Core Viewpoint - Waymo, a subsidiary of Alphabet, is planning a new funding round aiming to raise approximately $16 billion, with a company valuation nearing $110 billion [1] Funding Details - Alphabet will invest about $13 billion into Waymo, while the remaining funds will come from new investors including Sequoia Capital, DST Global, and Dragoneer [1] - The funding round is expected to be completed by February [1] Previous Valuation - In the previous funding round conducted in October 2024, Waymo's valuation exceeded $45 billion, with Alphabet leading that round [1]

Group 1 - Tesla is retiring its Model S and Model X to focus on autonomous driving, robotics, and artificial intelligence [1] - The decision is driven by CEO Elon Musk and reflects a broader strategic shift within the company [1]

Group 1 - Pony AI Inc. announced a strategic collaboration with Beijing ATBB Travel & Express Service to expand Robotaxi commercialization in China through a partnership-driven model [1][2] - The collaboration aims to deploy and operate Robotaxi services across top-tier cities in China, including airport venues and business travel scenarios [2] - The Robotaxi fleet will utilize Pony AI's seventh-generation vehicles and will be integrated into both Pony's ride-hailing platform and ATBB's Xinghui Mobility platform [3] Group 2 - Dr. James Peng, Founder and CEO of Pony AI, emphasized the importance of efficient and sustainable deployment of autonomous driving technology as it matures [1] - The partnership is expected to accelerate the adoption of Robotaxi services and strengthen the economics of their operations [1]

Group 1 - WeRide Inc. has launched its proprietary general-purpose simulation model, WeRide Genesis, aimed at enhancing the growth, training, and validation of autonomous vehicles (AVs) [1][2] - WeRide Genesis creates a digital universe that allows AI drivers to familiarize themselves with any city's driving environment within minutes, supporting the global commercialization of autonomous driving [2] - The simulation model incorporates four major AI modules that condense millions of kilometers of road testing into a few days of virtual simulation, significantly reducing time and costs compared to traditional road testing [3] Group 2 - WeRide Genesis supports various AVs, including Level 2++ advanced driver-assistance systems and Level 4 Robotaxis, and enables training and skill testing of AI drivers on a single platform [3] - WeRide Inc. focuses on autonomous driving products and solutions in China, with product categories including robotaxis, robobus, robovan, and robosweeper [3]

Core Insights - Waabi, a self-driving truck startup, has raised a total of $1 billion, which includes $750 million upfront and an additional $250 million from Uber based on deployment milestones [2] Group 1: Company Developments - The funding marks a significant expansion for Waabi into the robotaxi sector, indicating a strategic shift beyond just trucks [2] - Waabi aims to deploy over 25,000 robotaxis, raising questions about the effectiveness of Uber's broad autonomous vehicle partnership strategy [2] Group 2: Industry Context - Uber has over 20 autonomous vehicle partners globally, highlighting the competitive landscape in the autonomous vehicle market [2] - The discussion around Waabi's "simulation-first" approach suggests a potential differentiation in its strategy compared to other players in the industry [3]

Core Insights - Mercedes-Benz Group AG, NVIDIA Corporation, and Uber Technologies are collaborating to launch robotaxi services in major cities, utilizing the Mercedes S-Class sedan as the foundation for their global autonomous-driving platform [1][7] Group 1: Technology and Integration - The next-generation S-Class will feature Mercedes-Benz's MB.OS, integrating NVIDIA DRIVE Hyperion hardware and full-stack NVIDIA DRIVE AV Level 4 software, focusing on safety-first autonomy through NVIDIA's Halos system [2] - NVIDIA DRIVE AV equips the S-Class with a comprehensive automated-driving system capable of handling rare and complex driving scenarios within a safety-centric architecture, validated through high-fidelity simulations [4] - The technology is built on NVIDIA's AI foundation, enabling real-time analysis of complex environments and the selection of the safest driving actions [5] Group 2: Market Strategy and Collaboration - The S-Class aims to provide a premium, chauffeur-style autonomous experience, with plans to offer these vehicles through Uber's mobility network, showcasing collaboration between established automakers and AI leaders [3] - The companies have not disclosed a timeline for the robotaxi service launch, although Mercedes-Benz has previously partnered with Bosch and Momenta on autonomous-driving initiatives [6]

TD Cowen raised the firm’s price target on Tesla (TSLA) to $519 from $509 and keeps a Buy rating on the shares. The firm said the Q4 outcome was fairly consistent with Cowen’s balanced setup view, as a solid margin beat and positive RoboTaxi updates were in part offset by the capex guide and absence of a specific timeline for unsupervised customer FSD. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders’ Hot Stocks on TipRanks >> R ...

Financial Data and Key Metrics Changes - The company reported record high sales for both the quarter and the full year, with consolidated sales exceeding $2.8 billion, an 8% increase year-over-year [7][21] - Adjusted operating income for Q4 decreased by 4% to $337 million, with an adjusted operating margin of 12%, down 140 basis points from the previous year [7][21] - Free operating cash flow for 2025 reached $734 million, an increase of over $230 million compared to the previous year, driven by higher profitability and disciplined capital management [6][24] - Earnings per share rose to above $9, with an 18% increase year-over-year, reflecting higher net profit and reduced share count from repurchase activities [24][25] Business Line Data and Key Metrics Changes - Sales to Chinese OEMs surged nearly 40% in the quarter, significantly contributing to the company's growth [5] - India represented nearly half of the company's global organic growth, showcasing exceptional performance in that market [5] - The adjusted operating income for the full year increased by 11% to $1.1 billion, with an adjusted operating margin of 10.3% compared to 9.7% in 2024 [24] Market Data and Key Metrics Changes - Global light vehicle production for Q4 increased by 1.3%, exceeding expectations, with production in China coming in 8 percentage points above expectations [10] - The regional production mix has shifted, with a larger share coming from lower content per vehicle markets in Asia, impacting overall profitability [9][10] - The company outperformed the market by 3 percentage points globally, despite an unfavorable regional light vehicle production mix [12][19] Company Strategy and Development Direction - The company is focusing on expanding its role in the autonomous vehicle ecosystem, highlighted by the development of the first foldable steering wheel for autonomous vehicles [7] - Strategic agreements, such as the one with Qualcomm, are aimed at enhancing the company's position in advanced automotive safety electronics [16] - The company expects to continue to significantly outperform light vehicle production in both China and India in 2026, despite facing headwinds from market conditions [5][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver attractive shareholder returns, with a debt leverage ratio reduced to 1.1 times [6] - The outlook for 2026 anticipates flat organic sales overall, with growth in China, India, and South America offset by declines in North America and Europe [33] - Geopolitical uncertainties and trade restrictions are identified as significant risks to the 2026 light vehicle production outlook [32] Other Important Information - The company returned approximately $590 million to shareholders through dividends and share buybacks in 2025 [29] - The operating cash flow for Q4 totaled $544 million, an increase of $124 million compared to the previous year, driven by positive working capital effects [25] - The company has achieved $100 million of the $130 million in structural cost savings targeted [41] Q&A Session Summary Question: Can you frame the major puts and takes regarding margins? - Management quantified raw material headwinds at about $10 million for 2025, expecting it to increase to around $30 million in 2026, primarily due to non-ferrous metals like gold [40][41] Question: Is there any impact from Hyundai's airbag recall? - Management indicated no current indication of impact on their products and is working with the customer [44][45] Question: Why is the 2026 outperformance guidance only 1%? - Management explained that the outperformance is consistent with their organic growth components and reflects a neutral mix effect for 2026 [50][51] Question: How is the company performing with exports and production in Europe from Chinese OEMs? - Management confirmed strong growth with Chinese OEMs and noted a significant order for production in Europe, although high volumes of localized production are still developing [54][55] Question: What is the current market share in the industry? - Management reported a stable market share of 44% globally, with strong growth in China and India [59][60] Question: How was the raw material headwind for 2026 calculated? - Management stated it is based on a mix of long-term agreements and updated contracts, with the largest impact expected from gold [62][64]

Financial Data and Key Metrics Changes - The company achieved record high sales for both the quarter and the full year, with consolidated sales over $2.8 billion, representing an 8% year-over-year increase [10][20] - Adjusted operating income for Q4 decreased by 4% to $337 million, with an adjusted operating margin of 12%, which is 140 basis points lower than the same quarter last year [6][20] - Free operating cash flow for 2025 was $734 million, an increase of over $230 million compared to the previous year, driven by higher profitability and disciplined capital management [5][24] - Adjusted earnings per share rose 18% to $9.85, reflecting higher net profit and reduced share count from repurchase activities [24] Business Line Data and Key Metrics Changes - Sales to rapidly expanding Chinese OEMs surged nearly 40% in the quarter, significantly contributing to the overall sales growth [4] - The company outperformed the market by 3 percentage points globally, despite an unfavorable regional light vehicle production mix [11] - Sales to Chinese OEMs accounted for 23% of group sales, with organic sales growth in China of 23% [10][18] Market Data and Key Metrics Changes - Global light vehicle production for Q4 increased by 1.3%, exceeding expectations by 4 percentage points, primarily driven by China and India [9] - Light vehicle production in China was 8 percentage points above expectations, supported by consumer incentives [9] - The regional production mix has shifted significantly, with a larger share coming from lower content per vehicle markets in Asia [8] Company Strategy and Development Direction - The company announced the development of the first foldable steering wheel for autonomous vehicles, marking a strategic step in expanding its role in the autonomous vehicle ecosystem [6] - The company expects to continue to significantly outperform light vehicle production in both China and India in 2026 [4] - The company aims for margin improvement supported by higher operational efficiency and ongoing structural cost reductions [32] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the ability to deliver attractive shareholder returns, with a debt leverage ratio reduced to 1.1 times [5] - The outlook for 2026 anticipates flat organic sales overall, with growth in China, India, and South America offset by lower sales in North America and Europe [32] - Geopolitical uncertainty and trade restrictions are expected to be significant risks to the 2026 light vehicle production outlook [31] Other Important Information - The company paid a dividend of $0.87 per share in Q4, representing a 24% increase from the previous dividend [28] - The company has improved working capital by approximately $740 million over the past five years, supporting a stronger balance sheet [27] Q&A Session Summary Question: Can you frame the major puts and takes regarding margins? - The company expects about $30 million in raw material headwinds in 2026, primarily from non-ferrous metals, especially gold [39] Question: Is there any impact from Hyundai's airbag recall? - Currently, there is no indication that the recall affects the company's products, and they are working with the customer [43] Question: Why is the outperformance for 2026 only 1%? - The company expects a neutral mix effect for 2026, with lower-end vehicles growing, impacting overall performance [49] Question: What is the current market share in the industry? - The company maintains a market share of 44% globally, with strong growth in China and India [59] Question: How is the raw material headwind calculated? - The headwind is based on a mix of long-term agreements and updated contracts, with a focus on spot prices [62]

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 ...