AUTOLIV INC
For the period ended Sep 30, 2025. Filed Oct 17, 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.
Sep 30, 2025 · Filed Oct 17, 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 2025-06-30; filed 2025-07-18.
0000950170-25-096766
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-17.
0001193125-25-242063
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 186 previous paragraphs and 185 current paragraphs.
96 unchanged; 52 reworded; 35 added; 37 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 22 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 (35)
Current report
We are pleased to, once again, report a record breaking quarter. This quarter is the best third quarter so far, for sales, operating income and EPS. The performance was driven by better than expected sales, especially in Americas and Europe, and successful actions to reduce costs and achieve tariff compensation. We are pleased that we had a solid outperformance with the domestic Chinese OEMs. The ramp-up of certain models started slower than expected, but improved gradually during the quarter. We expect increased outperformance in China in the fourth quarter. Driven by increased penetration of automotive safety, our high growth in India continued, accounting for around one third of our global organic growth in the third quarter.
Current report
We invest for continued success in China. We started building a second R&D Center in China to support our growing business with Chinese OEMs both in China and globally. In addition, in October we signed a strategic agreement with CATARC, the leading research institution setting standards in China’s automotive sector, to jointly advance automotive safety standards and innovation. Furthermore, we recently announced our plans to form a joint venture with HSAE, a leading Chinese automotive electronics developer, to develop and manufacture advanced safety electronics to increase vertical integration of our product portfolio.
Current report
We recovered around 75% of tariff costs in the third quarter, and expect to recover most of what remains in the fourth quarter. We continue to closely monitor the situation, and remain adaptive and agile.
Current report
Our focus on operational efficiency, commercial excellence and our cost reduction programs continue to yield results. In the quarter, sales grew organically by 4% (Non-U.S. GAAP measure, see reconciliation table below), gross profit by 14%, operating income by 18% and EPS by 31%. Supported by strong balance sheet control, operating cash flow increased by 46%, and with a lower capex, net, free cash flow (Non-U.S. GAAP measure, see reconciliation table below) improved substantially. As a result, we kept our leverage ratio (Non-U.S. GAAP measure, see reconciliation table below) at 1.3x, despite increasing the dividend by 21% and repurchasing shares for $100 million in the quarter.
Current report
We remain confident in achieving our full year guidance of an adjusted operating margin (Non-U.S. GAAP measure) of around 10-10.5%, currently expecting to come in at the midpoint of the range.
Current report
$2,706 millionnet sales
Current report
5.9% net sales increase
Current report
3.9% organic sales growth (Non-U.S. GAAP measure, see reconciliation table below)
Current report
9.9% operating margin
Current report
10.0% adjusted operating margin (Non-U.S. GAAP measure, see reconciliation table below)
Current report
$2.28 diluted EPS, 31% increase
Current report
Operating cash flow increased by 46%, reflecting improved profit and working capital. Capital expenditure, net, was significantly reduced, and free operating cash flow (Non-U.S. GAAP measure, see reconciliation table below) increased substantially. The leverage ratio (Non-U.S. GAAP measure, see reconciliation table below) of 1.3x is below our target limit of 1.5x. In the quarter, a dividend of $0.85 per share (21% increase from the second quarter of 2025) was paid and 0.84 million shares were repurchased and retired.
Current report
Sales for Airbags, Steering Wheels and Other grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 3.6% in the quarter. The largest contributors to the increase was inflatable curtains, side airbags, driver airbags and center airbags, followed by smaller increases for passenger airbags and knee airbags. This was partly offset by a decline for steering wheels.
Current report
Change third quarter of 2025 versus third quarter of 2024
Current report
Adjusted operating income(Non-U.S. GAAP measure, see reconciliation table below) increased by $34 million compared to the prior year, due to the higher gross profit, partly offset by the higher costs for R,D&E, net, and S,G&A, as outlined above.
Current report
Operating income increased by $143 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 below) increased by $120 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
Third quarter of 2025 development
Current report
First nine months of 2025 development
Current report
COMMITMENTS
Current report
The Company has entered into a 5-year Enterprise Subscription Agreement (EAS). The subscription fees for the software licenses will be paid annually in advance. The future payments (undiscounted) relating to this software subscription agreement are in total approximately $50 million to be paid over the following years: Less than 1 year: $12 million; 1-3 years: $25 million; 3-5 years: $13 million.
Current report
Compared to June 30, 2025, total headcount (FTE) increased by around 100, or 0.2%. Indirect headcount increased by around 200 (due to the in-sourced personnel mentioned previously), while direct headcount decreased by approximately 100.
Current report
Kia PV5: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Front Center Airbag.
Current report
New EV Customer SUV: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Front Center Airbag, Seatbelts.
Current report
New EV Customer SUV: Driver/Passenger Airbags, Side Airbags, Steering Wheel.
Current report
Subaru Outback: Driver/Passenger Airbags, Side Airbags, Seatbelts.
Current report
Jeep Compass: Driver/Passenger Airbags, Steering Wheel.
Current report
Renault Clio: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Steering Wheel, Seatbelts.
Current report
Geely Galaxy M9: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Front Center Airbag, Seatbelts.
Current report
Nissan Sentra: Side Airbags, Head/Inflatable Curtain Airbags, Seatbelts.
Current report
New EV: Side Airbags, Steering Wheel, Seatbelts.
Current report
Honda N-ONE e: Driver/Passenger Airbags, Side Airbags, Seatbelts.
Current report
On October 14, 2025, Autoliv announced the signing of a strategic agreement with China Automotive Technology and Research Center Co (CATARC), the leading research institution setting standards in China’s automotive sector, to jointly advance automotive safety standards and innovation in China and beyond. The collaboration will span research and development, testing, certification, and standards alignment - providing technical support for the R&D and global expansion of Chinese automakers.
Current report
On October 9, 2025, Autoliv announced its intent to form a new joint venture with Hangsheng Electric Co., Ltd. (HSAE), a leading Chinese developer of automotive electronics. The joint venture will focus on developing and manufacturing advanced safety electronics for the rapidly evolving Chinese automotive market. The new joint venture will be located strategically near Shanghai and close to several existing Autoliv sites in China. The focus will be on products that include features such as Hands-On Detection (HOD), Pre-Pretensioner Mechatronic Integration (PPMI) and electronic applications for seatbelt systems and driver units.
Current report
On July 27, 2025, Autoliv China officially held the groundbreaking ceremony for its new R&D center in Wuhan, China. This initiative reflects Autoliv’s long-term commitment to the Chinese market and supports the global growth of Chinese OEMs. The center is scheduled to begin operations in Q3 2026 and will be equipped with state-of-the-art testing equipment and a digital R&D platform. It will play a critical role in advancing automotive safety technologies and enhancing Autoliv’s capabilities in delivering secure and reliable innovative mobility solutions to customers worldwide.
Removed paragraphs (37)
Previous 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.
Previous 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.
Previous 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.
Previous report
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 report
$2,714 millionnet sales
Previous report
4.2% net sales increase
Previous report
3.4% organic sales growth (Non-U.S. GAAP measure, see reconciliation table below)
Previous report
9.1% operating margin
Previous report
9.3% adjusted operating margin (Non-U.S. GAAP measure, see reconciliation table below)
Previous report
$2.16 diluted EPS, 27% increase
Previous report
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 report
Change second quarter of 2025 versus second quarter of 2024
Previous 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.
Previous report
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 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.
Previous 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.
Previous report
Second quarter of 2025 development
Previous report
First six months of 2025 development
Previous report
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 report
Deepal S09: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Seatbelts.
Previous report
Nio Firefly: Side Airbags, Front Center Airbag, Seatbelts.
Previous report
Nissan Roox: Seatbelts.
Previous report
Changan Avatr 06: Side Airbags, Head/Inflatable Curtain Airbags, Front Center Airbag, Seatbelts.
Previous report
Chery Fengyun A9: Side Airbags, Head/Inflatable Curtain Airbags, Front Center Airbag, Seatbelts.
Previous report
Nissan Leaf: Driver/Passenger Airbags, Knee Airbag, Front Center Airbag, Seatbelts.
Previous report
Renault 4: Driver/Passenger Airbags, Steering Wheel.
Previous report
Suzuki eVitara: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Knee Airbag, Steering Wheel.
Previous report
Daihatsu Move: Seatbelts.
Previous report
Lynk & Co 900: Side Airbags, Head/Inflatable Curtain Airbags, Front Center Airbag.
Previous report
Mitsubishi XFORCE: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags.
Previous report
In addition, we have two key EV launches with Chinese OEMs we cannot publish due to confidentiality.
Previous report
On April 16, 2025, Autoliv announced it was named a 2025 Automotive News PACE Pilot Innovation to Watch. The recognition acknowledges post-pilot, pre-commercial innovations in the automotive and future mobility space. Autoliv was recognized for The Bernoulli™ Airbag Module. The Bernoulli Airbag Module addresses the challenge of inflating large airbags quickly and safely, and reducing heat generation and development costs by over 30%.
Previous report
On April 24, 2025, Autoliv announced it is entering a partnership with the ABB FIA Formula E World Championship, as the new Official Mobility Safety Partner. The partnership provides Autoliv with a platform to showcase its expertise and improve awareness of automotive safety in an electric racing setting.
Previous report
On April 25, 2025, Autoliv announced that it presented Omni Safety™, at the Shanghai International Automobile Industry Exhibition 2025. Omni Safety™ is a safety system designed to address critical risks to occupants in reclined seating positions in the event of a collision. This system integrates advanced seatbelt and airbag systems and related functionalities to redefine occupant safety.
Previous report
On June 4, 2025, Autoliv hosted its Capital Markets Day, where it reiterated its 2025 guidance and financial targets, and announced a sustainable increase in shareholder returns, including launching a new share repurchase program and a 21% dividend increase for the third quarter to $0.85 per share.
Previous report
On May 28, 2025, the Company repaid a SEK 3,000 million loan to Swedish Export Credit Corporation. On the same day, the Company took out a new 1-year SEK 2,000 million loan with Swedish Export Credit Corporation.
Previous report
On June 30, 2025, Autoliv announced that Fredrik Westin decided to resign as the Chief Financial Officer and Executive Vice President, Finance of the Company for personal reasons and to pursue a position in continental Europe. He remains in his current position until December 31, 2025, unless otherwise agreed by the parties. Mikael Bratt, President and CEO of the Company, said, "We sincerely thank Fredrik for his valuable contributions to Autoliv and the executive management team over the past five years. We wish him and his family all the best as they relocate." The recruitment process for the successor Chief Financial Officer has been launched.
Reworded paragraphs (52)
Previous wording
$2.21 adjusted diluted EPS (Non-U.S. GAAP measure, see reconciliation table below), 18% increase
Current wording
$2.32 adjusted diluted EPS (Non-U.S. GAAP measure, see reconciliation table below), 26% increase
Previous 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.
Current wording
Net sales increased organically (Non-U.S. GAAP measure, see reconciliation table below) by 3.9%, which was 0.7pp lower than the global LVP increase of 4.6% (S&P Global Oct 2025). Regional and customer LVP mix is estimated to have negatively impacted sales by about 1pp, while tariff compensations added around 0.5pp. We outperformed in Asia, excl. China and Americas and underperformed in China and Europe. Our organic sales growth (Non-U.S. GAAP measure) in China to Chinese OEMs was about 8pp higher than COEM LVP growth. We expect that our record number of new launches will continue to support our sales performance in China in the fourth quarter.
Previous 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%.
Current wording
Profitability improved significantly, mainly due to organic sales growth, successful execution of cost reductions, and positive effects from supplier settlement and compensation. We estimate that the negative impact from U.S. tariffs was around 20bps on operating margin, as we managed to pass on most of the tariff costs to our customers. Operating income increased by 18% to $267 million and adjusted operating income (Non-U.S. GAAP measure, see reconciliation table below) increased by 14% to $271 million. Operating margin was 9.9% and adjusted operating margin (Non-U.S. GAAP measure, see reconciliation table below) was 10.0%. ROCE was 25.1% and adjusted ROCE (Non-U.S. GAAP measure, see reconciliation table below) was 25.5%.
Previous wording
Business and market condition update for the three months period ended June 30, 2025
Current wording
Business and market condition update
Previous 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.
Current wording
In the third quarter of 2025, global LVP increased by 4.6% year-over-year (according to S&P Global Oct 2025). Call-off volatility improved slightly compared to a year earlier, although it remains higher than pre-pandemic levels. Low customer demand visibility and changes to customer call-offs with short notice, although they improved, continued to have some negative impact on our production efficiency and profitability. We expect call-off volatility for the full year 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 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.
Current wording
In the third quarter, cost pressure from labor and other items impacted our profitability negatively, although to a lesser degree than in the third 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 did not have a meaningful impact on our profitability during the quarter. The continued uncertainty regarding the 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 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.
Current wording
The effects from the new tariffs imposed in the first nine months of the year did not have a material impact on our profitability in the third quarter, as we achieved customer compensations for most 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 75% of the tariffs in the third 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 $5 million negative in the quarter. Including the dilutive effect of tariffs recovered, operating margin was negatively impacted by around 20bps. 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. Any new, increased or changed tariffs or other related trade restrictions imposed during the remainder of 2025 may impact our operations and contribute to the uncertainty of industry expectations. We continue to closely monitor the tariff policy environment 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 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.
Current wording
Sales for Seatbelt Products and Other grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 4.5% in the quarter. Sales increased organically in all regions, led by strong growth in Europe and Americas followed by China and Asia excluding China.
Previous 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.
Current wording
Our global organic sales (Non-U.S. GAAP measure, see reconciliation table above) increased by 3.9% compared to the global LVP increase of 4.6% (according to S&P Global, October 2025). The relative performance was positively impacted by product launches and tariff compensations. This was more than offset by negative effects from the regional and model LVP mix development, which we estimate contributed to about 1pp underperformance. This was particularly accentuated in China. Our organic sales growth (Non-U.S. GAAP measure, see reconciliation table above) underperformed LVP growth by 3.5pp in China and by 1.2pp in Europe, while we outperformed by 4.2pp in Asia, excl. China and by 0.5pp in Americas.
Previous wording
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 wording
LVP growth in China was driven by domestic OEMs with typically lower safety content. LVP for global OEMs was unchanged while it increased by 15% for domestic OEMs. Autoliv's sales growth with domestic OEMs grew by 23% while our sales with global OEMs decreased by 5%. Our sales performance relative to LVP in China in the quarter is a significant improvement over recent quarters.
Previous wording
Second quarter of 2025 organic growth 1)
Current wording
Third quarter of 2025 organic growth 1)
Previous wording
Second quarter of 2025 financial development
Current wording
Third quarter of 2025 financial development
Previous 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.
Current wording
Gross profit increased by $63 million, and gross margin increased by 1.3pp compared to the prior year. The drivers behind the gross profit improvement were mainly positive effects from higher sales and improved operational efficiency with lower costs for labor and waste and scrap. The gross profit improvement was also due to a third quarter of 2024 $14 million cost related to a supplier settlement and a third quarter of 2025 $15 million (unrelated) supplier compensation (of which around $13 million impacted gross profit) as well as lower material costs. This was partly offset by negative effects from recalls and warranty, depreciation and un-recovered tariff costs.
Previous 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%.
Current wording
S,G&A costs increased by $8 million compared to the prior year, mainly due to higher costs for personnel. S,G&A costs in relation to sales increased from 5.0% to 5.1%.
Previous wording
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 wording
R,D&E, net costs increased by $22 million compared to the prior year, mainly due to lower engineering income. R,D&E, net, in relation to sales increased from 3.7% to 4.3%.
Previous wording
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 wording
Other income (expense), netwas negative $1 million, compared to negative $9 million in the same period last year. The difference compared to last year is almost entirely due to lower restructuring costs.
Previous wording
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 wording
Operating income increased by $41 million compared to the prior year, due to the higher gross profit and improvement in Other income (expense), net, partly offset by the higher costs for R,D&E, net, and S,G&A, as outlined above.
Previous wording
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 wording
Financial and non-operating items, net was negative $27 million compared to negative $29 million a year earlier. The improvement comes from $2 million in lower interest expense.
Previous wording
Income before taxes increased by $38 million compared to the prior year, mainly due to the higher operating income.
Current wording
Income before taxes increased by $43 million compared to the prior year, mainly due to the higher operating income.
Previous wording
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 wording
Tax rate decreased to 26.9% compared to 29.6% the prior year. Discrete tax items, net, had a favorable impact of 1.3pp in the third quarter of 2025, while discrete tax items, net had a favorable impact of 1.2pp in the corresponding quarter last year.
Previous wording
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 wording
Earnings per share, diluted increased by $0.54 compared to the prior year. The main drivers were $0.36 from higher operating income, $0.09 from taxes, $0.08 from lower number of outstanding shares, diluted, and $0.02 from financial items.
Previous wording
six months period ended June 30, 2025 compared with six months period ended June 30, 2024
Current wording
nine months period ended September 30, 2025 compared with nine months period ended September 30, 2024
Previous wording
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 wording
Sales for Airbags, Steering Wheels and Other grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 2.8% in the period. The largest contributor to the increase was inflatable curtains and side airbags, followed by center airbags, steering wheels and driver airbags. This was partly offset by declines for knee airbags while sales of passenger airbags were close to unchanged.
Previous wording
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 wording
Sales for Seatbelt Products and Other grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 3.9% in the period. Sales growth was mainly driven by Americas and Asia excluding China followed by Europe and China.
Previous wording
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 wording
Our global organic sales (Non-U.S. GAAP measure, see reconciliation table above) increased by 3.1% compared to the global LVP increase of 3.9% (according to S&P Global, October 2025). The relative performance was positively impacted by product launches and tariff compensations. 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 (Non-U.S. GAAP measure, see reconciliation table above) outperformed LVP growth by 3.5pp in Americas, by 3.4pp in Europe and by 3.0pp in Asia excluding China, while we underperformed by 9.3pp in China.
Previous 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
Current wording
LVP growth in China in the first nine months was driven by domestic OEMs with typically lower safety content. LVP for global OEMs declined by 2.3% while it increased by 20% for domestic OEMs. Autoliv's sales to domestic OEMs increased by 16% in the first nine months of 2025, while it decreased by 5.7% to global OEMs in China. We expect that our strong order intake with domestic OEMs and a record number of new launches will improve Autoliv's sales performance in China in the fourth quarter of 2025.
Previous wording
First six months 2025 organic growth 1)
Current wording
First nine months 2025 organic growth 1)
Previous wording
Change first six months of 2024 versus first six months of 2024
Current wording
Change first nine months of 2025 versus first nine months of 2024
Previous wording
First six months 2025 financial development
Current wording
First nine months 2025 financial development
Previous wording
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 wording
Gross profit increased by $125 million, and gross margin increased by 1.1pp compared to the prior year. The drivers behind the gross profit improvement were mainly improved operational efficiency with lower costs for labor, logistics, premium freight and waste and scrap. We also had positive effects from the organic sales growth and lower material costs partly offset by negative effects from recall and warranty costs and un-recovered tariffs.
Previous wording
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 wording
S,G&A costs increased by $28 million compared to the prior year, mainly due to increased personnel costs and credit loss reserves following generally higher default risk rate for the automotive industry. This was partly offset by lower costs for professional services. S,G&A costs in relation to sales increased from 5.1% to 5.3%.
Previous 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%.
Current wording
R,D&E, net costs decreased by $5 million compared to the prior year, mainly due to $7 million from positive foreign currency translation effects and $6 million from lower professional service costs partly offset by $8 million in lower engineering income. R,D&E, net, in relation to sales decreased from 4.2% to 4.0%.
Previous 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.
Current wording
Other income (expense), net was positive $13 million, compared to negative $27 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 $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.
Current wording
Financial and non-operating items, net, was negative $76 million compared to negative $73 million a year earlier. The increase was mainly due to lower interest income and higher non-operating items partly offset by lower interest expense.
Previous wording
Income before taxes increased by $97 million compared to the prior year, mainly due to the higher operating income.
Current wording
Income before taxes increased by $140 million compared to the prior year, mainly due to the higher operating income.
Previous wording
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 wording
Tax rate was 26.4% compared to 27.0% in the prior year. Discrete tax items, net, had a favorable impact of 1.8pp in the first nine months of 2025 compared to 2.8pp favorable impact in the same period last year.
Previous 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.
Current wording
Earnings per share, diluted increased by $1.61 compared to the prior year. The main drivers were $1.28 from higher operating income and $0.29 from lower number of outstanding shares, diluted, and $0.06 from taxes partly offset by $0.02 from financial items.
Previous 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.
Current wording
Changes in operating working capital impacted operating cash flow by $53 million negative compared to an impact of $68 million negative in the prior year. The working capital increase in the quarter of $53 million was mainly a result of $78 million in negative effects from higher inventories impacted by higher sales and $9 million from income taxes, partly offset by $26 million from accounts payables and accrued expenses, and $8 million from receivables.
Previous wording
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 wording
Operating cash flow increased by $81 million to $258 million compared to the prior year, mainly because of higher net income, more positive non-cash items and less unfavorable effects from changes in operating working capital, as outlined above.
Previous wording
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 wording
Capital expenditure, net decreased by $40 million compared to the prior year. The level of capital expenditure, net, in relation to sales declined to 3.9% versus 5.7% 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.
Showing the first 40 of 52 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
We expect that our strong order intake with domestic OEMs and a record high number of new launches will further improve our relative sales performance in China in the fourth quarter of 2025.
Current report — wording carried from elsewhere
Volvo XC70: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Steering Wheel, Front Center Airbag, Seatbelts.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
In Q2 2025, Autoliv repurchased and retired 0.5 million shares of common stock at an average price of $99.81