Autoliv Inc
ALV
$122.73 2.07% Quote
Exchange NYSE Sector Consumer Cyclical Industry Auto Parts
Q3 2024
Reported
Published: Oct 18, 2024

Data: Financial Modeling Prep

Company Status Snapshot

Fast view of the latest quarter outcome for ALV

Report Date

Oct 18, 2024

Quarter Q3 2024

Revenue

2.56B

YoY: -1.6%

EPS

1.74

YoY: +10.1%

Market Move

+2.07%

Previous quarter: Q2 2024

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Earnings Highlights

Gross Margin

18.0%

Net Income

138.00M

YoY: +3.0%

"We are reiterating the adjusted operating margin guidance of around 9.5% to 10% with only a few months left of the year, we expect to come in at the low end of the around 9.5% to 10%."

— Mikael Bratt
ALV
Company ALV

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Executive Summary

Autoliv reported a resilient Q3 2024 despite a near-5% global decline in light-vehicle production and ongoing regional mix headwinds. Net sales of $2.556 billion declined 1.6% year over year and 1.9% quarter over quarter, while adjusted operating income was $237 million with an adjusted operating margin of 9.3%. Management highlighted broad-based cost improvements (including direct labor productivity gains and indirect headcount reductions) that helped offset weaker top-line dynamics; gross margin rose 10 basis points year over year and 110 basis points versus Q1 2023, underscoring the benefit of efficiency programs and favorable product mix with pricing and customer compensations contributing to margin discipline. Cash flow remained solid: operating cash flow $177 million, free cash flow $32 million, and 12-month trailing cash conversion around 80%. The company repurchased 1.33 million shares for ~$130 million in the quarter and has returned over $820 million to shareholders in the last year, reinforcing capital allocation discipline.

A key near-term dynamic is Autoliv’s evolving exposure to the China market. China accounted for roughly 20% of 2023 global sales and is a focal point of Autoliv’s growth strategy, with more than 15 plants and 68 customers in the region. Management signaled expectations of continued outperformance in 2025 driven by major NEV model launches and deeper OEM partnerships with Chinese manufacturers (e.g., Geely, Great Wall, BYD, Chery) as the NEV content per vehicle rises. Autoliv’s China strategy includes securing high-end NEV platforms, expanding systems integration capabilities, and leveraging automation to improve margins.

Looking ahead, Autoliv reiterated full-year 2024 guidance for organic sales around +1% and an adjusted operating margin of 9.5%–10%, with Q4 expected to show material margin improvement aided by higher light-vehicle production, seasonality in engineering income, cost-out benefits, and favorable currency effects. The company continues to target a longer-term adjusted operating margin of ~12%, supported by structural cost reductions, efficiency gains, and continued outperformance in select geographies. Investors should monitor (1) the cadence of the cost-out program (especially indirect headcount reductions toward the 2,000-headcount target) and supplier settlements, (2) the evolution of call-off accuracy as volatility normalizes, (3) China NEV demand/supply dynamics and Autoliv’s share gains there, and (4) the pace of BEV content expansion and its impact on mix, price, and profitability.

Key Performance Indicators

Revenue
Decreasing
2.56B
QoQ: -1.92% | YoY: -1.58%
Gross Profit
Decreasing
460.00M
18.00% margin
QoQ: -3.16% | YoY: -1.08%
Operating Income
Decreasing
226.00M
QoQ: 2.26% | YoY: -2.59%
Net Income
Increasing
138.00M
QoQ: 0.00% | YoY: 2.99%
EPS
Increasing
1.74
QoQ: 1.75% | YoY: 10.13%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2026 2,753.00 1.88 +5.7% View
Q1 2025 2,578.00 2.14 -1.4% View
Q4 2024 2,616.00 3.02 -4.9% View
Q3 2024 2,555.00 1.74 -1.6% View
Q2 2024 2,605.00 1.70 -1.1% View