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]

Core Insights - Autoliv Inc. is recognized for its production of critical safety systems in the automotive industry, particularly airbags and seatbelts, and has a strong reputation for consistently exceeding earnings estimates [1] Group 1: Earnings Performance - The company is expected to release its quarterly earnings on January 30, 2026, with analysts forecasting an EPS of $2.85 and revenue of approximately $2.77 billion [2] - In the last reported quarter, Autoliv achieved an EPS of $2.32, surpassing the Zacks Consensus Estimate of $2.10, resulting in a 10.48% earnings surprise [2] - The previous quarter also saw Autoliv report an EPS of $2.21 against an expected $2.07, marking a 6.76% surprise [2] - Despite expectations of a year-over-year decline in earnings, higher revenues are projected for the quarter ending December 2025 [2] Group 2: Market Valuation - Autoliv has a price-to-earnings (P/E) ratio of approximately 12.83, indicating how the market values its earnings [3] - The price-to-sales ratio is about 0.91, suggesting that investors are paying less than one dollar for every dollar of sales, reflecting positive investor confidence [3] - The enterprise value to sales ratio stands at around 1.10, indicating the company's overall valuation in relation to its sales [3] Group 3: Financial Metrics - The enterprise value to operating cash flow ratio is approximately 11.29, providing insight into the market's valuation of its cash flow generation capabilities [4] - The company's earnings yield is about 7.80%, offering a perspective on the return on investment [4] - Autoliv maintains a debt-to-equity ratio of approximately 0.86, indicating a moderate level of debt balanced against its equity [4] - The current ratio is around 0.95, demonstrating the company's ability to cover its short-term liabilities with its short-term assets, highlighting financial health and stability [4]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Autoliv, Inc. despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Autoliv is expected to report quarterly earnings of $2.85 per share, reflecting a year-over-year decrease of 6.6% [3][19]. - Revenue is projected to be $2.76 billion, which is an increase of 5.3% from the same quarter last year [3][19]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.97% over the last 30 days, indicating a reassessment by analysts [4][19]. - Despite the downward revision, the Most Accurate Estimate is higher than the consensus, resulting in an Earnings ESP of +3.63% [12][19]. Earnings Surprise Potential - A positive Earnings ESP combined with a Zacks Rank of 2 (Buy) suggests a high likelihood of Autoliv beating the consensus EPS estimate [12][20]. - The company has a history of beating consensus EPS estimates, having done so in the last four quarters [14][20]. Industry Context - Autoliv operates within the Zacks Automotive - Original Equipment industry, where it is positioned as a compelling earnings-beat candidate [18][20].

Core Viewpoint - Autoliv, Inc. (ALV) is currently viewed as a better value opportunity compared to Modine (MOD) based on various financial metrics and rankings [1]. Group 1: Zacks Rank and Analyst Outlook - Autoliv, Inc. has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to Modine, which has a Zacks Rank of 3 (Hold) [3]. - The improving analyst outlook for ALV suggests a stronger potential for value investors [3]. Group 2: Valuation Metrics - ALV has a forward P/E ratio of 11.87, significantly lower than MOD's forward P/E of 31.02, indicating that ALV may be undervalued [5]. - The PEG ratio for ALV is 0.85, while MOD's PEG ratio is 0.91, suggesting that ALV offers better value relative to its expected earnings growth [5]. - ALV's P/B ratio stands at 3.77, compared to MOD's P/B of 7.13, further supporting the notion that ALV is more attractively priced [6]. Group 3: Value Grades - Based on the analysis of various key metrics, ALV holds a Value grade of A, while MOD has a Value grade of C, reinforcing the preference for ALV among value investors [6].

Company Performance - Autoliv, Inc. (ALV) shares have increased by 6.5% over the past month, reaching a new 52-week high of $129.54 [1] - The stock has gained 8% since the beginning of the year, outperforming the Zacks Auto-Tires-Trucks sector's 13.7% increase and the Zacks Automotive - Original Equipment industry's 0.8% return [1] Earnings and Revenue - Autoliv has consistently beaten earnings estimates, with a reported EPS of $2.32 in its last earnings report, surpassing the consensus estimate of $2.1 by 10.48% [2] - For the current fiscal year, Autoliv is projected to earn $10.6 per share on revenues of $10.76 billion, with a year-over-year earnings growth of 11.4% [3] - The next fiscal year is expected to see earnings of $12.15 per share on revenues of $11.1 billion, representing a 3.17% increase [3] Valuation Metrics - Autoliv's current trading valuation is at 12.1X the current fiscal year EPS estimates, below the peer industry average of 13.7X [7] - The stock trades at 9.4X on a trailing cash flow basis, slightly above the peer group's average of 9X [7] - Autoliv has a PEG ratio of 0.87, positioning it favorably among value investors [7] Zacks Rank and Style Scores - Autoliv holds a Zacks Rank of 2 (Buy), supported by a positive earnings estimate revision trend [8] - The company has a Value Score of A, a Growth Score of C, and a Momentum Score of D, resulting in a VGM Score of B [6][8] Industry Comparison - The Automotive - Original Equipment industry is performing well, ranking in the top 35% of all industries, providing favorable conditions for both Autoliv and its peer, Magna International Inc. (MGA) [11] - Magna International Inc. also has a Zacks Rank of 2 (Buy) and shows strong earnings performance, with expected earnings of $5.99 per share on revenues of $41.61 billion for the current fiscal year [10]

Group 1 - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for momentum stocks can be challenging, as they may lose momentum if their valuations exceed future growth potential [1] - Investing in bargain stocks that exhibit recent price momentum can be a safer strategy, with tools like the Zacks Momentum Style Score aiding in identifying such opportunities [2] Group 2 - Autoliv, Inc. (ALV) is highlighted as a strong candidate for momentum investing, showing a four-week price change of 2% and a 12-week gain of 2.3% [3][4] - ALV has a beta of 1.32, indicating it moves 32% more than the market, suggesting strong momentum [4] - The stock has a Momentum Score of B, indicating a favorable time to invest, and it also has a Zacks Rank 2 (Buy) due to positive earnings estimate revisions [5][6] Group 3 - ALV is trading at a Price-to-Sales ratio of 0.89, suggesting it is undervalued, as investors pay only 89 cents for each dollar of sales [6] - The favorable valuation combined with strong momentum characteristics indicates that ALV has significant potential for growth [7] - Other stocks also meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, providing additional investment opportunities [7]