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.

• Continued high shareholder returns through dividends and share repurchases, with over $2.4 billion returned over five years.

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

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

• Outperformed global LVP by 3 percentage points in Q4, with especially strong growth 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%.

• 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% year-over-year; full year operating cash flow was $1,157M.

• Free operating cash flow for 2025 was $734M, up 48% from prior year.

• Adjusted EPS for 2025 rose 18% to $9.85; dividends paid totaled $3.12 per share, up 14%.

Outlook and guidance

• 2026 organic sales expected to be flat, with adjusted operating margin guidance of 10.5–11.0% and operating cash flow projected at $1.2B.

• CapEx to remain below 5% of sales, with higher investments in growth regions and new tech centers.

• Q1 2026 expected to be the weakest quarter due to seasonal patterns and a >10% decline in China LVP, with margin improvement in subsequent quarters.

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

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