Autoliv Inc Posts Strong Q4 2025 Financial Results

By Chris Stiles • Sunday, February 01 04:22 • Permanent Link

Autoliv, a leader in automotive safety systems, has released its financial report for the fourth quarter of 2025, showcasing significant growth and achievement during this period.

In Q4 2025, Autoliv reported a 7.7% increase in net sales, reaching $2,817 million compared to $2,616 million in Q4 2024. The operating income for the same period was $319 million, showing a slight decrease of 9.6% from $353 million in Q4 2024. Adjusted operating income decreased by 3.6% to $337 million compared to $349 million in Q4 2024. Despite the decrease in operating income, the operating margin remained strong at 11.3%, and the adjusted operating margin was 12.0%.

The diluted earnings per share (EPS) decreased by 4% to $2.98, while the adjusted diluted EPS increased by 5% to $3.19. This increase in adjusted diluted EPS indicates improved profitability and effective cost management.

Autoliv's operating cash flow saw a significant increase of 30% to a new quarterly record of $544 million in Q4 2025. The full-year operating cash flow also reached a new record of $1,157 million, demonstrating the company's strong financial position and cash generation capabilities.

The return on capital employed (ROCE) decreased to 30.3%, and the adjusted ROCE was 31.8%, reflecting a reduction from the previous year. However, despite the decrease, Autoliv's management remains optimistic about the company's performance and its ability to deliver attractive shareholder returns.

The company's organic sales growth outperformed the global light vehicle production (LVP) increase, with a 4.2% organic sales growth compared to the 1.3% LVP increase. The growth was mainly attributed to new product launches and a strong sales performance in China and other regions. Autoliv's sales growth with Chinese original equipment manufacturers (OEMs) was particularly noteworthy, reaching close to 40% in Q4 2025.

Looking ahead, Autoliv has provided guidance for the full year 2026, forecasting around 0% organic sales growth and an adjusted operating margin of around 10.5-11.0%. The company also expects an operating cash flow of around $1.2 billion for the full year, indicating continued confidence in its financial performance and outlook.

Today the company's shares have moved -2.47% to a price of $126.38. If you want to know more, read the company's complete 8-K report here.

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