Accessibility StatementSkip Navigation STOCKHOLM, Sept. 18, 2025 /PRNewswire/ -- Autoliv Inc., plans to publish its Financial Report for the third quarter 2025 on Friday, October 17, 2025 at 12:00 Central European Time (CET). The report will be available at www.autoliv.com In addition, a teleconference will take place the same day. Q3 2025 Earnings Call: Date: October 17, 2025 Time: 14:00 - 15:00 CET Main speaker: Mikael Bratt, President & CEO To attend by webcast, please use the link on our web or the lin ...

Core Insights - The article expresses a positive outlook on ALV shares, indicating a beneficial long position held by the analyst [1]. Group 1 - The analyst emphasizes the importance of conducting personal research before making investment decisions, highlighting the inherent risks involved in investing [2]. - It is noted that past performance does not guarantee future results, suggesting a cautious approach to investment evaluations [3].

Core Insights - Autoliv reported record net sales of $2.7 billion in Q2, a 4% year-over-year increase, with adjusted operating income rising 14% to $251 million and adjusted operating margin improving by 80 basis points to 9.3% [1] - The company increased its quarterly dividend to $0.85 per share and reaffirmed its annual stock repurchase plans of $300 million to $500 million [1] Financial Performance - The company estimates its tariff exposure will double to around $200 million, with 80% of tariff costs recovered in Q2, limiting the operating margin impact to 35 basis points [2][3] - Adjusted operating margin reached 9.3%, up 80 basis points year over year, with gross margin improving by 30 basis points to 18.5% due to efficiency gains from a reduction of 3,200 direct production staff and investments in automation [4][5] Market Position and Growth - Autoliv achieved 16% growth in sales to domestic OEMs in China and maintained a 60% market share in India, contributing an additional $100 million to sales in 2025 [6][8] - The company expects continued positive sales trends in China as mix effects improve, despite challenges in North America and Western Europe [7][8] Future Outlook - Management projects 2025 organic sales growth of around 3%, an adjusted operating margin of approximately 10% to 10.5%, and operating cash flow of around $1.2 billion, despite anticipated declines in global light vehicle production [9]

Core Insights - Autoliv, Inc. reported revenue of $2.71 billion for the quarter ended June 2025, reflecting a 4.2% increase year-over-year and a surprise of +3.36% over the Zacks Consensus Estimate of $2.63 billion [1] - The company's EPS for the quarter was $2.21, up from $1.87 in the same quarter last year, resulting in an EPS surprise of +6.76% compared to the consensus estimate of $2.07 [1] Financial Performance Metrics - Organic change in Airbags, Steering Wheels, and Other products was 3.1%, exceeding the average estimate of 0.4% from two analysts [4] - Total organic change was reported at 3.4%, significantly higher than the 0.4% estimated by two analysts [4] - Organic change in Seatbelt Products and Other was 4%, compared to the average estimate of 1.9% from two analysts [4] Regional Sales Performance - Net Sales in the Americas reached $891 million, surpassing the average estimate of $855.27 million, but showing a -0.2% change year-over-year [4] - Net Sales in Europe were $828 million, exceeding the average estimate of $751.53 million, with a year-over-year increase of +8.8% [4] - Net Sales in Asia excluding China were $519 million, above the average estimate of $499.63 million, reflecting a +7.5% year-over-year change [4] - Net Sales in China amounted to $477 million, slightly below the average estimate of $488.36 million, with a +1.9% year-over-year change [4] Product Category Sales - Net Sales for Seatbelt Products and Other reached $902 million, exceeding the average estimate of $839.37 million, with a year-over-year change of +5.1% [4] - Net Sales for Airbags, Steering Wheels, and Other products were $1.81 billion, surpassing the average estimate of $1.76 billion, reflecting a +3.7% year-over-year change [4] Stock Performance - Autoliv's shares have returned +5.9% over the past month, outperforming the Zacks S&P 500 composite's +5.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section provides the company's financial statements and management's discussion and analysis for the reported period [Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements for the quarterly period ended June 30, 2025, including statements of income, balance sheets, cash flows, and equity, along with notes detailing accounting policies and contingent liabilities [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income%20(unaudited)) This table presents the unaudited consolidated statements of income, detailing revenues, expenses, and net income for the specified periods Consolidated Statements of Income Highlights (Unaudited) | (In millions, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $2,714 | $2,605 | $5,292 | $5,220 | | **Gross profit** | $501 | $475 | $980 | $917 | | **Operating income** | $247 | $206 | $502 | $400 | | **Net income attributable to controlling interest** | $167 | $138 | $334 | $265 | | **Net earnings per share – diluted** | $2.16 | $1.71 | $4.31 | $3.23 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(unaudited)) This table presents the unaudited condensed consolidated balance sheets, outlining assets, liabilities, and equity at specific dates Condensed Consolidated Balance Sheet Highlights (Unaudited) | (In millions) | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $3,929 | $3,483 | | **Total assets** | $8,476 | $7,804 | | **Total current liabilities** | $4,235 | $3,633 | | **Total liabilities** | $5,997 | $5,518 | | **Total equity** | $2,480 | $2,285 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(unaudited)) This table presents the unaudited consolidated statements of cash flows, summarizing cash inflows and outflows from operating, investing, and financing activities Consolidated Statements of Cash Flows Highlights (Unaudited) | (In millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $355 | $462 | | **Net cash used in investing activities** | ($208) | ($286) | | **Net cash used in financing activities** | ($170) | ($269) | | **Decrease in cash and cash equivalents** | ($94) | ($90) | [Note 8. Contingent Liabilities](index=14&type=section&id=Note%208.%20Contingent%20Liabilities) This section details the company's contingent liabilities, including ongoing legal proceedings and potential financial exposures - The company faces a civil litigation in Germany from BMW, which filed a complaint claiming damages of **€63 million** plus interest (totaling approx. **€95 million**) related to a past EC investigation, with a possible loss range of **€0** to **€95 million**, but no accrual has been made[75](index=75&type=chunk) - Autoliv is a defendant in a class action lawsuit regarding ARC airbag inflators, and NHTSA issued an initial decision to recall approximately **52 million** ARC and Delphi inflators, some supplied by Autoliv, for which the company has not made an accrual and cannot estimate a range of potential loss[81](index=81&type=chunk)[82](index=82&type=chunk) - In Q2 2025, Stellantis initiated a recall of approximately **250,000** U.S. vehicles equipped with Autoliv's side curtain airbags, with an estimated potential loss range of **$0** to **$385 million**, a substantial portion of which is expected to be covered by insurance, and no accrual has been made[83](index=83&type=chunk) [Note 10. Revenue Disaggregation](index=17&type=section&id=Note%2010.%20Revenue%20Disaggregation) This section provides a detailed breakdown of the company's net sales by product category and geographical region Net Sales by Product and Region (in millions) | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **By Product** | | | | Airbags, Steering Wheels and Other | $1,812 | $1,747 | | Seatbelt Products and Other | $902 | $858 | | **Total Net Sales** | **$2,714** | **$2,605** | | **By Region** | | | | Americas | $891 | $893 | | Europe | $828 | $761 | | China | $477 | $468 | | Asia excl. China | $519 | $483 | | **Total Net Sales** | **$2,714** | **$2,605** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=18&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management analyzes the company's financial performance for Q2 and H1 2025, highlighting record sales and profitability driven by organic growth, cost reductions, and tariff compensations, while detailing operational results, liquidity, cash flow, and updated full-year guidance [Executive Overview](index=19&type=section&id=EXECUTIVE%20OVERVIEW) Autoliv achieved record Q2 sales, operating income, margin, and EPS, driven by strong sales and cost reductions, outperforming global LVP, and announced a new **$2.5 billion** share repurchase program and a **21%** dividend increase, while raising full-year organic sales growth guidance to around **3%** Q2 2025 Financial Highlights (vs. Q2 2024) | Metric | Value | Change | | :--- | :--- | :--- | | Net Sales | $2,714 million | +4.2% | | Organic Sales Growth | 3.4% | - | | Operating Margin | 9.1% | - | | Adjusted Operating Margin | 9.3% | - | | Diluted EPS | $2.16 | +27% | | Adjusted Diluted EPS | $2.21 | +18% | - The company successfully passed on most tariff costs to customers, recovering around **80%** in Q2, which limited the negative impact on operating margin to about **35 basis points**[107](index=107&type=chunk)[111](index=111&type=chunk)[114](index=114&type=chunk) - Shareholder returns were enhanced with the announcement of a new share repurchase program of up to **$2.5 billion** through 2029 and a **21%** dividend increase for Q3 to **$0.85** per share[108](index=108&type=chunk) [Results of Operations (Q2 2025 vs Q2 2024)](index=22&type=section&id=RESULTS%20OF%20OPERATIONS%20-%20Q2%202025) Q2 2025 net sales increased **4.2%** to **$2.714 billion**, with **3.4%** organic growth outperforming global LVP, while operating income rose **20.1%** to **$247 million**, and operating margin expanded to **9.1%** due to improved efficiency and lower costs Q2 2025 Organic Sales Growth vs. LVP | Region | Autoliv Organic Growth | LVP Growth | Outperformance/(Underperformance) | | :--- | :--- | :--- | :--- | | Americas | 4.1% | (0.9)% | 5.0 pp | | Europe | 3.3% | (1.6)% | 4.9 pp | | China | 1.7% | 8.8% | (7.0) pp | | Asia excl. China | 3.8% | 2.5% | 1.3 pp | | **Global** | **3.4%** | **2.7%** | **0.7 pp** | - Gross profit improved by **$27 million**, driven by operational efficiencies in labor, freight, and logistics, which offset negative effects from un-recovered tariff costs[133](index=133&type=chunk) - Diluted EPS increased by **27%** to **$2.16**, primarily driven by higher operating income (**$0.39**) and a lower share count (**$0.10**)[131](index=131&type=chunk)[138](index=138&type=chunk) [Results of Operations (Six Months 2025 vs 2024)](index=25&type=section&id=RESULTS%20OF%20OPERATIONS%20-%20Six%20Months%202025) For the first six months of 2025, net sales increased **1.4%** to **$5.292 billion** with **2.8%** organic growth, while operating income grew **25%** to **$502 million**, and operating margin improved to **9.5%** due to higher gross profit and reduced RD&E costs Six Months 2025 Organic Sales Growth vs. LVP | Region | Autoliv Organic Growth | LVP Growth | Outperformance/(Underperformance) | | :--- | :--- | :--- | :--- | | Americas | 2.7% | (2.0)% | 4.7 pp | | Europe | 2.6% | (3.1)% | 5.7 pp | | China | 0.1% | 11.4% | (11.3) pp | | Asia excl. China | 5.8% | 3.2% | 2.6 pp | | **Global** | **2.8%** | **3.1%** | **(0.3) pp** | - In China, LVP for global OEMs declined **4%** while it increased **21%** for domestic OEMs, with Autoliv's sales to domestic OEMs growing **17%**, and performance is expected to improve in the second half of 2025 due to a record number of new launches[144](index=144&type=chunk) - Diluted EPS for the six-month period increased by **34%** to **$4.31**, with higher operating income contributing **$0.92** and a lower share count adding **$0.24**[146](index=146&type=chunk)[154](index=154&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Operating cash flow for the first six months of 2025 was **$355 million**, down from **$462 million** due to increased working capital, while net debt rose to **$1.752 billion** with a leverage ratio of **1.3x**, remaining within the target range Cash Flow Summary (Six Months Ended June 30) | (In millions) | 2025 | 2024 | | :--- | :--- | :--- | | Operating cash flow | $355 | $462 | | Capital expenditure, net | ($208) | ($286) | | **Free operating cash flow (Non-GAAP)** | **$147** | **$176** | - Net debt was **$1,752 million** as of June 30, 2025, an increase of **$172 million** from the prior year, mainly because shareholder returns (dividends and repurchases) exceeded free operating cash flow[161](index=161&type=chunk) - The leverage ratio (Net debt + Pension liabilities / Adjusted EBITDA) was **1.3x**, compared to **1.2x** a year ago, remaining within the company's target range of **0.5x** to **1.5x**[163](index=163&type=chunk)[179](index=179&type=chunk)[181](index=181&type=chunk) [Full Year 2025 Guidance](index=32&type=section&id=Full%20year%202025%20guidance) Autoliv updated its full-year 2025 guidance, raising organic sales growth forecast to around **3%** and reiterating adjusted operating margin of **10-10.5%** and operating cash flow of about **$1.2 billion**, based on an assumed **0.5%** decline in global LVP Full Year 2025 Guidance and Assumptions | Metric | Guidance/Assumption | | :--- | :--- | | **Guidance** | | | Organic sales growth | Around 3% | | Adjusted operating margin | Around 10-10.5% | | Operating cash flow | Around $1.2 billion | | **Assumptions** | | | LVP growth | Around -0.5% | | Tax rate (excl. unusual items) | Around 28% | [Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) As of June 30, 2025, there have been no material changes to the company's quantitative and qualitative disclosures about market risk since its 2024 Annual Report on Form 10-K - There have been no material changes to the information related to market risk since the company's 2024 Annual Report on Form 10-K[194](index=194&type=chunk) [Controls and Procedures](index=34&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures are effective as of the end of the reporting period[195](index=195&type=chunk) - No material changes were identified in the company's internal control over financial reporting during the fiscal quarter[195](index=195&type=chunk) [PART II - OTHER INFORMATION](index=35&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section contains additional information including legal proceedings, risk factors, equity sales, and other disclosures [Legal Proceedings](index=35&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section incorporates by reference detailed disclosures on the company's ongoing legal proceedings and contingent liabilities from Note 8 in Part I of this report - Information regarding ongoing legal proceedings is incorporated by reference from Part I, Item 1, "Financial Statements, Note 8 Contingent Liabilities"[196](index=196&type=chunk) [Risk Factors](index=35&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company reports no material changes to its risk factors from the 2024 Form 10-K, except for an updated risk concerning international operations, highlighting increased exposure to geopolitical instability, trade policies, and tariffs - The risk factors are largely unchanged from the 2024 Form 10-K, except for an update to the risks related to international operations[197](index=197&type=chunk) - The updated risk factor emphasizes exposure to unexpected changes in laws, trade policies, tariffs, and geopolitical turmoil, noting recent U.S. tariffs on imports from China and retaliatory actions[198](index=198&type=chunk)[200](index=200&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During Q2 2025, the company repurchased **510,361** shares, and a new stock repurchase program authorizing up to **$2.5 billion** in common shares was approved, effective July 1, 2025, through December 31, 2029 Common Stock Repurchases (Q2 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share (USD) | | :--- | :--- | :--- | | April 1-30, 2025 | 112,339 | $90.79 | | May 1-31, 2025 | 270,911 | $100.26 | | June 1-30, 2025 | 127,111 | $106.82 | - A new stock repurchase program was approved, authorizing up to **$2.5 billion** in share repurchases between July 1, 2025, and December 31, 2029[206](index=206&type=chunk) [Other Information](index=37&type=section&id=ITEM%205.%20OTHER%20INFORMATION) An executive adopted a Rule 10b5-1(c) trading plan to sell shares acquired upon vesting in February 2026, primarily to cover associated taxes - An executive, Staffan Olsson, adopted a Rule 10b5-1(c) trading plan for the future sale of company stock to cover vesting taxes[209](index=209&type=chunk) [Exhibits](index=38&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including corporate governance documents, debt agreements, officer certifications, and interactive data files - The report includes various exhibits, such as the company's Restated Certificate of Incorporation, By-Laws, debt agreements, and certifications by the CEO and CFO[211](index=211&type=chunk)

Financial Data and Key Metrics Changes - The company reported record sales and earnings for the second quarter of 2025, with net sales increasing by 4% year over year to approximately $2.7 billion [11][21] - Adjusted operating income rose by 14% to $251 million from $221 million in the previous year, with an adjusted operating margin of 9.3%, an increase of 80 basis points [11][21] - Earnings per share for the second quarter reached a record high, with a significant increase over the past five years, primarily driven by strong net profit growth and a reduced share count [9][21] Business Line Data and Key Metrics Changes - The company achieved a gross margin of 18.5%, an increase of 30 basis points year over year, driven by direct labor efficiency and headcount reductions [12][21] - Direct labor productivity improved as the company reduced its direct production personnel by 3,200 year over year, supported by automation and digitalization initiatives [12][21] Market Data and Key Metrics Changes - Global light vehicle production increased by 2.7% in the second quarter, exceeding initial expectations, while production in North America and Western Europe declined by around 3% each [13][14] - In China, the company saw a significant improvement, with sales to domestic OEMs growing more than 16%, aligning with light vehicle production growth [17][21] Company Strategy and Development Direction - The company emphasized its commitment to sustainable growth and long-term value creation, focusing on deepening partnerships with leading global and Chinese OEMs [32][34] - Strategic initiatives include enhancing operational efficiency, automation, digitalization, and maintaining a healthy leverage ratio not exceeding 1.5 times [33][34] Management's Comments on Operating Environment and Future Outlook - The management expressed caution regarding the remainder of the year due to complexities from tariffs and economic factors, while remaining optimistic about performance in China [6][30] - The outlook for global light vehicle production in 2025 is uncertain, with expectations of a decline in the second half of the year [30][31] Other Important Information - The company plans to increase its third-quarter dividend to $0.85 per share, reflecting confidence in its financial strength [10] - The company is committed to annual stock repurchases of $300 million to $500 million, despite a slower pace in the first half of the year [10][97] Q&A Session Summary Question: Regarding performance in China - The company noted that it is closing the gap in performance with Chinese OEMs and expects to continue outperforming the market in the latter half of the year [41][42] Question: On product volume fluctuations - The management explained that variations in product volumes are influenced by mix dynamics and launch activities [44][45] Question: On tariff recovery - The management clarified that the slower recovery in Q2 was due to timing effects and expressed confidence in recovering the remaining tariffs by the end of the year [50][51] Question: On margin guidance and raw material costs - The management indicated that raw material costs have slightly improved, with a headwind expected to be around $20 million, down from $40 million previously anticipated [54][55] Question: On pricing dynamics - The company continues to negotiate prices in light of tariffs and inflation, maintaining a historical pricing model [104][105] Question: On market share in India - The company reported a 60% market share in India and expects it to contribute around 5% to group sales for the full year [72]

Financial Data and Key Metrics Changes - The company reported record sales and earnings for Q2 2025, with net sales of approximately $2.7 billion, representing a 4% year-over-year increase [10][21] - Adjusted operating income increased by 14% to $251 million from $221 million last year, with an adjusted operating margin of 9.3%, an improvement of 80 basis points [10][21] - Earnings per share for Q2 reached a record high, with a year-over-year increase of $0.33, driven by higher operating income and a reduced share count [8][21] Business Line Data and Key Metrics Changes - The company achieved a gross margin of 18.5%, an increase of 30 basis points year-over-year, primarily due to direct labor efficiency and headcount reductions [11][21] - Direct labor productivity improved as the company reduced direct production personnel by 3,200 year-over-year [11] - The company successfully recovered approximately 80% of the tariff costs incurred during Q2 and expects to recover most of the remaining portion later in the year [8][29] Market Data and Key Metrics Changes - Global light vehicle production for Q2 increased by 2.7%, exceeding expectations, while production in North America and Western Europe declined by around 3% each [12][30] - In China, the company outperformed light vehicle production growth, with sales to domestic OEMs growing more than 16% [16][30] - The company’s sales in June outpaced the growth of Chinese light vehicle production, indicating a positive trend expected to continue [7][30] Company Strategy and Development Direction - The company emphasized its commitment to achieving $300 million to $500 million annually in stock repurchases and increasing its dividend to $0.85 per share [9][34] - The strategic roadmap focuses on sustainable growth through partnerships with leading global and Chinese OEMs, innovations in safety systems, and operational improvements [33][34] - The company aims to navigate the complexities of tariffs and economic factors while maintaining a strong balance sheet and shareholder returns [29][34] Management Comments on Operating Environment and Future Outlook - Management expressed caution about the remainder of the year due to complexities from tariffs and economic factors, despite a strong Q2 performance [6][30] - The outlook for global light vehicle production in 2025 remains uncertain, with expectations of a decline in the second half of the year [30][34] - The company anticipates a challenging 2025 for the automotive industry but expects significant improvement in sales performance in China [34] Other Important Information - The company’s cash flow remained strong despite higher receivables, driven by robust sales and tariff compensations [9][24] - The trade working capital increased by $185 million compared to the prior year, attributed to higher accounts receivables and inventories [25] - The company’s leverage ratio remains strong at 1.3 times, well below the target limit of 1.5 times [26] Q&A Session Summary Question: Performance in China - The company indicated that it is closing the gap in performance with Chinese OEMs and expects to continue outperforming the market in China towards the end of the year [41][43] Question: Product Volume Dynamics - The company explained that the fluctuations in product volumes are due to mix effects and launch activities, which can lead to significant variations [44][45] Question: Tariff Recovery - Management clarified that the slower recovery of tariffs in Q2 was due to timing effects and expressed confidence in recovering the remaining tariffs by the end of the year [49][51] Question: Margin Guidance - The company expects Q3 to be the weakest quarter due to a projected drop in light vehicle production, with Q4 anticipated to be the strongest [56][78] Question: Pricing Dynamics - The company continues to negotiate pricing in light of tariffs and inflationary impacts, maintaining a historical pricing model [104][105] Question: EV and ICE Dynamics - The company noted that the EV component has not significantly impacted its gross operating margin in the Americas, and tariffs create uncertainty regarding new model launches [108][109]

Company Performance - Autoliv, Inc. reported quarterly earnings of $2.21 per share, exceeding the Zacks Consensus Estimate of $2.07 per share, and up from $1.87 per share a year ago, representing an earnings surprise of +6.76% [1] - The company posted revenues of $2.71 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.36%, compared to $2.61 billion in the same quarter last year [2] - Over the last four quarters, Autoliv has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - Autoliv shares have increased approximately 24.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is $2.34 on revenues of $2.6 billion, and for the current fiscal year, it is $9.09 on revenues of $10.4 billion [7] Industry Outlook - The Automotive - Original Equipment industry, to which Autoliv belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Autoliv's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Performance - Record Q2 sales of $2714 million, compared to $2605 million in Q2'24[10] - Adjusted operating income increased to $251 million from $221 million in Q2'24[10] - Adjusted operating margin improved to 93% from 85% in Q2'24[10] - Share repurchases amounted to $51 million in Q2'25[8] Sales and Market Dynamics - Organic sales grew by 34% despite a negative regional Light Vehicle Production (LVP) mix[23] - Europe and India were strong sales drivers, along with tariff compensations[8] - The company successfully recovered approximately 80% of tariffs incurred during the quarter[8] - Global Light Vehicle Production (LVP) is expected to decline by around 05% in 2025[60] Cost Management and Efficiency - Substantial cost improvements were achieved through direct labor productivity and other operational efficiencies[12] - The company is progressing with structural cost reduction activities[8] Future Outlook - The company anticipates average annual share repurchases between $300 million and $500 million through the end of 2029[8] - Full year 2025 guidance includes an organic sales increase of around 3% and an adjusted operating margin of around 10 to 105%[75]

Financial Performance - In Q2 2025, the company reported net sales of $2,714 million, representing a 4.2% increase compared to Q2 2024 [1][3] - Organic sales growth was 3.4%, outperforming the global Light Vehicle Production (LVP) increase of 2.7% [4] - Operating income rose by 20% to $247 million, while adjusted operating income increased by 14% to $251 million [3][4] - The operating margin improved to 9.1%, and the adjusted operating margin was 9.3% [3][4] - Diluted earnings per share (EPS) increased by 27% to $2.16, with adjusted diluted EPS rising by 18% to $2.21 [1][3] Guidance and Future Outlook - The company expects around 3% organic sales growth for the full year 2025, with an adjusted operating margin target of approximately 10-10.5% [1][9] - Operating cash flow is projected to be around $1.2 billion for the year [1] - The company anticipates improved sales performance in China in the second half of 2025 due to a record number of new product launches [4][6] Cost Management and Efficiency - The company successfully executed cost reduction measures, resulting in a 5% decrease in total headcount [4][7] - Approximately 80% of tariff costs were recovered in Q2 2025, with expectations to recover most of the remaining costs later in the year [7] - The leverage ratio was reported at 1.3x, below the target limit of 1.5x [4] Shareholder Returns - A dividend of $0.70 per share was paid, and 0.5 million shares were repurchased and retired [4] - The company announced a new share repurchase program of up to $2.5 billion until the end of 2029 and a 21% increase in the dividend to $0.85 per share for the third quarter [8]