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1. Company Snapshot

1.a. Company Description

Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies passive safety systems to the automotive industry in Europe, the Americas, China, Japan, and rest of Asia.It offers passive safety systems, including modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, inflator technologies, and battery cut-off switches, as well as anti-whiplash systems and pedestrian protection systems, and connected safety services and solutions for riders of powered two wheelers.The company primarily serves car manufacturers.


Autoliv, Inc.was founded in 1953 and is headquartered in Stockholm, Sweden.

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1.b. Last Insights on ALIV

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1.c. Company Highlights

2. Autoliv Q1 2026 Beats on Sales, Margins, and EPS

Autoliv reported net sales of $2.80 billion, up 7% YoY, with a modest 0.8% organic growth. Gross profit rose $48 million, lifting the gross margin by 60 basis points to 26.8%. Adjusted operating income was $245 million, a 4% YoY decline, yet the margin held at 8.9%. Earnings per share hit $18.69 versus analysts’ $17.08 estimate, while the company paid a $0.87 dividend per share. Valuation metrics sit at a P/E of 12.53 and a P/B of 3.38, reflecting modest upside in earnings and book value.

Publication Date: Apr -18

📋 Highlights
  • Net Sales Growth:: Q1 2026 net sales reached $2.8 billion, reflecting a 7% year-over-year increase and 0.8% organic growth.
  • Gross Profit Improvement:: Gross profit rose by $48 million, with a margin expansion of nearly 60 basis points to 10.1%.
  • Regional Performance:: India saw 38% organic sales growth, while China outperformed light vehicle production by 40 percentage points.
  • Shareholder Returns:: Dividends paid $0.87 per share ($65M total), with share repurchase guidance of $300–500M annually through 2029.
  • Cash Flow Resilience:: 83% cash conversion for the past 12 months, exceeding the 80% target, and operating cash flow guidance of $1.2 billion for 2026.

Operational Highlights and Margin Management

Margin improvement was driven by productivity gains and a 1.5‑percentage‑point positive mix effect in Q1, with the company maintaining a 60‑basis‑point gross margin lift. Adjusted operating income fell slightly, but the firm’s cost‑control initiatives and internal pricing adjustments have cushioned the impact of raw‑material headwinds.

Geographic Momentum and New Product Pipeline

India saw a 38% organic sales surge, while China outperformed light‑vehicle production by over 40 percentage points, thanks to higher penetration of domestic OEMs. The firm plans a high cadence of new product launches in 2026, primarily targeting Chinese OEMs, and has secured its first tender in Europe from a Chinese OEM, reinforcing its global footprint.

Cash Flow, Capital Allocation, and Shareholder Returns

Autoliv’s cash conversion reached 83% over the past 12 months, exceeding the 80% target. Operating cash flow is projected at $1.2 billion with CapEx below 5% of sales. The company continues to pay a steady dividend and maintains a $2.5 billion share‑repurchase authorization, aiming for $300–$500 million in annual buybacks through 2029.

Cost Pressures, Mix, and Risk Management

Raw‑material costs, chiefly oil, present a $90 million gross headwind, yet price increases and internal efficiencies offset most of this drag. The firm expects a neutral mix for the full year and maintains 95% customer call‑off stability. Geopolitical tensions in the Persian Gulf had only a limited impact on the quarter.

Forward Outlook and Guidance Consensus

Autoliv reiterates flat organic sales for 2026 with an adjusted operating margin of 10.5–11%, assuming a 1% decline in light‑vehicle production and a $90 million gross headwind—an outlook confirmed by staff noting the expected 1% production drop. The company forecasts a 3% positive currency translation effect on sales and aims to keep CapEx below 5% of revenue while delivering robust shareholder returns.

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.65%)

6. Segments

Airbag, Steering Wheels and Other

Expected Growth: 4%

Autoliv's Airbag segment growth is driven by increasing safety regulations, rising demand for advanced safety features, and growing vehicle production. Steering Wheels growth is fueled by the adoption of advanced driver-assistance systems (ADAS) and autonomous driving technologies. The Other segment benefits from the increasing popularity of electric and hybrid vehicles, which require specialized safety components.

Seatbelt

Expected Growth: 6%

Autoliv's seatbelt segment growth is driven by increasing demand for safety features, stringent government regulations, and rising adoption of advanced safety systems in emerging markets. Additionally, the company's focus on innovation, such as introducing active safety systems, and its strong relationships with major OEMs contribute to its 6% growth.

7. Detailed Products

Airbags

Autoliv's airbags are designed to deploy in the event of a crash, cushioning the impact and reducing the risk of injury or fatality.

Seatbelts

Autoliv's seatbelts are designed to restrain occupants in their seats, reducing the risk of ejection or injury in the event of a crash.

Steering Wheels

Autoliv's steering wheels are designed to provide a comfortable and safe driving experience, with integrated airbags and other safety features.

Radar and Camera Systems

Autoliv's radar and camera systems are designed to provide advanced driver assistance systems (ADAS) features, such as lane departure warning and adaptive cruise control.

Night Vision Systems

Autoliv's night vision systems are designed to enhance visibility in low-light conditions, using infrared cameras and displays to provide a clear view of the road ahead.

Autonomous Driving Systems

Autoliv's autonomous driving systems are designed to enable semi-autonomous and autonomous driving capabilities, using a combination of sensors and software.

8. Autoliv, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Autoliv, Inc. is medium due to the presence of alternative safety systems and components in the market.

Bargaining Power Of Customers

The bargaining power of customers for Autoliv, Inc. is low due to the company's strong relationships with major automotive manufacturers and its position as a leading supplier of safety systems.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Autoliv, Inc. is medium due to the company's dependence on a few key suppliers for critical components and the potential for supply chain disruptions.

Threat Of New Entrants

The threat of new entrants for Autoliv, Inc. is low due to the high barriers to entry in the automotive safety systems market, including significant capital investments and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Autoliv, Inc. is high due to the competitive nature of the automotive safety systems market, with several established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 44.33%
Debt Cost 5.72%
Equity Weight 55.67%
Equity Cost 12.59%
WACC 9.54%
Leverage 79.62%

11. Quality Control: Autoliv, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Pirelli

A-Score: 6.6/10

Value: 7.6

Growth: 3.7

Quality: 5.7

Yield: 6.9

Momentum: 6.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
CIE Automotive

A-Score: 6.1/10

Value: 6.9

Growth: 5.3

Quality: 2.7

Yield: 6.2

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Autoliv

A-Score: 5.5/10

Value: 5.5

Growth: 5.7

Quality: 5.4

Yield: 6.2

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
HELLA

A-Score: 4.8/10

Value: 3.6

Growth: 5.7

Quality: 4.7

Yield: 2.5

Momentum: 3.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Knorr-Bremse

A-Score: 4.7/10

Value: 2.6

Growth: 3.4

Quality: 5.3

Yield: 3.8

Momentum: 6.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Continental

A-Score: 3.9/10

Value: 5.1

Growth: 3.3

Quality: 2.6

Yield: 5.6

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1056.0$

Current Price

1056$

Potential

-0.00%

Expected Cash-Flows