This article first appeared on GuruFocus.
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Income: Approximately $2.7 billion, up 6% from last year.
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Gross profit: Increased 130 basis points to 19.3%.
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Operating income: Adjusted operating income increased 14% to $271 million.
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Operating Margin: Adjusted operating margin increased 70 basis points to 10%.
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Earnings per share (EPS): Record earnings per share for the third quarter rose 26% or $0.48.
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Cash flow: Operating cash flow was $258 million, up 46% from the prior year.
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Free operating cash flow: $153 million compared to $32 million the previous year.
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Dividends: Increased quarterly dividends to $0.85 per share.
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Share repurchase: $100 million spent on share repurchases, resulting in 0.8 million shares repurchased.
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Leverage ratio: Remained at a low level of 1.3 times.
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Sales growth: Organic sales grew 4%, with China accounting for 90% of group sales.
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Regional sales distribution: America 33%, Europe 28%, Asia, including China 20%.
Release date: October 17, 2025
For a full transcript of the earnings call, see full transcript of the earnings call.
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Autoliv Inc (New York Stock Exchange: ALV) reported record sales and earnings in the third quarter, highlighting its strong market position and customer relationships.
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The strong sales growth was driven by higher-than-expected passenger vehicle production, especially in China and North America.
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The company successfully recovered approximately 75% of the tariff costs incurred in the third quarter.
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Autoliv Inc (New York Stock Exchange: ALV) achieved record earnings per share for the third quarter, more than tripling over the past five years.
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The company announced strategic investments in China, including a second research and development center and a joint venture with HSAE to develop advanced defense electronics.
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The Company experienced a negative impact of approximately 20 basis points on operating margins due to unreimbursed tariffs and the dilutive effect of the recovered portion.
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Despite the good results, Autoliv Inc (New York Stock Exchange: ALV) faced unfavorable regional and customer mix, which impacted sales growth.
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The company noted delays in launching new products in China, which impacted expected sales growth.
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Passenger vehicle production is expected to decline in the fourth quarter, which will pose challenges for the auto industry.
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Autoliv Inc (New York Stock Exchange: ALV) faces headwinds from higher depreciation costs and temporary declines in engineering revenue due to the timing of customer development projects.
question: You raised your forecast for passenger car production from 1.5% to 1.5%, but organic sales remained unchanged. Why don't you see any benefit from a stronger manufacturing environment for your organic sales? A: Fredrik Westin, CFO: The adjustments include past quarters where volumes were already locked in, resulting in various backlogs in the first half of the year. Additionally, there is a larger negative market mix of close to 2 percentage points, and some launches in China have been delayed, falling short of our expectations from a quarter ago.
