Autoliv: Financial Report October - December 2025

Rhea-AI Summary

Autoliv (NYSE: ALV) reported Q4 2025 net sales of $2,817M (+7.7%) and organic sales growth of 4.2%. Q4 adjusted operating margin was 12.0% and adjusted diluted EPS was $3.19. Full-year operating cash flow reached a record $1,157M. 2026 guidance: ~0% organic growth and 10.5-11.0% adjusted operating margin.

Management highlighted strong COEM growth (~40% in Q4), record cash generation, improved leverage (1.1x) and planned Q1 2026 report on April 17, 2026.

Positive

• Q4 net sales +7.7% to $2,817M
• Record full-year operating cash flow of $1,157M
• Q4 adjusted operating margin of 12.0%
• Full-year diluted EPS +19% to $9.55
• Leverage ratio improved to 1.1x

Negative

• Q4 operating income declined by 9.6% to $319M
• Q4 diluted EPS decreased by 3.8% to $2.98
• Q4 adjusted operating income down 3.6% versus prior year
• 2026 guidance implies ~0% organic growth and weaker Q1 adjusted margin

Key Figures

Q4 2025 net sales: $2,817M Q4 organic sales growth: 4.2% Q4 operating margin: 11.3% +5 more

8 metrics

Q4 2025 net sales $2,817M Q4 2025, up 7.7% vs Q4 2024

Q4 organic sales growth 4.2% Q4 2025 vs prior year, above 1.3% global LVP

Q4 operating margin 11.3% Q4 2025, down from 13.5% in Q4 2024

Q4 adjusted EPS $3.19 Q4 2025 diluted, up 4.7% vs $3.05 in Q4 2024

Q4 operating cash flow $544M Q4 2025, record quarter, up 30% vs $420M

FY 2025 operating income $1,088M FY 2025, first time above $1B, up 11% vs 2024

Leverage ratio 1.1x Q4 2025, below 1.5x target limit

2026 adj. op margin guide 10.5–11.0% Full-year 2026 adjusted operating margin outlook

Market Reality Check

Price: $121.24 Vol: Volume 1,417,266 is 2.07x...

high vol

$121.24 Last Close

Volume Volume 1,417,266 is 2.07x the 20-day average of 685,918, showing elevated pre-news activity. high

Technical Trading above 200-day MA at $115.09, with price at $126.43 and within 2.85% of the 52-week high $130.14.

Peers on Argus

ALV’s move was modest while key auto-parts peers were mixed: BWA +0.58%, MOD +3....

ALV’s move was modest while key auto-parts peers were mixed: BWA +0.58%, MOD +3.95%, GNTX +1.65%, LKQ -0.46%, ALSN +0.28%, suggesting stock-specific focus on this earnings report.

Historical Context

5 past events · Latest: Jan 08 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 08	Earnings call invite	Neutral	+0.6%	Announcement of timing and access details for Q4 2025 earnings call.
Jan 05	Product innovation	Positive	+1.1%	Launch of world’s first foldable steering wheel for Level 4 autonomous driving.
Dec 31	Share retirement	Positive	-1.2%	Retirement of 1,260,725 repurchased shares, lowering issued and boosting outstanding focus.
Dec 29	CFO transition update	Neutral	-0.1%	Extension of CFO Fredrik Westin’s resignation date to March 31, 2026.
Nov 10	Dividend increase	Positive	+0.7%	Quarterly dividend raised to $0.87 per share, implying higher annual payout.

Pattern Detected

Recent Autoliv headlines have been operational and capital-allocation focused, including innovation in autonomous-driving safety, dividend increases, and share retirements. Most of these have been followed by modestly positive 24-hour price reactions, with only the share-retirement announcement seeing a small decline. This Q4 2025 earnings release continues the emphasis on cash generation, shareholder returns, and Asia-driven growth, building on the November 2025 dividend increase and earlier disclosure about the foldable steering wheel and CFO transition.

Recent Company History

Over the last few months, Autoliv has released a series of operational and shareholder-related updates. The company increased its Q4 2025 dividend to $0.87 per share and later retired 1,260,725 shares as of Dec 31, 2025, reducing issued shares to 77,301,375. It also highlighted innovation via the foldable steering wheel targeted for volume production in H2 2026. Today’s Q4 2025 financial report and related 8-K build on that trajectory, emphasizing record sales, strong cash flow, and continued capital returns.

Market Pulse Summary

This announcement highlights record Q4 $2,817M net sales, organic growth above global LVP, and a qua...

Analysis

This announcement highlights record Q4 $2,817M net sales, organic growth above global LVP, and a quarterly operating cash flow high of $544M. FY 2025 operating income surpassed $1B for the first time, while leverage improved to 1.1x. At the same time, Q4 operating margin declined versus 2024 and 2026 guidance calls for around 0% organic growth. Investors may track adjusted margin within the 10.5–11.0% range and ongoing capital returns against this backdrop.

Key Terms

organic sales growth, adjusted operating margin, leverage ratio, non-gaap, +3 more

7 terms

organic sales growth financial

"Net sales increased organically* by 4.2%, which was 2.9pp higher..."

Organic sales growth measures how much a company’s revenue rises from its regular business activity — like selling more products, charging higher prices, or selling to more customers — without counting money from buying other businesses or one-time currency effects. Investors watch it because it shows whether demand and the company’s core operations are genuinely getting stronger, similar to judging a garden by how much the plants you planted yourself are growing rather than by adding bought potted plants.

adjusted operating margin financial

"12.0% adjusted operating margin*... Around 10.5-11.0% adjusted operating margin"

Adjusted operating margin shows how much profit a company makes from its core business activities, after removing unusual or one-time costs and income. It helps investors see the company's true profitability by providing a clearer picture, similar to removing unexpected expenses to understand the regular performance. This metric is useful for comparing companies or tracking performance over time, as it highlights consistent earning power.

leverage ratio financial

"The leverage ratio* improved to 1.1x, well below our target limit..."

Leverage ratio measures how much a company relies on borrowed money compared with its own funds or assets, typically expressed as debt relative to equity or total assets. Like a homeowner with a mortgage, higher leverage can amplify returns when business is strong but also raises the chance of big losses or default if revenue falls, so investors use it to judge financial risk and resilience.

non-gaap financial

"*For Non-GAAP measures see enclosed reconciliation tables."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

return on capital employed financial

"Return on capital employed 2) | 30.3 % | 35.8 % | (5.5)pp..."

Return on capital employed (ROCE) is a percentage that shows how much operating profit a company generates from the money invested in its business — including equity and long‑term debt. Investors use it to judge whether a company uses its resources efficiently, similar to measuring how much output a factory gets from its equipment; a higher ROCE suggests management is getting more profit from each dollar of capital, which can indicate better long‑term value.

restricted stock units financial

"acquired 12.5458 restricted stock units (RSUs) as dividend equivalent rights..."

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

dividend equivalent rights financial

"Dividend equivalent rights accrue as additional RSUs when cash dividends are paid..."

Dividend equivalent rights are promises that mirror the cash payments shareholders get from a company’s profits, but they are paid to holders of certain awards (like stock options or restricted stock units) rather than to actual shares. Think of them as a paycheck top‑up that matches dividends while the award is not yet a real stock, and they matter to investors because they add to employee compensation costs and potential share dilution, affecting company profitability and per‑share value.

AI-generated analysis. Not financial advice.

STOCKHOLM, Jan. 30, 2026 /PRNewswire/ -- (NYSE: ALV) and (SSE: ALIV.sdb)

Q4 2025: Our best quarter yet

Financial highlights Q4 2025

$2,817 million net sales
7.7% net sales increase
4.2% organic sales growth*
11.3% operating margin
12.0% adjusted operating margin*
$2.98 diluted EPS, 4% decrease
$3.19 adjusted diluted EPS*, 5% increase

Full year 2026 guidance

Around 0% organic sales growth
Around 1% positive FX effect on net sales
Around 10.5-11.0% adjusted operating margin
Around $1.2 billion operating cash flow

All change figures in this release compare to the same period of the previous year except when stated otherwise.

Key business developments in the fourth quarter of 2025

• Net sales increased organically* by 4.2%, which was 2.9pp higher than the global LVP increase of 1.3% (S&P Global Jan 2026) driven mainly by new product launches. Regional and customer LVP mix is estimated to have negatively impacted sales by about 1.5pp, while tariff compensations added around 1pp. We outperformed in all regions; by 5.3pp in China, by 4.8pp in Asia ex. China, by 3.7pp in Americas and by 1.5pp in Europe. Driven mainly by new product launches, our organic sales growth* to Chinese OEMs (COEMs) was close to 40%. We expect continued strong sales performance with COEMs in 2026.
• Profitability was strong, with the highest quarterly gross profit and second highest operating income so far. This was mainly due to organic sales growth* and successful execution of cost reductions. Operating income decreased by 9.6% to $319 million and adjusted operating income* decreased by 3.6% to $337 million mainly from lower out-of-period customer compensations and lower engineering income. Operating margin was 11.3% and adjusted operating margin* was 12.0%. ROCE was 30.3% and adjusted ROCE* was 31.8%.
• Operating cash flow increased by 30%, to a new quarterly record of $544 million, taking the full year operating cash flow to a new record of $1,157 million. Free operating cash flow* increased substantially and was a record-high for both the quarter and the full year. The leverage ratio* improved to 1.1x, well below our target limit of 1.5x. In the quarter, a dividend of $0.87 per share (2.4% increase from Q3 '25) was paid and 1.26 million shares were repurchased and retired.

*For Non-GAAP measures see enclosed reconciliation tables.

Key Figures

(Dollars in millions, except per share data)	Q4 2025	Q4 2024	Change	FY 2025	FY 2024	Change
Net sales	$2,817	$2,616	7.7 %	$10,815	$10,390	4.1 %
Operating income	319	353	(9.6) %	1,088	979	11 %
Adjusted operating income1)	337	349	(3.6) %	1,114	1,007	11 %
Operating margin	11.3 %	13.5 %	(2.2)pp	10.1 %	9.4 %	0.6pp
Adjusted operating margin1)	12.0 %	13.4 %	(1.4)pp	10.3 %	9.7 %	0.6pp
Earnings per share - diluted	2.98	3.10	(3.8) %	9.55	8.04	19 %
Adjusted earnings per share - diluted1)	3.19	3.05	4.7 %	9.85	8.32	18 %
Operating cash flow	544	420	30 %	1,157	1,059	9.2 %
Return on capital employed2)	30.3 %	35.8 %	(5.5)pp	26.4 %	25.0 %	1.5pp
Adjusted return on capital employed1,2)	31.8 %	35.2 %	(3.4)pp	27.0 %	25.6 %	1.5pp
1) Excluding effects from capacity alignments and antitrust related matters. Non-GAAP measure, see reconciliation table. 2) Annualized operating income and income from equity method investments, relative to average capital employed.

Comments from Mikael Bratt, President & CEO

"We reached new record high sales for a quarter and a full year, driven mainly by strong growth in India and with Chinese OEMs. Sales to COEMs grew by almost 40% in the quarter and by 23% for the full year. Our organic sales growth outperformed LVP in all regions in Q4. We recovered close to 100% of the tariff costs in Q4 and more than 80% for the full year.

Our profit development and balance sheet control resulted in record high operating cash flow and free operating cash flow for both the quarter and the full year. For 2025, operating cash flow was 11% of sales and free operating cash flow was 7% of sales.

Over the past few years, we have taken significant steps to strengthen our position in China with COEMs through investments in footprint and engineering capacity, and by signing several strategic co-operation agreements. This is paying off, evidenced by the fact that 30% of our order intake in 2025 was from COEMs, which includes order intake for COEM production in Europe and the world's first foldable steering wheel for autonomous driving.

In 2025, we reached several significant milestones: operating income exceeded $1 billion for the first time, earnings per share rose above $9 and we paid more than $3 per share in dividends. Our ability to continue delivering attractive shareholder returns remains strong. In the fourth quarter, we accelerated shareholder returns while also improving our leverage ratio - demonstrating both financial strength and disciplined capital management.

Our 2026 guidance, assuming 1% GLVP decline, is organic growth of around 0% and adjusted operating margin of around 10.5-11.0%. We expect Q1 2026 adjusted operating margin to be considerably weaker than Q1 2025, with improvements in the following three quarters.

Our solid position and strong performance in Asia are instrumental to our continued progress. I am confident that together with our demonstrated ability to improve performance in a low-growth environment, we have a solid foundation for continued attractive shareholder returns and a clear path towards our 12% adjusted operating margin target."

Next Report

Autoliv intends to publish the quarterly earnings report for the first quarter of 2026 on Friday, April 17, 2026.

Inquiries: Investors and Analysts

Anders Trapp
Vice President Investor Relations
Tel +46 (0)709 578 171

Henrik Kaar
Director Investor Relations
Tel +46 (0)709 578 114

Inquiries: Media

Gabriella Etemad
Senior Vice President Communications
Tel +46 (0)70 612 6424

Autoliv, Inc. is obliged to make this information public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the VP of Investor Relations set out above, at 12.00 CET on January 30, 2026.

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The full report (PDF)

 

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SOURCE Autoliv

FAQ

What were Autoliv's (ALV) Q4 2025 net sales and organic growth?

Autoliv reported $2,817M in Q4 2025 net sales with 4.2% organic growth. According to the company, growth was driven by new product launches and strong COEM demand, outperforming global LVP in all regions in Q4.

How strong was Autoliv's cash generation in FY 2025 and why does it matter for ALV shareholders?

Autoliv generated a record $1,157M operating cash flow in FY 2025. According to the company, this cash strength funded dividends, share repurchases, and improved leverage, supporting disciplined capital returns and balance-sheet flexibility for shareholders.

What is Autoliv's 2026 guidance for organic growth and adjusted operating margin (ALV)?

Autoliv guides to around 0% organic growth and an adjusted operating margin of 10.5-11.0% for 2026. According to the company, this assumes a 1% GLVP decline and anticipates Q1 margins to be weaker than Q1 2025.

Why did Autoliv's Q4 2025 operating income and EPS move lower despite higher sales?

Operating income fell by 9.6% and Q4 diluted EPS declined 3.8% despite sales growth. According to the company, reductions were driven by lower out-of-period customer compensations and reduced engineering income.

How did Autoliv perform with Chinese OEMs and what is the expected impact for ALV in 2026?

Sales to Chinese OEMs grew close to 40% in Q4 2025 and ~23% for the full year. According to the company, stronger COEM orders and investments in China support continued sales momentum and strategic positioning into 2026.