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]

Autoliv Inc. (NYSE:ALV) stands out in the automotive industry, focusing on the production of critical safety systems like airbags and seatbelts. As a key player in the Zacks Automotive - Original Equipment industry, Autoliv's reputation for consistently outperforming earnings estimates sets it apart.The company is eagerly anticipated to release its quarterly earnings on January 30, 2026, with analysts forecasting an earnings per share (EPS) of $2.85 and revenue of approximately $2.77 billion. Autoliv's trac ...

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]

Core Viewpoint - Autoliv Inc. is set to release its Financial Report for Q4 2025 on January 30, 2026, at 12:00 CET, with a teleconference scheduled for the same day [1][2]. Group 1 - The Q4 2025 Earnings Call will take place on January 30, 2026, from 14:00 to 15:00 CET, featuring Mikael Bratt, President & CEO, as the main speaker [2]. - Participants can join the call via webcast or phone, with registration required for phone attendance to obtain a personal pin code [2]. - An audio replay of the conference will be available until January 30, 2027, along with a transcript accessible on the company's investor relations website [2].