Autoliv Inc (ALV) Q4 2025 Earnings Call Highlights: Record Sales and Strategic Innovations …

This article first appeared on GuruFocus.

• Net Sales: Approximately $2.8 billion, representing an 8% increase year over year.

• Gross Profit: Increased by $22 million.

• Adjusted Operating Income: Decreased by 4% to $337 million.

• Adjusted Operating Margin: 12%, 140 basis points lower than the previous year.

• Operating Cash Flow: $544 million, an increase of $124 million or 30% compared to last year.

• Free Operating Cash Flow: $734 million for the full year, an increase of over $230 million.

• Earnings Per Share (EPS): Record EPS for both the quarter and the full year.

• Shareholder Returns: $216 million returned to shareholders in the quarter.

• Debt Leverage Ratio: Reduced to 1.1 times.

• Organic Sales Growth: 4% excluding currency effects, with strong growth in China and India.

• Adjusted Return on Capital Employed: 32%.

• Adjusted Return on Equity: 37%.

• Dividend: $0.87 per share in the quarter.

• Share Repurchase: $150 million, retiring 1.3 million shares.

• Full Year Net Sales: $10.8 billion, a 4% increase compared to 2024.

• Full Year Adjusted Operating Income: Increased by 11% to $1.1 billion.

• Full Year Adjusted Operating Margin: 10.3% compared to 9.7% in 2024.

• Full Year Operating Cash Flow: $1.2 billion, about $100 million higher than in 2024.

• Full Year Adjusted EPS: Rose 18% to $9.85.

• Full Year Dividend: $3.12 per share, an increase of 14%.

• Full Year Share Repurchase: $351 million.

Release Date: January 30, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Autoliv Inc (NYSE:ALV) reported record-breaking sales for both the quarter and the full year, driven by strong growth in India and with Chinese OEMs.

• The company achieved record operating and free operating cash flow for both the quarter and the full year, with free operating cash flow increasing by over USD230 million.

• Autoliv Inc (NYSE:ALV) delivered record earnings per share for both the quarter and the full year, reinforcing its ability to provide attractive shareholder returns.

• The company announced a strategic innovation with the development of the first foldable steering wheel for autonomous vehicles, marking a significant step in the autonomous vehicle ecosystem.

• Autoliv Inc (NYSE:ALV) maintained a strong market position with a global market share of around 44%, supported by new product launches and growth with Chinese OEMs.

• Adjusted operating income for Q4 decreased by 4% compared to the previous year, mainly due to lower out of period compensation and lower customer RD&E reimbursements.

• The adjusted operating margin was 12%, which is 140 basis points lower than the same quarter last year.

• The company faced increased volatility driven by inventory adjustments in North America and production adjustments in Asia, including China.

• The regional and market light vehicle production mix was unfavorable, impacting sales growth.

• Autoliv Inc (NYSE:ALV) anticipates headwinds from higher raw material costs, particularly gold, and higher depreciation as recent investments come online.