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# Autoliv Cuts Margin Outlook To Bottom Of Its Range As Raw-Material Bill Climbs To $120 Million
- URL: https://www.bullished.co/autoliv-cuts-margin-outlook-to-bottom-of-its-range-as-raw-material-bill-climbs-to-120-cac236f4/
- Published: 2026-10-23T14:06:51.000Z
- Updated: 2026-10-23T14:06:51.000Z
- Description: The airbag maker now sees a full-year adjusted operating margin of around 10.5%, with a strong fourth quarter expected to close the gap.
- Author: Matteo Parrino
- Tags: Earnings, ALV, Industry: Consumer Discretionary

[Autoliv](https://www.bullished.co/tag/alv/), which makes airbags, seatbelts and steering wheels for automakers, narrowed its 2026 adjusted operating margin outlook to [around 10.5%](https://www.sec.gov/Archives/edgar/data/0001034670/000119312526429588/alv-20260930.htm?ref=bullished.co), the low end of its prior 10.5-11% range, after costs for raw materials, logistics and flooding in Thailand climbed. Third-quarter adjusted operating margin was 9.7%, so the fourth quarter has to carry the year.

## Costs rose through the year

Autoliv now puts the full-year gross hit from higher raw-material prices at around $120 million, up from around $110 million in its [second-quarter filing](https://www.sec.gov/Archives/edgar/data/0001034670/000119312526306974/alv-20260630.htm?ref=bullished.co). The third quarter alone took a gross impact of around $42 million, the company said in its 10-Q. Management says it expects to keep offsetting a majority of that through internal cost cuts, material mix and negotiations with customers and suppliers.

CEO Mikael Bratt said cost headwinds "have increased materially," citing raw materials, logistics, the Thailand flooding and weaker customer call-off accuracy since the first quarter. The company says it has offset most of them through labor efficiency, value engineering and negotiations.

The tone on the fourth quarter shifted. The second-quarter filing projected a "significant improvement in the fourth quarter." The new one says the company anticipates a "strong fourth quarter" supported by product launches and raw-material recoveries. Organic sales growth (about unchanged) and operating cash flow of [around $1.2 billion](https://www.benzinga.com/markets/earnings/26/10/62557367/autolivs-42-million-raw-material-cost-blow-overshadows-strong-india-sales?ref=bullished.co) are both unchanged.

## Earnings slipped on taxes

Third-quarter diluted earnings per share [were $2.13](https://www.benzinga.com/markets/earnings/26/10/62557367/autolivs-42-million-raw-material-cost-blow-overshadows-strong-india-sales?ref=bullished.co), down from $2.28, on net sales of $2,693 million, down 0.5%. A $0.16 hit from higher taxes and $0.13 from lower operating income were partly offset by $0.11 from a smaller share count. Diluted shares fell to 72.9 million from 76.7 million.

For the first nine months, adjusted operating income was $776 million against $777 million a year earlier. Autoliv repurchased 1.23 million shares for $150 million in the quarter, and cash fell to $197 million from $604 million at the end of 2025\. Sales in India grew nearly 30% and sales to Chinese automakers rose more than 20%.

Shares traded at $112.64 in Friday trading, down about 5% from the prior close.

## Recall suit and a Shanghai date

The 10-Q says Stellantis sued an Autoliv subsidiary on April 16 over the cost of a recall of its side curtain airbags. Autoliv estimates a possible loss of $0 to $209 million, expects a substantial portion to be covered by insurance, and has booked no accrual.

Autoliv will hold an Investor Day in Shanghai on April 26 and 27, 2027, alongside the Auto Shanghai show.

The margin guidance now sits at the floor of the old range, and Autoliv's own 10-Q leaves no cushion if the fourth-quarter recoveries fall short.

### Sources

- [10-Q Filing — Autoliv (ALV)](https://www.sec.gov/Archives/edgar/data/0001034670/000119312526429588/alv-20260930.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Autoliv (ALV), Q2 FY2026 filed 2026-07-17 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0001034670/000119312526306974/alv-20260630.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, alv-ex99\_1.htm) — Autoliv, filed 2026-10-23](https://www.sec.gov/Archives/edgar/data/0001034670/000119312526429404/alv-ex99%5F1.htm?ref=bullished.co) — SEC EDGAR
- [Autoliv, Inc. (ALV) Q3 Earnings and Revenues Miss Estimates](https://finance.yahoo.com/markets/stocks/articles/autoliv-inc-alv-q3-earnings-101501599.html?ref=bullished.co) — Yahoo Finance
- [Autoliv's $42 Million Raw Material Cost Blow Overshadows Strong India Sales](https://www.benzinga.com/markets/earnings/26/10/62557367/autolivs-42-million-raw-material-cost-blow-overshadows-strong-india-sales?ref=bullished.co) — benzinga.com
- [Autoliv (ALV) reports earnings tomorrow: what to expect](https://finance.yahoo.com/markets/stocks/articles/autoliv-alv-reports-earnings-tomorrow-030112443.html?ref=bullished.co) — Yahoo Finance
- [Autoliv Inc. (NYSE:ALV) : Ptab Cases :: Law360](https://www.law360.com/companies/autoliv-inc/ptab%5Fcases?ref=bullished.co) — law360.com
- [Why Autoliv (ALV) is Poised to Beat Earnings Estimates Again](https://finance.yahoo.com/markets/stocks/articles/why-autoliv-alv-poised-beat-151003144.html?ref=bullished.co) — Yahoo Finance

### More on Autoliv

- [Autoliv CEO Defends Steep Fourth-Quarter Margin Jump As Analysts Press On China](https://www.bullished.co/autoliv-ceo-defends-steep-fourth-quarter-margin-jump-as-analysts-press-on-china-3e9c2217/)
- [Autoliv Absorbs 170 To 180 Basis Points Of Extra Costs, Narrows 2026 Margin Guidance To Around 10.5%](https://www.bullished.co/autoliv-absorbs-170-to-180-basis-points-of-extra-costs-narrows-2026-margin-guidance-to-44c09b4c/)
- [Autoliv Narrows 2026 Margin Target To Around 10.5% As Raw Material And Logistics Costs Climb](https://www.bullished.co/autoliv-narrows-2026-margin-target-to-around-10-5-as-raw-material-and-logistics-costs-b2376da2/)

[All Autoliv (ALV) coverage →](https://www.bullished.co/tag/alv/)