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]

[Financial Highlights and CEO Commentary](index=2&type=section&id=Financial%20Highlights%20and%20CEO%20Commentary) The section provides an overview of the company's strong Q2 2025 financial performance and the CEO's strategic commentary on market outperformance and shareholder value initiatives [Q2 2025 Financial Highlights](index=2&type=section&id=Q2%202025%20Financial%20Highlights) The company reported record Q2 2025 results for sales, operating income, margin, and EPS. Net sales grew 4.2% to $2,714 million, with organic growth of 3.4%. Operating margin reached 9.1%, and diluted EPS increased by 27% to $2.16. However, operating cash flow declined by 18% to $277 million due to less favorable working capital changes compared to the prior year Q2 & 6M 2025 Key Financial Figures (vs. Prior Year) | Key Figures (Dollars in millions, except per share data) | Q2 2025 | Q2 2024 | Change | 6M 2025 | 6M 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net sales | $2,714 | $2,605 | 4.2% | $5,292 | $5,220 | 1.4% | | Operating income | 247 | 206 | 20% | 502 | 400 | 25% | | Adjusted operating income | 251 | 221 | 14% | 506 | 420 | 21% | | Operating margin | 9.1% | 7.9% | 1.2pp | 9.5% | 7.7% | 1.8pp | | Adjusted operating margin | 9.3% | 8.5% | 0.8pp | 9.6% | 8.0% | 1.5pp | | Earnings per share - diluted | 2.16 | 1.71 | 27% | 4.31 | 3.23 | 34% | | Adjusted earnings per share - diluted | 2.21 | 1.87 | 18% | 4.36 | 3.45 | 27% | | Operating cash flow | 277 | 340 | (18)% | 355 | 462 | (23)% | - Organic sales growth of **3.4%** outperformed global Light Vehicle Production (LVP) growth of **2.7%** by **0.7 percentage points**, despite a negative **2.5 percentage points** impact from regional and customer LVP mix[11](index=11&type=chunk) - Profitability improved significantly due to organic growth and cost reductions, with total headcount decreasing by **5%**. The negative impact from U.S. tariffs on operating margin was limited to approximately **35 basis points**[11](index=11&type=chunk) - Operating cash flow was lower than Q2 2024, which was boosted by positive timing-related working capital effects. In Q2 2025, **0.5 million shares** were repurchased and a dividend of **$0.70 per share** was paid[11](index=11&type=chunk) [CEO Commentary](index=2&type=section&id=CEO%20Commentary) The CEO highlighted a record-breaking second quarter despite a turbulent market, driven by strong sales and successful cost reduction and tariff compensation efforts. The company outperformed the market in the Americas, Europe, and Asia (ex-China) and expects significant improvement in China in the second half of the year. Shareholder returns are being increased through a new $2.5 billion share repurchase program and a 21% dividend increase for Q3 - The company achieved record Q2 sales, operating income, margin, and EPS, outperforming global LVP despite headwinds from mix shifts, particularly in China[7](index=7&type=chunk) - Focus on operational efficiency led to a **6%** reduction in direct headcount while organic sales grew **3%**, contributing to a **27%** increase in EPS[8](index=8&type=chunk) - The company successfully recovered around **80%** of tariff costs in Q2 and expects to recover most of the remainder later in the year[8](index=8&type=chunk) - A new share repurchase program of up to **$2.5 billion** until the end of 2029 was announced, along with a **21%** dividend increase for Q3 to **$0.85 per share**[9](index=9&type=chunk) [Full Year 2025 Guidance and Assumptions](index=3&type=section&id=Full%20year%202025%20guidance) This section outlines the company's financial projections for the full year 2025, including sales growth, profitability targets, and underlying market assumptions [Full Year 2025 Guidance](index=3&type=section&id=Full%20year%202025%20Guidance) The company has raised its full-year 2025 organic sales growth guidance to around 3% and reiterates its adjusted operating margin target of 10-10.5%. Operating cash flow is expected to be approximately $1.2 billion. This guidance is contingent on current customer call-offs and no further material changes to tariffs or the macroeconomic environment Full Year 2025 Guidance | Metric | Guidance | | :--- | :--- | | Organic sales growth | Around 3% | | Adjusted operating margin | Around 10-10.5% | | Operating cash flow | Around $1.2 billion | | Capex, net, % of sales | Around 5% | - The guidance is based on assumptions including customer call-offs, achievement of cost compensations for new tariffs, and no significant changes in the macro-environment or supply chain disruptions[12](index=12&type=chunk) [Full Year 2025 Assumptions](index=3&type=section&id=Full%20year%202025%20Assumptions) The full-year guidance is based on key assumptions including a slight negative LVP growth of around 0.5%, a neutral foreign exchange impact on net sales, and an effective tax rate of approximately 28% Full Year 2025 Assumptions | Metric | Assumption | | :--- | :--- | | LVP growth | Around 0.5% negative | | FX impact on net sales | Around 0% | | Tax rate (excluding unusual items) | Around 28% | [Business and Market Condition Update](index=4&type=section&id=Business%20and%20market%20condition%20update) This section details the company's operational environment, including supply chain dynamics, inflationary pressures, and the impact of geopolitical risks and tariffs [Supply Chain](index=4&type=section&id=Supply%20Chain) In Q2 2025, global LVP grew by 2.7%. While call-off volatility improved slightly, it remains above pre-pandemic levels and continues to impact production efficiency. The company expects this volatility to be slightly lower for the full year 2025 compared to 2024, but uncertainties around tariffs could worsen the situation - Global LVP increased by **2.7%** YoY in Q2 2025[15](index=15&type=chunk) - Call-off volatility, though slightly improved, remains higher than pre-pandemic levels and negatively impacts production efficiency[15](index=15&type=chunk) [Inflation](index=4&type=section&id=Inflation) Inflationary pressures from labor and other costs continued in Q2, though to a lesser degree than in 2024. Most of this pressure was offset by price increases and customer compensations. For the full year 2025, the company expects moderating inflation but anticipates continued pressure from labor costs and potentially tariffs - Most inflationary cost pressure in Q2 was offset by price increases and customer compensations[16](index=16&type=chunk) - Raw material costs are expected to be slightly higher in 2025 than in 2024. Cost pressure from general inflation is expected to moderate but remain from labor and potential tariffs[16](index=16&type=chunk) [Geopolitical Risks and Tariffs](index=4&type=section&id=Geopolitical%20risks%20and%20tariffs) The company successfully passed on most new tariff costs to customers in Q2, limiting the negative impact on operating income to around $7 million. The dilutive effect on operating margin was about 35 basis points. For the full year 2025, the margin dilution from tariffs is expected to be around 20 basis points, though significant uncertainty remains - The company recovered approximately **80%** of tariff costs in Q2 2025[17](index=17&type=chunk) - The impact of unrecovered tariffs on operating income was a negative **$7 million** in the quarter. Including the dilutive effect of recovered tariffs, the total negative impact on operating margin was around **35 basis points**[17](index=17&type=chunk) - For the full year 2025, the expected tariff dilution on operating margin is projected to be around **20 basis points**[17](index=17&type=chunk) [Sales Performance Analysis](index=6&type=section&id=Sales%20Performance%20Analysis) This section analyzes the company's sales development in Q2 and the first six months of 2025, detailing performance by product, region, and key vehicle launches [Consolidated Sales Development - Q2 2025](index=6&type=section&id=Consolidated%20sales%20development%20-%20Second%20quarter%202025) In Q2 2025, total net sales increased 4.2% to $2,714 million, with organic growth of 3.4%, outperforming global LVP by 0.7 percentage points. Growth was driven by Airbags, Steering Wheels, and Seatbelt products. Regionally, the company saw strong performance in the Americas, Europe, and Asia ex-China, but underperformed in China due to LVP mix favoring domestic OEMs with lower safety content. However, performance in China showed significant improvement over recent quarters Q2 2025 Sales by Product and Region (in millions) | Consolidated sales | 2025 | 2024 | Reported change | Organic change* | | :--- | :--- | :--- | :--- | :--- | | Airbags, Steering Wheels and Other | $1,812 | $1,747 | 3.8% | 3.1% | | Seatbelt Products and Other | 902 | 858 | 5.1% | 4.0% | | **Total** | **$2,714** | **$2,605** | **4.2%** | **3.4%** | | Americas | $891 | $893 | (0.2)% | 4.1% | | Europe | 828 | 761 | 8.7% | 3.3% | | China | 477 | 468 | 1.9% | 1.7% | | Asia excl. China | 519 | 483 | 7.4% | 3.8% | - Global organic sales growth of **3.4%** outperformed global LVP growth of **2.7%**. The company outperformed LVP in Americas (**+5.0 percentage points**), Europe (**+4.9 percentage points**), and Asia ex-China (**+1.4 percentage points**), but underperformed in China (**-7.0 percentage points**)[34](index=34&type=chunk) - In China, LVP for global OEMs declined by **4%** while it increased by **16%** for domestic OEMs. Autoliv's sales growth with domestic OEMs matched this at **16%**, indicating a significant improvement over recent quarters[35](index=35&type=chunk) [Consolidated Sales Development - First Six Months 2025](index=7&type=section&id=Consolidated%20sales%20development%20-%20First%20six%20months%202025) For the first six months of 2025, net sales grew 1.4% to $5,292 million, with organic growth of 2.8%. This was slightly below the global LVP growth of 3.1%, primarily due to a significant negative LVP mix effect in China. The company outperformed LVP in all regions except China, where sales to domestic OEMs grew 17% against a 21% LVP increase for those OEMs. A strong order book and new launches are expected to improve China's performance in H2 6M 2025 Sales by Product and Region (in millions) | Consolidated sales | 2025 | 2024 | Reported change | Organic change* | | :--- | :--- | :--- | :--- | :--- | | Airbags, Steering Wheels and Other | $3,565 | $3,528 | 1.0% | 2.4% | | Seatbelt Products and Other | $1,727 | $1,692 | 2.1% | 3.6% | | **Total** | **$5,292** | **$5,220** | **1.4%** | **2.8%** | | Americas | $1,742 | $1,786 | (2.5)% | 2.7% | | Europe | $1,592 | $1,531 | 4.0% | 2.6% | | China | $924 | $928 | (0.5)% | 0.1% | | Asia excl. China | $1,034 | $975 | 6.1% | 5.8% | - Global organic sales growth of **2.8%** was **0.3 percentage points** below global LVP growth of **3.1%**, with an estimated **3 percentage points** negative impact from regional and model LVP mix, particularly in China[41](index=41&type=chunk) - In China, LVP for global OEMs declined **4%** while it grew **21%** for domestic OEMs. Autoliv's sales to domestic OEMs increased by **17%** in the first half[42](index=42&type=chunk) [Key Product Launches - Q2 2025](index=8&type=section&id=Key%20launches%20in%20the%20second%20quarter%20of%202025) The company supported several key vehicle launches in the second quarter of 2025, supplying a range of safety products including airbags, seatbelts, and steering wheels. Notable launches include models from Deepal, Honda, Nio, Nissan, Changan, Chery, Renault, Suzuki, Lynk & Co, and Mitsubishi, as well as two confidential EV launches with Chinese OEMs - Key vehicle launches supplied by Autoliv in Q2 2025 include the Deepal S09, Honda Ye P7, Nio Firefly, Nissan Roox, Changan Avatr 06, and Chery Fengyun A9[46](index=46&type=chunk) - The company also supplied products for the Nissan Leaf, Renault 4, Suzuki eVitara, Daihatsu Move, Lynk & Co 900, and Mitsubishi XFORCE[46](index=46&type=chunk) - Two key EV launches with Chinese OEMs were also supported but remain confidential[46](index=46&type=chunk) [Financial Performance Analysis](index=10&type=section&id=Financial%20Performance%20Analysis) This section provides a detailed analysis of the company's income statement, cash flow, balance sheet, and headcount trends for the reporting period [Income Statement Analysis](index=10&type=section&id=Income%20Statement%20Analysis) In Q2 2025, operating income rose 20% to $247 million, and net income increased 21% to $168 million. The improvement was driven by higher gross profit from operational efficiencies and organic growth, coupled with lower R,D&E expenses. This resulted in a 27% increase in diluted EPS to $2.16, aided by a lower share count. The six-month trend was similar, with operating income up 25% and diluted EPS up 34% Condensed Income Statement (Q2 & 6M 2025 vs 2024, in millions) | (Dollars in millions) | Q2 2025 | Q2 2024 | Change | 6M 2025 | 6M 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net sales | $2,714 | $2,605 | 4.2% | $5,292 | $5,220 | 1.4% | | Gross profit | 501 | 475 | 5.7% | 980 | 917 | 6.8% | | Operating income | 247 | 206 | 20% | 502 | 400 | 25% | | Net income | $168 | $139 | 21% | $335 | $266 | 26% | | Earnings per share - diluted | $2.16 | $1.71 | 27% | $4.31 | $3.23 | 34% | - Q2 gross profit increased by **$27 million**, driven by improved operational efficiency (lower labor, freight, and scrap costs) and organic sales growth, partly offset by un-recovered tariff costs[51](index=51&type=chunk) - Q2 R,D&E, net costs decreased by **$9 million**, mainly due to higher engineering income and positive FX effects, improving as a percentage of sales from **4.5%** to **3.9%**[52](index=52&type=chunk) - The **$0.46** increase in Q2 diluted EPS was driven by **$0.39** from higher operating income and **$0.10** from a lower number of outstanding shares[56](index=56&type=chunk) [Cash Flow and Balance Sheet Analysis](index=12&type=section&id=Selected%20Cash%20Flow%20and%20Balance%20Sheet%20Items) Operating cash flow for Q2 2025 decreased 18% to $277 million, primarily due to less favorable working capital changes compared to the prior year. Capital expenditures were lower, resulting in a free operating cash flow of $163 million. Net debt increased by 11% year-over-year to $1,752 million, mainly because shareholder returns exceeded free cash flow. The leverage ratio remained stable at 1.3x, well within the company's target Selected Cash Flow Items (Q2 & 6M 2025 vs 2024, in millions) | (Dollars in millions) | Q2 2025 | Q2 2024 | Change | 6M 2025 | 6M 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating cash flow | 277 | 340 | (18)% | 355 | 462 | (23)% | | Capital expenditure, net | (114) | (146) | (22)% | (208) | (286) | (27)% | | Free operating cash flow | $163 | $194 | (16)% | $147 | $176 | (16)% | Selected Balance Sheet Items (as of June 30) | (Dollars in millions) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Trade working capital | $1,354 | $1,169 | 16% | | Cash & cash equivalents | 237 | 408 | (42)% | | Net Debt | 1,752 | 1,579 | 11% | | Total equity | 2,480 | 2,311 | 7.3% | | Leverage ratio | 1.3 | 1.2 | 0.0 | - The decrease in Q2 operating cash flow was mainly due to a smaller positive impact from working capital changes (**$15 million** in Q2'25 vs. **$128 million** in Q2'24)[65](index=65&type=chunk)[66](index=66&type=chunk) - Net debt increased by **$172 million** YoY because dividends paid and share repurchases over the last twelve months were higher than free operating cash flow[70](index=70&type=chunk) [Headcount](index=13&type=section&id=Headcount) As of June 30, 2025, total headcount was 65,100, a decrease of 5.2% (or 3,600 employees) from the previous year, despite a 3.4% increase in organic sales. The reduction was primarily in the direct workforce, which decreased by 6.2%, reflecting improved operational efficiency Headcount Trend | Headcount | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | | Total Headcount | 65,100 | 65,900 | 68,700 | | Direct headcount | 48,000 | 48,800 | 51,100 | | Indirect headcount | 17,100 | 17,100 | 17,500 | - Total headcount decreased by **5.2%** year-over-year, with direct workforce down **6.2%** and indirect workforce down **2.3%**[76](index=76&type=chunk) [Other Corporate Developments](index=14&type=section&id=Other%20Items) This section highlights significant corporate events and announcements, including awards, partnerships, and key personnel changes [Key Corporate Events and Announcements](index=14&type=section&id=Key%20Corporate%20Events%20and%20Announcements) During the quarter, Autoliv received an innovation award for its Bernoulli™ Airbag Module, partnered with the Formula E World Championship, and presented its Omni Safety™ system. At its Capital Markets Day, the company announced a new $2.5 billion share repurchase program and a 21% dividend increase for Q3. Additionally, the CFO announced his resignation, effective by year-end 2025 - Announced a new share repurchase program of up to **$2.5 billion** through December 2029 and a **21%** dividend increase for Q3 to **$0.85 per share**[78](index=78&type=chunk) - Fredrik Westin, Chief Financial Officer, will resign from his position by December 31, 2025. A search for his successor has been initiated[78](index=78&type=chunk) - In Q2, the company repurchased and retired **0.5 million shares** at an average price of **$99.81 per share**, completing its 2022-2025 program[78](index=78&type=chunk) [Consolidated Financial Statements](index=17&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's unaudited consolidated income statements, balance sheets, and cash flow statements for the specified periods [Consolidated Statements of Income](index=17&type=section&id=Consolidated%20Statements%20of%20Income) This section provides the unaudited consolidated income statement for the second quarter and first six months of 2025 and 2024, along with trailing twelve months and full-year 2024 data. It details revenues, costs, and profits, leading to net income and earnings per share Consolidated Statements of Income (unaudited) | (Dollars in millions, except per share data) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :--- | :--- | :--- | :--- | :--- | | Total net sales | 2,714 | 2,605 | 5,292 | 5,220 | | Gross profit | 501 | 475 | 980 | 917 | | Operating income | 247 | 206 | 502 | 400 | | Income before income taxes | 221 | 183 | 453 | 356 | | Net income | 168 | 139 | 335 | 266 | | Earnings per share - diluted | $2.16 | $1.71 | $4.31 | $3.23 | [Consolidated Balance Sheets](index=18&type=section&id=Consolidated%20Balance%20Sheets) This section presents the unaudited consolidated balance sheets as of June 30, 2025, and for the four preceding quarters. It details the company's assets, liabilities, and equity, providing a snapshot of its financial position at each period end Consolidated Balance Sheet Highlights (unaudited, in millions) | (Dollars in millions) | Jun 30, 2025 | Dec 31, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | | Total current assets | 3,929 | 3,483 | 3,703 | | Total assets | 8,476 | 7,804 | 8,010 | | Total current liabilities | 4,235 | 3,633 | 3,785 | | Total liabilities | 5,997 | 5,518 | 5,698 | | Total equity | 2,480 | 2,285 | 2,311 | [Consolidated Statements of Cash Flow](index=19&type=section&id=Consolidated%20Statements%20of%20Cash%20Flow) This section provides the unaudited consolidated statements of cash flow for the second quarter and first six months of 2025 and 2024. It breaks down cash movements from operating, investing, and financing activities Consolidated Statements of Cash Flow Highlights (unaudited, in millions) | (Dollars in millions) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | 277 | 340 | 355 | 462 | | Net cash used in investing activities | (114) | (146) | (208) | (286) | | Net cash used in financing activities | (227) | (362) | (170) | (269) | | Decrease in cash and cash equivalents | (86) | (161) | (94) | (90) | | Cash and cash equivalents at period-end | $237 | $408 | $237 | $408 | [Reconciliation of U.S. GAAP to Non-U.S. GAAP Measures](index=20&type=section&id=RECONCILIATION%20OF%20U.S.%20GAAP%20TO%20NON-U.S.%20GAAP%20MEASURES) This section provides detailed reconciliations of non-GAAP financial measures to their most directly comparable U.S. GAAP equivalents, enhancing transparency and comparability [Reconciliation of Profitability](index=23&type=section&id=Reconciliation%20of%20Profitability) The company provides reconciliations for several non-GAAP profitability metrics to exclude items like capacity alignments and antitrust matters, which management believes improves comparability. For Q2 2025, adjusted operating income was $251 million (9.3% margin) compared to the GAAP figure of $247 million (9.1% margin). Adjusted diluted EPS was $2.21, compared to GAAP EPS of $2.16 Reconciliation of Operating Income (in millions) | (Dollars in millions) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating income (GAAP) | $247 | $206 | $502 | $400 | | Non-GAAP adjustments | 4 | 15 | 5 | 20 | | Adjusted Operating income (Non-GAAP) | $251 | $221 | $506 | $420 | Reconciliation of Earnings per share - diluted | | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :--- | :--- | :--- | :--- | :--- | | Earnings per share - diluted (GAAP) | $2.16 | $1.71 | $4.31 | $3.23 | | Total non-GAAP adjustments | 0.04 | 0.17 | 0.05 | 0.22 | | Adjusted Earnings per share - diluted (Non-GAAP) | $2.21 | $1.87 | $4.36 | $3.45 | [Reconciliation of Cash Flow (Free Operating Cash Flow & Cash Conversion)](index=22&type=section&id=Reconciliation%20of%20Cash%20Flow%20(Free%20Operating%20Cash%20Flow%20%26%20Cash%20Conversion)) Management uses 'free operating cash flow' (Operating Cash Flow less Capex, net) to analyze cash generation available for strategic use. For Q2 2025, free operating cash flow was $163 million. 'Cash conversion' (Free Operating Cash Flow / Net Income) is used to measure efficiency. For Q2 2025, cash conversion was 97%, down from 140% in the prior year due to lower free cash flow and higher net income Reconciliation to Free Operating Cash Flow (in millions) | (Dollars in millions) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating cash flow | 277 | 340 | $355 | $462 | | Capital expenditure, net | (114) | (146) | (208) | (286) | | Free operating cash flow | $163 | $194 | $147 | $176 | | Net income | $168 | $139 | $335 | $266 | | Cash conversion | 97% | 140% | 44% | 66% | [Reconciliation of Debt (Net Debt & Leverage Ratio)](index=21&type=section&id=Reconciliation%20of%20Debt%20(Net%20Debt%20%26%20Leverage%20Ratio)) The company reports 'Net Debt' (Total Debt less Cash and adjusted for debt-related derivatives) and a 'Leverage Ratio' (Net Debt adjusted for pensions / Adjusted EBITDA) as key non-GAAP metrics for analyzing its debt position. As of June 30, 2025, Net Debt was $1,752 million, and the Leverage Ratio was 1.3x, which is below the company's target of 1.5x Reconciliation to Net Debt (in millions) | (Dollars in millions) | Jun 30, 2025 | Jun 30, 2024 | | :--- | :--- | :--- | | Total debt | 2,051 | 1,996 | | Cash & cash equivalents | (237) | (408) | | Debt issuance cost/Debt-related derivatives, net | (62) | (8) | | Net debt | $1,752 | $1,579 | Leverage Ratio Calculation (in millions) | (Dollars in millions) | Jun 30, 2025 | Jun 30, 2024 | | :--- | :--- | :--- | | Net debt per the Policy | $1,919 | $1,720 | | EBITDA per the Policy (Adjusted EBITDA) | $1,483 | $1,380 | | Leverage ratio | 1.3 | 1.2 |

Core Insights - Autoliv, Inc. is positioned to potentially continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates consistently in the last two quarters [1][5] - The company reported earnings of $2.15 per share in the last quarter, exceeding the Zacks Consensus Estimate of $1.72 per share by 25.00% [2] - Autoliv's positive Earnings ESP of +9.05% indicates a bullish sentiment among analysts regarding the company's earnings prospects [8] Earnings Performance - In the previous quarter, Autoliv's actual earnings were $3.05 per share, surpassing the expected $2.83 per share by 7.77% [2] - The average earnings surprise over the last two quarters has been 16.39% [1] Earnings Estimates - There has been a favorable change in earnings estimates for Autoliv, supported by a positive Earnings ESP, which is a strong indicator of potential earnings beats [5][8] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6] Earnings ESP Explanation - The Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7] - A positive Earnings ESP suggests that analysts have recently become more optimistic about the company's earnings [8]

Core Insights - Autoliv, Inc. (ALV) is expected to report quarterly earnings of $2.07 per share, reflecting a 10.7% increase year-over-year, with revenues projected at $2.63 billion, a 0.8% increase from the previous year [1] - Analysts have revised the consensus EPS estimate upward by 0.7% over the past 30 days, indicating a collective reassessment of projections [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock price performance [3] Financial Metrics - Analysts estimate 'Net Sales- Seatbelt Products and Other' to reach $839.37 million, indicating a -2.2% change year-over-year [5] - 'Net Sales- Airbags, Steering Wheels and Other' is projected at $1.76 billion, reflecting a +0.5% change from the prior year [5] - 'Net Sales- Americas' is expected to be $855.27 million, showing a -4.2% change from the previous year [5] - 'Net Sales- Europe' is forecasted at $751.53 million, indicating a -1.2% change year-over-year [6] - 'Net Sales- Asia excl. China' is estimated to reach $499.63 million, reflecting a +3.4% change [6] - 'Net Sales- China' is projected at $488.36 million, indicating a +4.4% change from the prior year [6] Stock Performance - Autoliv shares have increased by +5.6% over the past month, compared to a +5% increase in the Zacks S&P 500 composite [6] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [6]

Core Viewpoint - The market anticipates Autoliv, Inc. (ALV) will report a year-over-year increase in earnings driven by higher revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on July 18, with a consensus EPS estimate of $2.05, reflecting a year-over-year increase of +9.6%. Revenues are projected at $2.61 billion, a slight increase of 0.3% from the previous year [3][2]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 0.67% higher, indicating a collective reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Autoliv is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.52%, suggesting a bearish outlook from analysts [12][8]. Historical Performance - In the last reported quarter, Autoliv exceeded the expected earnings of $1.72 per share by delivering $2.15, resulting in a surprise of +25.00%. Over the past four quarters, the company has beaten consensus EPS estimates twice [13][14]. Overall Assessment - Given the current Zacks Rank of 4, Autoliv does not appear to be a strong candidate for an earnings beat, and investors should consider other factors before making investment decisions [12][17].

Core Viewpoint - Autoliv, Inc. announces the resignation of Chief Financial Officer Fredrik Westin for personal reasons, effective December 31, 2025, unless otherwise agreed [1][2]. Company Overview - Autoliv, Inc. is the global leader in automotive safety systems, developing and marketing protective systems such as airbags and seatbelts for major automotive manufacturers [4]. - The company operates in 25 countries and has 13 technical centers focused on innovation, research, and development [5]. - In 2024, Autoliv's products saved nearly 37,000 lives and reduced over 600,000 injuries [4]. Financial Performance - Autoliv reported sales of $10.4 billion in 2024 [5].

Core Points - Autoliv Inc. plans to publish its Financial Report for Q2 2025 on July 18, 2025, at 12:00 CET [1] - A teleconference will be held on the same day, featuring Mikael Bratt, President & CEO, as the main speaker [2] Financial Report Details - The Q2 2025 Financial Report will be accessible on the company's website [1] - Audio replay of the teleconference will be available until July 18, 2026 [2] - A transcript of the conference will also be provided on the company's investor relations page [2] Participation Information - Attendees can join the teleconference via webcast or phone, with registration required for phone participation [2] - Links for both webcast and phone registration are provided in the announcement [2]

Core Insights - Three companies are significantly increasing their share buyback capacities, indicating management confidence in future returns, particularly in the tech sector with a focus on AI [1][15]. MongoDB - MongoDB has expanded its share buyback program to a total of $1 billion, which represents approximately 5.9% of its market capitalization as of June 13 [2][3]. - The company reported earnings that exceeded expectations, leading to a 13% increase in share price the day after the announcement, following a previous 27% drop post-earnings in March [4][3]. - Despite a strong subscription growth of 22% last quarter, analysts found the full fiscal year outlook disappointing, and the company is still working to gain traction in AI applications [5]. Autoliv - Autoliv announced a $2.5 billion share repurchase program, equating to around 30% of its market capitalization as of June 13, with the program set to last through the end of 2029 [7][6]. - The company has averaged buyback spending of approximately $82 million per quarter since 2022, which would need to increase by nearly 70% to utilize the full capacity over the next 18 quarters [8]. - Autoliv also raised its dividend by 21%, with an upcoming quarterly dividend of $0.85 per share, indicating a commitment to shareholder returns [9]. DocuSign - DocuSign has added $1 billion to its share buyback authorization, bringing the total to $1.4 billion, which is about 9.4% of its market capitalization as of June 13 [12][10]. - The company has spent $700 million on repurchases over the last 12 months, significantly higher than the average annual spending of around $300 million from 2020 to 2023 [12]. - Despite a 19% drop in shares following its latest earnings report, the stock has risen approximately 44% over the past year, reflecting management's confidence in the business outlook and upcoming AI features [13][14].

Group 1 - The article discusses the investment positions held by the author in various companies, indicating a beneficial long position in shares of ALV, BWA, LEA, and MGA [1] - It emphasizes that the author is not receiving compensation for the article, and it reflects personal opinions rather than professional financial advice [2] - The article highlights the importance of due diligence and research by investors before making any investment decisions, particularly in high-risk trading styles [2] Group 2 - The article clarifies that past performance of investments does not guarantee future results, and no specific investment recommendations are provided [3] - It notes that the views expressed may not represent the opinions of Seeking Alpha as a whole, and the analysts may not be licensed or certified [3]