Colin M. Langan

Colin M. Langan asked about the major puts and takes impacting 2026 margins, specifically quantifying structural cost savings, raw material drag, engineering costs, and any FX or peso impact. He also inquired about the recent Hyundai airbag recall and its potential impact on Autoliv's guidance.

Answer

President and CEO Mikael Bratt and Managing Director Agnieszka Vilela (acting as a company spokesperson) clarified that raw material headwinds are expected to be around $30 million in 2026, primarily from gold. RD&E costs as a percentage of sales are expected to be flat. FX is anticipated to have a positive impact of around $20 million. They noted $20 million of the remaining $30 million in structural cost savings are expected in 2026. Mikael Bratt stated there was no indication towards Autoliv's products regarding the Hyundai recall at this point.

Colin M. Langan from Wells Fargo Securities inquired about the key factors influencing Autoliv's 2026 margins, specifically seeking quantification for structural cost savings, raw material impact, engineering expenses, and currency effects. He also asked about the potential impact of a recent Hyundai airbag recall on Autoliv's guidance.

Answer

President and CEO Mikael Bratt and EVP of Finance and CFO Fredrik Westin detailed that raw material headwinds are expected to be around $30 million in 2026, primarily from gold. RD&E costs as a percentage of sales are anticipated to remain flat, and FX is projected to have a positive impact of approximately $20 million. They confirmed $20 million of the remaining $30 million structural cost savings plan is expected in 2026. Regarding the Hyundai recall, Mikael Bratt stated there was no indication towards Autoliv's products at that point.