Autoliv Stock Earnings Reports

Autoliv reported a record third quarter with net sales of ~USD 2.7 billion (up 6% YoY) and adjusted operating income of USD 271 million (adjusted operating margin 10.3%, +70 bps YoY). Results were driven by stronger-than-expected light vehicle production (notably China, North America and India), operational efficiency gains (including headcount reductions and productivity improvements), supplier compensation related to a prior recall, and favorable currency effects. The company recovered ~75% of incurred tariff costs in Q3 and expects to recover most of the remainder later in the year, with a ~20 bps negative margin impact in the quarter from tariff timing and dilution. Operating cash flow was strong at USD 258 million (free operating cash flow USD 153 million) and net leverage remained low at 1.3x despite returning ~USD 530 million to shareholders over the past 12 months. Autoliv raised the quarterly dividend to USD 0.85, repurchased USD 100 million of shares in the quarter, and reiterated its ambition of USD 300–500 million in annual buybacks. Strategic highlights include deeper investment and partnerships in China (second R&D center, JV with a Chinese electronics developer, and collaboration with a major Chinese research institution) to capture higher content per vehicle and faster growth with domestic OEMs. Full-year 2025 guidance: organic sales +~3%, adjusted operating margin ~10–10.5% (expected around the midpoint), operating cash flow ~USD 1.2 billion, CapEx ~4.5% of sales. Management cautioned on near-term headwinds (less out-of-period inflation compensation vs prior years, higher depreciation from new capacity, and temporarily lower engineering income) and noted potential market volatility (e.g., supply incidents, European demand softness), but maintained confidence in medium-term margin targets and continued market outperformance in China.