We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ALV posted Q4 adjusted EPS of $3.19, beating estimates, while net sales rose 7.7% year over year.
Autoliv's organic sales grew 4.2% on new product launches, though adjusted margin fell to 12%.
ALV saw Airbags sales hit $1.90B, China revenues up 9.8%, and generated $434M in free cash flow.
Autoliv Inc. (ALV - Free Report) reported fourth-quarter 2025 adjusted earnings of $3.19 per share, which beat the Zacks Consensus Estimate of $2.85 and rose 5% year over year. The company reported net sales of $2.82 billion, which beat the Zacks Consensus Estimate of $2.76 billion and rose 7.7% year over year.
Organic sales grew 4.2% year over year and surpassed our estimate of 2.6% due to new product launches. Autoliv reported adjusted operating income of $337 million, which fell 3.6% year over year. Adjusted operating margin was 12%, lower than 13.4% in the year-ago period.
Sales in the Airbags and Associated Products segment totaled $1.91 billion, beating our projection of $1.80 billion. Revenues also rose 8.4% on a year-over-year basis. The major categories within the segment that reported an increase in organic sales include steering wheels, side airbags, center airbags and driver airbags.
Sales in the Seatbelts and Associated Products segment totaled $910 million, up 6.3% from the prior-year quarter due to an increase in organic sales in China, Asia excluding China, Europe and Americas. The metric, however, missed our projection of $985.8 million.
Region-wise, overall sales in the Americas totaled $841 million, which topped our estimate of $836 million and increased 6.9% year over year.
Sales in Europe totaled $779 million, which came in line with our forecast and increased 9% year over year.
Sales in China amounted to $645 million, surpassing our projection of $616.9 million and increased 9.8% year over year.
Sales in the Rest of Asia totaled $552 million, which increased 4.8% year over year and came in line with our projection.
Financial Position
Autoliv had cash and cash equivalents of $604 million as of Dec. 31, 2025. Long-term debt totaled $1.73 billion. Operating cash flow in the quarter under review was $544 million and capital expenditure amounted to $110 million, resulting in a positive free cash flow of $434 million. In the fourth quarter, ALV repurchased 1.5 million shares.
Autoliv Provides 2026 Guidance
Autoliv expects 2026 organic sales growth to be around 0%. The adjusted operating margin is anticipated to be in the range of 10.5-11%. Operating cash flow is expected to be around $1.2 billion in 2026.
ALV’s Zacks Rank & Key Picks
Autoliv carries a Zacks Rank #3 (Hold) at present.
The Zacks Consensus Estimate for F’s 2025 sales implies year-over-year growth of 0.3%. EPS estimate for 2025 and 2026 has improved 7 cents and 11 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for REVG’s fiscal 2026 sales and earnings implies year-over-year growth of 8.1% and 37.8%, respectively. EPS estimate for fiscal 2026 and 2027 has improved 20 cents and 26 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 1.1% and 33.4%, respectively. The EPS estimate for 2025 has improved 47 cents and 66 cents, respectively, in the past 60 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Autoliv Q4 Earnings Surpass Expectations, Revenues Increase Y/Y
Key Takeaways
Autoliv Inc. (ALV - Free Report) reported fourth-quarter 2025 adjusted earnings of $3.19 per share, which beat the Zacks Consensus Estimate of $2.85 and rose 5% year over year. The company reported net sales of $2.82 billion, which beat the Zacks Consensus Estimate of $2.76 billion and rose 7.7% year over year.
Organic sales grew 4.2% year over year and surpassed our estimate of 2.6% due to new product launches. Autoliv reported adjusted operating income of $337 million, which fell 3.6% year over year. Adjusted operating margin was 12%, lower than 13.4% in the year-ago period.
Autoliv, Inc. Price, Consensus and EPS Surprise
Autoliv, Inc. price-consensus-eps-surprise-chart | Autoliv, Inc. Quote
Segmental Performance
Sales in the Airbags and Associated Products segment totaled $1.91 billion, beating our projection of $1.80 billion. Revenues also rose 8.4% on a year-over-year basis. The major categories within the segment that reported an increase in organic sales include steering wheels, side airbags, center airbags and driver airbags.
Sales in the Seatbelts and Associated Products segment totaled $910 million, up 6.3% from the prior-year quarter due to an increase in organic sales in China, Asia excluding China, Europe and Americas. The metric, however, missed our projection of $985.8 million.
Region-wise, overall sales in the Americas totaled $841 million, which topped our estimate of $836 million and increased 6.9% year over year.
Sales in Europe totaled $779 million, which came in line with our forecast and increased 9% year over year.
Sales in China amounted to $645 million, surpassing our projection of $616.9 million and increased 9.8% year over year.
Sales in the Rest of Asia totaled $552 million, which increased 4.8% year over year and came in line with our projection.
Financial Position
Autoliv had cash and cash equivalents of $604 million as of Dec. 31, 2025. Long-term debt totaled $1.73 billion. Operating cash flow in the quarter under review was $544 million and capital expenditure amounted to $110 million, resulting in a positive free cash flow of $434 million. In the fourth quarter, ALV repurchased 1.5 million shares.
Autoliv Provides 2026 Guidance
Autoliv expects 2026 organic sales growth to be around 0%. The adjusted operating margin is anticipated to be in the range of 10.5-11%. Operating cash flow is expected to be around $1.2 billion in 2026.
ALV’s Zacks Rank & Key Picks
Autoliv carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are Ford Motor (F - Free Report) , REV Group (REVG - Free Report) and PHINIA Inc. (PHIN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for F’s 2025 sales implies year-over-year growth of 0.3%. EPS estimate for 2025 and 2026 has improved 7 cents and 11 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for REVG’s fiscal 2026 sales and earnings implies year-over-year growth of 8.1% and 37.8%, respectively. EPS estimate for fiscal 2026 and 2027 has improved 20 cents and 26 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 1.1% and 33.4%, respectively. The EPS estimate for 2025 has improved 47 cents and 66 cents, respectively, in the past 60 days.