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Autoliv Posts Mixed Second-Quarter Results as Raw Material Costs Weigh on Profitability

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Autoliv Posts Mixed Second-Quarter Results as Raw Material Costs Weigh on Profitability

Autoliv's (ALV) second-quarter revenue topped expectations, though earnings fell short amid higher raw material costs.

The automotive safety supplier's sales improved 3.3% annually to $2.8 billion, ahead of the FactSet-polled consensus view for $2.77 billion. Adjusted earnings rose to $2.43 a share for the June quarter from $2.21 the year before, but trailed expectations of $2.46.

Raw material inflation lowered profitability by about $21 million, while tariffs had a net negative impact of about $7 million, according to the company.

The company's New York Stock Exchange-listed shares fell 3.6% in Friday trading.

"We continued to manage geopolitical developments successfully in the quarter, limiting the effects of tariffs, supply chain challenges and raw material price increases," Chief Executive Mikael Bratt said in a statement. "The business environment remains uncertain but our current best estimate for the remainder of the year is to reiterate our full-year 2026 guidance."

Autoliv continues to anticipate flat organic sales year over year in 2026. The Street is looking for reported sales of $11.09 billion, compared with $10.82 billion in 2025.

Higher raw material prices are expected to be a headwind of $110 million for the full year, although the company anticipates mitigating a majority of that mainly through cost reductions and negotiations with suppliers, Autoliv said.

Revenue in the Americas region added 2.1% year on year to $910 million in the second quarter, while sales in China increased 9.6% to $522 million.

Price: $121.12, Change: $-3.87, Percent Change: -3.10%

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