#USA #Stockholm #Financial Growth #Autoliv #Automotive Safety

Autoliv's Outstanding Q3 Financial Performance

Autoliv, a global leader in automotive safety systems, presented its financial results for the third quarter of 2025, achieving remarkable growth and setting new records. The company reported net sales of $2,706 million, reflecting a 5.9% increase from the previous year. This performance exceeded expectations, with organic sales growth recorded at 3.9%.

Key Financial Highlights

In this quarter, Autoliv saw a significant boost in profitability, aided by strategic cost management and successful tariff compensations. Key metrics from Q3 2025 include:

• - Operating income surged to $267 million, representing an 18% increase year-on-year.
• - The adjusted operating income increased by 14%, totaling $271 million.
• - The company achieved an impressive operating margin of 9.9% and an adjusted operating margin of 10.0%.
• - A notable EPS (Earnings Per Share) of $2.28 was reported, marking a 31% rise.

These numbers illustrate not only the solid operational improvements but also the robust demand for automotive safety solutions, bolstered by Autoliv's successful initiatives.

Market Performance and Challenges

Despite the challenges posed by regional market dynamics, Autoliv's sales performance showed resilience. While the global Light Vehicle Production (LVP) saw an increase of 4.6%, Autoliv's growth was slightly lower due to market mix issues. The performance varied by region: the company outperformed in Asia (excluding China) and the Americas while facing obstacles in China and Europe. Notably, Autoliv’s organic sales growth in China was about 8 percentage points ahead of domestic LVP growth.

Strategic Developments

In line with its growth strategy, Autoliv has announced several initiatives to enhance its operations:

• - The company has commenced the establishment of a second R&D center in China to support its expanding collaboration with local OEMs.
• - A strategic partnership with CATARC (China Automotive Technology and Research Center) aims to accelerate the development of automotive safety standards and innovations.
• - Autoliv recently revealed plans to form a joint venture with HSAE, a leading automotive electronics manufacturer in China.

These strategic alliances are expected to further strengthen Autoliv's market position and technological advancement in automotive safety.

Operational Efficiency

Not only did sales grow, but operating cash flow also saw an impressive 46% surge, driven by improved profitability and working capital management. The company managed capital expenditures effectively, allowing them to maintain a 1.3x leverage ratio, below its target limit of 1.5x despite increasing dividends by 21% and repurchasing 0.84 million shares during the quarter.

Mikael Bratt, President and CEO, expressed satisfaction with the company's third-quarter results, noting, "This quarter has been our best third quarter to date in terms of sales, operating income, and EPS. Our performance reflects strong sales efforts, especially in the Americas and Europe, alongside successful cost management strategies.”

Future Outlook

With a strong commitment to operational efficiency and strategic market positioning, Autoliv anticipates achieving its full-year guidance of an adjusted operating margin of 10-10.5%. Looking ahead, the company expects to sustain its growth momentum into the next quarter, supported by continued innovation in automotive safety systems.

As Autoliv prepares for its upcoming quarterly earnings report for Q4 2025, stakeholders remain optimistic about the company’s trajectory in the dynamic automotive industry.