, /PRNewswire/ --Â Autoliv, Inc. (NYSE: ALV) and (SSE: ALIVsdb), the worldwide leader in automotive safety systems, today announced its intent to form a new joint venture with Hangsheng Electric Co., Ltd. (HSAE), a leading Chinese developer of automotive electronics. The joint venture will focus on developing and manufacturing advanced safety electronics for the rapidly evolving Chinese automotive market. The joint venture is expected to be formally established in Q1 2026, pending regulatory approvals from ...

Financial Data and Key Metrics Changes - The company reported record sales and earnings for the second quarter of 2025, with net sales increasing by 4% year over year to approximately $2.7 billion [11][21] - Adjusted operating income rose by 14% to $251 million from $221 million in the previous year, with an adjusted operating margin of 9.3%, an increase of 80 basis points [11][21] - Earnings per share for the second quarter reached a record high, with a significant increase over the past five years, primarily driven by strong net profit growth and a reduced share count [9][21] Business Line Data and Key Metrics Changes - The company achieved a gross margin of 18.5%, an increase of 30 basis points year over year, driven by direct labor efficiency and headcount reductions [12][21] - Direct labor productivity improved as the company reduced its direct production personnel by 3,200 year over year, supported by automation and digitalization initiatives [12][21] Market Data and Key Metrics Changes - Global light vehicle production increased by 2.7% in the second quarter, exceeding initial expectations, while production in North America and Western Europe declined by around 3% each [13][14] - In China, the company saw a significant improvement, with sales to domestic OEMs growing more than 16%, aligning with light vehicle production growth [17][21] Company Strategy and Development Direction - The company emphasized its commitment to sustainable growth and long-term value creation, focusing on deepening partnerships with leading global and Chinese OEMs [32][34] - Strategic initiatives include enhancing operational efficiency, automation, digitalization, and maintaining a healthy leverage ratio not exceeding 1.5 times [33][34] Management's Comments on Operating Environment and Future Outlook - The management expressed caution regarding the remainder of the year due to complexities from tariffs and economic factors, while remaining optimistic about performance in China [6][30] - The outlook for global light vehicle production in 2025 is uncertain, with expectations of a decline in the second half of the year [30][31] Other Important Information - The company plans to increase its third-quarter dividend to $0.85 per share, reflecting confidence in its financial strength [10] - The company is committed to annual stock repurchases of $300 million to $500 million, despite a slower pace in the first half of the year [10][97] Q&A Session Summary Question: Regarding performance in China - The company noted that it is closing the gap in performance with Chinese OEMs and expects to continue outperforming the market in the latter half of the year [41][42] Question: On product volume fluctuations - The management explained that variations in product volumes are influenced by mix dynamics and launch activities [44][45] Question: On tariff recovery - The management clarified that the slower recovery in Q2 was due to timing effects and expressed confidence in recovering the remaining tariffs by the end of the year [50][51] Question: On margin guidance and raw material costs - The management indicated that raw material costs have slightly improved, with a headwind expected to be around $20 million, down from $40 million previously anticipated [54][55] Question: On pricing dynamics - The company continues to negotiate prices in light of tariffs and inflation, maintaining a historical pricing model [104][105] Question: On market share in India - The company reported a 60% market share in India and expects it to contribute around 5% to group sales for the full year [72]

Core Viewpoint - Autoliv, Inc. announces the resignation of Chief Financial Officer Fredrik Westin for personal reasons, effective December 31, 2025, unless otherwise agreed [1][2]. Company Overview - Autoliv, Inc. is the global leader in automotive safety systems, developing and marketing protective systems such as airbags and seatbelts for major automotive manufacturers [4]. - The company operates in 25 countries and has 13 technical centers focused on innovation, research, and development [5]. - In 2024, Autoliv's products saved nearly 37,000 lives and reduced over 600,000 injuries [4]. Financial Performance - Autoliv reported sales of $10.4 billion in 2024 [5].

Core Viewpoint - Autoliv, Inc. is focused on addressing external challenges while leveraging its leadership in automotive safety systems to create growth opportunities and enhance shareholder returns [1][2][5]. Company Strategy and Growth Opportunities - Autoliv aims to optimize operations to enhance cost efficiency and customer service, positioning itself to manage external challenges and capitalize on opportunities [2]. - The company emphasizes its leadership in technology and quality, which is expected to help navigate changes in the automotive and industrial landscapes [2]. - Autoliv's long-term growth target is to achieve organic sales growth of 4-6% annually over a 10+ year period, with a focus on safety content per vehicle and light vehicle production until around 2030 [7]. Shareholder Return Strategy - A new stock repurchase program of up to $2.5 billion has been approved, effective from July 1, 2025, to December 31, 2029, replacing the previous program [3]. - The dividend for the third quarter of 2025 has been increased to $0.85 per share, representing a 21% increase from the previous quarter and 24% higher than the average quarterly dividend in 2024 [4]. - The company targets annual share repurchases between $300 million and $500 million through the end of 2029, alongside a growing quarterly dividend [9]. Financial Guidance and Performance Targets - Autoliv reiterates its full-year 2025 guidance, projecting organic sales growth of around 2% and an adjusted operating margin of approximately 10-10.5% [6]. - The medium-term target for adjusted operating margin is set at 12%, contingent on successful execution of strategic initiatives and stable global light vehicle production of at least 85 million units [10]. - The company aims for a cash conversion target of at least 80% and a leverage ratio not exceeding 1.5x [17].

Core Insights - Autoliv, Inc. has entered a partnership with the ABB FIA Formula E World Championship to promote automotive safety and showcase technological advancements in safety equipment [1][2][3] Company Overview - Autoliv is a global leader in automotive safety systems, developing products such as airbags, seatbelts, and steering wheels for major automotive manufacturers [6][7] - In 2024, Autoliv's products saved approximately 37,000 lives and reduced around 600,000 injuries [6] - The company operates in 25 countries with 65,000 employees and reported sales of $10.4 billion in 2024 [6][7] Partnership Details - The partnership will focus on three core areas: increasing the usage and understanding of safety equipment, inspiring talent in the automotive safety sector, and developing safety technologies for electric vehicles [7] - The agreement begins in April 2025 and includes branding activations, such as the Autoliv logo on safety and medical cars [4][5] Industry Context - Formula E is the world's first all-electric FIA World Championship and is committed to sustainability, being the only sport-certified net zero carbon since its inception [8] - The collaboration aims to enhance awareness of automotive safety within the context of electric racing, aligning with the growing focus on electric vehicle innovation [4][8]