[10-Q] AUTOLIV INC Quarterly Earnings Report
Autoliv (ALV) reported strong Q3 2025 results, with net sales of $2,706 million (up 5.9%) and operating income of $267 million, driving a 9.9% operating margin. Diluted EPS rose to $2.28 from $1.74, helped by higher volumes, cost reductions, and supplier compensation.
Gross margin improved to 19.3% as sales grew across products: airbags, steering wheels and other reached $1,830 million, and seatbelts $875 million. By region, sales increased in the Americas, Europe, China, and Asia ex‑China, with organic growth of 3.9% globally.
Cash generation was solid: year‑to‑date operating cash flow was $613 million (versus $639 million), while capital spending decreased, supporting share repurchases of $100 million and a $0.85 dividend paid in the quarter. The balance sheet showed total assets of $8,463 million and net debt of $1,772 million; leverage remained at 1.3x (non‑GAAP). Management reiterated full‑year guidance for an adjusted operating margin around 10–10.5%.
Autoliv (ALV) ha riportato solidi risultati nel Q3 2025, con vendite nette di 2.706 milioni di dollari (in crescita del 5,9%) e un reddito operativo di 267 milioni di dollari, trainando una margine operativo del 9,9%. L’EPS diluito è salito a 2,28 dollari rispetto a 1,74, aiutato da volumi superiori, riduzioni dei costi e compensazioni dai fornitori.
Il margine lordo è migliorato al 19,3% poiché le vendite sono aumentate su tutti i prodotti: airbag, volanti e altri hanno raggiunto 1.830 milioni di dollari, e cintura di sicurezza 875 milioni. Per regione, le vendite sono aumentate nelle Americhe, in Europa, in Cina e in Asia escluse la Cina, con una crescita organica globale del 3,9%.
La generazione di cassa è stata solida: il flusso di cassa operativo dall'inizio dell'anno è stato di 613 milioni di dollari (rispetto ai 639 milioni), mentre gli investimenti in capitale sono diminuiti, sostenendo riacquisti azionari per 100 milioni e un dividendo di 0,85 dollari pagato nel trimestre. Il bilancio mostra attività totali di 8.463 milioni di dollari e debito netto di 1.772 milioni; la leva si è mantenuta a 1,3x (non-GAAP). La direzione ha ribadito le previsioni per l'esercizio completo per un margine operativo rettificato intorno al 10–10,5%.
Autoliv (ALV) reportó sólidos resultados en el tercer trimestre de 2025, con ventas netas de $2.706 millones (un aumento del 5,9%) y un ingreso operativo de $267 millones, impulsando un margen operativo del 9,9%. El BPA diluido subió a $2.28 desde $1.74, ayudado por mayores volúmenes, reducciones de costos y compensación de proveedores.
El margen bruto mejoró al 19.3% a medida que las ventas crecieron en todos los productos: airbags, volantes y otros alcanzaron $1,830 millones, y cinturones de seguridad $875 millones. Por región, las ventas aumentaron en las Américas, Europa, China y Asia ex-China, con crecimiento orgánico global del 3.9%.
La generación de efectivo fue sólida: el flujo de efectivo operativo acumulado del año fue de $613 millones (frente a $639 millones), mientras que la inversión de capital disminuyó, respaldando recompras de acciones por $100 millones y un dividendo de $0.85 pagado en el trimestre. El balance mostró activos totales de $8,463 millones y deuda neta de $1,772 millones; la palanca se mantuvo en 1.3x (no GAAP). La dirección reiteró las previsiones para el año completo de un margen operativo ajustado alrededor del 10–10,5%.
오토리브(Autoliv, ALV)는 2025년 3분기 강력한 실적을 발표했다, 순매출은 27억 6천만 달러로 5.9% 증가했고, 영업이익은 2.67억 달러로 영업이익률 9.9%를 기록했다. 희석된 주당순이익(EPS)은 2.28달러로 1.74달러에서 상승했으며, 이는 높은 판매량, 비용 절감, 공급업체 보상에 힘입은 것이다.
총이익률은 매출이 모든 제품에서 증가하며 19.3%로 개선되었고, 에어백, 스티어링 휠 및 기타 부문은 18.30억 달러, 안전벨드는 8.75억 달러에 도달했다. 지역별로는 북미, 유럽, 중국, 그리고 중국 제외 아시아에서 매출이 증가했고, 글로벌 유기적 성장률은 3.9%였다.
현금창출은 견조했다: 연초부터의 영업현금흐름은 6.13억 달러였고(전년 동기 6.39억 달러 대비), 자본지출은 감소했고, 주식자사주 매입에 1억 달러, 분기 중 배당금 0.85달러를 지급했다. 대차대조표상 총자산은 84.63억 달러, 순부채는 17.72억 달러; 레버리지는 1.3배로 비GAAP이다. 경영진은 연간 가이던스를 조정된 영업마진이 약 10–10.5%로 제시했다.
Autoliv (ALV) a présenté des résultats solides au T3 2025, avec un chiffre d’affaires net de 2 706 millions de dollars, et un résultat opérationnel de 267 millions de dollars, propulsant une marge opérationnelle de 9,9%. L’EPS dilué a augmenté à 2,28 dollars contre 1,74, aidé par des volumes plus élevés, des réductions de coûts et des compensations des fournisseurs.
La marge brute s’est améliorée à 19,3% alors que les ventes ont augmenté pour tous les produits: airbags, volants et autres ont atteint 1 830 millions de dollars, et les ceintures de sécurité 875 millions. Par région, les ventes ont augmenté dans les Amériques, en Europe, en Chine et en Asie hors Chine, avec une croissance organique mondiale de 3,9%.
La génération de cash-flow était solide: le flux de trésorerie opérationnel de l’année jusqu’à présent était de 613 millions de dollars (contre 639 millions), tandis que les investissements en capital ont diminué, soutenant des rachats d’actions de 100 millions et un dividende de 0,85 dollar versé au trimestre. Le bilan montrait des actifs totaux de 8 463 millions de dollars et une dette nette de 1 772 millions; l’endettement restait à 1,3x (non-GAAP). La direction a réitéré les prévisions pour l’année complète d’une marge opérationnelle ajustée d’environ 10–10,5%.
Autoliv (ALV) meldete starke Q3‑2025‑Ergebnisse, mit Nettoumsätzen von 2.706 Mio. USD (plus 5,9%) und operativem Gewinn von 267 Mio. USD, was eine operative Marge von 9,9% treibt. Der verwässerte Gewinn je Aktie stieg auf 2,28 USD von 1,74, unterstützt durch höhere Volumen, Kostenreduktionen und Lieferantenkompensation.
Die Bruttomarge verbesserte sich auf 19,3%, da die Verkäufe über alle Produkte hinweg zulegten: Airbags, Lenkräder und andere erzielten 1.830 Mio. USD, Gurte 875 Mio. USD. Regionell stieg der Umsatz in den Americas, Europa, China und Asia ex-China, mit globalem organischem Wachstum von 3,9%.
Die Cash-Generierung war solide: operativer Cashflow von Jahresbeginn 613 Mio. USD (gegenüber 639 Mio. USD), während CAPEX gesenkt wurde, was Aktienrückkäufe von 100 Mio. USD und eine Quartalsdividende von 0,85 USD unterstützte. Die Bilanz wies Gesamtkonten von 8.463 Mio. USD und Nettoverschuldung von 1.772 Mio. USD aus; Leverage blieb bei 1,3x (Non-GAAP). Das Management bestätigte die Guidance für das Gesamtjahr auf eine bereinigte operative Marge von ca. 10–10,5%.
أوتو ليف (ALV) أبلغت عن نتائج قوية في الربع الثالث 2025، بإيرادات صافية قدرها $2,706 مليون (ارتفاع 5.9%) وأرباح تشغيلية قدرها $267 مليون، مما دفع هامش تشغيلي قدره 9.9%. ارتفع EPS المخفف إلى $2.28 من $1.74، بدعم من زيادة الأحجام، وخفض التكاليف، والتعويض من الموردين.
تحسن الهامش الإجمالي إلى 19.3% مع نمو المبيعات عبر المنتجات: الوسائد الهوائية، مقاعد القيادة وغيرها وصلت إلى $1,830 مليون، وأحزمة المقاعد $875 مليون. من حيث المنطقة، زادت المبيعات في الأمريكتين، وأوروبا، والصين، وآسيا باستثناء الصين، مع نمو عضوي عالمي قدره 3.9%.
كان توليد النقد قوياً: التدفق النقدي التشغيلي منذ بداية السنة كان $613 مليون (مقابل $639 مليون)، بينما انخفض الإنفاق الرأسمالي، مما دعم إعادة شراء الأسهم بمقدار $100 مليون وتوزيع أرباح قدره $0.85 خلال الربع. أظهر الميزانية صافي أصول بقيمة $8,463 مليون وإجمالي الدين الصافي $1,772 مليون؛ بقي معدل الرفع المالي عند 1.3x (غير GAAP). أعادت الإدارة تأكيد التوجيه للسنة كاملة لهامش تشغيلي معدل يقارب 10–10.5%.
Autoliv (ALV) 公布了2025年第三季度的强劲业绩，净销售额为$2,706 million（上涨5.9%），营业收入为$267 million，推动9.9%的营业利润率。摊薄后每股收益提升至$2.28，比1.74上涨，受益于更高的销量、成本削减和供应商补偿。
毛利率提升至19.3%，各产品销售增长：气囊、方向盘等达到$1,830 million，安全带为$875 million。按地区看，美洲、欧洲、中国及不含中国的亚洲地区销售均有所增长，全球有机增长为3.9%。
现金创造能力稳健：年初至今经营现金流为$613 million（此前为$639 million），资本开支下降，支持进行1亿美元的股票回购及本季度派发0.85美元分红。资产总额为$8,463 million，净负债为$1,772 million；杠杆维持在1.3x（非GAAP）。管理层重申全年指引，调整后经营利润率约在10–10.5%。
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Insights
Solid quarter with margin gains and strong EPS, thesis unchanged.
Autoliv delivered higher sales and improved margins in Q3 2025. Operating income reached
Working capital was a help and capex trended lower, producing healthy cash flow. Short‑term debt increased to support operations, but total leverage stayed at a stated 1.3x. Tariff costs were largely offset by customer compensation, limiting margin dilution.
The company reaffirmed an adjusted operating margin target of about
Autoliv (ALV) ha riportato solidi risultati nel Q3 2025, con vendite nette di 2.706 milioni di dollari (in crescita del 5,9%) e un reddito operativo di 267 milioni di dollari, trainando una margine operativo del 9,9%. L’EPS diluito è salito a 2,28 dollari rispetto a 1,74, aiutato da volumi superiori, riduzioni dei costi e compensazioni dai fornitori.
Il margine lordo è migliorato al 19,3% poiché le vendite sono aumentate su tutti i prodotti: airbag, volanti e altri hanno raggiunto 1.830 milioni di dollari, e cintura di sicurezza 875 milioni. Per regione, le vendite sono aumentate nelle Americhe, in Europa, in Cina e in Asia escluse la Cina, con una crescita organica globale del 3,9%.
La generazione di cassa è stata solida: il flusso di cassa operativo dall'inizio dell'anno è stato di 613 milioni di dollari (rispetto ai 639 milioni), mentre gli investimenti in capitale sono diminuiti, sostenendo riacquisti azionari per 100 milioni e un dividendo di 0,85 dollari pagato nel trimestre. Il bilancio mostra attività totali di 8.463 milioni di dollari e debito netto di 1.772 milioni; la leva si è mantenuta a 1,3x (non-GAAP). La direzione ha ribadito le previsioni per l'esercizio completo per un margine operativo rettificato intorno al 10–10,5%.
Autoliv (ALV) reportó sólidos resultados en el tercer trimestre de 2025, con ventas netas de $2.706 millones (un aumento del 5,9%) y un ingreso operativo de $267 millones, impulsando un margen operativo del 9,9%. El BPA diluido subió a $2.28 desde $1.74, ayudado por mayores volúmenes, reducciones de costos y compensación de proveedores.
El margen bruto mejoró al 19.3% a medida que las ventas crecieron en todos los productos: airbags, volantes y otros alcanzaron $1,830 millones, y cinturones de seguridad $875 millones. Por región, las ventas aumentaron en las Américas, Europa, China y Asia ex-China, con crecimiento orgánico global del 3.9%.
La generación de efectivo fue sólida: el flujo de efectivo operativo acumulado del año fue de $613 millones (frente a $639 millones), mientras que la inversión de capital disminuyó, respaldando recompras de acciones por $100 millones y un dividendo de $0.85 pagado en el trimestre. El balance mostró activos totales de $8,463 millones y deuda neta de $1,772 millones; la palanca se mantuvo en 1.3x (no GAAP). La dirección reiteró las previsiones para el año completo de un margen operativo ajustado alrededor del 10–10,5%.
오토리브(Autoliv, ALV)는 2025년 3분기 강력한 실적을 발표했다, 순매출은 27억 6천만 달러로 5.9% 증가했고, 영업이익은 2.67억 달러로 영업이익률 9.9%를 기록했다. 희석된 주당순이익(EPS)은 2.28달러로 1.74달러에서 상승했으며, 이는 높은 판매량, 비용 절감, 공급업체 보상에 힘입은 것이다.
총이익률은 매출이 모든 제품에서 증가하며 19.3%로 개선되었고, 에어백, 스티어링 휠 및 기타 부문은 18.30억 달러, 안전벨드는 8.75억 달러에 도달했다. 지역별로는 북미, 유럽, 중국, 그리고 중국 제외 아시아에서 매출이 증가했고, 글로벌 유기적 성장률은 3.9%였다.
현금창출은 견조했다: 연초부터의 영업현금흐름은 6.13억 달러였고(전년 동기 6.39억 달러 대비), 자본지출은 감소했고, 주식자사주 매입에 1억 달러, 분기 중 배당금 0.85달러를 지급했다. 대차대조표상 총자산은 84.63억 달러, 순부채는 17.72억 달러; 레버리지는 1.3배로 비GAAP이다. 경영진은 연간 가이던스를 조정된 영업마진이 약 10–10.5%로 제시했다.
Autoliv (ALV) a présenté des résultats solides au T3 2025, avec un chiffre d’affaires net de 2 706 millions de dollars, et un résultat opérationnel de 267 millions de dollars, propulsant une marge opérationnelle de 9,9%. L’EPS dilué a augmenté à 2,28 dollars contre 1,74, aidé par des volumes plus élevés, des réductions de coûts et des compensations des fournisseurs.
La marge brute s’est améliorée à 19,3% alors que les ventes ont augmenté pour tous les produits: airbags, volants et autres ont atteint 1 830 millions de dollars, et les ceintures de sécurité 875 millions. Par région, les ventes ont augmenté dans les Amériques, en Europe, en Chine et en Asie hors Chine, avec une croissance organique mondiale de 3,9%.
La génération de cash-flow était solide: le flux de trésorerie opérationnel de l’année jusqu’à présent était de 613 millions de dollars (contre 639 millions), tandis que les investissements en capital ont diminué, soutenant des rachats d’actions de 100 millions et un dividende de 0,85 dollar versé au trimestre. Le bilan montrait des actifs totaux de 8 463 millions de dollars et une dette nette de 1 772 millions; l’endettement restait à 1,3x (non-GAAP). La direction a réitéré les prévisions pour l’année complète d’une marge opérationnelle ajustée d’environ 10–10,5%.
Autoliv (ALV) meldete starke Q3‑2025‑Ergebnisse, mit Nettoumsätzen von 2.706 Mio. USD (plus 5,9%) und operativem Gewinn von 267 Mio. USD, was eine operative Marge von 9,9% treibt. Der verwässerte Gewinn je Aktie stieg auf 2,28 USD von 1,74, unterstützt durch höhere Volumen, Kostenreduktionen und Lieferantenkompensation.
Die Bruttomarge verbesserte sich auf 19,3%, da die Verkäufe über alle Produkte hinweg zulegten: Airbags, Lenkräder und andere erzielten 1.830 Mio. USD, Gurte 875 Mio. USD. Regionell stieg der Umsatz in den Americas, Europa, China und Asia ex-China, mit globalem organischem Wachstum von 3,9%.
Die Cash-Generierung war solide: operativer Cashflow von Jahresbeginn 613 Mio. USD (gegenüber 639 Mio. USD), während CAPEX gesenkt wurde, was Aktienrückkäufe von 100 Mio. USD und eine Quartalsdividende von 0,85 USD unterstützte. Die Bilanz wies Gesamtkonten von 8.463 Mio. USD und Nettoverschuldung von 1.772 Mio. USD aus; Leverage blieb bei 1,3x (Non-GAAP). Das Management bestätigte die Guidance für das Gesamtjahr auf eine bereinigte operative Marge von ca. 10–10,5%.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15-(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
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Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date: As of October 13, 2025, there were
FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include those that address activities, events or developments that Autoliv, Inc. (“Autoliv,” the “Company” or “we”) or its management believes or anticipates may occur in the future. All forward-looking statements are based upon our current expectations, various assumptions and/or data available from third parties. Our expectations and assumptions are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements.
In some cases, you can identify these statements by forward-looking words such as “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “may,” “likely,” “might,” “would,” “should,” “could,” or the negative of these terms and other comparable terminology, although not all forward-looking statements contain such words.
Because these forward-looking statements involve risks and uncertainties, the outcome could differ materially from those set out in the forward-looking statements for a variety of reasons, including without limitation: general economic conditions, including inflation; changes in light vehicle production; fluctuation in vehicle production schedules for which the Company is a supplier; global supply chain disruptions, including port, transportation, and distribution delays or interruptions; supply chain disruptions, and component shortages specific to the automotive industry or the Company; geopolitical instability, including the ongoing war between Russia and Ukraine and the hostilities in the Middle East; changes in general industry and market conditions or regional growth or decline; changes in and the successful execution of our capacity alignment, restructuring, cost reduction, and efficiency initiatives and the market reaction thereto; loss of business from increased competition; higher raw material, fuel, and energy costs; changes in consumer and customer preferences for end products; customer losses; changes in regulatory conditions; customer bankruptcies, consolidations or restructuring or divestiture of customer brands; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; market acceptance of our new products; costs or difficulties related to the integration of any new or acquired businesses and technologies; continued uncertainty in pricing and other negotiations with customers; successful integration of acquisitions and operations of joint ventures; successful implementation of strategic partnerships and collaborations; our ability to be awarded new business; product liability, warranty and recall claims and investigations and other litigation, civil judgments or financial penalties and customer reactions thereto; higher expenses for our pension and other postretirement benefits, including higher funding needs for our pension plans; work stoppages or other labor issues; possible adverse results of pending or future litigation or infringement claims, and the availability of insurance with respect to such matters; our ability to protect our intellectual property rights; negative impacts of antitrust investigations or other governmental investigations and associated litigation relating to the conduct of our business; tax assessments by governmental authorities and changes in our effective tax rate; dependence on key personnel; legislative or regulatory changes impacting or limiting our business, including changes in trade policy and tariffs; our ability to meet our sustainability targets, goals and commitments; political conditions; dependence on and relationships with customers and suppliers; the conditions necessary to hit our financial targets; and other risks and uncertainties identified in Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q, Item 1A “Risk Factors” and Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 20, 2025.
For any forward-looking statements contained in this or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we assume no obligation to update publicly or revise any forward-looking statements in light of new information or future events, except as required by law.
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PART I - FINANCIAL INFORMATION |
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ITEM 1. FINANCIAL STATEMENTS |
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Consolidated Statements of Income (unaudited) |
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Consolidated Statements of Comprehensive Income (unaudited) |
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Condensed Consolidated Balance Sheets (unaudited) |
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Consolidated Statements of Cash Flows (unaudited) |
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Consolidated Statements of Total Equity (unaudited) |
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Notes to the Condensed Consolidated Financial Statements (unaudited) |
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Note 1. Basis of Presentation |
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Note 2. New Accounting Standards |
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Note 3. Fair Value Measurements |
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Note 4. Income Taxes |
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Note 5. Inventories |
14 |
|
|
Note 6. Restructuring |
14 |
|
|
Note 7. Product-Related Liabilities |
15 |
|
|
Note 8. Contingent Liabilities |
15 |
|
|
Note 9. Earnings Per Share |
18 |
|
|
Note 10. Revenue Disaggregation |
18 |
|
|
Note 11. Segment Information |
18 |
|
|
Note 12. Subsequent Events |
19 |
|
|
|
|
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
20 |
||
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
35 |
||
ITEM 4. CONTROLS AND PROCEDURES |
35 |
||
PART II - OTHER INFORMATION |
36 |
||
ITEM 1. LEGAL PROCEEDINGS |
36 |
||
ITEM 1A. RISK FACTORS |
36 |
||
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
37 |
||
ITEM 3. DEFAULTS UPON SENIOR SECURITIES |
37 |
||
ITEM 4. MINE SAFETY DISCLOSURES |
37 |
||
ITEM 5. OTHER INFORMATION |
37 |
||
ITEM 6. EXHIBITS |
38 |
||
SIGNATURE |
39 |
||
3
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in millions, except per share data)
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Cost of sales1) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative expenses |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Research, development and engineering expenses, net |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Other income (expense), net2) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from equity method investment |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Other non-operating items, net |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax expense |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Net income3) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: Net income attributable to non-controlling interest |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to controlling interest |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings per share – basic |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Net earnings per share – diluted |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average number of shares outstanding, net of |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average number of shares outstanding, |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash dividend per share – declared4) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Cash dividend per share – paid |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
1)
2)
3)
4)
See Notes to the Condensed Consolidated Financial Statements (unaudited).
4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(Dollars in millions)
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Net income |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Other comprehensive income (loss) before tax: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Change in cumulative translation adjustments1) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||
Net change in unrealized components of defined benefit plans |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Other comprehensive income (loss), before tax |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||
Tax effect allocated to other comprehensive income (loss) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
Other comprehensive income (loss), net of tax |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||
Comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: Comprehensive income (loss) attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Comprehensive income attributable to |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
1)
See Notes to the Condensed Consolidated Financial Statements (unaudited).
5
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in millions)
|
|
As of |
|
|||||
|
|
September 30, 2025 |
|
|
December 31, 2024 |
|
||
Assets |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
|
|
$ |
|
||
Receivables, net |
|
|
|
|
|
|
||
Inventories, net |
|
|
|
|
|
|
||
Prepaid expenses and accrued income |
|
|
|
|
|
|
||
Other current assets |
|
|
|
|
|
|
||
Total current assets |
|
|
|
|
|
|
||
Property, plant and equipment, net |
|
|
|
|
|
|
||
Operating lease right-of-use assets |
|
|
|
|
|
|
||
Goodwill and intangible assets, net |
|
|
|
|
|
|
||
Other non-current assets |
|
|
|
|
|
|
||
Total assets |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Liabilities and equity |
|
|
|
|
|
|
||
Short-term debt |
|
|
|
|
|
|
||
Accounts payable1) |
|
|
|
|
|
|
||
Accrued expenses |
|
|
|
|
|
|
||
Operating lease liabilities - current |
|
|
|
|
|
|
||
Other current liabilities |
|
|
|
|
|
|
||
Total current liabilities |
|
|
|
|
|
|
||
Long-term debt |
|
|
|
|
|
|
||
Pension liability |
|
|
|
|
|
|
||
Operating lease liabilities - non-current |
|
|
|
|
|
|
||
Other non-current liabilities |
|
|
|
|
|
|
||
Total non-current liabilities |
|
|
|
|
|
|
||
Common stock |
|
|
|
|
|
|
||
Additional paid-in capital |
|
|
|
|
|
|
||
Retained earnings |
|
|
|
|
|
|
||
Accumulated other comprehensive loss2) |
|
|
( |
) |
|
|
( |
) |
Treasury stock |
|
|
( |
) |
|
|
( |
) |
Total controlling interest's equity |
|
|
|
|
|
|
||
Non-controlling interest |
|
|
|
|
|
|
||
Total equity |
|
|
|
|
|
|
||
Total liabilities and equity |
|
$ |
|
|
$ |
|
||
1)
2)
See Notes to the Condensed Consolidated Financial Statements (unaudited).
6
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in millions)
|
|
Nine Months Ended September 30, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Operating activities |
|
|
|
|
|
|
||
Net income |
|
$ |
|
|
$ |
|
||
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
|
|
|
|
||
Deferred income taxes |
|
|
( |
) |
|
|
( |
) |
Undistributed earnings from equity method investments, net of dividends |
|
|
( |
) |
|
|
( |
) |
Gain on divestiture of property |
|
|
( |
) |
|
|
|
|
Other, net |
|
|
|
|
|
|
||
Net change in operating assets and liabilities: |
|
|
|
|
|
|
||
Receivables and other assets, gross |
|
|
( |
) |
|
|
|
|
Inventories, gross |
|
|
( |
) |
|
|
|
|
Accounts payable and accrued expenses |
|
|
|
|
|
( |
) |
|
Income taxes |
|
|
|
|
|
( |
) |
|
Net cash provided by operating activities |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Investing activities |
|
|
|
|
|
|
||
Expenditures for property, plant and equipment |
|
|
( |
) |
|
|
( |
) |
Proceeds from sale of property, plant and equipment |
|
|
|
|
|
|
||
Net cash used in investing activities |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
||
Financing activities |
|
|
|
|
|
|
||
Net increase (decrease) in short-term debt |
|
|
|
|
|
|
||
Proceeds from issuance of long-term debt |
|
|
|
|
|
|
||
Repayment of long-term debt |
|
|
( |
) |
|
|
( |
) |
Dividends paid |
|
|
( |
) |
|
|
( |
) |
Stock repurchased |
|
|
( |
) |
|
|
( |
) |
Common stock options exercised |
|
|
|
|
|
|
||
Dividends paid to non-controlling interest |
|
|
( |
) |
|
|
( |
) |
Net cash used in financing activities |
|
|
( |
) |
|
|
( |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
( |
) |
|
|
( |
) |
Decrease in cash and cash equivalents |
|
|
( |
) |
|
|
( |
) |
Cash and cash equivalents at beginning of period |
|
|
|
|
|
|
||
Cash and cash equivalents at end of period |
|
|
|
|
|
|
||
See Notes to Condensed Consolidated Financial Statements (unaudited).
7
CONSOLIDATED STATEMENTS OF TOTAL EQUITY (UNAUDITED) (Dollars in millions)
|
Common |
|
|
Additional |
|
|
Retained |
|
|
Accumulated |
|
|
Treasury |
|
|
Total |
|
|
Non- |
|
|
Total |
|
||||||||
Balances at December 31, 2024 |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Comprehensive Loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pension liability |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||||
Total Comprehensive Income |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|||||
Repurchased and retired shares |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Stock-based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared |
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||||
Other |
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||||
Balances at March 31, 2025 |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Comprehensive Loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pension liability |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total Comprehensive Loss |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|||||
Repurchased and retired shares |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Stock-based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared |
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||||
Other |
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balances at June 30, 2025 |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Comprehensive Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||||||
Pension liability |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total Comprehensive Income (loss) |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|||||
Repurchased and retired shares |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Stock-based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends paid to non-controlling |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
||||||
Cash dividends declared |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other |
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||||
Balances at September 30, 2025 |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
||||||
8
|
Common |
|
|
Additional |
|
|
Retained |
|
|
Accumulated |
|
|
Treasury |
|
|
Total |
|
|
Non- |
|
|
Total |
|
||||||||
Balances at December 31, 2023 |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Comprehensive Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
||||
Pension liability |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total Comprehensive Income |
|
— |
|
|
|
— |
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
||||
Repurchased and retired shares |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Stock-based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared |
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||||
Balances at March 31, 2024 |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Comprehensive Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
||||
Pension liability |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total Comprehensive Income |
|
— |
|
|
|
— |
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
||||
Repurchased and retired shares |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Stock-based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends paid to non-controlling interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
||||||
Cash dividends declared |
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||||
Balances at June 30, 2024 |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Comprehensive Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pension liability |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||||
Total Comprehensive Income |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|||||
Repurchased and retired shares |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Stock-based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends paid to non-controlling interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
||||||
Cash dividends declared |
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||||
Balances at September 30, 2024 |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
||||||
See Notes to the Condensed Consolidated Financial Statements (unaudited).
9
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(Unless otherwise noted, all amounts are presented in millions of dollars, except for per share amounts)
September 30, 2025
1. BASIS OF PRESENTATION
The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete consolidated financial statements. The unaudited condensed consolidated financial statements have been prepared on the same basis as the prior year audited consolidated financial statements and all adjustments considered necessary for a fair presentation have been included in the consolidated financial statements. All such adjustments are of a normal recurring nature. The results for the interim period are not necessarily indicative of the results to be expected for any future period or for the fiscal year ending December 31, 2025.
The Condensed Consolidated Balance Sheet as of December 31, 2024 has been derived from the audited consolidated financial statements at that date but does not include all the information and footnotes required by U.S. GAAP for complete consolidated financial statements.
The Company has
Certain amounts in the condensed consolidated financial statements and associated notes may not reconcile due to rounding. All percentages have been calculated using unrounded amounts. Certain amounts in prior periods have been reclassified to conform to current year presentation.
Statements in this report that are not of historical fact are forward-looking statements that involve risks and uncertainties that could affect the actual results of the Company. A description of the important factors that could cause Autoliv’s actual results to differ materially from the forward-looking statements contained in this report may be found in this report and Autoliv’s other reports filed with the Securities and Exchange Commission (the “SEC”). For further information, refer to the consolidated financial statements, footnotes and definitions thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 20, 2025.
10
2. NEW ACCOUNTING STANDARDS
Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”).
Adoption of new accounting standards
None.
Accounting standards issued but not yet adopted
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures, to enhance the transparency and decision usefulness of income tax disclosures as well as improve the effectiveness of income tax disclosures. The amendments in this update require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. The amendments in this update also require that all entities disclose on an annual basis certain detailed information about income taxes paid. The amendments in this update related to the rate reconciliation and income taxes paid disclosures improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. The amendments allow investors to better assess, in their capital allocation decisions, how an entity’s worldwide operations and related tax risks and tax planning and operational opportunities affect its income tax rate and prospects for future cash flows. The amendments in this update are effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendments in this update should be applied on a prospective basis. Retrospective application is permitted. The Company has concluded that ASU 2023-09 will significantly increase the income tax disclosures to its financial statements. The Company will adopt the amendments in this update prospectively upon the effective date.
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), Disaggregation of Income Statement Expenses, to improve financial reporting by requiring additional information about specific expense categories in the notes to the financial statements at interim and annual reporting periods. The amendments in ASU 2024-03 do not change or remove current expense disclosure requirements. The amendments require that at each interim and annual reporting period an entity should disclose the amounts of (a) purchase of inventory, (b) employee compensation, (c) depreciation and (d) intangible asset amortization included in each relevant expense caption. The amendments in ASU 2024-03 are effective for annual reporting periods beginning after December 1, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments in ASU 2024-03 should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of ASU 2024-03 or (2) retrospectively to any or all periods presented in the financial statements. The Company is currently assessing the impact that ASU 2024-03 will have on its financial statements and will adopt the amendments in this update prospectively upon the effective date.
In September 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40), Targeted improvements to the Accounting for Internal-Use Software, to modernize the accounting for software costs that are accounted for under Subtopic 350-40. ASU 2025-06 removes all references to prescriptive and sequential software development stages throughout Subtopic 350-40. Therefore, an entity is required to start capitalizing software costs when both of the following occur: 1) Management has authorized and committed to funding the software project and 2) It is probable that the project will be completed and the software will be used to perform the function intended. The amendments in ASU 2025-06 are effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The amendments in ASU 2025-06 permits entities to use either 1) a prospective transition approach, 2) a modified transition approach, or 3) a retrospective transition approach. The Company is currently assessing the impact that ASU 2025-06 will have on its financial statements and expects to adopt the amendments in this update using the prospective transition approach. The Company expects that its capitalization of internal-use software costs will not change significantly under the amendments in ASU 2025-06.
11
3. FAIR VALUE MEASUREMENTS
Assets and liabilities measured at fair value on a recurring basis
The carrying value of cash and cash equivalents, accounts receivable, accounts payable, short-term debt and other current financial assets and liabilities approximate their fair value because of the short-term maturity of these instruments.
The Company uses derivative financial instruments (“derivatives”) as part of its debt management to mitigate the market risk that occurs from its exposure to changes in interest rates and foreign exchange rates. The Company does not enter into derivatives for trading or other speculative purposes. The Company’s use of derivatives is in accordance with the strategies contained in the Company’s overall financial policy. All derivatives are recognized in the consolidated financial statements at fair value. For certain derivatives, hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although each hedge is entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest rates and foreign exchange rates.
The degree of judgment utilized in measuring the fair value of the instruments generally correlates to the level of pricing observability. Pricing observability is impacted by several factors, including the type of asset or liability, whether the asset or liability has an established market and the characteristics specific to the transaction. Instruments with readily active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of pricing observability and a lesser degree of judgment utilized in measuring fair value. Conversely, assets rarely traded or not quoted will generally have less, or no, pricing observability and a higher degree of judgment utilized in measuring fair value.
All the Company’s derivatives are classified as Level 2 financial instruments in the fair value hierarchy. Level 2 pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed.
The carrying value is the same as the fair value as these instruments are recognized in the consolidated financial statements at fair value. Although the Company is party to close-out netting agreements (“ISDA agreements”) with all of its derivative counterparties, the fair values in the tables below and in the Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 have been presented on a gross basis. According to the ISDA agreements, transaction amounts payable to a counterparty on the same date and in the same currency can be netted. The amounts subject to netting agreements that the Company chose not to offset are presented below.
Derivatives designated as hedging instruments
There were
Derivatives not designated as hedging instruments
Derivatives not designated as hedging instruments relate to economic hedges and are marked to market with all amounts recognized in the Consolidated Statements of Income. The derivatives
For the three months periods ended September 30, 2025 and 2024, the gains or losses recognized in other non-operating items, net were a loss of $
For the three months periods ended September 30, 2025 and 2024, the gains or losses recognized as interest expense were immaterial and a gain of $
12
The tables below present information about the Company’s derivative financial assets and liabilities measured at fair value on a recurring basis (dollars in millions).
|
|
As of |
|
|
||||||||||||||||||||||
|
|
September 30, 2025 |
|
|
|
December 31, 2024 |
|
|
||||||||||||||||||
|
|
|
|
|
Fair Value Measurements |
|
|
|
|
|
|
Fair Value Measurements |
|
|
||||||||||||
Description |
|
Nominal |
|
|
Derivative |
|
|
Derivative |
|
|
|
Nominal |
|
|
Derivative |
|
|
Derivative |
|
|
||||||
Derivatives not designated as hedging |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange swaps, less |
|
$ |
|
1) |
$ |
|
2) |
$ |
|
3) |
|
$ |
|
4) |
$ |
|
5) |
$ |
|
6) |
||||||
Total derivatives not designated |
|
$ |
|
|
$ |
|
|
$ |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
||||||
1)
2)
3)
4)
5)
6)
Fair Value of Debt
The fair value of long-term debt is determined either from quoted market prices as provided by participants in the secondary market or for long-term debt without quoted market prices, estimated using a discounted cash flow method based on the Company’s current borrowing rates for similar types of financing. The Company has determined that each of these fair value measurements of debt reside within Level 2 of the fair value hierarchy.
The fair value and carrying value of debt is summarized in the table below (dollars in millions).
|
|
As of |
|
|||||||||||||
|
|
September 30, 2025 |
|
|
December 31, 2024 |
|
||||||||||
|
|
Carrying |
|
|
Fair |
|
|
Carrying |
|
|
Fair |
|
||||
Long-term debt |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Bonds |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Loans |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total long-term debt |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Short-term debt |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Short-term portion of long-term debt |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Overdrafts and other short-term debt |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total short-term debt |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
1)
Assets and liabilities measured at fair value on a non-recurring basis
In addition to assets and liabilities that are measured at fair value on a recurring basis, the Company also has assets and liabilities in its balance sheet that are measured at fair value on a nonrecurring basis, including certain long-lived assets, including equity method investments, goodwill and other intangible assets, typically as it relates to impairment.
The Company has determined that the fair value measurements included in each of these assets and liabilities rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets and settlements of liabilities, as observable inputs are not available. The Company has determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy. To determine the fair value of long-lived assets, the Company utilizes the projected cash flows expected to be generated by the long-lived assets, then discounts the future cash flows over the expected life of the long-lived assets.
For the nine months period ended September 30, 2025, the Company did
13
4. INCOME TAXES
The effective tax rate for the three months period ended September 30, 2025 was
The effective tax rate for the nine months period ended September 30, 2025 was
The Company files income tax returns in the U.S. federal jurisdiction, various U.S. states, and non-U.S. jurisdictions. At any given time, the Company is undergoing tax audits in several tax jurisdictions covering multiple years. The Company is no longer subject to income tax examination by the U.S. federal income tax authorities for years prior to 2021. With few exceptions, the Company is no longer subject to income tax examination by U.S. state or local tax authorities or by non-U.S. tax authorities for years before 2012.
As of September 30, 2025, the Company is not aware of any proposed income tax adjustments resulting from tax examinations that would have a material impact on the Company’s condensed consolidated financial statements. The conclusion of such audits could result in additional increases or decreases to unrecognized tax benefits in some future period or periods.
During the nine months period ended September 30, 2025, the Company recorded a net increase of $
Of the total unrecognized tax benefits of $
5. INVENTORIES
Inventories are stated at the lower of cost (“FIFO”) and net realizable value. The components of inventories were as follows (dollars in millions):
|
|
As of |
|
|||||
|
|
September 30, 2025 |
|
|
December 31, 2024 |
|
||
Raw materials |
|
$ |
|
|
$ |
|
||
Work in progress |
|
|
|
|
|
|
||
Finished products |
|
|
|
|
|
|
||
Inventories |
|
|
|
|
|
|
||
Inventory valuation reserve |
|
|
( |
) |
|
|
( |
) |
Total inventories, net of reserve |
|
$ |
|
|
$ |
|
||
6. RESTRUCTURING
As of September 30, 2025, the majority of the restructuring reserve balance of $
14
The table below summarizes the change in the balance sheet position of the employee-related restructuring reserves (dollars in millions). The restructuring reserve balances are included within Accrued expenses in the Condensed Consolidated Balance Sheets. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Income. Restructuring costs other than employee related costs are immaterial for all periods presented.
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Reserve at beginning of the period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Provision - charge |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Provision - reversal |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Cash payments |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Translation difference |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|||
Reserve at end of the period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
7. PRODUCT-RELATED LIABILITIES
The Company is exposed to product liability and warranty claims in the event that the Company’s products fail to perform as represented and such failure results, or is alleged to result, in bodily injury, and/or property damage or other loss. The Company has reserves for product risks. Such reserves are related to product performance issues, including recalls, product liability, and warranty issues. For further explanation, see Note 8. Contingent Liabilities below.
For the three months period ended September 30, 2025, new provisions related to recall and warranty related issues and cash payments mainly related to warranty related issues. For the three months period ended September 30, 2024, cash payments mainly related to warranty and recall related issues. For the nine months period ended September 30, 2025, new provisions mainly related to warranty and recall related issues and cash payments mainly related to warranty related issues. For the nine months period ended September 30, 2024, provision reversals and cash payments primarily related to recall related issues.
As of September 30, 2025, the reserve for product related liabilities mainly consisted of recall related issues.
The table below summarizes the change in the balance sheet position of the product-related liabilities (dollars in millions). The reserve for product-related liabilities is included in accrued expenses and other non-current liabilities on the Condensed Consolidated Balance Sheets. The Company’s product-related liabilities as of September 30, 2025 are partly covered by insurance. Insurance receivables are included within other current assets and other non-current assets on the Condensed Consolidated Balance Sheets. As of September 30, 2025, the Company had total insurance receivables of $
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Reserve at beginning of the period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Net change in reserve |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||
Cash payments |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Translation difference |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|||
Reserve at end of the period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
8. CONTINGENT LIABILITIES
Legal Proceedings
Various claims, lawsuits, and proceedings are pending or threatened against the Company and/or its subsidiaries, covering a range of matters that arise in the ordinary course of its business activities with respect to commercial, product liability, and other matters. Litigation is subject to many uncertainties, and the outcome of any litigation cannot be assured. After discussions with counsel, and with the exception of potential future losses resulting from the antitrust proceedings described below, it is the opinion of management that the various legal proceedings and investigations to which the Company currently is a party will not have a material adverse impact on the consolidated financial position of Autoliv, but the Company cannot provide assurance that Autoliv will not experience material litigation, product liability, or other losses in the future.
ANTITRUST MATTERS
Authorities in several jurisdictions have conducted broad, and in some cases, long-running investigations of suspected anti-competitive behavior among parts suppliers in the global automotive vehicle industry. These investigations included, but are not limited to, the products that the Company sells. In addition to concluded matters, authorities of other countries, with significant light vehicle manufacturing or sales may initiate similar investigations. As a result of the outcome of the European Commission investigation of anti-competitive behavior among suppliers of occupant safety systems that the Company resolved in 2019 (the "EC investigation"), the Company is currently subject to a subsequent civil dispute with a non-governmental third party stemming from the same facts and circumstances underlying the EC investigation.
15
The Company is involved in civil litigation in Germany with respect to alleged anti-competitive behavior that occurred over a decade ago. On October 31, 2024, BMW filed a complaint against the Company in Germany claiming damages of €
This dispute could result in significant expenses as well as an unfavorable outcome that could have a material adverse impact on our customer relationships, business prospects, reputation, operating results, cash flows or financial condition, and our insurance would likely not mitigate such impact. The Company cannot predict the duration, scope, or ultimate outcome of any such disputes.
PRODUCT WARRANTY, RECALLS AND INTELLECTUAL PROPERTY
Autoliv is exposed to various claims for damages and compensation if its products fail to perform as expected. Such claims can be made, and result in costs and other losses to the Company, even where the product is eventually found to have functioned properly. Where a product (actually or allegedly) fails to perform as expected or is defective, the Company may face warranty and recall claims. Where such (actual or alleged) failure or defect results, or is alleged to result, in bodily injury and/or property damage, the Company may also face product liability and other claims. There can be no assurance that the Company will not experience material warranty, recall or product (or other) liability claims or losses in the future, or that the Company will not incur significant costs to defend against such claims. The Company may be required to participate in a recall involving its products. Each vehicle manufacturer has its own practices regarding product recalls and other product liability actions relating to its suppliers. As suppliers become more integrally involved in the vehicle design process and assume more of the vehicle assembly functions, vehicle manufacturers are increasingly looking to their suppliers for contribution when faced with recalls and product liability claims. Government safety regulators may also play a role in warranty and recall practices. Recall decisions regarding the Company’s products may require a significant amount of judgment by us, our customers and safety regulators and are influenced by a variety of factors. Once a recall has been made, the cost of a recall is also subject to a significant amount of judgment and discussions between the Company and its customers. A warranty, recall or product-liability claim brought against the Company in excess of its insurance may have a material adverse effect on the Company’s business. Vehicle manufacturers are also increasingly requiring their outside suppliers to guarantee or warrant their products and bear the costs of repair and replacement of such products under new vehicle warranties. A vehicle manufacturer may attempt to hold the Company responsible for some, or all, of the repair or replacement costs of products when the product supplied did not perform as represented by us or expected by the customer in either a warranty or a recall situation. Accordingly, the future costs of warranty or recall claims by the customers may be material. However, the Company believes its established reserves are adequate.
In addition, as vehicle manufacturers increasingly use global platforms and procedures, quality performance evaluations are also conducted on a global basis. Any one or more quality, warranty or other recall issue(s) (including those affecting few units and/or having a small financial impact) may cause a vehicle manufacturer to implement measures such as a temporary or prolonged suspension of new orders, which may have a material impact on the Company’s results of operations.
The Company maintains a program of insurance, which may include commercial insurance, self-insurance, or a combination of both approaches, for potential recall and product liability claims in amounts and on terms that it believes are reasonable and prudent based on our prior claims experience. The Company’s insurance policies generally include coverage of the costs of a recall, although costs related to replacement parts are generally not covered. In addition, a number of the agreements entered into by the Company, including the agreements related to the spin-off of Veoneer, require Autoliv to indemnify the other parties for certain claims. Autoliv cannot assure that the level of coverage will be sufficient to cover every possible claim that can arise in our businesses or with respect to other obligations, now or in the future, or that such coverage always will be available should we, now or in the future, wish to extend, increase or otherwise adjust our insurance.
As noted in Note 7 above, as of September 30, 2025, the Company has accrued $
Product Liability:
Autoliv and some of its subsidiaries have been named as one of several defendants in a consolidated class action lawsuit in a multi-district litigation (In Re: ARC Airbag Inflators Products Liability Litigation MDL, No. 3051) in the Northern District of Georgia. The plaintiffs in the multi-district litigation (the "ARC Inflator Class Action") brought claims for fraud, breach of warranty, and violations of consumer protection and trade practices stemming from ARC inflators included in airbag modules that Autoliv or its subsidiaries allegedly supplied after Autoliv acquired certain Delphi assets (the “Delphi Acquisition”) in December 2009. The Company denies these allegations. Autoliv is not aware of any performance issues regarding ARC inflators included with its airbags at the directions of its customers that it shipped following the Delphi Acquisition. The proceedings remain
16
ongoing. The Company has determined pursuant to ASC 450 that a loss is reasonably possible with respect to the ARC Inflator Class Action. However, the Company continues to evaluate this matter, no accrual has been made, and no estimated range of potential loss can be determined at this time. The Company cannot predict the ultimate outcome of the ARC Inflator Class Action.
On September 5, 2023, the National Highway Traffic Safety Administration (“NHTSA”) issued an initial decision to recall approximately
Specific Recalls:
In the second quarter of 2025, Stellantis initiated a recall of approximately
In the fourth quarter of 2020, the Company was made aware of a potential recall by American Honda Motor Co. and the recall of approximately
Volvo Car USA, LLC (together with its affiliates, “Volvo”) recalled approximately
Intellectual Property:
In its products, the Company utilizes technologies which may be subject to intellectual property rights of third parties. While the Company does seek to procure the necessary rights to utilize intellectual property rights associated with its products, it may fail to do so. Where the Company so fails, the Company may be exposed to material claims from the owners of such rights. Where the Company has sold products which infringe upon such rights, its customers may be entitled to be indemnified by the Company for the claims they suffer as a result thereof. Such claims could be material.
The table in Note 7 above summarizes the change in the balance sheet position of the product-related liabilities.
17
9. EARNINGS PER SHARE
The computation of basic and diluted earnings per share is set forth in the table below. Anti-dilutive shares outstanding were immaterial for all periods presented below.
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
(In millions, except per share amounts) |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to controlling interest |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic: Weighted average common stock |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Add: Weighted average stock options/share awards |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted weighted average common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings per share - basic |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings per share - diluted |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
10. REVENUE DISAGGREGATION
The Company’s disaggregated revenue for the periods presented are as follows (dollars in millions).
Net Sales by Products |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Airbags, Steering Wheels and Other1) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Seatbelt Products and Other1) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net Sales by Region |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Americas |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Europe |
|
|
|
|
|
|
|
|
|
|
|
|
||||
China |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Asia excl. China |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
1)
11. Segment Information
The Company has a single operating and reportable segment which includes Autoliv’s airbag and steering wheels, and seatbelt products and components. The determination of a single operating segment is consistent with the consolidated financial information regularly provided to the Company’s chief operating decision maker (“CODM”). The basis of segmentation and the basis of measurement of segment profit or loss is consistent with our 2024 annual report on the consolidated financial statements.
The significant expenses that are regularly provided to the CODM are disclosed in the Consolidated Statements of Net Income as a part of the consolidated net income and are as follows.
Significant segment expenses / income (Dollars in millions) |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Total direct costs |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Total production overhead costs |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Cost of sales |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research, development and engineering expenses (gross) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Reimbursements from customer funded engineering projects |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research, development and engineering expenses, net |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
18
The Company's other significant segment items that are regularly provided to the CODM include selling, general and administrative expenses, and other income (expense), which are disclosed as separate line items in the Consolidated Statements of Income. Other expenses consist of Income from equity method investments, Interest income, Interest expense, Other non-operating items, net, and Income taxes, which are disclosed as separate line items in the Consolidated Statements of Income.
The segment assets are equal to the assets presented in the Consolidated Balance Sheets. Expenditures for long-lived segment assets are equal to the line items Expenditures for property, plant and equipment in the Consolidated Statements of Cash Flow.
Segment assets and expenditures for long-lived assets (Dollars in millions) |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Expenditures for long-lived assets |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||
12. SUBSEQUENT EVENTS
19
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction with our Condensed Consolidated Financial Statements and accompanying Notes thereto included elsewhere herein and with our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the United States Securities and Exchange Commission (the “SEC”) on February 20, 2025. Unless otherwise noted, all dollar amounts are in millions.
Autoliv, Inc. (“Autoliv” or the “Company”) is a Delaware corporation with its principal executive offices in Stockholm, Sweden. The Company functions as a holding corporation and owns two principal operating subsidiaries, Autoliv AB and Autoliv ASP, Inc.
Through its operating subsidiaries, Autoliv is a supplier of automotive safety systems with a broad range of product offerings, including modules and components for passenger and driver airbags, side airbags, curtain airbags, seatbelts, steering wheels, and pedestrian protection systems.
Autoliv’s filings with the SEC, including this Quarterly Report on Form 10-Q, annual reports on Form 10-K, current reports on Form 8-K, proxy statements, and all of our other reports and statements, and amendments thereto, are available free of charge on our corporate website at www.autoliv.com as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC (generally the same day as the filing).
The primary exchange market for Autoliv’s securities is the New York Stock Exchange ("NYSE") where Autoliv’s common stock trades under the symbol “ALV”. Autoliv’s Swedish Depositary Receipts ("SDRs") are traded on Nasdaq Stockholm’s list for large market cap companies under the symbol “ALIV SDB”. Options in SDRs trade on Nasdaq Stockholm under the name “Autoliv SDB”. Options in Autoliv shares are traded on Nasdaq OMX PHLX and on NYSE Amex Options under the symbol “ALV”.
Autoliv’s fiscal year ends on December 31.
Non-U.S. GAAP financial measures
Some of the following discussions refer to non-U.S. GAAP financial measures: see reconciliations for “Organic sales,” “Free operating cash flow,” “Cash conversion,” “Net debt,” “Leverage ratio,” “Adjusted net income,” “Adjusted operating income,” “Adjusted operating margin,” “Adjusted earnings per share, diluted,” “Adjusted return on capital employed,” and “Adjusted return on total equity” provided below. Management believes that these non-U.S. GAAP financial measures provide supplemental information to investors regarding the performance of the Company’s business and assist investors in analyzing trends in the Company's business. Additional descriptions regarding management’s use of these financial measures are included below. Investors should consider these non-U.S. GAAP financial measures in addition to, rather than as substitutes for, financial reporting measures prepared in accordance with U.S. GAAP. These historical non-U.S. GAAP financial measures have been identified as applicable in each section of this report with a tabular presentation reconciling them to the most directly comparable U.S. GAAP financial measures. It should be noted that these measures, as defined, may not be comparable to similarly titled measures used by other companies.
20
EXECUTIVE OVERVIEW
We are pleased to, once again, report a record breaking quarter. This quarter is the best third quarter so far, for sales, operating income and EPS. The performance was driven by better than expected sales, especially in Americas and Europe, and successful actions to reduce costs and achieve tariff compensation. We are pleased that we had a solid outperformance with the domestic Chinese OEMs. The ramp-up of certain models started slower than expected, but improved gradually during the quarter. We expect increased outperformance in China in the fourth quarter. Driven by increased penetration of automotive safety, our high growth in India continued, accounting for around one third of our global organic growth in the third quarter.
We invest for continued success in China. We started building a second R&D Center in China to support our growing business with Chinese OEMs both in China and globally. In addition, in October we signed a strategic agreement with CATARC, the leading research institution setting standards in China’s automotive sector, to jointly advance automotive safety standards and innovation. Furthermore, we recently announced our plans to form a joint venture with HSAE, a leading Chinese automotive electronics developer, to develop and manufacture advanced safety electronics to increase vertical integration of our product portfolio.
We recovered around 75% of tariff costs in the third quarter, and expect to recover most of what remains in the fourth quarter. We continue to closely monitor the situation, and remain adaptive and agile.
Our focus on operational efficiency, commercial excellence and our cost reduction programs continue to yield results. In the quarter, sales grew organically by 4% (Non-U.S. GAAP measure, see reconciliation table below), gross profit by 14%, operating income by 18% and EPS by 31%. Supported by strong balance sheet control, operating cash flow increased by 46%, and with a lower capex, net, free cash flow (Non-U.S. GAAP measure, see reconciliation table below) improved substantially. As a result, we kept our leverage ratio (Non-U.S. GAAP measure, see reconciliation table below) at 1.3x, despite increasing the dividend by 21% and repurchasing shares for $100 million in the quarter.
We remain confident in achieving our full year guidance of an adjusted operating margin (Non-U.S. GAAP measure) of around 10-10.5%, currently expecting to come in at the midpoint of the range.
Financial highlights in the three months period ended September 30, 2025
Change figures below compare to the same period of the previous year, except when stated otherwise.
$2,706 million net sales
5.9% net sales increase
3.9% organic sales growth (Non-U.S. GAAP measure, see reconciliation table below)
9.9% operating margin
10.0% adjusted operating margin (Non-U.S. GAAP measure, see reconciliation table below)
$2.28 diluted EPS, 31% increase
$2.32 adjusted diluted EPS (Non-U.S. GAAP measure, see reconciliation table below), 26% increase
Key business developments in the three months period ended September 30, 2025
Change figures below compare to the same period of the previous year, except when stated otherwise.
21
Business and market condition update
Supply Chain
In the third quarter of 2025, global LVP increased by 4.6% year-over-year (according to S&P Global Oct 2025). Call-off volatility improved slightly compared to a year earlier, although it remains higher than pre-pandemic levels. Low customer demand visibility and changes to customer call-offs with short notice, although they improved, continued to have some negative impact on our production efficiency and profitability. We expect call-off volatility for the full year 2025 on average to be slightly lower than it was in 2024 but still remain higher than pre-pandemic levels. However, the continued uncertainty regarding future changes in tariffs and trade restrictions may lead to a more negative call-off volatility environment.
Inflation
In the third quarter, cost pressure from labor and other items impacted our profitability negatively, although to a lesser degree than in the third quarter of 2024. Most of the inflationary cost pressure was offset by price increases and other customer compensations in the quarter. Raw material price changes did not have a meaningful impact on our profitability during the quarter. The continued uncertainty regarding the effects of tariffs and trade restrictions may lead to a more adverse inflation environment. We continue to execute on productivity and cost reduction initiatives to offset these cost pressures.
Geopolitical risks and tariffs
The effects from the new tariffs imposed in the first nine months of the year did not have a material impact on our profitability in the third quarter, as we achieved customer compensations for most tariff costs. It is our ambition and expectation that we will continue to pass on tariff costs to our customers, although there is significant uncertainty. We recovered around 75% of the tariffs in the third quarter, and we expect to recover most of what remains later in the year. The impact of the tariffs not yet recovered on our operating income was around $5 million negative in the quarter. Including the dilutive effect of tariffs recovered, operating margin was negatively impacted by around 20bps. For the full year 2025, we expect the tariff dilution on our operating margin to be around 20 bps. Geopolitical uncertainties will continue to create a challenging operating environment. Any new, increased or changed tariffs or other related trade restrictions imposed during the remainder of 2025 may impact our operations and contribute to the uncertainty of industry expectations. We continue to closely monitor the tariff policy environment and are prepared to remain agile in responding to any such developments.
22
RESULTS OF OPERATIONS
Overview
The following table shows some of the key ratios management uses internally to analyze the Company's current and future financial performance and core operations as well as to identify trends in the Company’s financial conditions and results of operations. The Company has provided this information to investors to assist in meaningful comparisons of past and present operating results and to assist in highlighting the results of ongoing core operations. These ratios are more fully explained below and should be read in conjunction with the consolidated financial statements in the Company's Annual Report on Form 10-K and the unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q.
The Company's management uses the Return on capital employed (ROCE) and Return on total equity (ROE) measures for purposes of comparing its financial performance with the financial performance of other companies in the industry and providing useful information regarding the factors and trends affecting the Company’s business. As used by the Company, ROCE is annualized operating income and income from equity method investments relative to average capital employed. The Company believes ROCE is a useful indicator of long-term performance both absolute and relative to the Company's peers as it allows for a comparison of the profitability of the Company’s capital employed in its business relative to that of its peers.
ROE is the ratio of annualized income (loss) relative to average total equity for the periods presented. The Company’s management believes that ROE is a useful indicator of how well management creates value for its shareholders through its operating activities and its capital management.
KEY RATIOS
(Dollars in millions, except per share data)
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
or As of September 30, |
|
|
or As of September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Receivables outstanding relative to sales, %1) |
|
|
21.8 |
% |
|
|
21.5 |
% |
|
- |
|
|
- |
|
||
Inventory outstanding relative to sales, %2) |
|
|
9.6 |
% |
|
|
9.8 |
% |
|
- |
|
|
- |
|
||
Payables outstanding relative to sales, %3) |
|
|
17.5 |
% |
|
|
18.4 |
% |
|
- |
|
|
- |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross margin, %4) |
|
|
19.3 |
% |
|
|
18.0 |
% |
|
|
18.8 |
% |
|
|
17.7 |
% |
Operating margin, %5) |
|
|
9.9 |
% |
|
|
8.9 |
% |
|
|
9.6 |
% |
|
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capital employed6) |
|
|
4,331 |
|
|
|
4,085 |
|
|
- |
|
|
- |
|
||
Net debt7) |
|
|
1,772 |
|
|
|
1,787 |
|
|
- |
|
|
- |
|
||
Return on total equity, %8) |
|
|
27.9 |
% |
|
|
24.1 |
% |
|
|
28.1 |
% |
|
|
22.4 |
% |
Return on capital employed, %9) |
|
|
25.1 |
% |
|
|
22.9 |
% |
|
|
24.9 |
% |
|
|
21.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Headcount at period-end10) |
|
|
65,200 |
|
|
|
67,200 |
|
|
- |
|
|
- |
|
||
1) Outstanding receivables relative to annualized quarterly sales.
2) Outstanding inventory relative to annualized quarterly sales.
3) Outstanding payables relative to annualized quarterly sales.
4) Gross profit relative to sales.
5) Operating income relative to sales.
6) Total equity and net debt.
7) Net debt adjusted for pension liabilities in relation to EBITDA. See tabular presentation reconciling this non-U.S. GAAP measure to U.S. GAAP below.
8) Net income relative to average total equity.
9) Operating income and income from equity method investments, relative to average capital employed.
10) Employees plus temporary, hourly personnel.
23
three months period ended September 30, 2025 COMPARED WITH three months period ended September 30, 2024
Consolidated Sales Development
(dollars in millions)
|
|
Three Months Ended September 30, |
|
|
|
|
|
Components of change in net sales |
|
|||||||||||
|
|
2025 |
|
|
2024 |
|
|
Reported |
|
|
Currency |
|
|
Organic 3) |
|
|||||
Airbags, Steering Wheels and Other2) |
|
$ |
1,830 |
|
|
$ |
1,736 |
|
|
|
5.4 |
% |
|
|
1.8 |
% |
|
|
3.6 |
% |
Seatbelt products and Other2) |
|
|
875 |
|
|
|
819 |
|
|
|
6.9 |
% |
|
|
2.4 |
% |
|
|
4.5 |
% |
Total |
|
$ |
2,706 |
|
|
$ |
2,555 |
|
|
|
5.9 |
% |
|
|
2.0 |
% |
|
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Americas |
|
$ |
897 |
|
|
$ |
851 |
|
|
|
5.3 |
% |
|
|
0.6 |
% |
|
|
4.7 |
% |
Europe |
|
|
745 |
|
|
|
700 |
|
|
|
6.4 |
% |
|
|
6.3 |
% |
|
|
0.1 |
% |
China |
|
|
526 |
|
|
|
495 |
|
|
|
6.3 |
% |
|
|
0.1 |
% |
|
|
6.2 |
% |
Asia excl. China |
|
|
538 |
|
|
|
508 |
|
|
|
5.8 |
% |
|
|
0.3 |
% |
|
|
5.5 |
% |
Total |
|
$ |
2,706 |
|
|
$ |
2,555 |
|
|
|
5.9 |
% |
|
|
2.0 |
% |
|
|
3.9 |
% |
1) Effects from currency translations.
2) Including Corporate sales.
3) Non-U.S. GAAP measure.
Sales by product - Airbags, Steering Wheels and Other
Sales for Airbags, Steering Wheels and Other grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 3.6% in the quarter. The largest contributors to the increase was inflatable curtains, side airbags, driver airbags and center airbags, followed by smaller increases for passenger airbags and knee airbags. This was partly offset by a decline for steering wheels.
Sales by product - Seatbelts and Other
Sales for Seatbelt Products and Other grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 4.5% in the quarter. Sales increased organically in all regions, led by strong growth in Europe and Americas followed by China and Asia excluding China.
Sales by region
Our global organic sales (Non-U.S. GAAP measure, see reconciliation table above) increased by 3.9% compared to the global LVP increase of 4.6% (according to S&P Global, October 2025). The relative performance was positively impacted by product launches and tariff compensations. This was more than offset by negative effects from the regional and model LVP mix development, which we estimate contributed to about 1pp underperformance. This was particularly accentuated in China. Our organic sales growth (Non-U.S. GAAP measure, see reconciliation table above) underperformed LVP growth by 3.5pp in China and by 1.2pp in Europe, while we outperformed by 4.2pp in Asia, excl. China and by 0.5pp in Americas.
LVP growth in China was driven by domestic OEMs with typically lower safety content. LVP for global OEMs was unchanged while it increased by 15% for domestic OEMs. Autoliv's sales growth with domestic OEMs grew by 23% while our sales with global OEMs decreased by 5%. Our sales performance relative to LVP in China in the quarter is a significant improvement over recent quarters.
We expect that our strong order intake with domestic OEMs and a record high number of new launches will further improve our relative sales performance in China in the fourth quarter of 2025.
Third quarter of 2025 organic growth1)
|
|
Americas |
|
Europe |
|
China |
|
Asia excl. China |
|
Global |
Autoliv |
|
4.7 % |
|
0.1% |
|
6.2% |
|
5.5% |
|
3.9 % |
Main growth drivers |
|
Stellantis, Toyota, Ford |
|
VW, Stellantis, BMW |
|
Chery, Great Wall, GM |
|
Suzuki, Hyundai, Toyota |
|
Stellantis, Suzuki, Toyota |
Main decline drivers |
|
GM, VW, Mazda |
|
JLR, Hyundai, EV OEM |
|
EV OEM, Mercedes, |
|
Mitsubishi, Nissan, Honda |
|
Mercedes, EV OEM, GM |
1) Non-U.S. GAAP measure.
Light Vehicle Production Development
Change third quarter of 2025 versus third quarter of 2024
|
|
Americas |
|
Europe |
|
China |
|
Asia excl. China |
|
Global |
LVP1) |
|
4.2 % |
|
1.3 % |
|
9.7 % |
|
1.3 % |
|
4.6 % |
24
1) Source: S&P Global, October 2025.
Earnings
|
|
Three Months Ended September 30, |
|
|
|
|
||||||
(Dollars in millions, except per share data) |
|
2025 |
|
|
2024 |
|
|
Change |
|
|||
Net Sales |
|
$ |
2,706 |
|
|
$ |
2,555 |
|
|
|
5.9 |
% |
Gross profit |
|
|
522 |
|
|
|
459 |
|
|
|
13.7 |
% |
% of sales |
|
|
19.3 |
% |
|
|
18.0 |
% |
|
|
1.3 |
pp |
S, G&A |
|
|
(137 |
) |
|
|
(129 |
) |
|
|
6.2 |
% |
% of sales |
|
|
(5.1 |
)% |
|
|
(5.0 |
)% |
|
|
(0.0 |
)pp |
R, D&E, net |
|
|
(117 |
) |
|
|
(96 |
) |
|
|
23 |
% |
% of sales |
|
|
(4.3 |
)% |
|
|
(3.7 |
)% |
|
|
(0.6 |
)pp |
Other income (expense), net |
|
|
(1 |
) |
|
|
(9 |
) |
|
|
(91 |
)% |
Operating income |
|
|
267 |
|
|
|
226 |
|
|
|
18.1 |
% |
% of sales |
|
|
9.9 |
% |
|
|
8.9 |
% |
|
|
1.0 |
pp |
Adjusted operating income1) |
|
|
271 |
|
|
|
237 |
|
|
|
14.2 |
% |
% of sales |
|
|
10.0 |
% |
|
|
9.3 |
% |
|
|
0.7 |
pp |
Financial and non-operating items, net |
|
|
(27 |
) |
|
|
(29 |
) |
|
|
(7.5 |
)% |
Income before taxes |
|
|
240 |
|
|
|
197 |
|
|
|
21.9 |
% |
Income taxes |
|
|
(65 |
) |
|
|
(58 |
) |
|
|
11 |
% |
Tax rate |
|
|
26.9 |
% |
|
|
29.6 |
% |
|
|
(2.6 |
)pp |
Net income |
|
|
175 |
|
|
|
139 |
|
|
|
26.4 |
% |
Earnings per share, diluted2) |
|
|
2.28 |
|
|
|
1.74 |
|
|
|
31 |
% |
Adjusted earnings per share, diluted1,2) |
|
|
2.32 |
|
|
|
1.84 |
|
|
|
26 |
% |
1) Non-U.S. GAAP measure, excluding effects from capacity alignments and antitrust related matters.
2) Net of treasury shares.
Third quarter of 2025 financial development
Gross profit increased by $63 million, and gross margin increased by 1.3pp compared to the prior year. The drivers behind the gross profit improvement were mainly positive effects from higher sales and improved operational efficiency with lower costs for labor and waste and scrap. The gross profit improvement was also due to a third quarter of 2024 $14 million cost related to a supplier settlement and a third quarter of 2025 $15 million (unrelated) supplier compensation (of which around $13 million impacted gross profit) as well as lower material costs. This was partly offset by negative effects from recalls and warranty, depreciation and un-recovered tariff costs.
S,G&A costs increased by $8 million compared to the prior year, mainly due to higher costs for personnel. S,G&A costs in relation to sales increased from 5.0% to 5.1%.
R,D&E, net costs increased by $22 million compared to the prior year, mainly due to lower engineering income. R,D&E, net, in relation to sales increased from 3.7% to 4.3%.
Other income (expense), net was negative $1 million, compared to negative $9 million in the same period last year. The difference compared to last year is almost entirely due to lower restructuring costs.
Operating income increased by $41 million compared to the prior year, due to the higher gross profit and improvement in Other income (expense), net, partly offset by the higher costs for R,D&E, net, and S,G&A, as outlined above.
Adjusted operating income (Non-U.S. GAAP measure, see reconciliation table below) increased by $34 million compared to the prior year, due to the higher gross profit, partly offset by the higher costs for R,D&E, net, and S,G&A, as outlined above.
Financial and non-operating items, net was negative $27 million compared to negative $29 million a year earlier. The improvement comes from $2 million in lower interest expense.
Income before taxes increased by $43 million compared to the prior year, mainly due to the higher operating income.
Tax rate decreased to 26.9% compared to 29.6% the prior year. Discrete tax items, net, had a favorable impact of 1.3pp in the third quarter of 2025, while discrete tax items, net had a favorable impact of 1.2pp in the corresponding quarter last year.
Earnings per share, diluted increased by $0.54 compared to the prior year. The main drivers were $0.36 from higher operating income, $0.09 from taxes, $0.08 from lower number of outstanding shares, diluted, and $0.02 from financial items.
25
nine months period ended September 30, 2025 compared with nine months period ended September 30, 2024
Consolidated Sales Development
(dollars in millions)
|
|
Nine Months Ended September 30, |
|
|
|
|
|
Components of change in net sales |
|
|||||||||||
|
|
2025 |
|
|
2024 |
|
|
Reported |
|
|
Currency |
|
|
Organic 3) |
|
|||||
Airbags, Steering Wheels and Other2) |
|
$ |
5,395 |
|
|
$ |
5,264 |
|
|
|
2.5 |
% |
|
|
(0.3 |
)% |
|
|
2.8 |
% |
Seatbelt products and Other2) |
|
|
2,603 |
|
|
|
2,511 |
|
|
|
3.7 |
% |
|
|
(0.2 |
)% |
|
|
3.9 |
% |
Total |
|
$ |
7,998 |
|
|
$ |
7,774 |
|
|
|
2.9 |
% |
|
|
(0.3 |
)% |
|
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Nine Months Ended September 30, |
|
|
|
|
|
Components of change in net sales |
|
|||||||||||
|
|
2025 |
|
|
2024 |
|
|
Reported |
|
|
Currency |
|
|
Organic 3) |
|
|||||
Americas |
|
$ |
2,639 |
|
|
$ |
2,637 |
|
|
|
0.1 |
% |
|
|
(3.3 |
)% |
|
|
3.4 |
% |
Europe |
|
|
2,337 |
|
|
|
2,231 |
|
|
|
4.7 |
% |
|
|
2.9 |
% |
|
|
1.8 |
% |
China |
|
|
1,450 |
|
|
|
1,423 |
|
|
|
1.9 |
% |
|
|
(0.3 |
)% |
|
|
2.2 |
% |
Asia excl. China |
|
|
1,572 |
|
|
|
1,483 |
|
|
|
6.0 |
% |
|
|
0.3 |
% |
|
|
5.7 |
% |
Total |
|
$ |
7,998 |
|
|
$ |
7,774 |
|
|
|
2.9 |
% |
|
|
(0.3 |
)% |
|
|
3.1 |
% |
1) Effects from currency translations.
2) Including Corporate sales.
3) Non-U.S. GAAP measure.
Sales by product - Airbags, Steering Wheels and Other
Sales for Airbags, Steering Wheels and Other grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 2.8% in the period. The largest contributor to the increase was inflatable curtains and side airbags, followed by center airbags, steering wheels and driver airbags. This was partly offset by declines for knee airbags while sales of passenger airbags were close to unchanged.
Sales by product - Seatbelts and Other
Sales for Seatbelt Products and Other grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 3.9% in the period. Sales growth was mainly driven by Americas and Asia excluding China followed by Europe and China.
Sales by region
Our global organic sales (Non-U.S. GAAP measure, see reconciliation table above) increased by 3.1% compared to the global LVP increase of 3.9% (according to S&P Global, October 2025). The relative performance was positively impacted by product launches and tariff compensations. This was more than offset by negative effects from the regional and model LVP mix development, which we estimate contributed to about 3pp underperformance. This was particularly accentuated in China. Our organic sales growth (Non-U.S. GAAP measure, see reconciliation table above) outperformed LVP growth by 3.5pp in Americas, by 3.4pp in Europe and by 3.0pp in Asia excluding China, while we underperformed by 9.3pp in China.
LVP growth in China in the first nine months was driven by domestic OEMs with typically lower safety content. LVP for global OEMs declined by 2.3% while it increased by 20% for domestic OEMs. Autoliv's sales to domestic OEMs increased by 16% in the first nine months of 2025, while it decreased by 5.7% to global OEMs in China. We expect that our strong order intake with domestic OEMs and a record number of new launches will improve Autoliv's sales performance in China in the fourth quarter of 2025.
First nine months 2025 organic growth1)
|
|
Americas |
|
Europe |
|
China |
|
Asia excl. China |
|
Global |
Autoliv |
|
3.4 % |
|
1.8% |
|
2.2 % |
|
5.7% |
|
3.1% |
Main growth drivers |
|
Toyota, Stellantis, Honda |
|
VW, Stellantis, BMW |
|
Chery, Great Wall, GM |
|
Suzuki, Toyota, Subaru |
|
Toyota, Stellantis, Suzuki |
Main decline drivers |
|
EV OEM, Hyundai, GM |
|
EV OEM, Hyundai, JLR |
|
EV OEM, Mercedes, Lixiang |
|
Mitsubishi, Honda, GM |
|
EV OEM, Mercedes, Hyundai |
26
1) Non-U.S. GAAP measure.
Light Vehicle Production Development
Change first nine months of 2025 versus first nine months of 2024
|
|
Americas |
|
Europe |
|
China |
|
Asia excl. China |
|
Global |
LVP1) |
|
(0.1)% |
|
(1.6)% |
|
11.5 % |
|
2.7 % |
|
3.9 % |
1) Source: S&P Global, October 2025.
Earnings
|
Nine Months Ended September 30, |
|
|
|
|
||||||
(Dollars in millions, except per share data) |
2025 |
|
|
2024 |
|
|
Change |
|
|||
Net Sales |
$ |
7,998 |
|
|
$ |
7,774 |
|
|
|
2.9 |
% |
Gross profit |
|
1,502 |
|
|
|
1,377 |
|
|
|
9.1 |
% |
% of sales |
|
18.8 |
% |
|
|
17.7 |
% |
|
|
1.1 |
pp |
S, G&A |
|
(427 |
) |
|
|
(399 |
) |
|
|
7.0 |
% |
% of sales |
|
(5.3 |
)% |
|
|
(5.1 |
)% |
|
|
(0.2 |
)pp |
R, D&E, net |
|
(319 |
) |
|
|
(325 |
) |
|
|
(1.6 |
)% |
% of sales |
|
(4.0 |
)% |
|
|
(4.2 |
)% |
|
|
0.2 |
pp |
Other income (expense), net |
|
13 |
|
|
|
(27 |
) |
|
|
(148 |
)% |
Operating income |
|
769 |
|
|
|
626 |
|
|
|
23 |
% |
% of sales |
|
9.6 |
% |
|
|
8.1 |
% |
|
|
1.6 |
pp |
Adjusted operating income1) |
|
777 |
|
|
|
657 |
|
|
|
18 |
% |
% of sales |
|
9.7 |
% |
|
|
8.5 |
% |
|
|
1.3 |
pp |
Financial and non-operating items, net |
|
(76 |
) |
|
|
(73 |
) |
|
|
4 |
% |
Income before taxes |
|
693 |
|
|
|
554 |
|
|
|
25 |
% |
Income taxes |
|
(183 |
) |
|
|
(149 |
) |
|
|
23 |
% |
Tax rate |
|
26.4 |
% |
|
|
27.0 |
% |
|
|
(0.6 |
)pp |
Net income |
|
510 |
|
|
|
404 |
|
|
|
26 |
% |
Earnings per share, diluted2) |
|
6.59 |
|
|
|
4.98 |
|
|
|
32 |
% |
Adjusted earnings per share, diluted1,2) |
|
6.67 |
|
|
|
5.30 |
|
|
|
26 |
% |
1) Non-U.S. GAAP measure, excluding effects from capacity alignments and antitrust related matters.
2) Net of treasury shares.
First nine months 2025 financial development
Gross profit increased by $125 million, and gross margin increased by 1.1pp compared to the prior year. The drivers behind the gross profit improvement were mainly improved operational efficiency with lower costs for labor, logistics, premium freight and waste and scrap. We also had positive effects from the organic sales growth and lower material costs partly offset by negative effects from recall and warranty costs and un-recovered tariffs.
S,G&A costs increased by $28 million compared to the prior year, mainly due to increased personnel costs and credit loss reserves following generally higher default risk rate for the automotive industry. This was partly offset by lower costs for professional services. S,G&A costs in relation to sales increased from 5.1% to 5.3%.
R,D&E, net costs decreased by $5 million compared to the prior year, mainly due to $7 million from positive foreign currency translation effects and $6 million from lower professional service costs partly offset by $8 million in lower engineering income. R,D&E, net, in relation to sales decreased from 4.2% to 4.0%.
Other income (expense), net was positive $13 million, compared to negative $27 million in the same period last year. The improvement compared to last year is due to lower restructuring costs and the recycled accumulated currency translation differences related to the divestment of our idled operations in Russia in Q1 2025.
Operating income increased by $143 million compared to the prior year, due to the higher gross profit, lower costs for R,D&E, net, and the improvement in Other income (expense), partly offset by higher costs for S,G&A, as outlined above.
Adjusted operating income (Non-U.S. GAAP measure, see reconciliation table below) increased by $120 million compared to the prior year, due to the higher gross profit, lower costs for R,D&E, net, and the improvement in Other income (expense), partly offset by higher costs for S,G&A, as outlined above.
Financial and non-operating items, net, was negative $76 million compared to negative $73 million a year earlier. The increase was mainly due to lower interest income and higher non-operating items partly offset by lower interest expense.
Income before taxes increased by $140 million compared to the prior year, mainly due to the higher operating income.
27
Tax rate was 26.4% compared to 27.0% in the prior year. Discrete tax items, net, had a favorable impact of 1.8pp in the first nine months of 2025 compared to 2.8pp favorable impact in the same period last year.
Earnings per share, diluted increased by $1.61 compared to the prior year. The main drivers were $1.28 from higher operating income and $0.29 from lower number of outstanding shares, diluted, and $0.06 from taxes partly offset by $0.02 from financial items.
LIQUIDITY AND CAPITAL RESOURCES
The Company does not have any off-balance sheet arrangements that have, or are reasonably likely to have, a material current or future effect on its financial position, results of operations or cash flows. The Company’s future contractual obligations have not changed materially from the amounts reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 20, 2025.
Third quarter of 2025 development
Changes in operating working capital impacted operating cash flow by $53 million negative compared to an impact of $68 million negative in the prior year. The working capital increase in the quarter of $53 million was mainly a result of $78 million in negative effects from higher inventories impacted by higher sales and $9 million from income taxes, partly offset by $26 million from accounts payables and accrued expenses, and $8 million from receivables.
Operating cash flow increased by $81 million to $258 million compared to the prior year, mainly because of higher net income, more positive non-cash items and less unfavorable effects from changes in operating working capital, as outlined above.
Capital expenditure, net decreased by $40 million compared to the prior year. The level of capital expenditure, net, in relation to sales declined to 3.9% versus 5.7% a year earlier. The lower level of capital expenditure, net is mainly related to the lower activity level of footprint optimization in Europe and Americas and less capacity expansion, especially in Asia.
Free operating cash flow (Non-U.S. GAAP measure, see reconciliation table below) was positive $153 million compared to positive $32 million in the prior year. The increase was due to the higher operating cash flow and lower capital expenditure, net, as outlined above.
Cash conversion (Non-U.S. GAAP measure, see reconciliation table below) defined as free operating cash flow (Non-U.S. GAAP measure, see reconciliation table below) in relation to net income, was 87% in the quarter compared to 23% a year earlier. The increase occurred because free operating cash flow increased more than net income.
Net debt (Non-U.S. GAAP measure, see reconciliation table below) was $1,772 million as of September 30, 2025, which was $15 million lower than a year earlier, mainly due to that in the last twelve months, free operating cash flow was higher than dividends paid and share repurchases.
Total equity as of September 30, 2025, increased by $261 million compared to September 30, 2024. This was mainly due to net income of $754 million and $33 million in positive currency translation effects, partly offset by $306 million in share repurchases, including taxes and $228 million in dividend payments.
Leverage ratio: On September 30, 2025, the Company had a leverage ratio (Non-U.S. GAAP measure, see reconciliation table below) of 1.3x compared to 1.4x on September 30, 2024, as the 12 months trailing adjusted EBITDA (Non-U.S. GAAP measure, see reconciliation table below) increased by $148 million while net debt (Non-U.S. GAAP measure, see reconciliation table below) per the policy increased by $5 million.
First nine months of 2025 development
Operating cash flow decreased by $27 million to $613 million compared to the prior year, mainly because the increase in operating working capital was larger than the increase in net income.
Capital expenditure, net decreased by $118 million compared to the prior year. The level of capital expenditure, net, in relation to sales declined to 3.9% versus 5.5% a year earlier. The lower level of capital expenditure, net is mainly related to the lower activity level of footprint optimization in Europe and Americas and less capacity expansion, especially in Asia.
Free operating cash flow (Non-U.S. GAAP measure, see reconciliation table below) was positive $300 million compared to positive $208 million in the prior year. The increase was due to the lower capital expenditure, net, partly offset by the lower operating cash flow, as outlined above.
Cash conversion (Non-U.S. GAAP measure, see reconciliation table below) defined as free operating cash flow (Non-U.S. GAAP measure, see reconciliation table below) in relation to net income, was 59% for the period, compared to 52% in the prior year. The increase occurred because free operating cash flow growth was higher than net income growth.
28
COMMITMENTS
The Company has entered into a 5-year Enterprise Subscription Agreement (EAS). The subscription fees for the software licenses will be paid annually in advance. The future payments (undiscounted) relating to this software subscription agreement are in total approximately $50 million to be paid over the following years: Less than 1 year: $12 million; 1-3 years: $25 million; 3-5 years: $13 million.
NON-U.S. GAAP MEASURES
The Company believes that comparability between periods is improved through the exclusion of certain items. To assist investors in understanding the operating performance of Autoliv's business, it is useful to consider certain U.S. GAAP measures exclusive of these items.
The following tables reconciles Income before income taxes, Net income attributable to controlling interest, Capital employed, which are inputs utilized to calculate Return On Capital Employed (“ROCE”), adjusted ROCE and Return On Total Equity (“ROE”). The Company believes this presentation may be useful to investors and industry analysts who utilize these adjusted non-U.S. GAAP measures in their ROCE and ROE calculations to exclude certain items for comparison purposes across periods. Autoliv’s management uses the ROCE, adjusted ROCE and ROE measures for purposes of comparing its financial performance with the financial performance of other companies in the industry and providing useful information regarding the factors and trends affecting the Company’s business.
As used by the Company, ROCE is annualized operating income and income from equity method investments, relative to average capital employed. Adjusted ROCE is annualized operating income and income from equity method investments, relative to average capital employed as adjusted to exclude certain non-recurring items. See definitions of "annualized operating income" and "average capital employed" in footnote to the tables below. The Company believes ROCE and adjusted ROCE are useful indicators of long-term performance both absolute and relative to the Company's peers as it allows for a comparison of the profitability of the Company’s capital employed in its business relative to that of its peers.
ROE is the ratio of annualized income (loss) relative to average total equity for the periods presented. See definitions of "annualized income" "and "average total equity" in footnote to the tables below. The Company’s management believes that ROE is a useful indicator of how well management creates value for its shareholders through its operating activities and its capital management.
Accordingly, the tables below reconcile from U.S. GAAP to the equivalent non-U.S. GAAP measure.
Reconciliation of GAAP measure "Operating income" to Non-GAAP measure "Adjusted Operating income"
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||
(Dollars in millions) |
2025 |
|
2024 |
|
|
2025 |
|
2024 |
|
||||
Operating income (GAAP) |
$ |
267 |
|
$ |
226 |
|
|
$ |
769 |
|
$ |
626 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
||||
Less: Capacity alignments |
|
2 |
|
|
9 |
|
|
|
6 |
|
|
25 |
|
Less: Antitrust related items |
|
2 |
|
|
2 |
|
|
|
3 |
|
|
6 |
|
Total non-GAAP adjustments to operating income |
|
4 |
|
|
11 |
|
|
|
8 |
|
|
31 |
|
Adjusted Operating income (Non-GAAP) |
$ |
271 |
|
$ |
237 |
|
|
$ |
777 |
|
$ |
657 |
|
Reconciliation of GAAP measure "Operating margin" to Non-GAAP measure "Adjusted Operating margin"
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||
|
2025 |
|
2024 |
|
|
2025 |
|
2024 |
|
||||
Operating margin (GAAP) |
|
9.9 |
% |
|
8.9 |
% |
|
|
9.6 |
% |
|
8.1 |
% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
||||
Less: Capacity alignments |
|
0.1 |
% |
|
0.4 |
% |
|
|
0.1 |
% |
|
0.3 |
% |
Less: Antitrust related items |
|
0.1 |
% |
|
0.1 |
% |
|
|
0.0 |
% |
|
0.1 |
% |
Total non-GAAP adjustments to operating margin |
|
0.1 |
% |
|
0.4 |
% |
|
|
0.1 |
% |
|
0.4 |
% |
Adjusted Operating margin (Non-GAAP) |
|
10.0 |
% |
|
9.3 |
% |
|
|
9.7 |
% |
|
8.5 |
% |
29
Reconciliation of GAAP measure "Income before income taxes" to Non-GAAP measure "Adjusted Income before income taxes"
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||
(Dollars in millions) |
2025 |
|
2024 |
|
|
2025 |
|
2024 |
|
||||
Income before income taxes (GAAP) |
$ |
240 |
|
$ |
197 |
|
|
$ |
693 |
|
$ |
554 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
||||
Less: Capacity alignments |
|
2 |
|
|
9 |
|
|
|
6 |
|
|
25 |
|
Less: Antitrust related items |
|
2 |
|
|
2 |
|
|
|
3 |
|
|
6 |
|
Total non-GAAP adjustments to Income before income taxes |
|
4 |
|
|
11 |
|
|
|
8 |
|
|
31 |
|
Adjusted Income before income taxes (Non-GAAP) |
$ |
244 |
|
$ |
208 |
|
|
$ |
702 |
|
$ |
585 |
|
Reconciliation of GAAP measure "Net income" to Non-GAAP measure "Adjusted Net income"
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||
(Dollars in millions) |
2025 |
|
2024 |
|
|
2025 |
|
2024 |
|
||||
Net income (GAAP) |
$ |
175 |
|
$ |
139 |
|
|
$ |
510 |
|
$ |
404 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
||||
Less: Capacity alignments |
|
2 |
|
|
9 |
|
|
|
6 |
|
|
25 |
|
Less: Antitrust related items |
|
2 |
|
|
2 |
|
|
|
3 |
|
|
6 |
|
Less: Tax on non-GAAP adjustments |
|
(1 |
) |
|
(3 |
) |
|
|
(2 |
) |
|
(5 |
) |
Total non-GAAP adjustments to Net income |
|
3 |
|
|
8 |
|
|
|
7 |
|
|
26 |
|
Adjusted Net income (Non-GAAP) |
$ |
178 |
|
$ |
147 |
|
|
$ |
517 |
|
$ |
430 |
|
Reconciliation of GAAP measure "Net income attributable to controlling interest" to Non-GAAP measure "Adjusted Net income attributable to controlling interest"
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||
(Dollars in millions) |
2025 |
|
2024 |
|
|
2025 |
|
2024 |
|
||||
Net income attributable to controlling interest (GAAP) |
$ |
175 |
|
$ |
138 |
|
|
$ |
509 |
|
$ |
403 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
||||
Less: Capacity alignments |
|
2 |
|
|
9 |
|
|
|
6 |
|
|
25 |
|
Less: Antitrust related items |
|
2 |
|
|
2 |
|
|
|
3 |
|
|
6 |
|
Less: Tax on non-GAAP adjustments |
|
(1 |
) |
|
(3 |
) |
|
|
(2 |
) |
|
(5 |
) |
Total non-GAAP adjustments to Net income attributable to controlling interest |
|
3 |
|
|
8 |
|
|
|
7 |
|
|
26 |
|
Adjusted Net income attributable to controlling interest (Non-GAAP) |
$ |
178 |
|
$ |
146 |
|
|
$ |
516 |
|
$ |
429 |
|
Reconciliation of GAAP measure "Earnings per share - diluted" to Non-GAAP measure "Adjusted Earnings per share - diluted"
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||
(Per share data) |
2025 |
|
2024 |
|
|
2025 |
|
2024 |
|
||||
Earnings per share - diluted (GAAP) |
$ |
2.28 |
|
$ |
1.74 |
|
|
$ |
6.59 |
|
$ |
4.98 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
||||
Less: Capacity alignments |
|
0.03 |
|
|
0.12 |
|
|
|
0.07 |
|
|
0.31 |
|
Less: Antitrust related items |
|
0.02 |
|
|
0.02 |
|
|
|
0.04 |
|
|
0.07 |
|
Less: Tax on non-GAAP adjustments |
|
(0.01 |
) |
|
(0.04 |
) |
|
|
(0.02 |
) |
|
(0.06 |
) |
Total non-GAAP adjustments to Earnings per share - diluted |
|
0.04 |
|
|
0.10 |
|
|
|
0.09 |
|
|
0.32 |
|
Adjusted Earnings per share - diluted (Non-GAAP) |
$ |
2.32 |
|
$ |
1.84 |
|
|
$ |
6.67 |
|
$ |
5.30 |
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average number of shares outstanding - diluted |
|
76.7 |
|
|
79.3 |
|
|
|
77.3 |
|
|
80.9 |
|
30
Reconciliation of GAAP measure "Return on Capital Employed" to Non-GAAP measure "Adjusted Return on Capital Employed"
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||
|
2025 |
|
2024 |
|
|
2025 |
|
2024 |
|
||||
Return on capital employed1) (GAAP) |
|
25.1 |
% |
|
22.9 |
% |
|
|
24.9 |
% |
|
21.2 |
% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
||||
Less: Capacity alignments |
|
0.2 |
% |
|
0.8 |
% |
|
|
0.2 |
% |
|
0.8 |
% |
Less: Antitrust related items |
|
0.1 |
% |
|
0.2 |
% |
|
|
0.1 |
% |
|
0.2 |
% |
Total non-GAAP adjustments to Return on capital employed1) |
|
0.3 |
% |
|
1.0 |
% |
|
|
0.3 |
% |
|
1.0 |
% |
Adjusted Return on capital employed1) (Non-GAAP) |
|
25.5 |
% |
|
23.9 |
% |
|
|
25.2 |
% |
|
22.1 |
% |
|
|
|
|
|
|
|
|
|
|
||||
Annualized adjustment2) on Return on capital employed1) |
$ |
15 |
|
$ |
44 |
|
|
|
11 |
|
|
42 |
|
1) Annualized operating income and income from equity method investments, relative to average capital employed. The average capital employed amount is calculated as an average of the opening balance amount and the closing balance amounts for each quarter included in the period. |
|
||||||||||||
2) The quarterly annualized adjustment to the operating income and income from equity method investments amount is calculated as the quarterly amount multiplied by four. The year-to-date annualized adjustment to the operating income and income from equity method investments amount is calculated as the year-to-date amount divided by the quarterly period number (two, three or four) multiplied by four. |
|
||||||||||||
Reconciliation of GAAP measure "Return on Total Equity" to Non-GAAP measure "Adjusted Return on Total Equity"
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||
|
2025 |
|
2024 |
|
|
2025 |
|
2024 |
|
||||
Return on total equity1) (GAAP) |
|
27.9 |
% |
|
24.1 |
% |
|
|
28.1 |
% |
|
22.4 |
% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
||||
Less: Capacity alignments |
|
0.3 |
% |
|
1.4 |
% |
|
|
0.3 |
% |
|
1.3 |
% |
Less: Antitrust related items |
|
0.2 |
% |
|
0.3 |
% |
|
|
0.1 |
% |
|
0.3 |
% |
Less: Tax on non-GAAP adjustments |
|
(0.1 |
)% |
|
(0.5 |
)% |
|
|
(0.1 |
)% |
|
(0.3 |
)% |
Total non-GAAP adjustments to Return on total equity1) |
|
0.4 |
% |
|
1.2 |
% |
|
|
0.3 |
% |
|
1.3 |
% |
Adjusted Return on total equity1) (Non-GAAP) |
|
28.3 |
% |
|
25.3 |
% |
|
|
28.4 |
% |
|
23.7 |
% |
|
|
|
|
|
|
|
|
|
|
||||
Annualized adjustment2) on Return on total equity1) |
$ |
12 |
|
$ |
32 |
|
|
|
9 |
|
|
35 |
|
1) Annualized net income relative to average total equity. The average total equity amount is calculated as an average of the opening balance amount and the closing balance amounts for each quarter included in the period. |
|
||||||||||||
2) The quarterly annualized adjustment to net income amount is calculated as the quarterly amount multiplied by four. The year-to-date annualized adjustment to the net income amount is calculated as the year-to-date amount divided by the quarterly period number (two, three or four) multiplied by four. |
|
||||||||||||
Autoliv from time to time enters into “debt-related derivatives” (DRDs) as a part of its debt management and as part of efficiently managing the Company’s overall cost of funds. Creditors and credit rating agencies use net debt adjusted for DRDs in their analyses of the Company’s debt, therefore we provide this non-U.S. GAAP measure. DRDs are fair value adjustments to the carrying value of the underlying debt. Also included in the DRDs is the unamortized fair value adjustment related to a discontinued fair value hedge that will be amortized over the remaining life of the debt. By adjusting for DRDs, the total financial liability of net debt is disclosed without grossing debt up with currency or interest fair values.
Reconciliation of U.S. GAAP financial measure to “Net debt”
(Dollars in millions)
|
|
September 30, 2025 |
|
|
June 30, 2025 |
|
|
September 30, 2024 |
|
|||
Short-term debt |
|
$ |
654 |
|
|
$ |
679 |
|
|
$ |
624 |
|
Long-term debt |
|
|
1,374 |
|
|
|
1,372 |
|
|
|
1,586 |
|
Total debt |
|
|
2,027 |
|
|
|
2,051 |
|
|
|
2,210 |
|
Cash and cash equivalents |
|
|
(225 |
) |
|
|
(237 |
) |
|
|
(415 |
) |
Debt issuance cost/Debt-related derivatives, net |
|
|
(30 |
) |
|
|
(62 |
) |
|
|
(9 |
) |
Net debt |
|
$ |
1,772 |
|
|
$ |
1,752 |
|
|
$ |
1,787 |
|
31
The non-U.S. GAAP measure “Net debt” is also used in the non-U.S. GAAP measure “Leverage ratio”. Management uses the non-U.S. GAAP measure “Leverage Ratio” to analyze the amount of debt the Company can incur under its debt policy. Management believes that this policy also provides guidance to credit and equity investors regarding the extent to which the Company would be prepared to leverage its operations. The Company's long-term target for the leverage ratio (sum of net debt plus pension liabilities divided by EBITDA) is 1.0x with the aim to operate within the range of 0.5x to 1.5x. For details and calculation of leverage ratio, refer to the table below.
Calculation of “Leverage ratio”
(Dollars in millions)
(Dollars in millions) |
|
September 30, 2025 |
|
|
June 30, 2025 |
|
|
September 30, 2024 |
|
|||
Net debt1) |
|
$ |
1,772 |
|
|
$ |
1,752 |
|
|
$ |
1,787 |
|
Pension liabilities |
|
|
167 |
|
|
|
167 |
|
|
|
147 |
|
Net debt per the Policy |
|
|
1,939 |
|
|
|
1,919 |
|
|
|
1,934 |
|
|
|
|
|
|
|
|
|
|
|
|||
Net income2) |
|
|
754 |
|
|
|
717 |
|
|
|
632 |
|
Income taxes 2) |
|
|
261 |
|
|
|
255 |
|
|
|
141 |
|
Interest expense, net2,3) |
|
|
94 |
|
|
|
96 |
|
|
|
93 |
|
Other non-operating items, net2) |
|
|
20 |
|
|
|
19 |
|
|
|
4 |
|
Income from equity method investments2) |
|
|
(6 |
) |
|
|
(6 |
) |
|
|
(6 |
) |
Depreciation and amortization of intangibles2) |
|
|
397 |
|
|
|
390 |
|
|
|
385 |
|
Capacity alignments2) |
|
|
(1 |
) |
|
|
6 |
|
|
|
121 |
|
Antitrust related items2) |
|
|
5 |
|
|
|
6 |
|
|
|
7 |
|
Other items2) |
|
|
— |
|
|
|
— |
|
|
|
0 |
|
EBITDA per the Policy (Adjusted EBITDA) |
|
$ |
1,524 |
|
|
$ |
1,483 |
|
|
$ |
1,376 |
|
Leverage ratio |
|
|
1.3 |
|
|
|
1.3 |
|
|
|
1.4 |
|
1) Net debt (non-U.S. GAAP measure) is short- and long-term debt and debt-related derivatives, less cash and cash equivalents.
2) Latest 12-months.
3) Interest expense, net including cost for extinguishment of debt, if any, less interest income.
Management uses the non-U.S. GAAP measure “free operating cash flow” to analyze the amount of cash flow being generated by the Company’s operations after capital expenditure, net. This measure indicates the Company’s cash flow generation level that enables strategic value creation options such as dividends or acquisitions. For details on the calculation of free operating cash flow, see the table below. Management uses the non-U.S. GAAP measure “cash conversion” to analyze the proportion of net income that is converted into free operating cash flow. The measure is a tool to evaluate how efficiently the Company utilizes its resources. For details on cash conversion, see the table below.
Reconciliation of GAAP measure "Operating cash flow" to "Free operating cash flow" and "Cash conversion"
(Dollars in millions)
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Net income |
|
$ |
175 |
|
|
$ |
139 |
|
|
$ |
510 |
|
|
$ |
404 |
|
Changes in operating working capital |
|
|
(53 |
) |
|
|
(68 |
) |
|
|
(217 |
) |
|
|
(54 |
) |
Depreciation and amortization |
|
|
103 |
|
|
|
97 |
|
|
|
299 |
|
|
|
289 |
|
Gain on divestiture of property |
|
|
0 |
|
|
|
— |
|
|
|
(6 |
) |
|
|
— |
|
Other, net |
|
|
32 |
|
|
|
10 |
|
|
|
26 |
|
|
|
1 |
|
Operating cash flow |
|
|
258 |
|
|
|
177 |
|
|
|
613 |
|
|
|
639 |
|
Expenditures for property, plant and equipment |
|
|
(106 |
) |
|
|
(146 |
) |
|
|
(323 |
) |
|
|
(440 |
) |
Proceeds from sale of property, plant and equipment |
|
|
1 |
|
|
|
1 |
|
|
|
10 |
|
|
|
9 |
|
Capital expenditure, net1) |
|
|
(106 |
) |
|
|
(145 |
) |
|
|
(313 |
) |
|
|
(431 |
) |
Free operating cash flow2) |
|
$ |
153 |
|
|
$ |
32 |
|
|
$ |
300 |
|
|
$ |
208 |
|
Cash conversion3) |
|
|
87 |
% |
|
|
23 |
% |
|
|
59 |
% |
|
|
52 |
% |
1) Defined as Expenditures for property, plant and equipment less Proceeds from sale of property, plant and equipment. |
|
|||||||||||||||
2) Operating cash flow less Capital expenditures, net. |
|
|||||||||||||||
3) Free operating cash flow relative to Net income. |
|
|||||||||||||||
32
Headcount
|
|
September 30, 2025 |
|
|
June 30, 2025 |
|
|
September 30, 2024 |
|
|||
Total headcount |
|
|
65,200 |
|
|
|
65,100 |
|
|
|
67,200 |
|
Whereof: |
|
|
|
|
|
|
|
|
|
|||
Direct personnel in manufacturing |
|
|
47,900 |
|
|
|
48,000 |
|
|
|
49,800 |
|
Indirect personnel |
|
|
17,300 |
|
|
|
17,100 |
|
|
|
17,400 |
|
Temporary personnel |
|
|
9 |
% |
|
|
9 |
% |
|
|
9 |
% |
As of September 30, 2025, total headcount Full Time Equivalent (FTE) decreased by around 2,000, or 3.0%, compared to a year earlier, despite that organic sales (Non-U.S. GAAP measure, see reconciliation table above) increased by 3.9% and that we in-sourced about 250 FTEs (mainly indirects). The indirect workforce decreased by around 100, or 0.5%, mainly reflecting our structural reduction initiatives, partly offset by the above mentioned in-sourcing. The direct workforce decreased by approximately 1,900, or 3.8%. The decrease was supported by an improvement in customer call-off accuracy which enabled us to accelerate operating efficiency improvements.
Compared to June 30, 2025, total headcount (FTE) increased by around 100, or 0.2%. Indirect headcount increased by around 200 (due to the in-sourced personnel mentioned previously), while direct headcount decreased by approximately 100.
Full year 2025 guidance
In addition to the assumptions and our business and market update noted below, our full year 2025 guidance is based on our customer call-offs, as well as the achievement of our targeted cost compensation adjustments with our customers, including for the new tariffs, no further material changes to tariffs or trade restrictions, as compared to what is in effect as of October 15, 2025, as well as no significant changes in the macro-economic environment, changes to customer call-off volatility or significant supply chain disruptions.
Full year 2025 Guidance |
|
Organic sales growth |
Around 3% |
Adjusted operating margin 1) |
Around 10-10.5% |
Operating cash flow 2) |
Around $1.2 billion |
Capital expenditures, net % of sales |
Around 4.5% |
1) Excluding effects from capacity alignments, antitrust related matters and other discrete items. |
|
2) Excluding unusual items. |
|
|
|
Full year 2025 Assumptions |
|
LVP growth |
Around 1.5% |
Foreign currency impact on net sales |
Around 1% |
Tax rate3) |
Around 28% |
3) Excluding unusual tax items. |
|
This report includes content supplied by S&P Global; Copyright © Light Vehicle Production Forecast, January, March, July and October 2025. All rights reserved.
The forward-looking non-U.S. GAAP financial measures above are provided on a non-U.S. GAAP basis. The Company has not provided a U.S. GAAP reconciliation of these measures because items that impact these measures, such as costs and gains related to capacity alignments and antitrust matters, cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts and the Company is unable to determine the probable significance of the unavailable information.
33
Other recent events
Key launches in the three months period ended September 30, 2025
Other Items
34
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
As of September 30, 2025, there have been no material changes to the information related to quantitative and qualitative disclosures about market risk that were provided in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 20, 2025.
ITEM 4. CONTROLS AND PROCEDURES
An evaluation has been carried out, under the supervision and with the participation of the Company's management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of the end of the period covered by this report. Based on such evaluation, the Company's Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company's disclosure controls and procedures are effective.
There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
35
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
In the ordinary course of our business, we are subject to legal proceedings brought by or against us and our subsidiaries.
See Part I, Item 1, "Financial Statements, Note 8 Contingent Liabilities" of this Quarterly Report on Form 10-Q for a summary of certain ongoing legal proceedings. Such information is incorporated into this Part II, Item 1—"Legal Proceedings" by reference.
ITEM 1A. RISK FACTORS
Except for below, as of September 30, 2025, there have been no material changes to the risk factors that were previously disclosed in Item 1A in the Company’s Form 10-K for the year ended December 31, 2024 filed with the SEC on February 20, 2025.
RISKS RELATED TO INTERNATIONAL OPERATIONS
Our business is exposed to risks inherent in international operations
We currently conduct operations in various countries and jurisdictions, including locating certain of our manufacturing and distribution facilities internationally, which subjects us to the legal, political, regulatory and social requirements and economic conditions in these jurisdictions. Some of these countries are considered growth markets and emerging markets. International sales and operations, especially in growth markets, subject us to certain risks inherent in doing business abroad, including: exposure to local economic conditions; unexpected changes in laws, regulations, trade, or monetary or fiscal policy, including interest rates, foreign currency exchange rates, and changes in inflation rates; foreign tax consequences; inability to collect, or delays in collecting, value-added taxes and/or other receivables associated with remittances and other payments by subsidiaries; exposure to local political turmoil and challenging labor conditions; changes in general economic and political conditions in countries where we operate, particularly in emerging markets; expropriation and nationalization; enforcing legal agreements or collecting receivables through foreign legal systems; wage inflation; currency controls, including lack of liquidity in foreign currency due to governmental restrictions, trade protection policies and currency controls, which may create difficulty in repatriating profits or making other remittances; compliance with the requirements of an increasing body of applicable anti-bribery laws; reduced intellectual property protection in various markets; investment restrictions or requirements; and the imposition of product tariffs and the burden of complying with a wide variety of international and U.S. export laws. The Company is subject to taxation in the U.S. and numerous foreign jurisdictions. The Organization for Economic Co-operation and Development (“OECD”) continues its base erosion and profit shifting (“BEPS”) project begun in 2015 with new proposals for a global minimum tax, further development of a coordinated set of rules for taxation and the allocation of taxing rights between jurisdictions. These proposals, if adopted by countries in which we operate, could result in changes to tax policies, including transfer pricing policies, which could ultimately impact our tax liabilities.
Changes in tax laws or policies by the U.S. or foreign jurisdictions could result in a higher effective tax rate on our worldwide earnings, and any such change could have a material adverse effect on our business prospects, cash flows, operating results and financial condition.
Our international operations also depend upon favorable trade relations between the countries where we manufacture and sell products and those foreign countries in which our customers and suppliers have operations. The current U.S. presidential administration has created uncertainty about the future relationship between the U.S. and its trading partners, including with respect to the trade policies and agreements, treaties, government regulations and tariffs that could apply to trade between the U.S. and other nations. In recent months, the U.S. has announced substantial increases in tariffs on imports from China, and China has responded with expanded export restrictions on critical minerals and technologies, as well as retaliatory measures affecting U.S. goods and services. These developments reflect a broader trend of escalating trade tensions and policy volatility between the two countries. Changes in national policy, other governmental action related to tariffs or international trade agreements, changes in social, political, regulatory, and economic conditions or in laws and policies governing foreign trade, manufacturing, development and investment in the territories and countries where the Company currently manufactures and sells products, and any resulting negative sentiments towards the Company as a result of such changes could depress economic activity and restrict our access to suppliers or customers and have a material adverse effect on our cash flows, operating results and financial condition.
Increasing our manufacturing footprint in the growth markets and our business relationships with automotive manufacturers in these markets are particularly important elements of our strategy. As a result, our exposure to the risks described above may be greater in the future, and our exposure to risks associated with developing countries, such as the risk of political upheaval and reliability of local infrastructure, may increase. It could also impact importing certain foreign-produced vehicles into the U.S. Changes in national policy or continued uncertainty could depress economic activity and restrict our access to suppliers or customers and have a material adverse effect on our cash flows, operating results and financial condition. Additionally, such trade restrictions or material increases in tariffs could impact our targets, earnings guidance, and estimates. The ultimate impact of any tariffs, including any related responses, are uncertain and will depend on various factors, including if any tariffs are ultimately implemented, the timing of implementation, and the amount, scope, and nature of the tariffs. Any or all of these actions could adversely affect our business, financial condition and cash flows. Increasing our manufacturing footprint in the growth markets and our business relationships with automotive manufacturers in these markets are particularly important elements of our strategy. As a result, our exposure to the risks described above may be greater in the future, and our exposure to risks associated with developing countries, such as the risk
36
of political upheaval and reliability of local infrastructure, may increase. It could also impact importing certain foreign-produced vehicles into the U.S. Changes in national policy or continued uncertainty could depress economic activity and restrict our access to suppliers or customers and have a material adverse effect on our cash flows, operating results and financial condition.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Stock repurchase program
The following table provides information with respect to common stock repurchased by the Company during the three months period ended September 30, 2025.
|
|
New York Stock Exchange (NYSE) |
|
|
|
|
|
|
|
|||||||
Period |
|
Total Number of Shares Purchased (1) |
|
|
Average Price Paid per Share (USD) (2) |
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (3) |
|
|
Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (USD) |
|
||||
July 1-31, 2025 |
|
|
160,980 |
|
|
$ |
115.16 |
|
|
|
160,980 |
|
|
$ |
2,481,461,150 |
|
August 1-31, 2025 |
|
|
474,018 |
|
|
$ |
117.20 |
|
|
|
634,998 |
|
|
$ |
2,425,906,610 |
|
September 1-30, 2025 |
|
|
207,131 |
|
|
$ |
125.07 |
|
|
|
842,129 |
|
|
$ |
2,400,000,029 |
|
(1) The repurchases are being executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. For accounting purposes, shares repurchased under our stock repurchase programs are recorded based upon the settlement date of the applicable trade.
(2) The average price paid per share in U.S. dollars exclude brokerage commissions and other costs of execution.
(3) On June 4, 2025, the Company announced that its Board of Directors approved a new stock repurchase program that authorizes the Company to repurchase up to $2.5 billion of common shares and operates from July 1, 2025 through December 31, 2029.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
37
ITEM 6. EXHIBITS
Exhibit No. |
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Description |
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3.1 |
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Autoliv’s Restated Certificate of Incorporation, as amended, incorporated herein by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 22, 2015). |
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|
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3.2 |
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Autoliv’s Third Restated By-Laws, incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K (File No. 001-12933, filing date December 18, 2015). |
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|
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4.1 |
|
Indenture, dated March 30, 2009, between Autoliv, Inc. and U.S. Bank National Association, as trustee, incorporated herein by reference to Exhibit 4.1 to Autoliv’s Registration Statement on Form 8-A (File No. 001-12933, filing date March 30, 2009). |
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|
|
4.2 |
|
Second Supplemental Indenture (including Form of Global Note), dated March 15, 2012, between Autoliv, Inc. and U.S. Bank National Association, as trustee, incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K (File No. 001-12933, filing date March 15, 2012). |
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|
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4.3 |
|
Form of Note Purchase and Guaranty Agreement dated April 23, 2014, among Autoliv ASP, Inc., Autoliv, Inc. and the purchasers named therein, incorporated herein by reference to Exhibit 4.6 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 25, 2014). |
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|
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4.4 |
|
Amendment and Waiver 2014 Note Purchase and Guaranty Agreement, dated May 24, 2018, among Autoliv, Inc., Autoliv ASP, Inc. and the noteholders named therein, incorporated herein by reference to Exhibit 4.4 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018). |
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|
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4.5 |
|
Agency Agreement dated June 26, 2018 among Autoliv, Inc., Autoliv ASP, Inc. and HSBC Bank PLC, incorporated herein by reference to Exhibit 4.6 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018). |
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|
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4.6 |
|
Amended and Restated Agency Agreement, dated March 14, 2025, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.4 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 16, 2025). |
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|
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4.7 |
|
Base Listing Particulars Agreement, dated March 14, 2025, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.7 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 16, 2025). |
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4.8 |
|
Amended and Restated Programme Agreement, dated March 14, 2025, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.8 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 16, 2025). |
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|
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4.9 |
|
General Terms and Conditions for Swedish Depository Receipts in Autoliv, Inc. representing common shares in Autoliv, Inc., effective as of April 8, 2024, with Skandinaviska Enskilda Banken AB (publ) serving as custodian, incorporated herein by reference to Exhibit 4.9 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 26, 2024). |
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|
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31.1* |
|
Certification of the Chief Executive Officer of Autoliv, Inc. pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended. |
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31.2* |
|
Certification of the Chief Financial Officer of Autoliv, Inc. pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended. |
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|
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32.1* |
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Certification of the Chief Executive Officer of Autoliv, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
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32.2* |
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Certification of the Chief Financial Officer of Autoliv, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
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101.INS* |
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Inline XBRL Instance Document – The instance document does not appear in the Interactive Date File because its XBRL tags are embedded within the inline XBRL document. |
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101.SCH* |
|
Inline XBRL Taxonomy Extension Schema Document. |
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104* |
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Cover Page Interactive Data File (embedded within the inline XBRL document). |
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* Filed herewith.
38
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: October 17, 2025
AUTOLIV, INC.
(Registrant)
By: |
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/s/ Fredrik Westin |
|
|
Fredrik Westin |
|
|
Chief Financial Officer |
|
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(Duly Authorized Officer and Principal Financial Officer) |
39
FAQ
How did Autoliv (ALV) perform in Q3 2025?
Which products drove Autoliv’s Q3 2025 sales?
What regions supported Autoliv’s Q3 growth?
How were margins and profitability in Q3 2025?
What was Autoliv’s cash flow and capital spending trend year-to-date?
Did Autoliv return cash to shareholders in Q3 2025?
What guidance did Autoliv provide for 2025?
