Financial Performance - Sales reached a record $2706 million for the third quarter, compared to $2555 million in Q3'24[7, 12] - Adjusted operating income increased to $271 million, up from $237 million in Q3'24[12] - Adjusted operating margin improved to 10%, a rise from 93% in the same period last year[12] - Operating cash flow increased by 46% from $177 million to $258 million[12] Growth Drivers - Organic sales grew by 39%[25] - Share repurchases amounted to $100 million, and a dividend of $085 per share was paid, a 21% increase compared to Q2'25[7] - Sales in Americas emerged as the largest contributor to the increase[7] - The company outperformed strongly with Chinese OEMs, mainly as a result of several new launches[7] Strategic Initiatives - A second R&D center in China is expected to be operational in Q3'26[7] - Strategic partnership with CATARC in China to advance safety technologies[8] - Strategic Joint Venture to advance automotive safety electronics[9]

Core Insights - Autoliv, Inc. and Hangsheng Electric Co., Ltd. are forming a joint venture to develop advanced safety electronics for the Chinese automotive market [1][2] - The joint venture will be established in Q1 2026, with Autoliv holding a 40% stake and HSAE holding 60% [2] - The partnership aims to leverage Autoliv's global safety leadership and HSAE's expertise in automotive electronics to create integrated solutions for both Chinese and international OEMs [5] Company Overview - Autoliv is a leader in automotive safety systems, developing products such as airbags and seatbelts, and aims to redefine mobility safety standards [5][6] - In 2024, Autoliv's sales reached $10.4 billion, and its products saved approximately 37,000 lives while reducing around 600,000 injuries [6] - Hangsheng Electric Co., Ltd. specializes in automotive electronics, including infotainment systems and intelligent vehicle solutions, serving a wide range of OEMs [7] Strategic Goals - The joint venture will focus on innovation and efficiency in automotive safety technologies, aiming to support both the Chinese market and global customers [3][4] - The partnership is expected to act as a catalyst for the transformation of China's automotive industry, promoting high-quality and sustainable growth [4] - The headquarters and production facilities will be located near Shanghai, enhancing operational synergies with existing Autoliv sites in China [2]