NYSE$ALV

Autoliv Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Solid sales outperformance achieved amidst challenging market conditions.

Autoliv reported solid sales outperformance in Q3 2024, with a 0.8% organic sales decline, 4pp better than global LVP decline. Profitability remained unchanged despite a slight net sales decrease, driven by cost reductions and commercial recoveries. The company reaffirms its guidance of around 9.5-10.0% adjusted operating margin for 2024.

  • Sales decreased organically by 0.8%, outperforming global LVP decline by 4pp.
  • Sales to domestic Chinese OEMs grew by 18%, twice as much as their LVP growth.
  • Profitability was unchanged due to cost reductions and commercial recoveries, offsetting inflationary pressures.
  • Operating cash flow was $177 million, on track towards $1.1 billion for 2024.

Headline financials

Total Revenue

$2.56B

Previous: $2.6B-1.6%
EPS

$1.74

Previous: $1.66+4.8%
Operating margin

8.9%

Previous: 8.9%+0.0%
Adjusted operating margin

9.3%

Previous: 9.4%-1.1%
Operating cash flow

$177M

No prior period
ROCE

22.9%

Previous: 24.2%-5.4%
Capital Expenditures

-$440M

Previous: -$420M-4.8%
Free Cash Flow

-$302M

Previous: -$286M-5.6%
Net Income

$138M

Previous: $134M+3.0%
Operating Income

$226M

Previous: $232M-2.6%
Gross Profit

$459M

Previous: $465M-1.3%
Cash & Equivalents

$415M

Previous: $475M-12.6%
Total Assets

$8.31B

Previous: $7.99B+4.0%
R&D Expense

$96M

No prior period

Revenue & EPS history

Autoliv · Revenue · Quarterly

$2.56B

Q3 2024-1.6%vs Q3 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Autoliv reaffirms its full year 2024 guidance, expecting to be at the low end of the range of around 9.5-10.0% adjusted operating margin and around 1% organic sales growth. Operating cash flow is on track towards the full year guidance of $1.1 billion.

Tailwinds

  • Expect further market share gains with domestic Chinese OEMs.
  • Excess inflation compensation negotiations with customers have developed in line with expectations.
  • Seasonally strong fourth quarter remaining of the year.
  • Operating cash flow is on track towards the full year guidance of $1.1 billion.
  • Balance sheet remains strong with a debt leverage of 1.4x.

Headwinds

  • Expect full year 2024 organic growth to be 1% instead of previously expected 2% due to unfavorable market mix development.
  • Light vehicle production was weak in the third quarter, declining by close to 5% globally.
  • Cost pressure from labor and other items had a negative impact on profitability.
  • Low customer demand visibility and changes to customer call-offs with short notice had a negative impact on production efficiency and profitability.
  • Expect continued cost pressure from inflation relating mainly to labor, especially in Europe and the Americas.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.5%

Avg return

Earnings day

-0.0%

Avg return

5 days after

+1.4%

Avg return

30 days after

54%

37 / 69 earnings

Positive

+10.0%

Q4 2017

Best reaction

-11.2%

Q4 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.3%+4.3%+3.1%
Q4 2025-4.1%+0.1%-6.3%
Q3 2025-2.6%-4.5%-0.3%
Q2 2025+0.1%+0.9%+6.0%
Q1 2025+5.6%+4.0%+24.0%
Q4 2024-4.6%-6.8%-3.9%
Q3 2024+3.1%+2.8%+4.3%
Q2 2024-8.8%-9.9%-8.0%
Q1 2024+4.7%+4.0%+8.5%
Q4 2023+4.4%+3.4%+8.4%
Q3 2023+6.5%+7.7%+13.6%
Q2 2023+9.1%+8.9%-0.3%
Q1 2023-5.6%-6.7%-5.4%
Q4 2022+7.2%+7.8%+7.6%
Q3 2022+7.5%+7.8%+19.2%
Q2 2022+2.5%+4.2%+0.7%
Q1 2022-5.4%-6.7%-1.4%
Q4 2021+3.3%+7.3%-4.0%
Q3 2021-1.7%-0.7%+10.4%
Q2 2021-4.6%-2.2%+3.1%
Q1 2021+8.8%+7.1%+5.1%
Q4 2020+0.1%+0.1%+0.7%
Q3 2020-1.6%-10.7%+5.2%
Q2 2020-3.5%-0.9%+6.1%
Q1 2020+10.0%+9.3%+13.0%
Q4 2019+5.2%+3.2%-9.1%
Q3 2019-1.1%-5.2%-0.5%
Q2 2019+3.3%+10.4%-5.6%
Q1 2019+2.3%-2.8%-17.2%
Q4 2018-3.8%-4.7%-0.7%
Q3 2018+6.0%+4.1%+9.7%
Q2 2018+1.2%-1.9%-11.1%
Q1 2018-8.6%-6.1%+0.5%
Q4 2017+10.0%+4.5%+3.7%
Q3 2017+1.4%+2.0%+1.5%
Q2 2017-7.2%-5.9%-9.0%
Q1 2017-7.6%-6.1%+2.8%
Q4 2016-11.2%-11.3%-10.4%
Q3 2016-6.7%-6.9%-0.9%
Q2 2016-7.5%-6.1%-7.3%
Q1 2016+8.1%
Q4 2015-7.0%
Q3 2015+3.3%
Q2 2015+2.9%
Q1 2015-4.2%
Q4 2014+4.2%
Q3 2014-3.3%
Q2 2014-2.5%
Q1 2014-2.4%
Q4 2013+1.8%
Q3 2013+0.7%
Q2 2013+0.4%
Q1 2013+6.5%
Q4 2012-1.6%
Q3 2012-10.2%
Q2 2012-4.2%
Q1 2012+0.0%
Q4 2011+1.8%
Q3 2011+6.5%
Q2 2011-1.0%
Q1 2010+7.4%
Q1 2011+1.4%
Q4 2010-1.3%
Q4 2008-1.3%
Q3 2009-0.3%
Q3 2010-0.3%
Q2 2009+7.5%
Q2 2010+7.5%
Q4 2009+7.5%

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