Core Viewpoint - Autoliv Inc. has reported strong financial results for Q4 2025, exceeding market expectations and demonstrating competitive strength in the automotive safety systems industry [1] Financial Performance - Earnings per share (EPS) for Q4 2025 was $3.19, surpassing the estimated $2.85, resulting in an 11.75% earnings surprise [2][6] - Revenue reached approximately $2.82 billion, exceeding estimates and marking a 2.25% revenue surprise, with a 7.7% increase from $2.62 billion in the same quarter the previous year [3][6] - Operating margin for the quarter was 11.3%, with an adjusted operating margin of 12.0% [4][6] Growth and Projections - Autoliv anticipates around 0% organic sales growth in 2026, with a positive foreign exchange effect of approximately 1% on net sales [4] - The company projects an adjusted operating margin between 10.5% and 11.0% for the upcoming year [4] Market Valuation - The price-to-earnings (P/E) ratio is approximately 12.84, and the price-to-sales ratio stands at about 0.91 [5] - The enterprise value to sales ratio is around 1.10, and the enterprise value to operating cash flow ratio is approximately 11.30 [5] - Autoliv maintains a debt-to-equity ratio of 0.86 and a current ratio of 0.95, indicating a moderate level of debt and liquidity [5]

Core Insights - Autoliv reported record sales, cash flow, and earnings per share for both the fourth quarter and full year 2025, driven by strong growth with Chinese OEMs and in India, while anticipating margin expansion in 2026 despite a softer light-vehicle production outlook [5][4]. Financial Performance - Fourth-quarter sales increased 8% year-over-year to over $2.8 billion, marking the highest quarterly level in the company's history [4]. - Gross profit rose by $22 million year-over-year, although gross margin declined by 70 basis points [1]. - Adjusted operating income decreased 4% year-over-year to $337 million, with an adjusted operating margin of 12.0%, down 140 basis points [3]. - For the full year, net sales reached $10.8 billion, up 4% from 2024, and adjusted operating income rose 11% to $1.1 billion, improving the adjusted operating margin to 10.3% [7]. Cash Flow and Shareholder Returns - Fourth-quarter operating cash flow increased by 30% year-over-year to $544 million, while free operating cash flow rose to $434 million from $288 million a year earlier [2]. - The company returned approximately $590 million to shareholders through dividends and buybacks in 2025, raising the quarterly dividend from $0.70 to $0.87 per share [12]. Market Environment and Regional Growth - Global light vehicle production reached its highest level for any quarter on record, with a 1.3% increase in the fourth quarter, driven by stronger-than-expected production in China and India [8][10]. - Autoliv outperformed global light vehicle production by 3 percentage points in the quarter, with particularly strong performance in Asia, excluding China [10]. Operational Efficiency - The company achieved significant operational efficiency improvements, including lower logistics and labor costs, contributing to gross profit [6]. - Autoliv has realized $100 million of a $130 million structural cost savings plan, with expectations to achieve the remaining savings in the coming years [17]. 2026 Outlook - Autoliv anticipates flat organic sales for 2026, with growth in China, India, and South America offset by lower sales in North America and Europe [15]. - The company expects an adjusted operating margin of around 10.5% to 11% and operating cash flow of about $1.2 billion for 2026 [15]. Business Developments - Autoliv announced an agreement with Tensor to develop the first foldable steering wheel for robo cars, targeted for volume production in late 2026 [20]. - The company secured its first order with a Chinese OEM for vehicle production in Europe, establishing a customer relationship [20].

Autoliv (NYSE:ALV) Q4 2025 Earnings call January 30, 2026 08:00 AM ET Company ParticipantsAgnieszka Vilela - Managing DirectorAnders Trapp - VP of Investor RelationsFredrik Westin - EVP of Finance and CFOMikael Bratt - President and CEOWinnie Dong - Director of Equity ResearchConference Call ParticipantsColin Langan - Automotive and Mobility AnalystEmmanuel Rosner - Senior Autos and Auto Technology AnalystHampus Engellau - Equity Analyst Capital Goods and Head of Sector Research Nordic EquitiesJairam Nathan ...

Autoliv (NYSE:ALV) Q4 2025 Earnings call January 30, 2026 08:00 AM ET Company ParticipantsAgnieszka Vilela - Managing DirectorAnders Trapp - VP of Investor RelationsFredrik Westin - CFOMikael Bratt - President and CEOWinnie Dong - Director of Equity ResearchConference Call ParticipantsColin M. Langan - Automotive and Mobility AnalystEmmanuel Rosner - AnalystHampus Engellau - Equity Analyst Capital Goods and Head of Sector Research Nordic EquitiesJairam Nathan - Research AnalystTom Narayan - Lead Equity Anal ...

Autoliv (NYSE:ALV) Q4 2025 Earnings call January 30, 2026 08:00 AM ET Speaker9Good day, and thank you for standing by. Welcome to the Autoliv fourth quarter 2025 financial results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw you ...

分组1 - Autoliv, Inc. reported quarterly earnings of $3.19 per share, exceeding the Zacks Consensus Estimate of $2.86 per share, and showing an increase from $3.05 per share a year ago, resulting in an earnings surprise of +11.75% [1] - The company achieved revenues of $2.82 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.25%, and up from $2.62 billion year-over-year [2] - Autoliv has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 6.5% since the beginning of the year, compared to the S&P 500's gain of 1.8% [3] - The current consensus EPS estimate for the upcoming quarter is $2.21 on revenues of $2.67 billion, and for the current fiscal year, it is $10.69 on revenues of $11.08 billion [7] - The Zacks Industry Rank for Automotive - Original Equipment is currently in the bottom 35% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Earnings Call Presentation 4th Quarter 2025 January 30, 2026 January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public Safe Harbor Statement* This report contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward- looking statements include those that address activities, events or developments that Autoliv, Inc. or its management believes or ...

Core Insights - The company reported record high net sales of $2,817 million in Q4 2025, representing a 7.7% increase year-over-year, with organic sales growth of 4.2% [1][2][3] - Operating income decreased by 9.6% to $319 million, while adjusted operating income fell by 3.6% to $337 million, primarily due to lower customer compensations and engineering income [2][3] - The company expects around 0% organic sales growth and an adjusted operating margin of 10.5-11.0% for the full year 2026 [1][9] Financial Performance - Q4 2025 net sales were $2,817 million, up from $2,616 million in Q4 2024, marking a 7.7% increase [2] - Full year 2025 net sales reached $10,815 million, a 4.1% increase from $10,390 million in 2024 [2] - Operating cash flow for Q4 2025 was $544 million, a 30% increase from $420 million in Q4 2024, contributing to a full year operating cash flow of $1,157 million [3][6] Regional Performance - Organic sales growth outperformed global light vehicle production (LVP) in all regions, with significant growth in China (5.3pp above LVP) and Asia ex. China (4.8pp above LVP) [3][5] - Sales to Chinese OEMs (COEMs) grew nearly 40% in Q4 2025 and 23% for the full year, indicating strong market performance [3][5] Profitability Metrics - The operating margin for Q4 2025 was 11.3%, down from 13.5% in Q4 2024, while the adjusted operating margin was 12.0%, down from 13.4% [2][3] - Return on capital employed (ROCE) was reported at 30.3%, with adjusted ROCE at 31.8%, reflecting a decrease from previous periods [4] Shareholder Returns - The company paid a dividend of $0.87 per share, a 2.4% increase from Q3 2025, and repurchased 1.26 million shares [3][8] - The ability to deliver attractive shareholder returns remains strong, with record high operating cash flow and free operating cash flow for both the quarter and the full year [6][8] Strategic Developments - The company has strengthened its position in China through investments and strategic agreements, with 30% of order intake in 2025 coming from COEMs [7] - The company anticipates continued strong sales performance with COEMs in 2026, supported by new product launches and market strategies [3][5]

Group 1 - The core viewpoint of the article is that Autoliv, a car safety gear manufacturer, has forecasted a full-year 2026 adjusted operating profit margin of approximately 10.5-11.0% [1] - The company reported a fourth-quarter adjusted operating profit that aligns with market expectations [1]

Financial Performance - Q4 2025 net sales reached $2,817 million, a 7.7% increase year-over-year, with organic sales growth of 4.2%[3] - Operating income for Q4 2025 was $319 million, a decrease of 9.6% compared to Q4 2024, while adjusted operating income was $337 million, down 3.6%[6] - The operating margin for Q4 2025 was 11.3%, a decline of 2.2 percentage points from the previous year, with an adjusted operating margin of 12.0%[6] - Full year 2025 consolidated sales reached $10,815 million, a 4.1% increase from $10,390 million in 2024[41] - Operating income for the full year increased by $109 million, driven by higher gross profit and improved other income[62] - Earnings per share (diluted) for the full year increased by $1.52 to $9.55, reflecting a 19% growth compared to the prior year[65] - Net income for Q4 2025 was $226 million, a decrease of 7.3% from $243 million in Q4 2024, while full-year net income increased by 14% to $736 million from $648 million[66] - Gross profit for the full year 2025 was $2,074 million, up from $1,927 million in 2024, reflecting a 7.6% increase[88] - Operating income for the full year 2025 was $1,088 million, compared to $979 million in 2024, representing a 11.1% increase[88] - The company’s diluted earnings per share for the full year 2025 was $9.55, an increase from $8.04 in 2024, reflecting a 18.8% growth[88] Cash Flow and Capital Management - Operating cash flow for Q4 2025 increased by 30% to a record $544 million, contributing to a full year operating cash flow of $1,157 million[13] - Free operating cash flow for Q4 2025 was $434 million, up 51% from $288 million in Q4 2024, with a cash conversion rate of 192% compared to 118% a year earlier[70] - Cash and cash equivalents at the end of Q4 2025 increased to $604 million from $330 million at the end of Q4 2024[90] - The company reported a net cash provided by operating activities of $1,157 million for the full year 2025, compared to $1,059 million in 2024[90] - Total current liabilities decreased to $3,923 million as of December 31, 2025, from $4,141 million at the end of Q3 2025[89] - Total current assets increased to $4,101 million as of Dec 31, 2025, up from $3,483 million a year earlier, reflecting a growth of 17.7%[94] - Cash conversion (Non-GAAP) for the full year 2025 was reported at 100%, up from 77% in 2024, indicating improved efficiency in converting net income into free operating cash flow[101] Sales and Market Performance - Sales to Chinese OEMs grew by nearly 40% in Q4 2025, with a full year growth of 23%[7] - The company expects continued strong sales performance with COEMs in 2026, driven by new product launches[13] - Organic sales growth for Airbags, Steering Wheels and Other products was 3.4%, driven primarily by side airbags and inflatable curtains[42] - Organic sales growth for Seatbelt Products and Other was 3.5%, with significant contributions from the Americas and Asia excluding China[43] - Global organic sales increased by 3.4%, outperforming the global light vehicle production (LVP) growth of 3.9%[44] - In China, Autoliv's sales to domestic OEMs increased by 23% in 2025, while sales to global OEMs decreased by 7.3%[45] Cost Management and Profitability - The company recovered close to 100% of tariff costs in Q4 2025 and over 80% for the full year, mitigating the impact on profitability[19] - Inflationary cost pressures were partially offset by price increases and customer compensations, with raw material price changes having a minimal impact on profitability[18] - Full year gross profit increased by $147 million, with a gross margin improvement of 0.6 percentage points to 19.2%[58] - S,G&A costs for the full year increased by $40 million, with S,G&A as a percentage of sales rising from 5.1% to 5.3%[59] Debt and Equity - The leverage ratio improved to 1.1x, below the target limit of 1.5x, indicating strong financial management[13] - Net debt as of December 31, 2025, was $1,566 million, a slight increase of 0.8% from $1,554 million a year earlier, primarily due to cash outflows for dividends and share repurchases[72] - Total equity increased by $297 million to $2,582 million as of December 31, 2025, driven by net income and positive currency translation effects[75] - The leverage ratio improved to 1.1x as of December 31, 2025, down from 1.2x a year earlier, with trailing adjusted EBITDA increasing by $127 million[76] Research and Development - Research, development & engineering expenses for Q4 2025 were $94 million, up from $74 million in Q4 2024, a 27.0% increase[88] - Autoliv introduced the world's first foldable steering wheel for autonomous driving in collaboration with Tensor, enhancing safety features during manual and autonomous driving modes[86] Workforce and Operational Efficiency - The total headcount decreased by approximately 900, or 1.4%, compared to the previous year, despite a 4.1% increase in organic sales[78]