Autoliv (ALIV) investor relations material

Executive summary

• Achieved record third-quarter sales, operating income, and EPS, driven by strong performance in Americas, Europe, and China, with cost reductions, operational improvements, and tariff compensation recovery.

• Organic sales growth was 3.9% year-over-year, with notable outperformance in India and Americas, and improved performance with Chinese OEMs.

• Strategic investments included a new R&D center in China, joint ventures with HSAE, and partnerships with CATARC to advance automotive safety standards and electronics integration.

• Continued significant shareholder returns through increased dividends and share repurchases, supported by a robust balance sheet.

• Margin expansion resulted from operational improvements, supplier compensation, and successful tariff recovery.

Financial highlights

• Net sales for Q3 2025 were $2,706 million, up 5.9% year-over-year; gross profit was $522 million (19.3% margin).

• Adjusted operating income rose 14% to $271 million (10.0% margin); operating income was $267 million (9.9% margin).

• Adjusted EPS increased 26% to $2.32; diluted EPS was $2.28, up 31% year-over-year.

• Operating cash flow was $258 million, up 46% from last year; free operating cash flow reached $153 million.

• Dividend per share increased 21% to $0.85; $100 million in share repurchases and 0.84 million shares retired.

Outlook and guidance

• Full-year 2025 guidance: organic sales growth around 3%, adjusted operating margin 10–10.5%, operating cash flow ~$1.2 billion, and capex at ~4.5% of sales.

• Q4 expected to be the strongest quarter, with continued outperformance in China and India despite global LVP headwinds.

• Assumes no major changes in tariffs, trade restrictions, or macroeconomic environment for the remainder of 2025.

• Global light vehicle production projected to grow 1.5% for 2025.

• No out-of-period inflation compensation expected in Q4; higher depreciation and lower engineering income anticipated.