Autoliv Q1 Earnings Surpass Expectations, Revenues Decline Y/Y

Autoliv Inc. ALV reported first-quarter 2025 adjusted earnings of $2.15 per share, which beat the Zacks Consensus Estimate of $1.72 and rose 37% year over year. The company reported net sales of $2.58 billion in the quarter, which beat the Zacks Consensus Estimate of $2.47 billion but fell 1.4% year over year.

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Organic sales grew 2.2% year over year and surpassed our estimate of a decline of 3.5% due to a stronger light vehicle production. Autoliv reported adjusted operating income of $255 million, up 28% year over year. Adjusted operating margin was 9.9%, higher than 7.6% in the year-ago period due to higher organic sales and successful cost reduction initiatives.

Autoliv, Inc. price-consensus-eps-surprise-chart | Autoliv, Inc. Quote

Sales in the Airbags and Associated Products segment totaled $1.75 billion, beating our projection of $1.70 billion. Revenues, however, fell 1.6% on a year-over-year basis. The major categories within the segment that reported a decline in organic sales include knee airbags, driver airbags and passenger airbags.

Sales in the Seatbelts and Associated Products segment totaled $826 million, down 1% from the prior-year quarter due to the decline in organic sales in China and Europe. The metric, however, surpassed our projection of $771.7 million.

Region-wise, overall sales in the Americas during the quarter under review totaled $851 million, which topped our estimate of $833.5 million but decreased 4.7% year over year.

Sales in Europe totaled $764 million, which beat our forecast of $723 million but decreased 0.7% year over year.

Sales in China came in at $447 million, surpassing our projection of $424.3 million but declining 2.8% year over year.

Sales in the Rest of Asia totaled $515 million, which increased 4.8% year over year and topped our projection of $489 million.

Autoliv had cash and cash equivalents of $322 million as of March 31, 2025. Long-term debt totaled $1.57 billion. Operating cash flow in the quarter under review was $77 million and capital expenditure amounted to $93 million, resulting in a negative free cash flow of $16 million. In the quarter, ALV paid a dividend of 70 cents per share and repurchased 0.5 million shares.

Autoliv has reiterated guidance for 2025. It expects 2025 organic sales growth of around 2% compared with 0.4% reported in 2024. The adjusted operating margin is anticipated to be in the range of 10-10.5%. Operating cash flow is expected to be $1.2 billion in 2025.