Rachael Rajan
2 min read
Investing.com — On Friday, Autoliv Inc. (NYSE:ALV) reported third quarter that fell short of analyst expectations, with adjusted earnings per share of $2.19 missing the consensus estimate of $2.26, while revenue of $2.69 billion came in below the $2.73 billion forecast.
Shares of the automotive safety systems supplier fell 5.27% in pre-market trading following the results.
The posted a 0.5% decline in net sales to $2.69 billion compared to $2.71 billion in the prior year period, though revenue increased 3.1% YoY on a reported basis for the first nine months. Adjusted operating margin narrowed to 9.7% from 10.0% in the third quarter of 2025, pressured by raw material inflation, logistics costs, and lower customer call-off accuracy. The company cited gross raw material headwinds of around $42 million in the quarter.
For fiscal 2026, Autoliv now expects adjusted operating margin of around 10.5%, the low end of its previous range of 10.5% to 11%, while maintaining its forecast for around 0% organic sales growth and approximately $1.2 billion in operating cash flow.
“Cost headwinds have increased materially, mainly related to raw materials, logistics, the recent flooding in Thailand and lower call-off accuracy since Q1,” said CEO Mikael Bratt. “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.”
The company generated operating cash flow of $239 million and returned $213 million to shareholders through $150 million in share repurchases and $63 million in dividends during the quarter.
Original Article
Autoliv shares fall 5% on third quarter earnings miss
