Autoliv Inc. (NYSE: ALV) Reports Strong Fourth Quarter Financial Results

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]