Autoliv Inc.

Q3 performance: solid profitability despite tough market - Net sales $2.7B (-0.5% YoY); sales roughly flat vs. declining light-vehicle production due to outperformance vs. the market (tariff-related compensation + favorable FX). - Adjusted operating margin: 9.7% (about -30 bps YoY), with adjusted operating income down 3% to $262M. - Margin pressure largely driven by raw material cost headwinds and prior-year supplier compensation effects; gross margin fell from 19.3% to 18.4%.

Guidance: reiterated flat organic sales + margin narrowed to the low end (key forecast) - Reiterated full-year 2026 guidance: flat organic sales with continued significant outperformance of light vehicle production, especially in China (Chinese OEMs) and India. - Adjusted operating margin guidance narrowed to ~10.5% (low end of 10.5%–11%) after narrowing for continued cost headwinds. - Operating cash flow guidance unchanged: ~$1.2B full-year. - CapEx lowered/defined at ~4% of sales (previously: <5%), supporting cash return despite investments.

What’s expected in Q4 (implied step-up) + visibility drivers - Fourth-quarter environment expected to be tougher vs. Q3 in absolute unit terms (global light-vehicle production forecast -4.5% YoY in Q4, with China down ~9% YoY), but sequential improvement is expected (industry production +~5% QoQ). - Management expects margin expansion vs. Q3 from: - higher sales volumes and engineering income - customer compensation related to raw material inflation - continued cost efficiency (optimization + digitalization). - Confidence built from ability to absorb incremental cost headwinds through mitigation actions (notably, customer compensation + cost-out), though the margin target is at the lower end—implying execution/cost recovery must remain on track.