Autoliv Achieves Record Financial Performance in Q4 2025

Autoliv's Financial Report for Q4 2025

Autoliv Inc., listed on NYSE as ALV and on SSE as ALIV.sdb, presented impressive financial results for the final quarter of 2025, marking it as the best quarter in the company’s history. The report released on January 30, 2026, details significant achievements, highlighting a remarkable sales increase, strong profitability, and strategic developments during this period.

Financial Highlights

In Q4 2025, Autoliv’s net sales surged to $2,817 million, reflecting a notable 7.7% increase compared to the previous year. This increase is attributed to robust market performance and successful product launches throughout the quarter. Organic sales growth reached 4.2%—an impressive feat that outpaced the global light vehicle production (LVP) growth, which stood at 1.3% according to SP Global.

Despite strong sales, the company experienced a 4% drop in diluted earnings per share (EPS), which settled at $2.98. However, adjusted diluted EPS showed a positive trend with a 5% increase, landing at $3.19. The adjusted operating margin was reported at 12%, showcasing effective cost management and operational efficiency.

Operating income decreased by 9.6% to $319 million, affected by lower out-of-period customer compensations as well as engineering income impacts. However, the year-end results solidifying a record operating cash flow highlighted the company's financial resilience.

Regional Performance

Autoliv's growth was evenly distributed across geographic lines, with the company outperforming in all markets. In China, sales to local original equipment manufacturers (COEMs) nearly reached a staggering 40% growth. The most substantial organic sales growth was seen in China, where the company recorded an incredible 5.3 percentage points above the average market performance. The Americas followed closely with a 3.7 pp advantage, while European figures improved by 1.5 pp.

Importantly, tariff compensations provided a boost to the financials, which added about 1 percentage point to the net sales growth, offsetting challenges from LVP mix impacts.

Profitability and Cash Flow

The quarterly gross profit reached an all-time high, leading to the second-best operating income ever recorded by Autoliv. Operating cash flow for Q4 surged by 30%, reaching a record of $544 million, contributing to an annual cash flow of over $1 billion. Moreover, the leverage ratio improved to a commendable 1.1x, well below the target limit of 1.5x, indicating better than expected financial health and capital management.

Following this success, Autoliv's board declared a dividend of $0.87 per share—showing a 2.4% increase from Q3 2025—and announced the repurchase and retirement of 1.26 million shares to enhance shareholder value.

Forward Guidance

Looking ahead, Autoliv expressed cautious optimism regarding the 2026 financial outlook, predicting organic sales growth around 0% adjusted for minor overall market variability. CEO Mikael Bratt noted,