Financial Data and Key Metrics Changes - The company achieved record high sales for both the quarter and the full year, with consolidated sales exceeding $2.8 billion, an 8% increase year-over-year [5][21] - Adjusted operating income for Q4 decreased by 4% to $337 million, with an adjusted operating margin of 12%, down 140 basis points from the previous year [8][21] - Free operating cash flow for 2025 reached $734 million, an increase of over $230 million compared to the previous year, driven by higher profitability and disciplined capital management [7][24] - Adjusted earnings per share rose 18% to $9.85, reflecting higher net profit and reduced share count from repurchase activities [24] Business Line Data and Key Metrics Changes - Sales to Chinese OEMs surged nearly 40% in the quarter, significantly contributing to the overall sales growth [5] - India represented nearly half of the company's global organic growth, showcasing exceptional growth in that market [5] - The adjusted operating income for the full year increased by 11% to $1.1 billion, with an adjusted operating margin of 10.3% compared to 9.7% in 2024 [24] Market Data and Key Metrics Changes - Global light vehicle production for Q4 increased by 1.3%, exceeding expectations, with production in China coming in 8 percentage points above expectations [10][11] - The regional light vehicle production mix has shifted, with a larger share coming from lower content per vehicle markets in Asia [10] - The company outperformed the market by 3 percentage points globally, despite an unfavorable regional light vehicle production mix [13] Company Strategy and Development Direction - The company announced the development of the first foldable steering wheel for autonomous vehicles, marking a strategic step in expanding its role in the autonomous vehicle ecosystem [8] - The company aims to continue outperforming light vehicle production in both China and India in 2026, supported by strong customer partnerships and ongoing structural cost savings [5][33] - The company is focused on improving operational efficiency and reducing costs while navigating a dynamic and competitive industry landscape [16][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver attractive shareholder returns, with a debt leverage ratio reduced to 1.1x [7][30] - The outlook for 2026 indicates expectations of flat organic sales overall, with growth in China, India, and South America offset by lower sales in North America and Europe [33] - Management highlighted geopolitical uncertainty and trade restrictions as significant risks to the 2026 light vehicle production outlook [32] Other Important Information - The company returned approximately $590 million to shareholders through dividends and share buybacks in 2025 [29] - The company has achieved $100 million of the $130 million structural cost savings target set previously [42] - The company reported a market share of 44% in 2025, maintaining its position globally [59] Q&A Session Summary Question: Can you frame the major puts and takes regarding margins? - Management quantified raw material headwinds at about $10 million for 2025, expecting it to increase to around $30 million in 2026, primarily due to non-ferrous metals like gold [40] Question: Is the Hyundai airbag recall quantified in the guidance? - Management indicated that there is no current indication of impact on their products and they are working with the customer [44] Question: Why is the outperformance for 2026 only 1%? - Management explained that the outperformance is consistent with their organic growth components, with light vehicle production and content contributing to the overall performance [49] Question: What is the current market share in the industry? - Management confirmed a market share of 44% in 2025, defending their position globally while also seeing strong growth with Chinese OEMs [59] Question: How is the raw material headwind calculated? - Management stated that the headwind is based on a mix of long-term agreements and updated contracts, with the largest impact from gold [62] Question: What part of the order intake is structural versus temporary? - Management indicated that the high turnover of platforms is a structural effect, while cancellations of programs are more temporary [68] Question: Will the foldable steering wheel lead to more products for autonomous driving? - Management expressed optimism about the growth potential of advanced products, with positive customer feedback on the foldable steering wheel [72] Question: Is the margin guidance for the full year within the company's control? - Management confirmed that the guidance is based on their best knowledge of the future and is within their control, although external factors can influence the outcome [85]

Financial Data and Key Metrics Changes - The company reported record high sales for both the quarter and the full year, with consolidated sales exceeding $2.8 billion, an 8% increase year-over-year [7][21] - Adjusted operating income for Q4 decreased by 4% to $337 million, with an adjusted operating margin of 12%, down 140 basis points from the previous year [7][21] - Free operating cash flow for 2025 reached $734 million, an increase of over $230 million compared to the previous year, driven by higher profitability and disciplined capital management [6][24] - Earnings per share rose to above $9, with an 18% increase year-over-year, reflecting higher net profit and reduced share count from repurchase activities [24][25] Business Line Data and Key Metrics Changes - Sales to Chinese OEMs surged nearly 40% in the quarter, significantly contributing to the company's growth [5] - India represented nearly half of the company's global organic growth, showcasing exceptional performance in that market [5] - The adjusted operating income for the full year increased by 11% to $1.1 billion, with an adjusted operating margin of 10.3% compared to 9.7% in 2024 [24] Market Data and Key Metrics Changes - Global light vehicle production for Q4 increased by 1.3%, exceeding expectations, with production in China coming in 8 percentage points above expectations [10] - The regional production mix has shifted, with a larger share coming from lower content per vehicle markets in Asia, impacting overall profitability [9][10] - The company outperformed the market by 3 percentage points globally, despite an unfavorable regional light vehicle production mix [12][19] Company Strategy and Development Direction - The company is focusing on expanding its role in the autonomous vehicle ecosystem, highlighted by the development of the first foldable steering wheel for autonomous vehicles [7] - Strategic agreements, such as the one with Qualcomm, are aimed at enhancing the company's position in advanced automotive safety electronics [16] - The company expects to continue to significantly outperform light vehicle production in both China and India in 2026, despite facing headwinds from market conditions [5][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver attractive shareholder returns, with a debt leverage ratio reduced to 1.1 times [6] - The outlook for 2026 anticipates flat organic sales overall, with growth in China, India, and South America offset by declines in North America and Europe [33] - Geopolitical uncertainties and trade restrictions are identified as significant risks to the 2026 light vehicle production outlook [32] Other Important Information - The company returned approximately $590 million to shareholders through dividends and share buybacks in 2025 [29] - The operating cash flow for Q4 totaled $544 million, an increase of $124 million compared to the previous year, driven by positive working capital effects [25] - The company has achieved $100 million of the $130 million in structural cost savings targeted [41] Q&A Session Summary Question: Can you frame the major puts and takes regarding margins? - Management quantified raw material headwinds at about $10 million for 2025, expecting it to increase to around $30 million in 2026, primarily due to non-ferrous metals like gold [40][41] Question: Is there any impact from Hyundai's airbag recall? - Management indicated no current indication of impact on their products and is working with the customer [44][45] Question: Why is the 2026 outperformance guidance only 1%? - Management explained that the outperformance is consistent with their organic growth components and reflects a neutral mix effect for 2026 [50][51] Question: How is the company performing with exports and production in Europe from Chinese OEMs? - Management confirmed strong growth with Chinese OEMs and noted a significant order for production in Europe, although high volumes of localized production are still developing [54][55] Question: What is the current market share in the industry? - Management reported a stable market share of 44% globally, with strong growth in China and India [59][60] Question: How was the raw material headwind for 2026 calculated? - Management stated it is based on a mix of long-term agreements and updated contracts, with the largest impact expected from gold [62][64]

Financial Data and Key Metrics Changes - The company achieved record high sales for both the quarter and the full year, with consolidated sales over $2.8 billion, representing an 8% year-over-year increase [10][20] - Adjusted operating income for Q4 decreased by 4% to $337 million, with an adjusted operating margin of 12%, which is 140 basis points lower than the same quarter last year [6][20] - Free operating cash flow for 2025 was $734 million, an increase of over $230 million compared to the previous year, driven by higher profitability and disciplined capital management [5][24] - Adjusted earnings per share rose 18% to $9.85, reflecting higher net profit and reduced share count from repurchase activities [24] Business Line Data and Key Metrics Changes - Sales to rapidly expanding Chinese OEMs surged nearly 40% in the quarter, significantly contributing to the overall sales growth [4] - The company outperformed the market by 3 percentage points globally, despite an unfavorable regional light vehicle production mix [11] - Sales to Chinese OEMs accounted for 23% of group sales, with organic sales growth in China of 23% [10][18] Market Data and Key Metrics Changes - Global light vehicle production for Q4 increased by 1.3%, exceeding expectations by 4 percentage points, primarily driven by China and India [9] - Light vehicle production in China was 8 percentage points above expectations, supported by consumer incentives [9] - The regional production mix has shifted significantly, with a larger share coming from lower content per vehicle markets in Asia [8] Company Strategy and Development Direction - The company announced the development of the first foldable steering wheel for autonomous vehicles, marking a strategic step in expanding its role in the autonomous vehicle ecosystem [6] - The company expects to continue to significantly outperform light vehicle production in both China and India in 2026 [4] - The company aims for margin improvement supported by higher operational efficiency and ongoing structural cost reductions [32] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the ability to deliver attractive shareholder returns, with a debt leverage ratio reduced to 1.1 times [5] - The outlook for 2026 anticipates flat organic sales overall, with growth in China, India, and South America offset by lower sales in North America and Europe [32] - Geopolitical uncertainty and trade restrictions are expected to be significant risks to the 2026 light vehicle production outlook [31] Other Important Information - The company paid a dividend of $0.87 per share in Q4, representing a 24% increase from the previous dividend [28] - The company has improved working capital by approximately $740 million over the past five years, supporting a stronger balance sheet [27] Q&A Session Summary Question: Can you frame the major puts and takes regarding margins? - The company expects about $30 million in raw material headwinds in 2026, primarily from non-ferrous metals, especially gold [39] Question: Is there any impact from Hyundai's airbag recall? - Currently, there is no indication that the recall affects the company's products, and they are working with the customer [43] Question: Why is the outperformance for 2026 only 1%? - The company expects a neutral mix effect for 2026, with lower-end vehicles growing, impacting overall performance [49] Question: What is the current market share in the industry? - The company maintains a market share of 44% globally, with strong growth in China and India [59] Question: How is the raw material headwind calculated? - The headwind is based on a mix of long-term agreements and updated contracts, with a focus on spot prices [62]

分组1 - Autoliv, Inc. reported quarterly earnings of $3.19 per share, exceeding the Zacks Consensus Estimate of $2.86 per share, and showing an increase from $3.05 per share a year ago, resulting in an earnings surprise of +11.75% [1] - The company achieved revenues of $2.82 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.25%, and up from $2.62 billion year-over-year [2] - Autoliv has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 6.5% since the beginning of the year, compared to the S&P 500's gain of 1.8% [3] - The current consensus EPS estimate for the upcoming quarter is $2.21 on revenues of $2.67 billion, and for the current fiscal year, it is $10.69 on revenues of $11.08 billion [7] - The Zacks Industry Rank for Automotive - Original Equipment is currently in the bottom 35% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Earnings Call Presentation 4th Quarter 2025 January 30, 2026 January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public Safe Harbor Statement* This report 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. or its management believes or ...

Core Insights - The company reported record high net sales of $2,817 million in Q4 2025, representing a 7.7% increase year-over-year, with organic sales growth of 4.2% [1][2][3] - Operating income decreased by 9.6% to $319 million, while adjusted operating income fell by 3.6% to $337 million, primarily due to lower customer compensations and engineering income [2][3] - The company expects around 0% organic sales growth and an adjusted operating margin of 10.5-11.0% for the full year 2026 [1][9] Financial Performance - Q4 2025 net sales were $2,817 million, up from $2,616 million in Q4 2024, marking a 7.7% increase [2] - Full year 2025 net sales reached $10,815 million, a 4.1% increase from $10,390 million in 2024 [2] - Operating cash flow for Q4 2025 was $544 million, a 30% increase from $420 million in Q4 2024, contributing to a full year operating cash flow of $1,157 million [3][6] Regional Performance - Organic sales growth outperformed global light vehicle production (LVP) in all regions, with significant growth in China (5.3pp above LVP) and Asia ex. China (4.8pp above LVP) [3][5] - Sales to Chinese OEMs (COEMs) grew nearly 40% in Q4 2025 and 23% for the full year, indicating strong market performance [3][5] Profitability Metrics - The operating margin for Q4 2025 was 11.3%, down from 13.5% in Q4 2024, while the adjusted operating margin was 12.0%, down from 13.4% [2][3] - Return on capital employed (ROCE) was reported at 30.3%, with adjusted ROCE at 31.8%, reflecting a decrease from previous periods [4] Shareholder Returns - The company paid a dividend of $0.87 per share, a 2.4% increase from Q3 2025, and repurchased 1.26 million shares [3][8] - The ability to deliver attractive shareholder returns remains strong, with record high operating cash flow and free operating cash flow for both the quarter and the full year [6][8] Strategic Developments - The company has strengthened its position in China through investments and strategic agreements, with 30% of order intake in 2025 coming from COEMs [7] - The company anticipates continued strong sales performance with COEMs in 2026, supported by new product launches and market strategies [3][5]

Group 1 - The core viewpoint of the article is that Autoliv, a car safety gear manufacturer, has forecasted a full-year 2026 adjusted operating profit margin of approximately 10.5-11.0% [1] - The company reported a fourth-quarter adjusted operating profit that aligns with market expectations [1]

Financial Performance - Q4 2025 net sales reached $2,817 million, a 7.7% increase year-over-year, with organic sales growth of 4.2%[3] - Operating income for Q4 2025 was $319 million, a decrease of 9.6% compared to Q4 2024, while adjusted operating income was $337 million, down 3.6%[6] - The operating margin for Q4 2025 was 11.3%, a decline of 2.2 percentage points from the previous year, with an adjusted operating margin of 12.0%[6] - Full year 2025 consolidated sales reached $10,815 million, a 4.1% increase from $10,390 million in 2024[41] - Operating income for the full year increased by $109 million, driven by higher gross profit and improved other income[62] - Earnings per share (diluted) for the full year increased by $1.52 to $9.55, reflecting a 19% growth compared to the prior year[65] - Net income for Q4 2025 was $226 million, a decrease of 7.3% from $243 million in Q4 2024, while full-year net income increased by 14% to $736 million from $648 million[66] - Gross profit for the full year 2025 was $2,074 million, up from $1,927 million in 2024, reflecting a 7.6% increase[88] - Operating income for the full year 2025 was $1,088 million, compared to $979 million in 2024, representing a 11.1% increase[88] - The company’s diluted earnings per share for the full year 2025 was $9.55, an increase from $8.04 in 2024, reflecting a 18.8% growth[88] Cash Flow and Capital Management - Operating cash flow for Q4 2025 increased by 30% to a record $544 million, contributing to a full year operating cash flow of $1,157 million[13] - Free operating cash flow for Q4 2025 was $434 million, up 51% from $288 million in Q4 2024, with a cash conversion rate of 192% compared to 118% a year earlier[70] - Cash and cash equivalents at the end of Q4 2025 increased to $604 million from $330 million at the end of Q4 2024[90] - The company reported a net cash provided by operating activities of $1,157 million for the full year 2025, compared to $1,059 million in 2024[90] - Total current liabilities decreased to $3,923 million as of December 31, 2025, from $4,141 million at the end of Q3 2025[89] - Total current assets increased to $4,101 million as of Dec 31, 2025, up from $3,483 million a year earlier, reflecting a growth of 17.7%[94] - Cash conversion (Non-GAAP) for the full year 2025 was reported at 100%, up from 77% in 2024, indicating improved efficiency in converting net income into free operating cash flow[101] Sales and Market Performance - Sales to Chinese OEMs grew by nearly 40% in Q4 2025, with a full year growth of 23%[7] - The company expects continued strong sales performance with COEMs in 2026, driven by new product launches[13] - Organic sales growth for Airbags, Steering Wheels and Other products was 3.4%, driven primarily by side airbags and inflatable curtains[42] - Organic sales growth for Seatbelt Products and Other was 3.5%, with significant contributions from the Americas and Asia excluding China[43] - Global organic sales increased by 3.4%, outperforming the global light vehicle production (LVP) growth of 3.9%[44] - In China, Autoliv's sales to domestic OEMs increased by 23% in 2025, while sales to global OEMs decreased by 7.3%[45] Cost Management and Profitability - The company recovered close to 100% of tariff costs in Q4 2025 and over 80% for the full year, mitigating the impact on profitability[19] - Inflationary cost pressures were partially offset by price increases and customer compensations, with raw material price changes having a minimal impact on profitability[18] - Full year gross profit increased by $147 million, with a gross margin improvement of 0.6 percentage points to 19.2%[58] - S,G&A costs for the full year increased by $40 million, with S,G&A as a percentage of sales rising from 5.1% to 5.3%[59] Debt and Equity - The leverage ratio improved to 1.1x, below the target limit of 1.5x, indicating strong financial management[13] - Net debt as of December 31, 2025, was $1,566 million, a slight increase of 0.8% from $1,554 million a year earlier, primarily due to cash outflows for dividends and share repurchases[72] - Total equity increased by $297 million to $2,582 million as of December 31, 2025, driven by net income and positive currency translation effects[75] - The leverage ratio improved to 1.1x as of December 31, 2025, down from 1.2x a year earlier, with trailing adjusted EBITDA increasing by $127 million[76] Research and Development - Research, development & engineering expenses for Q4 2025 were $94 million, up from $74 million in Q4 2024, a 27.0% increase[88] - Autoliv introduced the world's first foldable steering wheel for autonomous driving in collaboration with Tensor, enhancing safety features during manual and autonomous driving modes[86] Workforce and Operational Efficiency - The total headcount decreased by approximately 900, or 1.4%, compared to the previous year, despite a 4.1% increase in organic sales[78]

Core Insights - Autoliv Inc. is recognized for its production of critical safety systems in the automotive industry, particularly airbags and seatbelts, and has a strong reputation for consistently exceeding earnings estimates [1] Group 1: Earnings Performance - The company is expected to release its quarterly earnings on January 30, 2026, with analysts forecasting an EPS of $2.85 and revenue of approximately $2.77 billion [2] - In the last reported quarter, Autoliv achieved an EPS of $2.32, surpassing the Zacks Consensus Estimate of $2.10, resulting in a 10.48% earnings surprise [2] - The previous quarter also saw Autoliv report an EPS of $2.21 against an expected $2.07, marking a 6.76% surprise [2] - Despite expectations of a year-over-year decline in earnings, higher revenues are projected for the quarter ending December 2025 [2] Group 2: Market Valuation - Autoliv has a price-to-earnings (P/E) ratio of approximately 12.83, indicating how the market values its earnings [3] - The price-to-sales ratio is about 0.91, suggesting that investors are paying less than one dollar for every dollar of sales, reflecting positive investor confidence [3] - The enterprise value to sales ratio stands at around 1.10, indicating the company's overall valuation in relation to its sales [3] Group 3: Financial Metrics - The enterprise value to operating cash flow ratio is approximately 11.29, providing insight into the market's valuation of its cash flow generation capabilities [4] - The company's earnings yield is about 7.80%, offering a perspective on the return on investment [4] - Autoliv maintains a debt-to-equity ratio of approximately 0.86, indicating a moderate level of debt balanced against its equity [4] - The current ratio is around 0.95, demonstrating the company's ability to cover its short-term liabilities with its short-term assets, highlighting financial health and stability [4]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Autoliv, Inc. despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Autoliv is expected to report quarterly earnings of $2.85 per share, reflecting a year-over-year decrease of 6.6% [3][19]. - Revenue is projected to be $2.76 billion, which is an increase of 5.3% from the same quarter last year [3][19]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.97% over the last 30 days, indicating a reassessment by analysts [4][19]. - Despite the downward revision, the Most Accurate Estimate is higher than the consensus, resulting in an Earnings ESP of +3.63% [12][19]. Earnings Surprise Potential - A positive Earnings ESP combined with a Zacks Rank of 2 (Buy) suggests a high likelihood of Autoliv beating the consensus EPS estimate [12][20]. - The company has a history of beating consensus EPS estimates, having done so in the last four quarters [14][20]. Industry Context - Autoliv operates within the Zacks Automotive - Original Equipment industry, where it is positioned as a compelling earnings-beat candidate [18][20].