Autoliv’s first quarter of 2026 showed higher sales, but lower profit and cash generation than a year earlier.
Net sales rose 6.8% to $2.753 billion from $2.578 billion in the first quarter of 2025. Organic sales increased 0.8%, with the strongest regional performance in Asia excluding China, where sales grew 11.1% organically, and in China, where organic growth was 4.9%. EMEA was down 1.8% organically and the Americas fell 5.2%.
By product, airbags, steering wheels and other sales increased to $1.863 billion from $1.752 billion, up 6.3%, while seatbelt products and other rose 7.8% to $890 million from $826 million. Currency translation added 6.0 percentage points to total sales growth.
Gross profit increased 10% to $526 million from $478 million, and gross margin improved to 19.1% from 18.6%. But operating income fell 6.7% to $237 million from $254 million, and adjusted operating income declined 3.9% to $245 million from $255 million. Operating margin dropped to 8.6% from 9.9%, while adjusted operating margin slipped to 8.9% from 9.9%.
Selling, general and administrative costs rose to $161 million from $145 million, and research, development and engineering net expense climbed to $120 million from $95 million. Financial and non-operating items widened to a $35 million expense from a $22 million expense.
Net income fell 15% to $142 million from $167 million. Diluted earnings per share dropped 12% to $1.88 from $2.14, while adjusted diluted EPS declined 4.7% to $2.05 from $2.15.
Operating cash flow swung to a negative $76 million from a positive $77 million a year earlier. Free operating cash flow fell to negative $159 million. Return on capital employed declined to 22.2% from 25.6%, and adjusted ROCE fell to 22.9% from 25.6%.
On shareholder returns, dividends paid increased to $65 million from $54 million, while share repurchases fell to zero from $50 million in the prior-year quarter. The company ended the quarter with 74.9 million shares outstanding, down from 77.3 million a year earlier. Today the company's shares have moved 0.0% to a price of $105.11. Check out the company's full 8-K submission here.
