Materials: Resilient Cost Structure with Pricing and Indexation Support

Direct Material Purchase Split 2025

~54% of sales

Primarily purchasing components rather than raw materials

Textiles (mainly Nylon E resin) 9%

Plastic (mainly PP) 7%

Non Ferrous 7%

Steel 22%

Gold 1%

Other 4%

Value add at Supliers 50%

The hostilities in and around the Persian Gulf impact Textiles and Plastic - but also Aluminum, Helium and Steel

Plastic and Chemicals prices largely correlates with oil prices over time

Supplier pricing typically reflects a 3 to 6-month lag versus spot prices

Mitigations

Productivity and cost reduction initiatives

Customer compensation mechanisms are expected to offset a meaningful portion, though with a timing delay

2026 guidance assumes ~$90m gross raw material impact, with most headwinds expected to be mitigated through commercial actions and internal cost reduction initiatives

Approximately 50% of raw material exposure is indexed

Full Year 2026 Guidance

Organic sales increase2

Around 0

Previously ~0%

Adjusted Operating margin2

Around 10.5 to 11%

unchanged

Operating Cash flow3

Around $1.2 billion

unchanged

Capex, net % of sales

Less than 5%

unchanged

Updated Full Year 2026 Guidance1 K Assumptions

Assumptions

LVP Growth

Around 1% negative

unchanged

Around 3% positive

Previously 1%

Tax rate4

Around 28%

unchanged

Exchange Rates

US$/EUR

0.8472

US$/JPY

155.91

US$/KRW

1440.5

US$/MXN

17.198

US$/CNY

6.8571

(1) Our full year 2026 guidance is based on our customer call-offs, as well as the achievement of our targeted cost compensation adjustments with our customers including for the new tariffs, no further material changes to tariffs or trade restrictions that are in effect as of April 10, 2026 , as well as no significant changes in the macro-economic environment, changes in customer call-off volatility or significant supply chain disruptions.

(2) Non-US GAAP excluding effects from capacity alignment and antitrust related matters (3) Excluding unusual items (4) Excluding unusual tax items

Q1´26 Product Volumes

Autoliv Quantities Delivered

(Millions unless specified)

Q1'26

vs. PY** (%)

Seatbelts

35.3

-1%

Pretensioners (of which)

24.5

-2%

Active Seatbelts (of which)

1.5

-6%

Frontal Airbags

15.1

Knee Airbags (of which)

1.7

Side Airbags

37.0

Chest (Thorax)

19.8

Head (Curtain)

15.6

Steering Wheels

5.3

LVP* (Global)

*S&P Global: April 2026

20.9

-3.4%

Reconciliation of GAAP measure "Operating margin" to Non-GAAP measure "Adjusted Operating margin"

We believe that comparability between periods is improved through the exclusion of certain items. To assist investors in understanding the operating performance of Autoliv's business, it is useful to consider certain U.S. GAAP measures exclusive of these items.

With respect to the Andrews litigation settlement, the Company has treated this specific settlement as a non-recurring charge because of the unique nature of the lawsuit, including the facts and legal issues involved.

Accordingly, the table below reconcile from U.S. GAAP to the equivalent non-U.S. GAAP measure.

2026

2025

2024

2023

Operating margin (GAAP)

8.6%

11.3%

9.9%

9.1%

9.9%

13.5%

8.9%

7.9%

7.4%

8.6%

8.9%

3.6%

5.1%

Non-GAAP adjustments:

Less: Capacity alignments

0.3%

0.6%

0.1%

0.0%

0.1%

-0.2%

0.4%

0.5%

0.1%

3.5%

0.4%

4.1%

0.1%

Less: The Andrews litigation settlement

0.3%

Less: Antitrust related items

0.0%

0.1%

0.0%

0.1%

0.0%

0.1%

0.0%

Total non-GAAP adjustments to operating margin

0.3%

0.6%

0.1%

0.0%

-0.2%

0.4%

0.6%

0.2%

3.5%

0.4%

4.5%

0.2%

Adjusted Operating margin (Non-GAAP)

8.9%

12.0%

10.0%

9.3%

9.9%

13.4%

9.3%

8.5%

7.6%

12.1%

9.4%

8.0%

5.3%

Reconciliation of Non-US GAAP measure "Leverage ratio K Adjusted EBITDA"

The non-U.S. GAAP measure "net debt" is also used in the non-U.S. GAAP measure "Leverage ratio". Management uses this measure to analyze the amount of debt the Company can incur under its debt policy. Management believes that this policy also provides guidance to credit and equity investors regarding the extent to which the Company would be prepared to leverage its operations. Autoliv's policy is to maintain a leverage ratio commensurate with a strong investment grade credit rating. The Company measures its leverage ratio as net debt* adjusted for pension liabilities in relation to adjusted EBITDA*. The long-term target is to maintain a leverage ratio equal to or below 1.5x.

(Dollars in millions)

2026

2025

2024

2023

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

Net debt1)

$1,774

$1,566

$1,772

$1,752

$1,787

$1,554

$1,787

$1,579

$1,562

$1,367

$1,375

$1,299

$1,477

Pension liabilities

176

169

167

163

153

147

140

149

159

152

159

Net debt per the Policy

$1,950

$1,736

$1,939

$1,919

$1,950

$1,708

$1,934

$1,720

$1,711

$1,527

$1,451

$1,636

Net income2)

$710

$736

$754

$717

$688

$648

$632

$627

$541

$489

$418

$390

$416

Income taxes2)

246

253

261

255

246

227

141

150

136

123

188

168

176

Interest expense, net2, 3)

Other non-operating items, net2)

Income from equity method investments2)

(6)

(7)

(6)

(5)

(4)

Depreciation and amortization of intangibles2)

419

407

397

390

386

387

385

384

381

378

371

363

359

Less: Capacity alignments2)

(1)

121

122

217

218

125

117

Less: Antitrust related items2)

Less: Other Items2)

(0)

EBITDA per the Policy (Adjusted EBITDA)

$1,523

$1,521

$1,524

$1,483

$1,449

$1,394

$1,376

$1,380

$1,369

$1,297

$1,189

$1,112

$1,021

Leverage ratio

1.3

1.1

1.3

1.2

1.4

1.2

1.3

1.2

1.3

1.6

1) Short- and long-term debt less cash and cash equivalents and debt-related derivatives. See Items Affecting Comparability below 2) Latest 12

months. 3) Interest expense including cost for extinguishment of debt, if any, less interest income.

Reconciliation of Non-US GAAP measure "Net Debt"

(Dollars in millions)

2026

2025

2024

2023

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

Short-term debt

$393

$419

$654

$679

$540

$387

$624

$455

$310

$538

$590

$481

$577

Long-term debt

1,699

1,734

1,374

1,372

1,565

1,522

1,586

1,540

1,830

1,324

1,277

1,290

1,601

Total debt

2,091

2,153

2,027

2,051

2,105

1,909

2,210

1,996

2,140

1,862

1,867

1,771

2,179

Cash E cash equivalents

(342)

(604)

(225)

(237)

(322)

(330)

(415)

(408)

(569)

(498)

(475)

(713)

Debt issuance cost/Debt-related derivatives, net

(30)

(62)

(24)

(9)

(8)

(9)

(17)

Net debt

$1,774

$1,566

$1,772

$1,752

$1,787

$1,554

$1,787

$1,579

$1,562

$1,367

$1,375

$1,299

$1,477

Reconciliation of GAAP measure "Earnings per share - diluted" to Non-GAAP measure "Adjusted Earnings per share - diluted"

(Dollars in millions)

2026

2025

First Quarter

Earnings per share - diluted (GAAP)

$1.88

$2.14

Non-GAAP adjustments:

0.10

0.02

Less: Capacity alignments

0.12

Less: Antitrust related items

0.00

(0.02)

Less: Tax on non-GAAP adjustments

(0.05)

(0.00)

Total non-GAAP adjustments to Earnings per share - diluted

0.17

0.01

Adjusted Earnings per share - diluted (Non-GAAP)

$2.05

$2.15

Weighted average number of shares outstanding - diluted (million)

75.1

77.9

Reconciliation of Non-US GAAP measure "Trade Working Capital"

Due to the need to optimize cash generation to create value for shareholders, management focuses on operationally derived trade working capital as defined in the table below. Trade working capital is an indicator of operational efficiency, which impacts the Company's ability to return value to shareholders either through dividends or share repurchases. We believe this is useful for readers to understand the efficiency of the Company' operational capital management. The reconciling items used to derive this measure are, by contrast, managed as part of our overall management of cash and debt, but they are not part of the responsibilities of day-to-day operations management.

(Dollars in millions)

2026

2025

2024

2023

31-mar

31-dec

30-sep

30-jun

31-mar

31-dec

30-sep

30-jun

31-mar

31-dec

30-sep

30-jun

31-mar

Receivables, net

$2,422

$2,236

$2,357

$2,341

$2,205

$1,993

$2,192

$2,090

$2,194

$2,198

$2,179

$2,189

$2,106

Inventories, net

947

992

1,036

957

913

921

997

936

997

1,012

982

947

986

Accounts payable

(1,862)

(2,007)

(1,889)

(1,945)

(1,839)

(1,799)

(1,881)

(1,858)

(1,855)

(1,978)

(1,858)

(1,844)

(1,683)

Trade working capital (non-U.S.

GAAP)

$1,506

$1,221

$1,504

$1,354

$1,279

$1,115

$1,307

$1,169

$1,336

$1,232

$1,303

$1,292

$1,409

Quarterly sales

$2,753

$2,817

$2,706

$2,714

$2,578

$2,616

$2,555

$2,605

$2,615

$2,751

$2,596

$2,635

$2,493

Annualized quarterly sales1)

11,012

11,269

10,822

10,857

10,312

10,463

10,218

10,420

10,459

11,006

10,386

10,539

9,970

Trade working capital in relation to

annualized quarterly sales

13.7%

10.8%

13.9%

12.5%

12.4%

10.7%

12.8%

11.2%

12.8%

11.2%

12.5%

12.3%

14.1%

(Dollars in millions)

2022

2021

2020

2019

31- dec

30-sep

30-jun

31-mar

31-dec

30-sep

30-jun

31-mar

31-dec

30-sep

30-jun

31-mar

31-dec

Receivables, net

$1,907

$1,893

$1,779

$1,824

$1,699

$1,575

$1,719

$1,846

$1,822

$1,616

$1,180

$1,428

$1,627

Inventories, net

969

924

903

913

$777

922

901

856

798

714

758

772

741

Accounts payable

(1,693)

(1,503)

(1,303)

(1,385)

(1,144)

(1,076)

(1,125)

(1,215)

(1,254)

(912)

(616)

(863)

(951)

Trade working capital (non-U.S.

GAAP)

$1,183

$1,314

$1,379

$1,352

$1,332

$1,421

$1,495

$1,487

$1,366

$1,418

$1,322

$1,337

$1,417

Quarterly sales

$2,335

$2,302

$2,081

$2,124

$2,119

$1,847

$2,022

$2,242

$2,516

$2,037

$1,048

$1,846

$2,191

Annualized quarterly sales1)

9,340

9,208

8,325

8,497

8,476

7,387

8,088

8,968

10,067

8,149

4,190

7,383

8,765

Trade working capital in relation to

annualized quarterly sales

12.7%

14.3%

16.6%

15.9%

15.7%

19.2%

18.5%

16.6%

13.6%

17.4%

31.5%

18.1%

16.2%

1) Calculated as the current quarterly sales multiplied by four.

Reconciliation of Non-US GAAP measure "Free Operating Cash Flow"

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

Net cash provided by

operating activities

1,157

1,059

982

713

754

849

641

591

936

868

751

713

838

689

758

924

493

614

781

CAPEX, net

423

563

569

485

454

340

476

555

570

499

450

453

379

360

357

224

130

279

314

Free Operating Cash Flow

734

496

413

228

300

509

165

366

370

301

259

459

328

401

700

362

335

467

Disclaimer

Autoliv Inc. published this content on April 17, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 17, 2026 at 10:31 UTC.