Autoliv, Inc. (ALV)

Autoliv, the market leader in airbags and seatbelts, reported a flat third quarter on 23 October 2026 16. Net sales slipped 0.5 percent to $2,693 million, and net income fell to $155 million from $175 million 1. Taxes did much of it: closing tax audits lifted the tax rate to 32.5 percent from 26.9 percent 1.

Asia carried the quarter 1. Sales in India grew 29 percent organically, meaning before currency effects, and sales to Chinese carmakers rose about 21 percent 1. Sales to global carmakers in China fell about 29 percent, and sales in Europe, the Middle East and Africa (EMEA) fell 4.5 percent 1.

Costs rose for raw materials and logistics, and after flooding in Thailand 1. So the company narrowed its 2026 goal for adjusted operating margin, profit from operations per dollar of sales before one-off items, to around 10.5 percent, the low end of its range 1. The year's largest event is the closure of its plants in Türkiye, announced in May: about 2,200 jobs and a pre-tax charge of about $142 million 34.

The company expects a strong fourth quarter from more product launches and raw material cost recoveries 1. The open question is a Stellantis lawsuit over an airbag recall, where Autoliv puts the possible loss at $0 to $209 million and expects insurance to cover a substantial portion 2.

Autoliv started in 1997 and spun off its electronics arm, Veoneer, on 29 June 2018, leaving a pure maker of passive safety, the parts that protect people in a crash 68. Net sales rose 6.7 percent in 2018 8. Income from continuing operations still fell 36 percent to $376 million, mainly on a $210 million accrual for a European Commission antitrust fine of about 185 million euros 8.

The Commission's case was resolved in 2019, but civil claims stemming from it continue 62. In 2019 sales eased to $8.55 billion as light vehicle production, the number of cars and light trucks built worldwide, fell about 6 percent 9.

The pandemic hit in 2020: global light vehicle production fell about 17 percent, and Autoliv's net sales fell 12.9 percent to $7.45 billion 9. Net income dropped by $275 million to $187 million, and the board suspended the quarterly dividend on 2 April 2020 9. Organic sales still beat the market by about 5 points, outperforming in every region 9.

Sales recovered to $8.23 billion in 2021, about 10.5 percent higher (computed) 109. The next years brought chip shortages and soaring raw material prices: in 2022 gross profit fell $115 million even as organic sales rose 14.0 percent 10. Autoliv negotiated price compensation with carmakers and tied more of its prices to raw material costs 10.

2023 was the jump: net sales rose 18.5 percent to $10.48 billion on new product launches and price increases 11. Gross profit rose $425 million, and net income reached $488 million 11. In June 2023 the company set out to cut up to 2,000 indirect jobs and to raise factory productivity by the equivalent of 6,000 direct positions 6.

In 2024 net sales dipped 0.8 percent to $10.39 billion, mostly on currency 12. Steadier delivery schedules from carmakers cut costs for labor, premium freight and scrap by about $82 million, and net income rose to $646 million 12.

In 2025 net sales reached a record $10.82 billion, up 4.1 percent, and net income $735 million 613. Tariffs imposed early that year cost little because customers compensated more than 80 percent of them 6. The quarterly dividend rose 2.4 percent to 87 cents in November 2025 23.

Buybacks shrank the share count: diluted shares averaged 76.9 million in 2025 against 80.4 million in 2024, after 3.1 million were repurchased and retired 6. The customer mix changed too 6. Chinese carmakers went from 22 percent of Autoliv's China sales in 2022 to 44 percent in 2025, and India rose from about 2 percent of total sales in 2020 to 5 percent 6.

Airbags and steering wheels

An airbag inflates extremely rapidly in a crash to cushion the people inside; Autoliv makes driver, passenger, side, curtain, knee and front center airbags, plus steering wheels 61. This line brought in $7,302 million in 2025, about 68 percent of sales 6. In the third quarter of 2026 it took in $1,847 million, up 0.9 percent 1.

In 2025 its consolidated companies built 143 million side airbags, counting curtains and front center airbags, 61 million frontal airbags and 21 million steering wheels 6. Side and center airbags drove third-quarter growth, while passenger airbags, curtains and knee airbags declined 1.

Autoliv publishes no product prices 6. It sells under frame contracts signed up to three years before a car model starts production, usually with no minimum quantities or firm prices, and carmakers may move the work to another supplier 6.

Seatbelts

Advanced seatbelts with pretensioners, which tighten the belt in a crash, and load limiters can cut the overall risk of serious injury in frontal crashes by as much as 60 percent, the company says 6. Autoliv made 143 million complete seatbelt systems in 2025, 100 million with pretensioners, and puts its global seatbelt share at around 45 percent 6.

Seatbelts brought in $3,513 million in 2025 6. In the third quarter of 2026 they took in $845 million, down 3.5 percent, with organic declines in China, the Americas and EMEA 1.

Mobility safety and new lines

Mobility Safety Solutions carries the same know-how to other uses: safety systems for commercial vehicles, battery cut-off switches and protection for riders of motorcycles and bikes 6. In 2026 Autoliv co-developed an airbag for Yamaha's Tricity commuter scooter and an airbag vest that the riding-gear maker RS Taichi will sell 15.

It won orders for its Pyro Safety Switch for 1,000-volt electric cars and licensed its Human Body Model, software for virtual crash testing, to a first customer 6. Toyota is the first customer to evaluate the model's Safety Suite 1.

Customers and regions

The top five customers made up about 44 percent of 2025 sales and the top ten about 70 percent 6. Asian carmakers were about 48 percent, almost two thirds of that Japanese, European brands 30 percent and U.S. brands 20 percent 6. Chinese carmakers were about 8 percent of the total, Geely alone more than 2 percent 6.

In the third quarter of 2026, Asia including China brought in $1,081 million, about 40 percent of sales (computed) 1. Average safety content per vehicle was around $268 in 2025, about $350 in high-income markets and $210 elsewhere, so more cars built in India and China dilute the average 6. The company estimates its sales for fully electric cars at about $1.7 billion in 2025 6.

Plants and people

Autoliv has 62 production plants in 23 countries and 13 technical centers 64. They run from Changchun and Shanghai in China to six sites in Romania, Querétaro in Mexico and four Utah towns, Ogden, Brigham City, Promontory and Tremonton, which make airbags, inflators and propellant 6.

The workforce was about 64,300 at the end of 2025, 10 percent temporary: 35 percent in Europe, 29 percent in the Americas, 22 percent in Asia outside China and 14 percent in China 6. Around 60 percent of the workforce outside the United States is under collective bargaining agreements 6.

Mikael Bratt, chief executive and a director since 2018, ran Passive Safety from May 2016 until his promotion, after about 30 years at the Volvo Group 16. Monika Grama, at Autoliv since 2009, became chief financial officer on 1 April 2026, succeeding Fredrik Westin 19. Jan Carlson remains chairman 24.

Kevin Fox, head of the Americas since June 2020, stepped down from that post on 31 August 2026 20. General counsel Anthony Nellis is acting head of the Americas until a successor is appointed 20.

Rivals

Autoliv estimates its share of the global passive safety market at around 44 percent, up from 27 percent in 1997 6. Its global rivals are ZF LIFETEC, part of ZF Friedrichshafen, and Joyson Safety Systems, part of Ningbo Joyson Electronic, which absorbed Takata after Key Safety Systems bought it in 2018 6.

Toyota buys mostly from Tokai Rika and Toyoda Gosei, Hyundai and Kia largely from Mobis, and BYD makes its own through FinDreams Technology, to which Autoliv supplies inflators 6. Local rivals include Yanfeng and Jinheng in China and Ashimori in Japan 6.

Problems

Stellantis recalled about 250,000 U.S. vehicles in 2025 over an Autoliv side curtain airbag and added 178,000 in March 2026 2. On 16 April 2026 it sued an Autoliv subsidiary in federal court in Michigan for the recall's costs 2. Autoliv estimates a range of $0 to $209 million and has made no accrual, meaning it has booked no expense yet 2.

Another customer is checking whether its vehicles show test results like those in the Stellantis case 2. BMW is suing in Germany for 58 million euros plus interest, about 95 million euros in all, over the conduct in the Commission case 2.

Autoliv is a defendant in a U.S. class action over ARC inflators, which it denies 2. The National Highway Traffic Safety Administration has yet to make final its 2023 initial decision to recall about 52 million ARC and Delphi inflators 2.

The umbrella, in words

Autoliv, Inc. is a Delaware holding company with its head office in Stockholm and two principal subsidiaries, Autoliv AB and Autoliv ASP, Inc., which it owns 6. The subsidiaries exhibit says every listed subsidiary is wholly owned except Autoliv Shenda in Tai Cang and Nanjing, 60 percent each, and Mei-An Autoliv, 59 percent 7.

It owns 49 percent of Autoliv-Hirotako Safety in Malaysia, its one equity method investment, meaning it shares in the profit without control 6. It has agreed strategic cooperation frameworks with Great Wall Motor and XPENG, both signed in July 2026 14. Its plants are owned or leased by its operating companies, among them the Utah sites of Autoliv ASP 6.

Its common stock is listed on the New York Stock Exchange and traded as Swedish depositary receipts on Nasdaq Stockholm 23. The largest holder at the end of 2025 was Cevian Capital, with 9,319,667 shares or 12.5 percent, ahead of BlackRock at 6.9 percent and Alecta Tjänstepension at 6.3 percent 16. Cevian's latest Schedule 13D amendment, of March 2025, reported the same share count 17.

Under a 2019 cooperation agreement, a Cevian partner, Gustav Lundgren, sits on the board while Cevian owns at least 8 percent, and Cevian may not acquire more than 19.9 percent 16. Skandinaviska Enskilda Banken reported 3,893,610 shares, 5.3 percent, held in the ordinary course of business at 30 June 2026 18.

For 2026 the company guides to around 0 percent organic sales growth, an adjusted operating margin of around 10.5 percent and operating cash flow of around $1.2 billion 1. It assumes global light vehicle production falls about 2 percent, currency adds about 2.5 percent to sales and the tax rate is around 30 percent 1. Net capital spending is planned at around 4 percent of sales 1.

It estimates a gross raw material cost increase of around $120 million for 2026 and expects to offset most of it 1. It expects tariffs to dilute the 2026 margin by about the 20 basis points of 2025, a basis point being a hundredth of a percentage point 1.

The Türkiye closure is planned to finish in the first half of 2028, with production moved to other EMEA plants 4. Autoliv expects pre-tax savings of $40 million a year, starting in 2027 and fully realized in 2028, with substantially all cash payments made by the end of 2027 32.

Bratt said in January 2026 that the company had "a clear path towards our 12% adjusted operating margin target" 13. A $2.5 billion repurchase program runs from July 2025 to the end of 2029, and in July the company aimed for $300 million to $500 million of repurchases in 2026 614. In the 12 months to September it bought back 4.14 million shares for $500 million 1.

Its leverage target, net debt to adjusted earnings before interest, taxes, depreciation and amortization, is no more than 1.5 times; it was 1.3 times at the end of September 16. In October 2025 it issued 300 million euros of 3 percent notes due 2030, and in March 2026 the board renewed its 3 billion euro note program for a year 2221.

On orders, the annual report said the company expects a rebound in 2026 because carmakers pushed sourcing of several large platforms out of 2025 6. It estimates its market, airbags, seatbelts and steering wheels, grows from around $24 billion in 2025 to almost $26 billion over three years 6.

The fourth-quarter report is due on 29 January 2027 1. An Investor Day in Shanghai on 26 and 27 April 2027, beside the Auto Shanghai show, is to focus on China and Chinese carmakers at home and abroad 1. Directors elected in May 2026 serve until the 2027 annual meeting, and the regulator's final ARC decision and the Stellantis and BMW cases are pending 32.