Autoliv (NYSE:ALV) Releases Earnings Results

Key Points

• Autoliv missed quarterly estimates: Earnings were $2.19 per share versus the $2.23 consensus, while revenue of $2.69 billion fell short of the $2.73 billion forecast and declined 0.5% year over year.
• Operational performance remained resilient: Adjusted operating margin reached 9.7% despite a 1.9% decline in global vehicle production, with Asia—especially China and India—driving growth. However, raw-material inflation, logistics costs, and tariffs created significant pressure.
• Outlook and shares weakened: Autoliv maintained flat 2026 organic-sales and approximately $1.2 billion cash-flow guidance but narrowed its adjusted-margin outlook to about 10.5%; shares fell 6.8% after the results. The company also paid a quarterly dividend of $0.87 per share and repurchased $150 million of stock.

Autoliv (NYSE:ALV - Get Free Report) posted its earnings results on Friday. The auto parts company reported $2.19 earnings per share for the quarter, missing analysts' consensus estimates of $2.23 by ($0.04), FiscalAI reports. The company had revenue of $2.69 billion for the quarter, compared to the consensus estimate of $2.73 billion. Autoliv had a return on equity of 29.36% and a net margin of 5.79%. The business's quarterly revenue was down .5% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.32 EPS.

Here are the key takeaways from Autoliv's conference call:

• Positive Sentiment: Autoliv reported a resilient third quarter, with sales virtually unchanged despite a 1.9% decline in global light-vehicle production. Adjusted operating margin was 9.7%, ahead of prior indications, supported by productivity gains, cost reductions, and higher engineering income.
• Positive Sentiment: Asia remained a key growth driver: sales to Chinese OEMs outperformed their production growth by nearly 20 percentage points, while organic sales in India rose almost 30%. Autoliv expects continued significant outperformance of the broader vehicle market.
• Negative Sentiment: Raw-material inflation and higher logistics costs created a $42 million gross headwind in the quarter, while tariffs reduced adjusted operating margin by roughly 35 basis points even after customer compensation. The company expects similar raw-material pressure to continue into 2027.
• Neutral Sentiment: Autoliv reiterated flat 2026 organic sales and operating cash flow guidance of approximately $1.2 billion, but narrowed adjusted operating-margin guidance to around 10.5%, the low end of its previous 10.5%–11% range. Fourth-quarter profitability is expected to improve sequentially through higher volumes, engineering income, cost actions, and customer recoveries.
• Positive Sentiment: The company continued returning capital to shareholders, repurchasing $150 million of stock and paying $63 million in dividends during the quarter. It also opened a second Chinese R&D center and launched a virtual safety-development platform, supporting longer-term innovation and growth opportunities.

Autoliv Trading Down 6.8%

ALV stock traded down $8.10 during trading on Friday, hitting $110.78. The company had a trading volume of 433,109 shares, compared to its average volume of 744,679. The business has a 50-day moving average of $117.91 and a 200-day moving average of $119.17. Autoliv has a one year low of $99.16 and a one year high of $132.17. The stock has a market cap of $8.11 billion, a PE ratio of 13.05, a PEG ratio of 0.96 and a beta of 1.39. The company has a current ratio of 1.03, a quick ratio of 0.79 and a debt-to-equity ratio of 0.67.

Autoliv Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Friday, August 28th were issued a $0.87 dividend. The ex-dividend date was Friday, August 28th. This represents a $3.48 annualized dividend and a yield of 3.1%. Autoliv's dividend payout ratio is presently 40.99%.

Wall Street Analysts Forecast Growth

ALV has been the topic of a number of research reports. Wolfe Research lowered Autoliv from an "outperform" rating to a "peer perform" rating in a research report on Wednesday, September 23rd. Weiss Ratings raised shares of Autoliv from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, September 24th. TD Cowen lowered shares of Autoliv from a "buy" rating to a "hold" rating and cut their price target for the stock from $148.00 to $137.00 in a report on Tuesday, September 8th. Wells Fargo & Company lifted their price target on shares of Autoliv from $116.00 to $122.00 and gave the stock an "equal weight" rating in a report on Thursday, June 25th. Finally, Wall Street Zen downgraded Autoliv from a "buy" rating to a "hold" rating in a report on Saturday, July 4th. Six equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $134.92.

About Autoliv

Autoliv, Inc NYSE: ALV develops and manufactures automotive safety systems and components for vehicle manufacturers worldwide. The company focuses primarily on passive safety products designed to help protect occupants during a collision.

Its product portfolio includes airbags, seat belts, steering wheels, pedestrian protection systems, and associated safety electronics and control systems. Autoliv supplies these products to major automakers and supports vehicle programs across passenger cars and commercial vehicles.

Autoliv traces its roots to Sweden and has grown into an international automotive supplier with operations and customers across North America, Europe, Asia, and other major automotive markets.

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