AUTOLIV INC
For the period ended Jun 30, 2025. Filed Jul 18, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 18, 2025
ALV$123.47-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-16.
0000950170-25-054507
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-18.
0000950170-25-096766
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 143 previous paragraphs and 186 current paragraphs.
80 unchanged; 38 reworded; 57 added; 25 removed; 0 previous and 11 current paragraphs rearranged.
Tables are not compared: 18 previous and 22 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (57)
Current report
We are pleased to, in a turbulent market environment, report a record breaking second quarter for sales, operating income and margin as well as EPS. The performance was driven by good sales development coupled with successful actions to reduce costs and achieve tariff compensations. We outperformed in Americas, Europe and Asia excl. China and continued to outperform global LVP despite strong headwinds from LVP mix shifts, particularly in China. Based on a positive trend during the second quarter and a record number of new launches we continue to expect a significantly improved sales versus LVP in China in the second half year.
Current report
We remain focused on operational efficiency, commercial excellence and our cost reduction programs. Direct headcount was reduced by 6% while sales grew 3% organically (Non-U.S. GAAP measure, see reconciliation table below), which together with continued repurchases of shares, contributed to a 27% increase in EPS. We remain confident that we can continue to successfully receive compensation from our customers for tariffs, although the industry outlook for tariffs is uncertain. We recovered around 80% of tariff costs in the second quarter, and we expect to recover most of what remains later in the year. We continue to closely monitor and evaluate the situation, focusing on being adaptive and agile.
Current report
At our Capital Markets Day in June, we reiterated our financial targets and communicated a new share repurchase program of up to $2.5 billion until the end of 2029 as well as announced a 21% dividend increase for the third quarter to $0.85 per share. Our increased shareholder return ambitions are supported by our strong balance sheet and cash conversion.
Current report
$2,714 millionnet sales
Current report
4.2% net sales increase
Current report
3.4% organic sales growth (Non-U.S. GAAP measure, see reconciliation table below)
Current report
9.1% operating margin
Current report
9.3% adjusted operating margin (Non-U.S. GAAP measure, see reconciliation table below)
Current report
$2.16 diluted EPS, 27% increase
Current report
LVP growth in China was driven by domestic OEMs with typically lower safety content. LVP for global OEMs declined by 4% while it increased by 16% for domestic OEMs. Autoliv's sales growth with domestic OEMs also grew by 16%. Our sales performance relative to LVP in China in Q2 is a significant improvement over recent quarters, and in June, we outperformed LVP in China. We expect that our strong order intake with domestic OEMs and a record high number of new launches will improve our relative sales performance in China in 2025 in the second half of 2025.
Current report
Change second quarter of 2025 versus second quarter of 2024
Current report
S,G&Acosts increased by $7 million compared to the prior year, mainly due to higher costs for personnel and increased credit loss reserves following generally increased default risk rate for the automotive industry. S,G&A costs in relation to sales increased from 5.3% to 5.4%.
Current report
R,D&E, net costs decreased by $9 million compared to the prior year, mainly due to higher engineering income and positive foreign currency translation effects. R,D&E, net, in relation to sales decreased from 4.5% to 3.9%.
Current report
Other income (expense), netwas negative $1 million, compared to negative $14 million in the same period last year. The difference compared to last year is almost entirely due to lower restructuring costs.
Current report
Operating income increased by $41 million compared to the prior year, due to the higher gross profit, lower costs for R,D&E, net, and the improvement in Other income (expense), partly offset by higher costs for S,G&A, as outlined above.
Current report
Adjusted operating income (Non-U.S. GAAP measure, see reconciliation table above) increased by $30 million compared to the prior year, due to the higher gross profit, lower costs for R,D&E, net, and the improvement in Other income (expense), partly offset by higher costs for S,G&A, as outlined above.
Current report
Financial and non-operating items, net, was negative $27 million compared to negative $23 million a year earlier. The increase comes mainly from other non-operating items, net, which was negative $3 million for Q2 2025 compared to positive $1 million in Q2 2024.
Current report
Tax rate was unchanged at 24.1%. Discrete tax items, net, had a favorable impact of 4.3pp in the second quarter of 2025, while discrete tax items, net had a favorable impact of 4.9pp in the corresponding quarter last year.
Current report
six months period ended June 30, 2025 compared with six months period ended June 30, 2024
Current report
Consolidated Sales Development
Current report
(dollars in millions)
Current report
1)Effects from currency translations.
Current report
2)Including Corporate sales.
Current report
Sales for Seatbelt Products and Other grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 3.6% in the quarter. Sales growth was mainly driven by Americas and Asia excluding China while Europe and China was close to unchanged.
Current report
Sales by region
Current report
Light Vehicle Production Development
Current report
Source: S&P Global, July 2025.
Current report
Earnings
Current report
2)Net of treasury shares.
Current report
First six months 2025 financial development
Current report
Gross profit increased by $63 million, and the gross margin increased by 0.9pp compared to the prior year. The drivers behind the gross profit improvement were mainly improved operational efficiency with lower costs for labor, premium freight, logistics and waste and scrap. We also had positive effects from the organic sales growth partly offset by negative effects from material costs and un-recovered tariffs.
Current report
Operating income increased by $102 million compared to the prior year, due to the higher gross profit, lower costs for R,D&E, net, and the improvement in Other income (expense), partly offset by higher costs for S,G&A, as outlined above.
Current report
Adjusted operating income (Non-U.S. GAAP measure) increased by $86 million compared to the prior year, due to the higher gross profit, lower costs for R,D&E, net, and the improvement in Other income (expense), partly offset by higher costs for S,G&A, as outlined above.
Current report
Tax rate was 26.1% compared to 25.5% in the prior year. Discrete tax items, net, had a favorable impact of 2.1pp in the first six months of 2025 compared to 3.7pp favorable impact in the same period last year.
Current report
Earnings per share, diluted increased by $1.09 compared to the prior year. The main drivers were $0.92 from higher operating income and $0.24 from lower number of outstanding shares, diluted, partly offset by $0.04 from financial items and $0.03 from taxes.
Current report
Second quarter of 2025 development
Current report
Operating cash flow decreased by $63 million to $277 million compared to the prior year, mainly because of less favorable effects from changes in operating working capital, as outlined above.
Current report
First six months of 2025 development
Current report
Cash conversion (Non-U.S. GAAP measure, see reconciliation table below) defined as free operating cash flow (Non-U.S. GAAP measure) in relation to net income, was 44% for the period, compared to 66% in the prior year. The decline was a result of the lower free operating cash flow and higher net income.
Current report
Deepal S09: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Seatbelts.
Showing the first 40 of 57 passages. Open the source sections for the rest.
Removed paragraphs (25)
Previous report
We are pleased that we delivered good sales and profitability in the first quarter. Thanks to our adaptability and resilience, driven by our diverse product portfolio and strong customer relationships, we successfully navigated through the first month of North American tariffs. It is encouraging that we, based on LVP data from March, outperformed global LVP despite continued significant headwinds from LVP mix shifts, particularly in China. Based on a record high number of new launches we look forward to a significantly improved sales performance in China in 2025.
Previous report
Our strong profitability improvement was a result of well executed operational and commercial efforts. Our structural cost reduction program continued to generate indirect work force reductions, and direct headcount was also reduced significantly although sales grew organically. Results were also supported by reaching Q1 customer compensation agreements for increased costs related to inflation and tariffs. Our continued repurchase of shares also supported a record first quarter EPS.
Previous report
After the slow end to 2024, OEM sourcing of safety products for future car models picked up in the first quarter, despite the geopolitical uncertainty.
Previous report
Our navigation of the new tariff environment in the first quarter gives us confidence that it is possible to continue on that course when facing increasing or changing tariffs, although there is significant uncertainty. We continue to closely monitor and evaluate the situation, focusing on being adaptive and agile, and we consider our regionalized footprint to be a valuable source for flexibility in a challenging geopolitical environment.
Previous report
Our strong balance sheet and cash conversion set a solid foundation for our commitment to high shareholder returns. We are looking forward to our Capital Markets Day, on June 4, 2025.
Previous report
$2,578 million net sales
Previous report
1.4% net sales decrease
Previous report
2.2%organic sales growth - (Non-U.S. GAAP measure, see reconciliation table below)
Previous report
9.9% operating margin
Previous report
9.9% adjusted operating margin - (Non-U.S. GAAP measure, see reconciliation table below)
Previous report
$2.14 diluted EPS, 41% increase
Previous report
Operating income increased by $60 million compared to the prior year, due to the higher gross profit, lower costs for R,D&E, net, and higher Other income (expense), partly offset by higher costs for S,G&A, as outlined above.
Previous report
Adjusted operating income(Non-U.S. GAAP measure, see reconciliation table below) increased by $56 million compared to the prior year, due to the higher gross profit, lower costs for R,D&E, net, and higher Other income (expense), partly offset by higher costs for S,G&A, as outlined above.
Previous report
Tax rate was 28.0% compared to 27.0% in the prior year. The lower tax rate in 2024 was mainly due to discrete tax benefits for the release of tax reserves recorded in the first quarter of 2024. Discrete tax items, net, did not have a material impact to the tax rate in the first quarter of 2025 versus a decrease of 2.5pp in the corresponding quarter last year.
Previous report
First quarter of 2025 development
Previous report
Ford Expedition: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Steering Wheel
Previous report
Dacia Bigster: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Seatbelts
Previous report
Renault 5 E-TECH: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Steering Wheel
Previous report
Mercedes CLA: Driver/Passenger Airbags, Steering Wheel, Seatbelts
Previous report
Audi A6 Avant: Side Airbags, Front Center Airbag, Seatbelts
Previous report
Kia Tasman: Side Airbags, Head/Inflatable Curtain Airbags, Seatbelts
Previous report
Citroen C3: Side Airbags, Head/Inflatable Curtain Airbags, Seatbelts
Previous report
On March 14, 2025, Autoliv announced the renewal for one year of its €3 billion guaranteed euro medium term note program, originally established on April 11, 2019.
Previous report
On April 3, 2025, Autoliv announced advances on its climate targets with renewable energy agreements. Autoliv is entering two Virtual Power Purchase Agreements with two renewable electricity producers, Alight and Eurowind Energy. This is to ensure a consistent and reasonably priced energy supply for Autoliv's activities in Europe, reducing the risks associated with potential future energy price fluctuations and to ensure its operations will continue to be both economical and sustainable even in the face of volatile markets.
Previous report
Autoliv invites financial analysts, institutional investors and journalists with a focus on automotive safety technology to its Capital Markets Day, on Wednesday, June 4, 2025, in Stockholm, Sweden. Focus will be on our medium and long-term growth avenues, products and solutions, strategic roadmap, and progress in automation and operational efficiency. Autoliv management will present how Autoliv works strategically with OEMs in securing a strong position with future winners that will support Autoliv’s long term success.
Reworded paragraphs (38)
Previous wording
The current geopolitical and business environment uncertainties make it difficult to predict 2025. However, based on the strong first quarter performance and encouraging near term call-off indications, we reiterate our 2025 guidance of an organic sales growth (Non-U.S. GAAP measure) of around 2% and an adjusted operating margin (Non-U.S. GAAP measure) of around 10-10.5%.
Current wording
Our 2025 guidance for organic sales growth (Non-U.S. GAAP measure) has increased to around 3% due to tariff compensations, and we reiterate our guidance of an adjusted operating margin (Non-U.S. GAAP measure) of around 10-10.5%.
Previous wording
$2.15 adjusted diluted EPS (Non-U.S. GAAP measure, see reconciliation table below), 37% increase
Current wording
$2.21 adjusted diluted EPS (Non-U.S. GAAP measure, see reconciliation table below), 18% increase
Previous wording
First quarter sales increased organically (Non-U.S. GAAP measure, see reconciliation table below) by 2.2%, which was 2.6pp higher than the global LVP decrease of 0.4% (S&P Global March 2025). A strong LVP in March resulted in a stronger than expected global LVP in the quarter. Regional and customer LVP mix is estimated to have contributed to about 3pp underperformance. Compared to March S&P Global LVP data, we outperformed Europe, Americas and in Asia excl. China, mainly due to product launches and positive pricing. Our sales to domestic Chinese OEMs grew by 19%, in line with their LVP growth. As lower content vehicles in China outgrew higher content vehicles, we underperformed in China overall. We expect that our record number of new launches will significantly improve our relative sales performance in China in 2025.
Current wording
Net sales increased organically(Non-U.S. GAAP measure, see reconciliation table below) by 3.4%, which was 0.7pp higher than the global LVP increase of 2.7% (S&P Global July 2025). Regional and customer LVP mix is estimated to have had about 2.5pp negative impact on sales, while tariff compensations added around 1pp to growth. We outperformed in Americas, Europe and Asia excl. China, mainly due to product launches and tariff compensations. In China, our growth gap versus LVP was smaller compared to recent quarters, due to improved sales performance with Chinese OEMs. We expect that our record number of new launches will significantly improve our relative sales performance in China in the second half of 2025.
Previous wording
Profitability improved, mainly due to organic sales growth and successful execution of cost reductions. Total headcount decreased by 6%. Impacts from the U.S. tariffs and counter tariffs in the first quarter had a negligible impact on operating profit in the quarter as we managed to pass on the costs of tariff increases to our customers. Operating income was $254 million and adjusted operating income (Non-U.S. GAAP measure, see reconciliation table below) was $255 million. Operating margin and adjusted operating margin (Non-U.S. GAAP measure, see reconciliation table below) were both 9.9% ROCE and adjusted ROCE (Non-U.S. GAAP measure, see reconciliation table below) were both 25.6%.
Current wording
Profitability improved significantly, mainly due to organic sales growth and successful execution of cost reductions. Total headcount decreased by 5%. We estimate that the negative impact from U.S. tariffs was around 35bps on operating margin, as we managed to pass on most of the tariff costs to our customers. Operating income increased by 20% to $247 million and adjusted operating income (Non-U.S. GAAP measure, see reconciliation table below) increased by 14% to $251 million. Operating margin was 9.1% and adjusted operating margin (Non-U.S. GAAP measure, see reconciliation table below) was 9.3%. ROCE was 23.8% and adjusted ROCE (Non-U.S. GAAP measure, see reconciliation table below) was 24.1%.
Previous wording
Free operating cash flow (Non-U.S. GAAP measure, see reconciliation table below) was in line with last year, despite that operating cash flow was slightly lower than last year. A larger working capital build up reflecting higher sales at the end of the quarter was offset by lower capex, net. The leverage ratio (Non-U.S. GAAP measure, see reconciliation table below) of 1.3x is within our target range. In the quarter, a dividend of $0.70 per share was paid and 0.5 million shares were repurchased and retired.
Current wording
Operating cash flowwas lower than last year, as Q2 2024 was boosted by positive, timing related working capital effects, while working capital changes in 2025 were more normal. This was partly offset by lower capex, net. The leverage ratio (Non-U.S. GAAP measure, see reconciliation table below) of 1.3x is well below our target limit of 1.5x. In the quarter, a dividend of $0.70 per share was paid and 0.5 million shares were repurchased and retired.
Previous wording
Business and market condition update for the first quarter 2025
Current wording
Business and market condition update for the three months period ended June 30, 2025
Previous wording
In the first quarter of 2025, global LVP decreased by 0.4% year-over-year (according to S&P Global March 2025). Call-off volatility improved slightly compared to a year earlier and was about unchanged compared to the fourth quarter of 2024, although it remains higher than pre-pandemic levels. Low customer demand visibility and changes to customer call-offs with short notice, although it improved, continued to have a negative impact on our production efficiency and profitability in the quarter. We expect call-off volatility in 2025 on average to be slightly lower than it was in 2024 but still remain higher than pre-pandemic levels. However, the uncertainty regarding future changes in tariffs and trade restrictions may lead to a more negative call-off volatility development.
Current wording
In the second quarter of 2025, global LVP increased by 2.7% year-over-year (according to S&P Global July 2025). Call-off volatility improved slightly compared to a year earlier and was comparable to the first quarter of 2025, although it remains higher than pre-pandemic levels. Low customer demand visibility and changes to customer call-offs with short notice, although it improved, continued to have some negative impact on our production efficiency and profitability. We expect call-off volatility in 2025 on average to be slightly lower than it was in 2024 but still remain higher than pre-pandemic levels. However, the continued uncertainty regarding future changes in tariffs and trade restrictions may lead to a more negative call-off volatility environment.
Previous wording
In the first quarter, cost pressure from labor and other items still impacted our profitability negatively, although to a lesser degree than the first quarter of 2024. Most of the inflationary cost pressure was offset by price increases and other customer compensations in the quarter. Raw material price changes had a slightly negative impact on our profitability during the first quarter. We expect raw material costs in 2025 to increase for the full year. We expect cost pressure from general inflation to moderate in 2025, but we still expect some pressure coming mainly from labor, especially in Europe and the Americas and potentially from tariffs. The uncertainty regarding effects of tariffs and trade restrictions may lead to a more adverse inflation development. We continue to execute on productivity and cost reduction initiatives to offset these cost pressures.
Current wording
In the second quarter, cost pressure from labor and other items impacted our profitability negatively, although to a lesser degree than in the second quarter of 2024. Most of the inflationary cost pressure was offset by price increases and other customer compensations in the quarter. Raw material price changes had a slightly negative impact on our profitability during the quarter. We expect raw material costs in 2025 to be slightly higher than in 2024. We expect cost pressure from general inflation to moderate in 2025, but we still expect some pressure coming mainly from labor, especially in Europe and the Americas and potentially from tariffs. The continued uncertainty regarding effects of tariffs and trade restrictions may lead to a more adverse inflation environment. We continue to execute on productivity and cost reduction initiatives to offset these cost pressures.
Previous wording
The effects from the new tariffs imposed in the first quarter did not have a material impact on our profitability in the first quarter, as we managed to achieve customer compensations. It is our ambition and expectation that we will continue to pass on tariff costs to our customers, although there is significant uncertainty. Geopolitical uncertainties will continue to create a challenging operating environment. We also see a likelihood that there will be new or increased or changed tariffs or other related trade restrictions imposed in 2025 that may impact our operations. We continue to closely monitor the situation and are prepared to remain agile in responding to any such developments.
Current wording
The effects from the new tariffs imposed in the first quarter did not have a material impact on our profitability in the second quarter, as we achieved customer compensations for almost all tariff costs. It is our ambition and expectation that we will continue to pass on tariff costs to our customers, although there is significant uncertainty. We recovered around 80% of the tariffs in the second quarter, and we expect to recover most of what remains later in the year. The impact of the tariffs not yet recovered on our operating income was around $7 million negative in the quarter. Including the dilutive effect of tariffs recovered, operating margin was negatively impacted by around 35 bps. For the full year 2025, we expect the tariff dilution on our operating margin to be around 20 bps. Geopolitical uncertainties will continue to create a challenging operating environment. We also believe there will be new or increased or changed tariffs or other related trade restrictions imposed in 2025 that may impact our operations and which contributes to the uncertainty of industry expectations. We continue to closely monitor the situation and are prepared to remain agile in responding to any such developments.
Previous wording
Sales for Seatbelt Products and Other grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 3.2% in the quarter. Sales increased organically in Asia excluding China and in the Americas while it declined in China and Europe.
Current wording
Sales for Seatbelt Products and Other grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 4.0% in the quarter. Sales increased organically in all regions, led by strong growth in Americas followed by Asia excluding China, Europe and China.
Previous wording
Our global organic sales (Non-U.S. GAAP measure, see reconciliation table above) increased by 2.2% compared to the global LVP decrease of 0.4% (according to S&P Global, March 2025). The outperformance was mainly driven by product launches and pricing. We estimate that the regional and model LVP mix contributed to about 3pp underperformance. This was particularly accentuated in China where we estimate that changes in LVP model mix contributed around 8pp to our underperformance in China. Our organic sales growth outperformed LVP growth by 11pp in Europe, by 6.1pp in Americas and by 5.4pp in Asia excluding China, while we underperformed by 9.2pp in China.
Current wording
Our global organic sales (Non-U.S. GAAP measure, see reconciliation table above) increased by 3.4% compared to the global LVP increase of 2.7% (according to S&P Global, July 2025). The 0.7pp outperformance was mainly driven by product launches and tariff compensations. We estimate that the regional and model LVP mix contributed to about 2.5pp underperformance. This was particularly accentuated in China. Our organic sales growth (Non-U.S. GAAP measure) outperformed LVP growth by 5.0pp in Americas, by 4.9pp in Europe and by 1.4pp in Asia excluding China, while we underperformed by 7.0pp in China.
Previous wording
First quarter of 2025 organic growth 1)
Current wording
Second quarter of 2025 organic growth 1)
Previous wording
1)Non-U.S. GAAP measure, excluding effects from capacity alignments, antitrust related matters and for fiscal year 2023 the Andrews litigation settlement.
Current wording
1)Non-U.S. GAAP measure, excluding effects from capacity alignments and antitrust related matters.
Previous wording
First quarter of 2025 financial development
Current wording
Second quarter of 2025 financial development
Previous wording
Gross profit increased by $36 million, and the gross margin increased by 1.6pp compared to the prior year. The main drivers behind the improvement were the structural cost reduction program combined with the improved customer call-off accuracy, which supported an improved operational efficiency with lower costs for labor, premium freight and waste and scrap, as well as positive effects from the organic sales growth. The main offsetting factor to the improvement were negative foreign currency translation effects.
Current wording
Gross profit increased by $27 million, and the gross margin increased by 0.3pp compared to the prior year. The drivers behind the gross profit improvement were mainly improved operational efficiency with lower costs for labor, premium freight, waste and scrap and logistics. We also had positive effects from the organic sales growth partly offset by negative effects from un-recovered tariff costs.
Previous wording
Income before taxes increased by $59 million compared to the prior year, mainly due to the higher operating income.
Current wording
Income before taxes increased by $38 million compared to the prior year, mainly due to the higher operating income.
Previous wording
Earnings per share, diluted increased by $0.62 compared to the prior year. The main drivers were $0.52 from higher operating income and $0.13 from lower number of outstanding shares, diluted.
Current wording
Earnings per share, diluted increased by $0.46 compared to the prior year. The main drivers were $0.39 from higher operating income and $0.10 from lower number of outstanding shares, diluted, partly offset by $0.03 from financial items and $0.01 from taxes.
Previous wording
Sales grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 1.7% in the quarter. The largest contributor to the increase was side airbags and steering wheels, followed by inflatable curtains and center airbags. This was partly offset by declines for knee airbags, driver airbags and passenger airbags.
Current wording
Sales grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 2.4% in the quarter. The largest contributor to the increase was side airbags and inflatable curtains, followed by steering wheels and center airbags. This was partly offset by declines for knee airbags and modest declines for driver airbags and passenger airbags.
Previous wording
LVP growth in China was heavily tilted to domestic OEMs with typically lower safety content. LVP for global OEMs declined by 9% while it increased by 19% for domestic OEMs. Autoliv's sales to domestic OEMs increased by 19% in the quarter. We expect that our strong order intake with domestic OEMs will lead to a record high number of new launches and significantly improve Autoliv's sales performance in China in 2025.
Current wording
LVP growth in China in the first six months was driven by domestic OEMs with typically lower safety content. LVP for global OEMs declined by 4% while it increased by 21% for domestic OEMs. Autoliv's sales to domestic OEMs increased by 17% in the first half of 2025. We expect that our strong order intake with domestic OEMs and a record number of new launches will significantly improve Autoliv's sales performance in China in the second half of 2025
Previous wording
Change first quarter of 2025 versus first quarter of 2024
Current wording
Change first six months of 2024 versus first six months of 2024
Previous wording
S,G&A costs increased by $13 million compared to the prior year, mainly due to $8 million in increased IT costs and minor cost increases for other items, including personnel costs and legal fees, partly offset by $5 million from positive foreign currency translation effects. S,G&A costs in relation to sales increased from 5.1% to 5.6%.
Current wording
S,G&A costs increased by $20 million compared to the prior year, mainly due to increased credit loss reserves following generally higher default risk rate for the automotive industry and higher IT costs, as well as minor cost increases for other items, including personnel costs, partly offset by positive foreign currency translation effects. S,G&A costs in relation to sales increased from 5.2% to 5.5%.
Previous wording
R,D&E, netcosts decreased by $18 million compared to the prior year, with $8 million of the improvement coming from higher engineering income. The decrease was also supported to a smaller extent from several items, mainly $5 million from positive foreign currency translation effects and $3 million in lower personnel costs. R,D&E, net, in relation to sales decreased from 4.3% to 3.7%.
Current wording
R,D&E, netcosts decreased by $27 million compared to the prior year, with $10 million of the improvement coming from higher engineering income. The decrease was also driven by $7 million from positive foreign currency translation effects and $4 million in lower personnel costs and $4 million in lower costs for professional services. R,D&E, net, in relation to sales decreased from 4.4% to 3.8%.
Previous wording
Other income (expense), netwas positive $15 million, compared to negative $4 million in the same period last year. Almost all of the Other income in the quarter was from the recycled accumulated currency translation differences related to the divestment of our idled operations in Russia.
Current wording
Other income (expense), net was positive $14 million, compared to negative $18 million in the same period last year. The improvement compared to last year is due to lower restructuring costs and the recycled accumulated currency translation differences related to the divestment of our idled operations in Russia in Q1 2025.
Previous wording
Financial and non-operating items, net, was negative $22 million compared to negative $20 million a year earlier. The increase was mainly due to lower interest income following lower cash holdings.
Current wording
Financial and non-operating items, net, was negative $48 million compared to negative $43 million a year earlier. The increase was mainly due to higher interest income in 2024 due to higher cash holdings, and lower other non-operating items, net, in 2025.
Previous wording
Changes in operating working capital impacted operating cash flow by $179 million negative compared to an impact of $114 million negative in the prior year. The working capital increase in the quarter of $179 million was mainly a result of $166 million in increased receivables following the strong sales towards the end of the quarter, $46 million from lower accrued expenses and $24 million increase in other current assets. This was to some extent offset by $25 million in positive effects from accounts payables and $22 million in lower inventories. These changes are within normal variations related to timings, especially the high level of sales towards the end of the quarter.
Current wording
Changes in operating working capital impacted operating cash flow by $15 million positive compared to an impact of $128 million positive in the prior year. The relatively large positive effects from working capital in Q2 last year was related to timing effects while the impact from working capital in Q2 2025 can be considered to be more within normal variations and impacted by higher sales towards the end of the quarter. The working capital decrease in the quarter of $15 million was mainly a result of $113 million in positive effects from accounts payables and accrued expenses, $9 million from deferred income taxes and $4 million from lower inventories. This was partly offset by $110 million in increased receivables partly due to tariff recoveries not yet paid.
Previous wording
Capital expenditure, net decreased by $47 million compared to the prior year. The level of capital expenditure, net, in relation to sales declined to 3.6% versus 5.4% a year earlier. The lower level of capital expenditure, net is mainly related to the lower activity level of footprint optimization in Europe and Americas and less capacity expansion, especially in Asia.
Current wording
Capital expenditure, net (see definition in reconciliation table below) decreased by $32 million compared to the prior year. The level of capital expenditure, net, in relation to sales declined to 4.2% versus 5.6% a year earlier. The lower level of capital expenditure, net is mainly related to the lower activity level of footprint optimization in Europe and Americas and less capacity expansion, especially in Asia.
Previous wording
Free operating cash flow (Non-U.S. GAAP measure, see reconciliation table below) was negative $16 million compared to negative $18 million in the prior year. The decrease was due to the lower operating cash flow partly offset by the lower capital expenditure, net, as outlined above.
Current wording
Free operating cash flow (Non-U.S. GAAP measure, see reconciliation table below) was positive $163 million compared to positive $194 million in the prior year. The decrease was due to the lower operating cash flow partly offset by the lower capital expenditure, net, as outlined above.
Previous wording
Cash conversion (Non-U.S. GAAP measure, see reconciliation table below) defined as free operating cash flow (Non-U.S. GAAP measure, see reconciliation table below) in relation to net income, was n/a in the quarter as free operating cash flow was negative.
Current wording
Cash conversion (Non-U.S. GAAP measure, see reconciliation table below) defined as free operating cash flow (Non-U.S. GAAP measure) in relation to net income, was 97% in the quarter compared to 140% a year earlier. The decline was a result of the lower free operating cash flow and higher net income.
Previous wording
Net debt (Non-U.S. GAAP measure, see reconciliation table below) was $1,787 million as of March 31, 2025, which was $225 million higher than a year earlier, mainly because in the last twelve months, dividends paid and share repurchases were higher than free operating cash flow.
Current wording
Net debt(Non-U.S. GAAP measure, see reconciliation table below) was $1,752 million as of June 30, 2025, which was $172 million higher than a year earlier, mainly due to that in the last twelve months, dividends paid and share repurchases were higher than free operating cash flow as well as due to foreign currency effects.
Previous wording
Total equity as of March 31, 2025, decreased by $80 million compared to March 31, 2024. This was mainly due to $218 million in dividend payments, $447 million in share repurchases, including taxes, and $104 million negative currency translation effects, partly offset by positive net income of $688 million.
Current wording
Total equity as of June 30, 2025, increased by $169 million compared to June 30, 2024. This was mainly due to net income of $717 million and $69 million in positive currency translation effects, partly offset by $337 million in share repurchases, including taxes and $282 million in dividend payments.
Previous wording
Leverage ratio (Non-U.S. GAAP measure, see reconciliation table below): On March 31, 2025, the Company had a leverage ratio of 1.3x compared to 1.3x on March 31, 2024, following that the 12 months trailing adjusted EBITDA (Non-U.S. GAAP measure, see reconciliation table below) increased by around $80 million while net debt per the policy (Non-U.S. GAAP measure, see reconciliation table below) increased by around $241 million.
Current wording
Leverage ratio (Non-U.S. GAAP measure, see reconciliation table below): On June 30, 2025, the Company had a leverage ratio of 1.3x compared to 1.2x on June 30, 2024, following that the 12 months trailing adjusted EBITDA (Non-U.S. GAAP measure) increased by around $103 million while net debt (Non-U.S. GAAP measure) per the policy increased by around $324 million.
Previous wording
Operating cash flow decreased by $45 million to $77 million compared to the prior year, mainly because the increase in operating working capital was larger than the increase in net income, as outlined above.
Current wording
Operating cash flow decreased by $107 million to $355 million compared to the prior year, mainly because the increase in operating working capital was larger than the increase in net income.
Previous wording
As of March 31, 2025, total headcount (Full Time Equivalent) decreased by around 4,200, or 6.0%, compared to a year earlier, despite that organic sales (Non-U.S. GAAP measure, see reconciliation table above) increased by 2.2%. The indirect workforce decreased by around 500, or 2.9%, mainly reflecting our structural reduction initiatives. The direct workforce decreased by approximately 3,700, or 7.0%. The decrease was supported by an improvement in customer call-off accuracy which enabled us to accelerate operating efficiency improvements.
Current wording
As of June 30, 2025, total headcount (Full Time Equivalent) decreased by around 3,600, or 5.2%, compared to a year earlier, despite that organic sales (Non-U.S. GAAP measure, see reconciliation table above) increased by 3.4%. The indirect workforce decreased by around 400, or 2.3%, mainly reflecting our structural reduction initiatives. The direct workforce decreased by approximately 3,200, or 6.2%. The decrease was supported by an improvement in customer call-off accuracy which enabled us to accelerate operating efficiency improvements.
Previous wording
Compared to December 31, 2024, total headcount (Full Time Equivalent) increased by around 700, or 1.1%. Indirect headcount decreased by around 100, or 0.7%, while direct headcount increased by approximately 900, or 1.8%.
Current wording
Compared to March 31, 2025, total headcount (Full Time Equivalent) decreased by around 800, or 1.3%. Indirect headcount was unchanged while direct headcount decreased by approximately 900, or 1.8%.
Previous wording
This report includes content supplied by S&P Global; Copyright © Light Vehicle Production Forecast, March 2025. All rights reserved.
Current wording
This report includes content supplied by S&P Global; Copyright © Light Vehicle Production Forecast, January, March and July 2025. All rights reserved.
Previous wording
Hyundai Palisade: Driver/Passenger Airbags, Knee Airbag, Seatbelts
Current wording
Nissan Leaf: Driver/Passenger Airbags, Knee Airbag, Front Center Airbag, Seatbelts.
Previous wording
Honda Passport: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Knee Airbag, Seatbelts
Current wording
Suzuki eVitara: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Knee Airbag, Steering Wheel.
Previous wording
In Q1 2025, Autoliv repurchased and retired 0.5 million shares of common stock at an average price of $95.22 per share under the Autoliv 2022-2025 stock purchase program.
Current wording
In Q2 2025, Autoliv repurchased and retired 0.5 million shares of common stock at an average price of $99.81
Rearranged current paragraphs (11)
Current report — wording carried from elsewhere
Sales grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 3.1% in the quarter. The largest contributor to the increase was inflatable curtains, side airbags and steering wheels, followed by center airbags. This was partly offset by a decline for knee airbags, while sales of driver airbags and passenger airbags were close to unchanged.
Current report — wording carried from elsewhere
3)Non-U.S. GAAP measure.
Current report — wording carried from elsewhere
Sales by product - Airbags, Steering Wheels and Other
Current report — wording carried from elsewhere
Sales by product - Seatbelts and Other
Current report — wording carried from elsewhere
Our global organic sales (Non-U.S. GAAP measure, see reconciliation table above) increased by 2.8% compared to the global LVP increase of 3.1% (according to S&P Global, July 2025). The relative performance was positively impacted by product launches and pricing. This was more than offset by negative effects from the regional and model LVP mix development, which we estimate contributed to about 3pp underperformance. This was particularly accentuated in China. Our organic sales growth outperformed LVP growth by 5.7pp in Europe, by 4.7pp in Americas and by 2.6pp in Asia excluding China, while we underperformed by 11pp in China.
Current report — wording carried from elsewhere
First six months 2025 organic growth 1)
Current report — wording carried from elsewhere
1)Non-U.S. GAAP measure.
Current report — wording carried from elsewhere
1)Non-U.S. GAAP measure, excluding effects from capacity alignments and antitrust related matters.
Current report — wording carried from elsewhere
Income before taxes increased by $97 million compared to the prior year, mainly due to the higher operating income.
Current report — wording carried from elsewhere
Capital expenditure, net (see definition in reconciliation table below) decreased by $78 million compared to the prior year. The level of capital expenditure, net, in relation to sales declined to 3.9% versus 5.5% a year earlier. The lower level of capital expenditure, net is mainly related to the lower activity level of footprint optimization in Europe and Americas and less capacity expansion, especially in Asia.
Current report — wording carried from elsewhere
Free operating cash flow(Non-U.S. GAAP measure, see reconciliation table below) was positive $147 million compared to positive $176 million in the prior year. The decrease was due to the lower operating cash flow partly offset by the lower capital expenditure, net, as outlined above.