0001193125-26-160472
SEC filingRevenue grew 6.8% to $2.8B and gross profit rose 10.0% to $526M with 19.1% margin expansion, but operating income declined 6.7% to $237M due to expense pressures, driving negative operating cash flow of -$76M from working capital expansion.
Autoliv delivered revenue growth of 6.8% to $2.8 billion in Q1 2026 versus $2.6 billion prior year, outpacing a declining light vehicle production backdrop through effective pricing, productivity, and regional momentum. This top-line strength fueled a 10.0% rise in gross profit to $526 million, lifting the gross margin to 19.1% from prior levels. Investors should note this expansion stems from ongoing efficiency improvements and favorable FX tailwinds, even as tariff costs pressured input expenses—management aims to pass these through to customers, though recovery levels remain uncertain.
Operating income, however, contracted 6.7% to $237 million (8.6% of sales), as gains at the gross line were more than offset by elevated operating expenses. This dynamic underscores the need for disciplined cost control amid investments in growth areas. Net income followed suit, declining 15.6% to $141 million, reflecting the operating pressures and other below-the-line items.
Regionally, performance aligned with LVP in EMEA while trailing by 4.5 percentage points in the Americas due to unfavorable product mix from high LVP growth in low-content South American vehicles and lower content on replacement models. These factors explain the revenue resilience despite broader market softness.