Autoliv (ALV) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, April 17, 2026 astatine 9:44 AM CDT 38 min read

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Friday, April 17, 2026 astatine 8 a.m. ET

• President and Chief Executive Officer — Mikael Bratt

• Chief Financial Officer — Monika Grama

Mikael Bratt: Thank you, Anders. Looking connected the adjacent slide. The archetypal 4th exceeded our expectations, driven by beardown income successful March Operational show was besides up of plan, supported by coagulated productivity improvements, partially reflecting reduced call-off volatility. Our affirmative inclination successful Asia continued with beardown maturation successful India, South Korea and China. In China, we continued to turn faster than airy conveyance accumulation particularly with the Chinese OEMs, outperforming by much than 40 percent points. In India, we grew income by 38% organically reflecting chiefly the inclination of accrued information contented successful vehicles successful India, but besides the continued precocious level of airy conveyance accumulation growth.

Underlying profitability improved with gross nett expanding by 10%, though adjusted operating income was somewhat little owed to impermanent little RD&E reimbursements and a onetime income successful Q1 past year. In the quarter, we paid a dividend of $0.87 per share, representing a full payout of USD 65 million. Buybacks were paused arsenic the institution was successful a restricted play pursuing aggregate filings and the announcement of a caller CFO. Our USD 2.5 cardinal stock repurchase authorization done 2029 remains unchanged. And with the ambition yearly stock repurchase betwixt USD 300 cardinal and USD 500 million. Hostilities successful the Persian Gulf had a constricted interaction this 4th and we are continuously monitoring immoderate imaginable wide-reaching interaction connected the industry.

Based connected what we cognize today, we reiterate our afloat twelvemonth 2026 guidance of level integrated income with continued important outperformance of airy conveyance accumulation successful some China and India. We proceed to expect an adjusted operating borderline of astir 10.5% to 11%. This is based connected the presumption that airy conveyance accumulation volition diminution by astir 1% and that the gross headwind from earthy materials is astir USD 90 million. I americium besides pleased that we introduced our archetypal aerial container for motorcycles arsenic good arsenic our archetypal implicit wearable airbag solution promoted by motorcycle riders, gathering connected our semipermanent strategy of increasing extracurricular our accepted halfway business. Looking present connected the adjacent slide.

First 4th income accrued by astir 7% year-over-year, driven by beardown outperformance comparative to airy conveyance production, on with favorable currency effects and tariff-related compensations. The adjusted operating income for Q1 decreased by 4% to USD 245 cardinal compared to a beardown archetypal 4th past year. The adjusted operating borderline was 8.9%, 1 percent points little than successful the aforesaid 4th past year. Operating currency travel was a antagonistic USD 76 million, a alteration of USD 153 cardinal compared to past year.