The Stockholm-based automotive safety supplier outperformed global light vehicle production (LVP) growth by 1.3 percentage points during the quarter. This momentum was anchored by a 40% surge in sales to Chinese original equipment manufacturers, alongside strong demand in India. CEO Mikael Bratt highlighted that Chinese OEMs now represent 55% of the company's regional sales, bolstered by new strategic partnerships with Great Wall Motor and XPENG.
Despite the top-line growth, operating income dipped to $192 million from $247 million in the same period last year, a consequence of restructuring activities, including the decision to shutter manufacturing operations in Türkiye. However, adjusted operating income rose 7.3% to $270 million, reflecting successful direct material cost savings that offset raw material and currency headwinds. The adjusted operating margin settled at 9.6%.
Autoliv’s liquidity position remains solid, with a leverage ratio improved to 1.2x. This financial stability enabled the company to return capital to shareholders through $64 million in dividends and $200 million in share repurchases. Looking ahead, management reaffirmed its full-year 2026 guidance, anticipating organic sales growth near 0% and an adjusted operating margin between 10.5% and 11%. Executives expect a sharper performance improvement in the final quarter as mitigation initiatives and customer compensation measures take full effect.
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