Autoliv (ALIV) Q4 2025 earnings summary

Executive summary

• Achieved record quarterly and annual sales, cash flow, and earnings per share in 2025, driven by strong growth in India and with Chinese OEMs, and outperformance versus global light vehicle production (LVP) in most regions.

• Adjusted operating margin declined in Q4'25 but improved for the full year due to productivity and cost-saving initiatives.

• Returned $216 million to shareholders in Q4 and over $2.4 billion over five years, with continued high shareholder returns through dividends and buybacks.

• Introduced the world's first foldable steering wheel for autonomous vehicles, targeting volume production in late 2026.

• Maintained a global market share of 44% in 2025, with significant expansion in China and India.

Financial highlights

• Q4 2025 net sales reached $2,817M, up 8% year-over-year; full-year net sales were $10,815M, up 4.1%.

• Q4 adjusted operating income was $337M (12.0% margin), down from $349M (13.4%) in Q4'24; full-year adjusted operating margin improved to 10.3%.

• Q4 operating cash flow was $544M, up 30% YoY; free operating cash flow for the year was $734M.

• Full-year adjusted EPS increased 18% to $9.85; dividends paid totaled $3.12 per share (+14%).

• Leverage ratio improved to 1.1x, below the 1.5x target.

Outlook and guidance

• 2026 organic sales expected to be flat, with a 1% positive FX effect, and adjusted operating margin guidance of 10.5–11.0%.

• Operating cash flow for 2026 expected around $1.2B; CapEx to remain below 5% of sales, with higher investments in growth regions.

• Q1 2026 expected to be the weakest quarter due to seasonal patterns, lower LVP, and reduced demand in China.

• Expects to outperform global LVP by 1 percentage point in 2026.

• Assumptions include no major changes in tariffs, trade restrictions, or macroeconomic environment.