Core Insights - Autoliv reported record sales, cash flow, and earnings per share for both the fourth quarter and full year 2025, driven by strong growth with Chinese OEMs and in India, while anticipating margin expansion in 2026 despite a softer light-vehicle production outlook [5][4]. Financial Performance - Fourth-quarter sales increased 8% year-over-year to over $2.8 billion, marking the highest quarterly level in the company's history [4]. - Gross profit rose by $22 million year-over-year, although gross margin declined by 70 basis points [1]. - Adjusted operating income decreased 4% year-over-year to $337 million, with an adjusted operating margin of 12.0%, down 140 basis points [3]. - For the full year, net sales reached $10.8 billion, up 4% from 2024, and adjusted operating income rose 11% to $1.1 billion, improving the adjusted operating margin to 10.3% [7]. Cash Flow and Shareholder Returns - Fourth-quarter operating cash flow increased by 30% year-over-year to $544 million, while free operating cash flow rose to $434 million from $288 million a year earlier [2]. - The company returned approximately $590 million to shareholders through dividends and buybacks in 2025, raising the quarterly dividend from $0.70 to $0.87 per share [12]. Market Environment and Regional Growth - Global light vehicle production reached its highest level for any quarter on record, with a 1.3% increase in the fourth quarter, driven by stronger-than-expected production in China and India [8][10]. - Autoliv outperformed global light vehicle production by 3 percentage points in the quarter, with particularly strong performance in Asia, excluding China [10]. Operational Efficiency - The company achieved significant operational efficiency improvements, including lower logistics and labor costs, contributing to gross profit [6]. - Autoliv has realized $100 million of a $130 million structural cost savings plan, with expectations to achieve the remaining savings in the coming years [17]. 2026 Outlook - Autoliv anticipates flat organic sales for 2026, with growth in China, India, and South America offset by lower sales in North America and Europe [15]. - The company expects an adjusted operating margin of around 10.5% to 11% and operating cash flow of about $1.2 billion for 2026 [15]. Business Developments - Autoliv announced an agreement with Tensor to develop the first foldable steering wheel for robo cars, targeted for volume production in late 2026 [20]. - The company secured its first order with a Chinese OEM for vehicle production in Europe, establishing a customer relationship [20].

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 ...

Core Viewpoint - Autoliv and Tensor have co-developed the world's first foldable steering wheel for the Tensor Robocar, enhancing safety and flexibility in autonomous vehicles, with production expected in the second half of 2026 [1][6]. Group 1: Product Innovation - The foldable steering wheel allows for both manual control and autonomous operation, addressing the need for more space and comfort in vehicle interiors as automation increases [2][3]. - The steering wheel retracts in Level 4 autonomous mode, clearing the driver's area and transforming the cabin into a multifunctional space [3]. - The airbag system adapts based on the driving mode, ensuring optimal safety for passengers whether in manual or autonomous driving [4]. Group 2: Market Impact - This innovation represents a significant milestone in the development of autonomous vehicle interiors, setting a new benchmark for safety systems that enhance user experience [6]. - The Tensor Robocar will be marketed in the US, EU, and Middle East, indicating a broad market strategy for the new technology [6]. Group 3: Company Background - Autoliv is a leader in automotive safety systems, with a focus on developing protective systems like airbags and seatbelts, and reported sales of $10.4 billion in 2024 [8]. - Tensor, founded in 2016, is dedicated to creating fully autonomous vehicles and aims to empower consumers with innovative automotive solutions [9].