Autoliv Analysts Slash Their Forecasts Following Q4 Results

Core Viewpoint - Autoliv, Inc. reported strong fourth-quarter earnings, exceeding analyst expectations in both adjusted earnings per share and quarterly sales, driven by significant growth in India and with Chinese OEMs [1][2]. Financial Performance - The company posted fourth-quarter adjusted earnings per share of $3.19, surpassing the consensus estimate of $2.90 [1]. - Quarterly sales reached $2.817 billion, exceeding the expected $2.772 billion [1]. - For fiscal 2025, Autoliv reported sales of $10.82 billion and guided for flat organic sales growth in fiscal 2026, projecting revenue of approximately $10.8 billion, which is below Wall Street's estimate of $11.18 billion [3]. Growth Drivers - CEO Mikael Bratt highlighted record high sales for both the quarter and the full year, primarily driven by nearly 40% growth in sales to COEMs for the quarter and 23% for the full year [2]. - The company achieved close to 100% recovery of tariff costs in Q4 and over 80% for the full year [2]. Challenges - Autoliv noted that ongoing supply-chain volatility has negatively impacted production efficiency and profitability, with last-minute changes in customer call-offs affecting operational planning [2]. - The company anticipates some improvement in 2026, despite ongoing tariff uncertainties [2]. Analyst Ratings - Evercore ISI Group analyst Chris McNally maintained an Outperform rating on Autoliv but lowered the price target from $150 to $145 [4]. - RBC Capital analyst Tom Narayan also maintained an Outperform rating while reducing the price target from $146 to $141 [4].