Autoliv Net Income Falls 16% to $141M as Operating Profit Slips in Q1 2026
The automotive safety systems maker posted net income of $141 million for the quarter ending March 31, down from $167 million a year earlier, despite revenue climbing 7% to $2.75 billion.
Autoliv, Inc. (NYSE: ALV), a global supplier of automotive safety systems including airbags and seatbelts, reported net income of $141 million for the first quarter of fiscal 2026, a 16% decline from $167 million in the same period a year earlier. Read more earnings reports.
Revenue for the three months ending March 31, 2026 rose 7% to $2.75 billion from $2.58 billion in the prior-year quarter. Cost of goods sold climbed to $2.23 billion from $2.10 billion, resulting in gross profit of $526 million compared to $478 million a year earlier.
Operating income fell to $237 million from $254 million in the first quarter of fiscal 2025, a 7% decline. The compression came as research and development expenses surged 26% to $120 million from $95 million, while selling, general and administrative expenses rose to $161 million from $145 million.
Diluted earnings per share for the quarter came in at $1.88, down from $2.14 in the year-ago period. The company had 75.1 million diluted weighted average shares outstanding compared to 77.9 million a year earlier.
Cash flow from operations swung sharply negative to negative $76 million for the quarter compared to positive $77 million in the first quarter of fiscal 2025. Cash from investing activities totaled negative $84 million, while financing activities consumed $93 million in cash.
The company's cash and cash equivalents stood at $342 million as of March 31, 2026, down from $604 million at the end of December 2025. Total assets declined to $8.47 billion from $8.64 billion at year-end.
Long-term debt was $1.70 billion as of quarter-end, down slightly from $1.73 billion three months earlier. Stockholders' equity rose to $2.63 billion from $2.57 billion at December 31, 2025, with retained earnings climbing to $2.38 billion from $2.31 billion.
First Quarter Financial Summary
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Revenue | $2.75 billion | $2.58 billion | +7% |
| Gross Profit | $526 million | $478 million | +10% |
| Operating Income | $237 million | $254 million | -7% |
| Net Income | $141 million | $167 million | -16% |
| Diluted EPS | $1.88 | $2.14 | -12% |
| Operating Cash Flow | ($76 million) | $77 million | N/A |
Inventory decreased to $947 million from $992 million at the end of December, while accounts payable fell to $1.86 billion from $2.01 billion. Current assets totaled $3.99 billion against current liabilities of $3.71 billion as of March 31, 2026.