Nasdaq Nordic · year-end-report
Kvartalsrapport Q4 2025
71160 tecken · 1 HTML-del(ar)
Automatiskt nyckeltalsindex
Detta är sökträffar och textkontext, inte verifierade eller normaliserade redovisningsvärden.
Omsättning
- Full year 2026 Guidance | Organic sales growth Around 0% | Adjusted operating margin1) Around 10.5-11.0%
- Operating cash flow2) Around $1.2 billion | Capex, net, % of sales Less than 5% | 1) Excluding effects from capacity alignments, antitrust related matters and other discrete items. 2) Excluding unusual items.
- LVP growth Around 1% negative | FX impact on net sales Around 1% positive | Tax rate3) Around 28%
- Net Sales Development by region Operating and adjusted* operating income and margins
- 5 | Consolidated sales development | Fourth quarter 2025
- Fourth quarter 2025 | Consolidated sales Fourth quarter Reported change Currency Organic | (Dollars in millions) 2025 2024 (U.S. GAAP) effects1) change*
- Total $2,817 $2,616 7.7% 3.5% 4.2% | 1) Effects from currency translations. 2) Including Corporate sales.
- Sales by product – Airbags, Steering Wheels and | Other
EBITDA
- average capital employed. See definitions of "Annualized operating income" in footnote to the reconciliation tables below. 10) Annualized net income relative to average total | equity. See definitions of "Annualized net income" in footnote to the reconciliation tables below. 11) Net debt adjusted for pension liabilities in relation to EBITDA. Non -GAAP | measure. See reconciliation table.
- a leverage ratio of 1.1x compared to 1.2x on December 31, | 2024, as the 12 months trailing adjusted EBITDA* increased | by $127 million while net debt* per the policy increased by
- leverage its operations. Autoliv’s policy is to maintain a leverage ratio commensurate with a strong investment grade credit | rating. The Company measures its leverage ratio as net debt* adjusted for pension liabilities in relation to adjusted EBITDA* . | The long-term target is to maintain a leverage ratio equal to or below 1.5x.
- Other items2) - - 0 | EBITDA per the Policy (Adjusted EBITDA) (Non-GAAP) $1,521 $1,524 $1,394
Rörelseresultat
- Försäljning $2 817 $2 616 7,7% $10 815 $10 390 4,1% | Rörelseresultat 319 353 -9,6% 1 088 979 11% | Justerat rörelseresultat1) 337 349 -3,6% 1 114 1 007 11%
- Justerad avkastning på sysselsatt kapital1,2) 31,8% 35,2% -3,4 27,0% 25,6% 1,5 | 1) Exklusive effekter från kapacitetsanpassningar och kartellrelaterade ärenden. Ej U.S. GAAP, se jämförelsetabell. 2) Annualiserat rörelseresultat och vinstandelar i | minoritetsbolag i förhållande till genomsnittligt sysselsatt kapital.
- kvartal 4 och mer än 80% för helåret. | Vi nådde flera viktiga milstolpar 2025: rörelseresultat översteg 1 | BUSD för första gången, vinst per aktie steg till över 9 USD och vi
- Net Sales Development by region Operating and adjusted* operating income and margins
- Adj. operating income and margin*: Operating income adjusted for | capacity alignments, antitrust related matters and for FY 2023 the
- Other income (expense), net (15) 8 n/a (2) (19) (91)% | Operating income 319 353 (9.6)% 1,088 979 11% | Adjusted operating income1) 337 349 (3.6)% 1,114 1,007 11%
- Operating income decreased by $34 million compared to | the prior year, due to the higher costs for R,D&E, net, Other
- profit as outlined above. | Adjusted operating income* decreased by $13 million | compared to the prior year, due to the higher costs for
Periodens resultat
- Income taxes (68) (78) (13)% (250) (227) 10% | Net income $226 $243 (7.3)% $736 $648 14%
- (Dollars in millions) 2025 2024 Change 2025 2024 Change | Net income $226 $243 (7.3)% $736 $648 14% | Depreciation and amortization 108 98 10% 407 387 5.2%
- 1) Defined as Expenditures for property, plant and equipment less Proceeds from sale of property, plant and equipment. 2) Operating cash flow less Capital expenditure, net. | Non-GAAP measure. See enclosed reconciliation table. 3) Free operating cash flow relative to Net income. Non-GAAP measure. See reconciliation table.
- derivatives. Non-GAAP measure. See reconciliation table. 8) Total equity and net debt. 9) Annualized operating income and income from equity method investments, relative to | average capital employed. See definitions of "Annualized operating income" in footnote to the reconciliation tables below. 10) Annualized net income relative to average total | equity. See definitions of "Annualized net income" in footnote to the reconciliation tables below. 11) Net debt adjusted for pension liabilities in relation to EBITDA. Non -GAAP
- average capital employed. See definitions of "Annualized operating income" in footnote to the reconciliation tables below. 10) Annualized net income relative to average total | equity. See definitions of "Annualized net income" in footnote to the reconciliation tables below. 11) Net debt adjusted for pension liabilities in relation to EBITDA. Non -GAAP | measure. See reconciliation table.
- liabilities, long term liabilities and other non-cash items, | partly offset by lower net income.
- Cash conversion* defined as free operating cash flow* in | relation to net income, was 192% in the quarter compared to | 118% a year earlier. The increase occurred because free
- 118% a year earlier. The increase occurred because free | operating cash flow increased while net income decreased.
Resultat per aktie
- Earnings per share - diluted2) $2.98 $3.10 (3.8)% $9.55 $8.04 19% | Adjusted earnings per share - diluted1,2) $3.19 $3.05 4.7% $9.85 $8.32 18%
- year. | Earnings per share, diluted decreased by $0.12 compared | to the prior year. The main drivers were $0.37 from lower
- rate range of 25-30%. | Earnings per share, diluted increased by $1.52 compared | to the prior year. The main drivers were $0.90 from higher
- Earnings per share - diluted $2.98 $3.10 $9.55 $8.04 | 1) Including Corporate sales.
- Reconciliation of GAAP measure "Earnings per share - diluted" to Non-GAAP | measure "Adjusted Earnings per share - diluted"
- Reconciliation of GAAP measure "Earnings per share - diluted" to Non-GAAP | measure "Adjusted Earnings per share - diluted" | Fourth quarter Full year
- 2025 2024 2025 2024 | Earnings per share - diluted (GAAP) $2.98 $3.10 $9.55 $8.04 | Non-GAAP adjustments:
- Less: Tax on non-GAAP adjustments (0.01) 0.00 (0.04) (0.06) | Total non-GAAP adjustments to Earnings per share - diluted 0.22 (0.05) 0.30 0.28 | Adjusted Earnings per share - diluted (Non-GAAP) $3.19 $3.05 $9.85 $8.32
Kassaflöde
- Cirka 10,5-11,0% justerad rörelsemarginal | Cirka $1,2 miljarder operativt kassaflöde
- och justerad avkastning på sysselsatt kapital* var 31,8%. | • Operativt kassaflöde ökade med 30%, till ett nytt kvartalsrekord på 544 MUSD, vilket tog det operativa kassaflödet för helåret till ett | nytt rekord på 1 157 MUSD. Fritt operativt kassaflöde* ökade kraftigt och resulterade i nya rekord för både ett kvartal och ett helår.
- • Operativt kassaflöde ökade med 30%, till ett nytt kvartalsrekord på 544 MUSD, vilket tog det operativa kassaflödet för helåret till ett | nytt rekord på 1 157 MUSD. Fritt operativt kassaflöde* ökade kraftigt och resulterade i nya rekord för både ett kvartal och ett helår. | Skuldsättningsgraden* förbättrades till 1,1x, långt under vårt målsättningstak på 1,5x. I kvartalet betalades en utdelning på 0,87 USD
- Justerad vinst/aktie efter utspädning1) 3,19 3,05 4,7% 9,85 8,32 18% | Operativt kassaflöde 544 420 30% 1 157 1 059 9,2% | Avkastning på sysselsatt kapital2) 30,3% 35,8% -5,5 26,4% 25,0% 1,5
- Vår vinstutveckling och balansräkningskontroll ledde till rekord- | högt operativt kassaflöde och fritt operativt kassaflöde för kvartalet | och helåret. Det operativa kassaflödet var 11% av försäljningen
- Capex, net and D&A Operating cash flow
- D&A: Depreciation and Amortization. | Cash conversion*: Free operating cash flow* in relation to net | income. Free operating cash flow defined as operating cash flow
- Cash conversion*: Free operating cash flow* in relation to net | income. Free operating cash flow defined as operating cash flow | less capital expenditure, net.
Likvida medel
- sales amount multiplied by four. 3) Outstanding receivables relative to annualized quarterly sales. 4) Outstanding inventory relative to annualized quarterly sales. 5) Outstanding | payables relative to annualized quarterly sales. 6) Short- and long-term interest-bearing debt. 7) Short- and long-term debt less cash and cash equivalents and debt-related | derivatives. Non-GAAP measure. See reconciliation table. 8) Total equity and net debt. 9) Annualized operating income and income from equity method investments, relative to
- Effect of exchange rate changes on cash (2) 49 (90) 16 | Increase (decrease) in cash and cash equivalents 379 (84) 274 (168) | Cash and cash equivalents at period-start 225 415 330 498
- Increase (decrease) in cash and cash equivalents 379 (84) 274 (168) | Cash and cash equivalents at period-start 225 415 330 498 | Cash and cash equivalents at period-end $604 $330 $604 $330
- Cash and cash equivalents at period-start 225 415 330 498 | Cash and cash equivalents at period-end $604 $330 $604 $330
- Working capital (GAAP) 178 (195) (305) (101) (150) | Less: Cash and cash equivalents (604) (225) (237) (322) (330) | Prepaid expenses (212) (226) (249) (184) (167)
- Working capital (GAAP) (61) 72 853 1,122 | Less: Cash and cash equivalents (498) (594) (969) (1,178) | Prepaid expenses (173) (160) (164) (164)
- Leverage ratio (Non-GAAP) 1.1 1.3 1.2 | 1) Short- and long-term debt less cash and cash equivalents and debt-related derivatives. 2) Latest 12 months. 3) Interest expense, including cost for extinguishment of debt, if | any, less interest income.
Nettoskuld
- payables relative to annualized quarterly sales. 6) Short- and long-term interest-bearing debt. 7) Short- and long-term debt less cash and cash equivalents and debt-related | derivatives. Non-GAAP measure. See reconciliation table. 8) Total equity and net debt. 9) Annualized operating income and income from equity method investments, relative to | average capital employed. See definitions of "Annualized operating income" in footnote to the reconciliation tables below. 10) Annualized net income relative to average total
- average capital employed. See definitions of "Annualized operating income" in footnote to the reconciliation tables below. 10) Annualized net income relative to average total | equity. See definitions of "Annualized net income" in footnote to the reconciliation tables below. 11) Net debt adjusted for pension liabilities in relation to EBITDA. Non -GAAP | measure. See reconciliation table.
- 10.7% to 10.8%. | Net debt* was $1,566 million as of December 31, 2025, | which was $12 million higher than a year earlier, mainly due
- 2024, as the 12 months trailing adjusted EBITDA* increased | by $127 million while net debt* per the policy increased by | $28 million. Our target is to have a leverage ratio not higher
- Income taxes 19 45 30 6 | Net cash provided by operating activities 544 420 1,157 1,059
- Proceeds from sale of property, plant and equipment 8 7 18 17 | Net cash used in investing activities (110) (132) (423) (563)
- Dividend paid to non-controlling interests - - (1) (5) | Net cash used in financing activities (53) (422) (369) (680)
- 19 | Net Debt | Autoliv from time to time enters into “debt-related derivatives” (DRDs) as a part of its debt management and as part of
Eget kapital
- Total parent shareholders’ equity 2,572 2,549 2,469 2,351 2,276 | Non-controlling interest 10 10 11 10 10
- Total equity 2,582 2,285 2,570 2,626 2,648 | Total parent shareholders’ equity per share 34.43 29.26 30.93 30.30 30.10 | Current assets excluding cash 3,497 3,153 3,475 3,119 2,705
Antal aktier
- Weighted average number of shares outstanding - diluted 75.7 78.5 76.9 80.4
- Cash dividends paid per share 3.12 2.74 2.66 2.58 1.88 | Number of shares outstanding (millions)17) 74.7 77.7 82.6 86.2 87.5 | Number of employees, December 31 58,000 59,500 62,900 61,700 55,900
Antal anställda
- Number of shares outstanding (millions)17) 74.7 77.7 82.6 86.2 87.5 | Number of employees, December 31 58,000 59,500 62,900 61,700 55,900 | 1) Including Corporate sales 2) Net of treasury shares. 3) Gross profit relative to sales. 4) Operating income relative to sales. 5) Excluding effects from capacity alignments, antitrust
Organisk tillväxt
- Vår indikation för 2026, vilken antar 1% minskning i global | fordonsproduktion, är en organisk tillväxt på cirka 0% och en | justerad rörelsemarginal på cirka 10,5-11,0%. Vi förväntar oss att
- Q4 2025 organic growth* Americas Europe China Asia excl. China Global | Autoliv 3.3% 0.1% 8.3% 6.5% 4.2%
Bruttomarginal
- Gross margin 20.3% 21.0% (0.7)pp 19.2% 18.5% 0.6pp | S,G&A, in relation to sales (5.1)% (5.0)% (0.1)pp (5.3)% (5.1)% (0.2)pp
- Fourth quarter 2025 development | Gross profit increased by $22 million and gross margin | decreased by 0.7pp compared to the prior year. The drivers
- Full year 2025 development | Gross profit increased by $147 million, and gross margin | increased by 0.6pp compared to the prior year. The drivers
Fulltext
===== SIDA 1 =====
Kvartalsrapport
oktober- december 2025
Stockholm, Sverige, januari 30, 2026
(NYSE: ALV och SSE: ALIV.sdb)
===== SIDA 2 =====
Kvartalsrapport oktober - december 2025
1
Kv4 2025: Vårt bästa kvartal hittills
Finansiell sammanfattning Kv4 2025
$2 817 miljoner försäljning
7,7% försäljningsökning
4,2% organisk försäljningsökning*
11,3% rörelsemarginal
12,0% justerad rörelsemarginal*
$2,98 vinst/aktie efter utspädning, 4% minskning
$3,19 just. vinst/aktie* efter utspädning, 5% ökning
Utsikter för helåret 2026
Cirka 0% organisk försäljningsökning
Cirka 1% positiv valutaeffekt på försäljningen
Cirka 10,5-11,0% justerad rörelsemarginal
Cirka $1,2 miljarder operativt kassaflöde
Alla förändringstal i denna rapport jämför med motsvarande period året innan, om inte annat anges.
Viktiga händelser i verksamheten under det fjärde kvartalet 2025
• Försäljningen ökade organiskt* med 4,2%, vilket var 2,9 procentenheter mer än den globala fordonsproduktionens ökning på 1,3%
(S&P Global jan 2026), främst pga nya produktlanseringar. Regional och kundfordonsmixen beräknas ha påverkat försäljningen
negativt med cirka 1,5 procentenheter, medan tariff-kompensation adderade cirka 1 procentenhet. Vi växte snabbare än
bilproduktionen i alla regioner; med 5,3 procentenheter i Kina, med 4,8 procentenheter i Asien exkl. Kina, med 3,7 procentenheter i
Amerika och med 1,5 procentenheter i Europa. Vår organiska försäljning* till kinesiska kunder (COEMs) ökade med nästan 40%, drivet
främst av nya produktlanseringar. Vi förväntar oss fortsatt stark försäljningsutveckling med COEMs under 2026.
• Lönsamheten var stark, med det bästa bruttoresultatet och näst bästa rörelseresultatet för ett kvartal hittills. Detta berodde främst på
den organiska försäljningstillväxten* och genomförda kostnadsbesparingar. Rörelseresultatet minskade med 9,6% till 319 MUSD och
det justerade rörelseresultatet* minskade med 3,6% till 337 MUSD, främst pga lägre nivå på retroaktiva kundkompensationer och lägre
utvecklingsintäkter. Rörelsemarginalen var 11,3% och justerad rörelsemarginal* var 12,0%. Avkastning på sysselsatt kapital var 30,3%
och justerad avkastning på sysselsatt kapital* var 31,8%.
• Operativt kassaflöde ökade med 30%, till ett nytt kvartalsrekord på 544 MUSD, vilket tog det operativa kassaflödet för helåret till ett
nytt rekord på 1 157 MUSD. Fritt operativt kassaflöde* ökade kraftigt och resulterade i nya rekord för både ett kvartal och ett helår.
Skuldsättningsgraden* förbättrades till 1,1x, långt under vårt målsättningstak på 1,5x. I kvartalet betalades en utdelning på 0,87 USD
per aktie (2,4% ökning från kv3 ‘25) och 1,26 miljoner aktier återköptes och makulerades.
* För ej U.S. GAAP, se jämförelsetabell.
Nyckeltal
MUSD, förutom aktiedata Kv4 2025 Kv4 2024 Förändring År 2025 År 2024 Förändring
Försäljning $2 817 $2 616 7,7% $10 815 $10 390 4,1%
Rörelseresultat 319 353 -9,6% 1 088 979 11%
Justerat rörelseresultat1) 337 349 -3,6% 1 114 1 007 11%
Rörelsemarginal 11,3% 13,5% -2,2 10,1% 9,4% 0,6
Justerad rörelsemarginal1) 12,0% 13,4% -1,4 10,3% 9,7% 0,6
Vinst/aktie efter utspädning 2,98 3,10 -3,8% 9,55 8,04 19%
Justerad vinst/aktie efter utspädning1) 3,19 3,05 4,7% 9,85 8,32 18%
Operativt kassaflöde 544 420 30% 1 157 1 059 9,2%
Avkastning på sysselsatt kapital2) 30,3% 35,8% -5,5 26,4% 25,0% 1,5
Justerad avkastning på sysselsatt kapital1,2) 31,8% 35,2% -3,4 27,0% 25,6% 1,5
1) Exklusive effekter från kapacitetsanpassningar och kartellrelaterade ärenden. Ej U.S. GAAP, se jämförelsetabell. 2) Annualiserat rörelseresultat och vinstandelar i
minoritetsbolag i förhållande till genomsnittligt sysselsatt kapital.
Kommentar från Mikael Bratt, VD & koncernchef
Vi uppnådde rekordhög försäljning för ett
kvartal och helår, främst pga stark tillväxt i
Indien och med kinesiska kunder.
Försäljningen till COEMs ökade med nästan
40% i kvartalet och med 23% för helåret. Vår
organiska försäljning växte snabbare än
bilproduktionen i alla regioner i kvartal 4. Vi
återvann nästan 100% av tariffkostnaderna i
kvartal 4 och mer än 80% för helåret.
Vi nådde flera viktiga milstolpar 2025: rörelseresultat översteg 1
BUSD för första gången, vinst per aktie steg till över 9 USD och vi
betalade mer än 3 USD per aktie i utdelning. Vår förmåga att
fortsätta leverera attraktiv aktieägaravkastning är fortsatt stark. Vi
accelererade aktieägaravkastningen i det fjärde kvartalet samtidigt
som vi förbättrade skuldsättningsgraden – vilket visar på både
finansiell styrka och disciplinerad kapitalkontroll.
Vår indikation för 2026, vilken antar 1% minskning i global
fordonsproduktion, är en organisk tillväxt på cirka 0% och en
justerad rörelsemarginal på cirka 10,5-11,0%. Vi förväntar oss att
justerad rörelsemarginal för Kv1 2026 blir avsevärt lägre än vad den
var Kv1 2025, med förbättringar de påföljande tre kvartalen.
Vår solida position och starka utveckling i Asien är centrala för vår
fortsatta framgång. Jag är övertygad om att tillsammans med vår
påvisade förmåga att förbättra verksamheten även i låg-tillväxtmiljö,
ger oss en solid grund för fortsatt attraktiv aktieägaravkastning och
en tydlig väg mot vår målsättning om 12% justerad rörelsemarginal.
Vår vinstutveckling och balansräkningskontroll ledde till rekord-
högt operativt kassaflöde och fritt operativt kassaflöde för kvartalet
och helåret. Det operativa kassaflödet var 11% av försäljningen
och det fria operativa kassaflödet 7% av försäljningen 2025.
De senaste åren har vi tagit stora steg för att stärka vår position
med COEMs i Kina genom investeringar i produktion och ingenjör-
kapacitet, och upprättandet av flera strategiska samarbetsavtal.
Detta betalar sig nu, genom att 30% av vår orderingång 2025 kom
från COEMs, inklusive för COEM produktion i Europa samt
världens första infällbara ratt för autonom körning.
===== SIDA 3 =====
Kvartalsrapport oktober - december 2025
2
Full year 2026 guidance
In addition to the assumptions and our business and market update noted below, our full year 2026 guidance is based on our
customer call-offs and the achievement of our targeted cost compensation adjustments with our customers, including no
material changes to tariffs or trade restrictions, as compared to what is in effect as of January 23, 2026, as well as no
significant changes in the macro-economic environment, changes to customer call-off volatility or significant supply chain
disruptions.
Full year 2026 Guidance
Organic sales growth Around 0%
Adjusted operating margin1) Around 10.5-11.0%
Operating cash flow2) Around $1.2 billion
Capex, net, % of sales Less than 5%
1) Excluding effects from capacity alignments, antitrust related matters and other discrete items. 2) Excluding unusual items.
Full year 2026 Assumptions
LVP growth Around 1% negative
FX impact on net sales Around 1% positive
Tax rate3) Around 28%
3) Excluding unusual tax items.
The forward-looking Non-GAAP financial measures above are provided on a Non-GAAP basis. Autoliv has not provided a
GAAP reconciliation of these measures because items that impact these measures, such as costs and gains related to
capacity alignments and antitrust matters, cannot be reasonably predicted or determined. As a result, such reconciliation is
not available without unreasonable efforts and Autoliv is unable to determine the probable significance of the una vailable
information.
Conference call and webcast
The earnings conference call will be held at 2:00 p.m. CET today, January 30, 2026. Information regarding how to participate
is available on www.autoliv.com. The presentation slides for the conference call will be available on our website shortly after
the publication of this financial report.
===== SIDA 4 =====
Kvartalsrapport oktober - december 2025
3
Business and market condition update
Supply Chain
In the fourth quarter of 2025, global LVP increased by 1.3% year-over-year (according to S&P Global Jan 2026). Call-off
volatility increased slightly compared to a year earlier, and remains higher than pre -pandemic levels. Low customer
demand visibility and changes to customer call-offs with short notice continued to have some negative impact on our
production efficiency and profitability. We expect call-off volatility for the full year 2026 on average to be slightly improved
compared to 2025 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.
Inflation
In the fourth quarter, cost pressure from labor and other items impacted our profitability negatively, although to a lesser
degree than in the fourth 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.
Geopolitical risks and tariffs
The effects of the new tariffs imposed in 2025 did not have a material impact on our profitability in the fourth quarter, as
we achieved customer compensations for most tariff costs. While it is our ambition and expectation to continue passing
tariff costs on to our customers, there is significant uncertainty as future recovery levels may vary. We recovered close to
100% of the tariffs in the fourth quarter, and more than 80% for the full year. Including the dilutive effect of recovered
tariffs, operating margin was negatively impacted by around 15bps in the fourth quarter. For the full year 2025, we
estimate the tariff-related dilution on operating margin was around 20 bps. Geopolitical developments and the evolving
trade environment are likely to continue creating a challenging and unpredictable operating landscape. Any new,
increased or modified tariffs or other trade restrictions could materially affect our operations, customer relationships or
cost recovery ability as well as contribute to the uncertainty of industry expectations. We continue to closely monitor the
tariff policy environment and remain prepared to be agile to adjust our commercial and operational responses to any such
developments.
This report includes content supplied by S&P Global; Copyright © Light Vehicle Production Forecast, January and October 2025 and January 2026. All rights reserved.
===== SIDA 5 =====
Kvartalsrapport oktober - december 2025
4
Key Performance Trends
Net Sales Development by region Operating and adjusted* operating income and margins
Capex, net and D&A Operating cash flow
Return on Capital Employed Cash Conversion*
Key definitions ------------------------------------------------------------------------------------------------------------
Adj. operating income and margin*: Operating income adjusted for
capacity alignments, antitrust related matters and for FY 2023 the
Andrews litigation settlement. Capacity alignments include non-
recurring costs related to our structural efficiency and business
cycle management programs.
Capex, net: Capital Expenditure, net, defined as Expenditures for
Property, Plant and Equipment less Proceeds from sale of Property,
Plant and Equipment.
D&A: Depreciation and Amortization.
Cash conversion*: Free operating cash flow* in relation to net
income. Free operating cash flow defined as operating cash flow
less capital expenditure, net.
===== SIDA 6 =====
Kvartalsrapport oktober - december 2025
5
Consolidated sales development
Fourth quarter 2025
Consolidated sales Fourth quarter Reported change Currency Organic
(Dollars in millions) 2025 2024 (U.S. GAAP) effects1) change*
Airbags, Steering Wheels and Other2) $1,907 $1,760 8.4% 3.3% 5.1%
Seatbelt Products and Other2) 910 856 6.3% 4.0% 2.2%
Total $2,817 $2,616 7.7% 3.5% 4.2%
Americas $841 $786 6.9% 3.6% 3.3%
Europe 779 715 9.0% 8.9% 0.1%
China 645 587 9.8% 1.5% 8.3%
Asia excl. China 552 527 4.8% (1.7)% 6.5%
Total $2,817 $2,616 7.7% 3.5% 4.2%
1) Effects from currency translations. 2) Including Corporate sales.
Sales by product – Airbags, Steering Wheels and
Other
Sales for Airbags, Steering Wheels and Other grew
organically* by 5.1% in the quarter. The largest contributors
to the increase was steering wheels, side airbags, center
airbags and driver airbags.
Sales by product – Seatbelt Products and Other
Sales for Seatbelt Products and Other grew organically* by
2.2% in the quarter. Sales increased organically in all
regions, led by China, followed by Asia excluding China,
Europe and Americas.
Sales by region
Our global organic sales* increased by 4.2% compared to
the global LVP increase of 1.3% (according to S&P Global,
January 2026). The relative performance was positively
impacted mainly by product launches but also by tariff
compensations of around 1pp. This was partially offset by
negative effects from the regional and model LVP mix
development, which we estimate contributed to about 1.5pp
underperformance. Our organic sales growth* outperformed
LVP growth by 5.3pp in China, by 4.8pp in Asia excluding
China, 3.7pp in Americas and by 1.5pp in Europe.
LVP growth in China was driven by domestic OEMs with
typically lower safety content. LVP for global OEMs declined
by 3% while it increased by 6% for domestic OEMs. Autoliv's
sales growth with domestic OEMs grew by around 40%
while our sales with global OEMs decreased by 11%. We
expect continued strong sales growth in China in 2026,
driven by our performance with domestic OEMs.
Q4 2025 organic growth* Americas Europe China Asia excl. China Global
Autoliv 3.3% 0.1% 8.3% 6.5% 4.2%
Main growth drivers Stellantis, Subaru,
Mercedes
Volvo, Stellantis,
Renault
Geely, EV COEM,
Chery Suzuki, Tata, Hyundai Stellantis, Suzuki, Geely
Main decline drivers Honda, EV GOEM,
GM JLR, VW, Hyundai VW, Toyota, EV GOEM Subaru, Honda, GM Honda, VW, EV GOEM
Light vehicle production development
Change compared to the same period last year according to S&P Global
Q4 2025 Americas Europe China Asia excl. China Global
LVP (Jan 2026) (0.4)% (1.4)% 3.0 % 1.7% 1.3%
LVP (Oct 2025) 0.0% (1.8)% (5.0)% (1.6)% (2.7)%
===== SIDA 7 =====
Kvartalsrapport oktober - december 2025
6
Consolidated sales development
Full year 2025
Consolidated sales Full year Reported change Currency Organic
(Dollars in millions) 2025 2024 (U.S. GAAP) effects1) change*
Airbags, Steering Wheels and Other2) $7,302 $7,023 4.0% 0.6% 3.4%
Seatbelt Products and Other2) 3,513 3,367 4.3% 0.8% 3.5%
Total $10,815 $10,390 4.1% 0.7% 3.4%
Americas $3,480 $3,424 1.6% (1.7)% 3.3%
Europe 3,116 2,946 5.8% 4.4% 1.4%
China 2,095 2,010 4.2% 0.2% 4.0%
Asia excl. China 2,124 2,010 5.7% (0.2)% 5.9%
Total $10,815 $10,390 4.1% 0.7% 3.4%
1) Effects from currency translations. 2) Including Corporate sales.
Sales by product – Airbags, Steering Wheels and
Other
Sales for Airbags, Steering Wheels and Other grew
organically* by 3.4% in the period. The largest contributor to
the increase was side airbags and inflatable curtains,
followed by steering wheels, center airbags and driver
airbags.
Sales by product – Seatbelt Products and Other
Sales for Seatbelt Products and Other grew organically* by
3.5% in the period. Sales growth was mainly driven by
Americas and Asia excluding China followed by Europe and
China.
Sales by region
Our global organic sales* increased by 3.4% compared to
the global LVP increase of 3.9% (according to S&P Global,
January 2026). 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 2.5pp underperformance. This was
particularly accentuated in China. Our organic sales growth
outperformed LVP growth by 3.4pp in Americas, by 3.3pp in
Asia excluding China and by 2.4pp in Europe, while we
underperformed by 6.1pp in China.
LVP growth in China in 2025 was driven by domestic OEMs
with typically lower safety content. LVP for global OEMs
declined by 1.3% while it increased by 16% for domestic
OEMs. Autoliv's sales to domestic OEMs increased by 23%
in 2025 while it decreased by 7.3% to global OEMs in China.
We expect continued strong sales growth in China in 2026,
driven by our performance with domestic OEMs.
FY 2025 organic
growth* Americas Europe China Asia excl. China Global
Autoliv 3.3% 1.4% 4.0% 5.9% 3.4%
Main growth drivers Stellantis, Toyota, Ford Stellantis, BMW, VW Chery, Great Wall, Nio Suzuki, Toyota, Hyundai Stellantis, Suzuki,
Toyota
Main decline drivers EV GOEM, GM,
Hyundai
EV GOEM, JLR,
Hyundai
EV GOEM, VW,
Mercedes Mitsubishi, Honda, GM EV GOEM, JLR, Lixiang
Light vehicle production development
Full year 2025 Americas Europe China Asia excl. China Global
LVP (Jan 2026) 0.0% (1.0)% 10.0 % 2.6% 3.9%
LVP (Jan 2025) (0.4)% (2.8)% (0.4)% 1.1% (0.5)%
===== SIDA 8 =====
Kvartalsrapport oktober - december 2025
7
Key launches in the fourth quarter of 2025
Chery Fengyun
Mercedes GLB
Ford Bronco (China)
Nissan Leaf
Chevrolet Bolt EUV
ORA 5
Honda WR-V
Mercedes CLA
Buick GL8
Nissan Micra Daihatsu Traz Porsche Cayenne
Driver/Passenger Airbags Seatbelts Side Airbags
Head/Inflatable Curtain Airbags Steering Wheel Knee Airbag
Front Center Airbag Bag-in-Belt Pyrotechnical Safety Switch
Pedestrian Airbag Hood Lifter Available as EV/PHEV
===== SIDA 9 =====
Kvartalsrapport oktober - december 2025
8
Financial development
Condensed Income Statement Fourth quarter Full year
(Dollars in millions, except per share data) 2025 2024 Change 2025 2024 Change
Net sales $2,817 $2,616 7.7% $10,815 $10,390 4.1%
Cost of sales (2,245) (2,065) 8.7% (8,741) (8,463) 3.3%
Gross profit 572 551 3.9% 2,074 1,927 7.6%
S,G&A (144) (132) 9.4% (571) (530) 7.6%
R,D&E, net (94) (74) 28% (413) (398) 3.8%
Other income (expense), net (15) 8 n/a (2) (19) (91)%
Operating income 319 353 (9.6)% 1,088 979 11%
Adjusted operating income1) 337 349 (3.6)% 1,114 1,007 11%
Financial and non-operating items, net (26) (32) (17)% (102) (105) (2.5)%
Income before taxes 293 321 (8.8)% 986 875 13%
Income taxes (68) (78) (13)% (250) (227) 10%
Net income $226 $243 (7.3)% $736 $648 14%
Earnings per share - diluted2) $2.98 $3.10 (3.8)% $9.55 $8.04 19%
Adjusted earnings per share - diluted1,2) $3.19 $3.05 4.7% $9.85 $8.32 18%
Gross margin 20.3% 21.0% (0.7)pp 19.2% 18.5% 0.6pp
S,G&A, in relation to sales (5.1)% (5.0)% (0.1)pp (5.3)% (5.1)% (0.2)pp
R,D&E, net in relation to sales (3.3)% (2.8)% (0.5)pp (3.8)% (3.8)% 0.0pp
Operating margin 11.3% 13.5% (2.2)pp 10.1% 9.4% 0.6pp
Adjusted operating margin1) 12.0% 13.4% (1.4)pp 10.3% 9.7% 0.6pp
Tax Rate 23.0% 24.3% (1.2)pp 25.4% 26.0% (0.6)pp
Other data
No. of shares at period-end in millions2) 74.7 77.7 (3.9)% 74.7 77.7 (3.9)%
Weighted average no. of shares in millions, basic2) 75.4 78.3 (3.6)% 76.6 80.2 (4.4)%
Weighted average no. of shares in millions, diluted2) 75.7 78.5 (3.5)% 76.9 80.4 (4.3)%
1) Non-GAAP measure, excluding effects from capacity alignments and antitrust related matters. See reconciliation table. 2) Net of treasury shares.
Fourth quarter 2025 development
Gross profit increased by $22 million and gross margin
decreased by 0.7pp compared to the prior year. The drivers
behind the gross profit improvement were mainly improved
operational efficiency with lower costs for logistics and labor
as well as positive effects from higher sales and lower
material costs. This was partly offset by less out-of-period
customer compensations, negative effects from higher
production overhead costs due to less capitalization to
inventories and higher depreciation.
S,G&A costs increased by $12 million compared to the prior
year, mainly due to $9 million in higher costs for personnel
driven by wage inflation, $9 million in higher costs for IT
mainly due to increased license costs and $5 million in
negative FX translation effects partly offset by lower costs for
professional services. S,G&A costs in relation to sales
increased from 5.0% to 5.1%.
R,D&E, net, costs increased by $20 million compared to the
prior year, mainly due to $10 million in lower engineering
income related to timing effects and $5 million in higher
personnel costs due to wage inflation. R,D&E, net, in relation
to sales increased from 2.8% to 3.3%.
Other income (expense), net, was negative $15 million,
compared to positive $8 million in the same period last year.
Almost all of the $15 million expense are costs for recycled
accumulated currency translation differences related to the
closure of our entities in the Netherlands and Italy.
Operating income decreased by $34 million compared to
the prior year, due to the higher costs for R,D&E, net, Other
income (expense) and S,G&A, partly offset by higher gross
profit as outlined above.
Adjusted operating income* decreased by $13 million
compared to the prior year, due to the higher costs for
R,D&E, net, and S,G&A, partly offset by higher gross profit
as outlined above.
Financial and non-operating items, net, was negative $26
million compared to negative $32 million a year earlier. The
improvement comes from $5 million in lower costs for non-
operating items.
Income before taxes decreased by $28 million compared to
the prior year, mainly due to the lower operating income.
Tax rate was 23.0% compared to 24.3% the prior year.
Discrete tax items, net, had a favorable impact of 6.2pp in
the fourth quarter of 2025, while discrete tax items, net had a
favorable impact of 8.4pp in the corresponding quarter last
year.
Earnings per share, diluted decreased by $0.12 compared
to the prior year. The main drivers were $0.37 from lower
operating income, partly offset by $0.10 from taxes, $0.11
from lower number of outstanding shares, diluted, and $0.05
from financial items.
===== SIDA 10 =====
Kvartalsrapport oktober - december 2025
9
Full year 2025 development
Gross profit increased by $147 million, and gross margin
increased by 0.6pp 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, un-recovered tariffs and higher depreciation.
S,G&A costs increased by $40 million compared to the prior
year, mainly due to $20 million in increased personnel costs
driven by wage inflation, $13 million in higher IT costs mainly
due to higher license costs, $6 million in negative FX
translation effects. S,G&A costs in relation to sales increased
from 5.1% to 5.3%, a level that is considered to be slightly
above normal.
R,D&E, net, costs increased by $15 million compared to the
prior year, mainly due to $18 million in lower engineering
income due to timing effects and $7 million in higher
personnel costs due to wage inflation partly offset by $5
million from positive FX translation effects. R,D&E, net, in
relation to sales was unchanged at 3.8%.
Other income (expense), net, was negative $2 million,
compared to negative $19 million in the same period last year.
The improvement compared to last year is mainly due to
lower restructuring costs.
Operating income increased by $109 million compared to
the prior year, due to the higher gross profit and the
improvement in Other income (expense), partly offset by
higher costs for S,G&A and R,D&E, net, as outlined above.
Adjusted operating income* increased by $108 million
compared to the prior year, due to the higher gross profit and
the improvement in Other income (expense), partly offset by
higher costs for S,G&A, and R,D&E, net, as outlined above.
Financial and non-operating items, net, was negative
$102 million compared to negative $105 million a year
earlier. The improvement was mainly due to lower interest
expense partly offset by lower interest income.
Income before taxes increased by $112 million compared
to the prior year, mainly due to the higher operating income.
Tax rate was 25.4% compared to 26.0% in the prior year.
Discrete tax items, net, had a favorable impact of 3.1pp in
2025 compared to 4.8pp favorable impact in 2024. The
reported 25.4% tax rate as well as the underlying tax rate
excluding discrete items was within our expected normal tax
rate range of 25-30%.
Earnings per share, diluted increased by $1.52 compared
to the prior year. The main drivers were $0.90 from higher
operating income, $0.41 from lower number of outstanding
shares, diluted, $0.17 from taxes and by $0.03 from financial
items.
===== SIDA 11 =====
Kvartalsrapport oktober - december 2025
10
Selected Cash Flow and Balance Sheet Items
Selected Cash Flow items Fourth quarter Full year
(Dollars in millions) 2025 2024 Change 2025 2024 Change
Net income $226 $243 (7.3)% $736 $648 14%
Depreciation and amortization 108 98 10% 407 387 5.2%
Other non-cash adjustments, net 5 (29) n/a 26 (29) n/a
Changes in operating working capital 205 107 91% (12) 53 n/a
Operating cash flow 544 420 30% 1,157 1,059 9.2%
Capital expenditure, net1) (110) (132) (17)% (423) (563) (25)%
Free operating cash flow2) $434 $288 51% $734 $497 48%
Cash conversion3) 192% 118% 74pp 100% 77% 23pp
Shareholder returns
- Dividends paid (66) (55) 20% (238) (219) 9.0%
- Share repurchases (150) (102) 47% (351) (552) (36)%
Cash dividend paid per share $(0.87) $(0.70) 23% $(3.12) $(2.74) 14%
Capital expenditures, net in relation to sales 3.9% 5.0% (1.1)pp 3.9% 5.4% (1.5)pp
1) Defined as Expenditures for property, plant and equipment less Proceeds from sale of property, plant and equipment. 2) Operating cash flow less Capital expenditure, net.
Non-GAAP measure. See enclosed reconciliation table. 3) Free operating cash flow relative to Net income. Non-GAAP measure. See reconciliation table.
Selected Balance Sheet items Fourth quarter
(Dollars in millions) 2025 2024 Change
Trade working capital1) $1,221 $1,115 9.5%
Trade working capital in relation to sales2) 10.8% 10.7% 0.2pp
- Receivables outstanding in relation to sales3) 19.8% 19.0% 0.8pp
- Inventory outstanding in relation to sales4) 8.8% 8.8% 0.0pp
- Payables outstanding in relation to sales5) 17.8% 17.2% 0.6pp
Cash & cash equivalents 604 330 83%
Gross Debt6) 2,153 1,909 13%
Net Debt7) 1,566 1,554 0.8%
Capital employed8) 4,148 3,840 8.0%
Return on capital employed9) 30.3% 35.8% (5.5)pp
Total equity 2,582 2,285 13%
Return on total equity10) 35.1% 42.5% (7.4)pp
Leverage ratio11) 1.1 1.2 (0.1)
1) Outstanding receivables and outstanding inventory less outstanding payables. Non -GAAP measure, see reconciliation table. 2) Outstanding receivables and outstanding
inventory less outstanding payables relative to annualized quarterly sales. Non -GAAP measure, see reconciliation table. Annualized quarterly sales is calculated as the quarterly
sales amount multiplied by four. 3) Outstanding receivables relative to annualized quarterly sales. 4) Outstanding inventory relative to annualized quarterly sales. 5) Outstanding
payables relative to annualized quarterly sales. 6) Short- and long-term interest-bearing debt. 7) Short- and long-term debt less cash and cash equivalents and debt-related
derivatives. Non-GAAP measure. See reconciliation table. 8) Total equity and net debt. 9) Annualized operating income and income from equity method investments, relative to
average capital employed. See definitions of "Annualized operating income" in footnote to the reconciliation tables below. 10) Annualized net income relative to average total
equity. See definitions of "Annualized net income" in footnote to the reconciliation tables below. 11) Net debt adjusted for pension liabilities in relation to EBITDA. Non -GAAP
measure. See reconciliation table.
Fourth quarter 2025 development
Changes in operating working capital impacted operating
cash flow by $205 million positive compared to an impact of
$107 million positive in the prior year. The $205 million
positive impact mainly comes from $170 million in lower
receivables and other assets, which mainly is a
consequence of lower sales level towards the end of the
quarter, and also from $44 million improvement in
inventories mainly due to lower sales level towards the end
of the quarter.
Operating cash flow increased by $124 million to $544
million compared to the prior year, mainly because of more
favorable effects from changes in operating working capital,
as outlined above, and non-cash adjustments, mainly
positive effects from deferred income taxes, pension
liabilities, long term liabilities and other non-cash items,
partly offset by lower net income.
Capital expenditure, net, decreased by $22 million
compared to the prior year. The level of capital expenditure,
net, in relation to sales declined to 3.9% versus 5.0% a year
earlier. The lower level of capital expenditure, net is mainly
related to the lower activity level of footprint optimization and
less capacity expansion.
Free operating cash flow* was positive $434 million
compared to positive $288 million in the prior year. The
increase was due to the higher operating cash flow and
lower capital expenditure, net, as outlined above.
Cash conversion* defined as free operating cash flow* in
relation to net income, was 192% in the quarter compared to
118% a year earlier. The increase occurred because free
operating cash flow increased while net income decreased.
===== SIDA 12 =====
Kvartalsrapport oktober - december 2025
11
Trade working capital* increased by $106 million compared
to the prior year, where the main drivers were $242 million in
higher accounts receivables, $208 million in higher accounts
payable and $72 million in higher inventories. The increase
in trade working capital is mainly due to increased sales. In
relation to sales, trade working capital increased slightly from
10.7% to 10.8%.
Net debt* was $1,566 million as of December 31, 2025,
which was $12 million higher than a year earlier, mainly due
to that in the last twelve months, free operating cash flow
was lower than dividends paid, share repurchases and
negative effect of exchange rate changes on cash.
Total equity as of December 31, 2025, increased by $297
million compared to December 31, 2024. This was mainly
due to net income of $736 million and $137 million in positive
currency translation effects, partly offset by $355 million in
share repurchases, including taxes and $239 million in
dividend payments.
Leverage ratio*: On December 31, 2025, the Company had
a leverage ratio of 1.1x compared to 1.2x on December 31,
2024, as the 12 months trailing adjusted EBITDA* increased
by $127 million while net debt* per the policy increased by
$28 million. Our target is to have a leverage ratio not higher
than 1.5x.
Full year 2025 development
Operating cash flow increased by $98 million to $1,157
million compared to the prior year, mainly due to higher net
income and more positive effects of non-cash items mainly
effects from deferred income taxes, pension liabilities, long
term liabilities and other non-cash items, partly offset by less
favorable effects from changes in operating working capital.
Capital expenditure, net, decreased by $140 million
compared to the prior year. The level of capital expenditure,
net, in relation to sales declined to 3.9% versus 5.4% a year
earlier. The lower level of capital expenditure, net is mainly
related to the finalizing of several footprint optimization
projects in Europe and Americas and less capacity
expansion projects, especially in Asia.
Free operating cash flow* was positive $734 million
compared to positive $497 million in the prior year. The
increase was due to the lower capital expenditure, net and
the higher operating cash flow, as outlined above.
Cash conversion* defined as free operating cash flow* in
relation to net income, was 100% for the period, compared
to 77% in the prior year. The increase occurred because free
operating cash flow growth was higher than net income
growth.
Headcount
Dec 31 Sep 30 Dec 31
2025 2025 2024
Total headcount 64,300 65,200 65,200
Whereof: Direct headcount in manufacturing 47,300 47,900 48,000
Indirect headcount 17,000 17,300 17,200
Temporary personnel 10% 9% 9%
As of December 31, 2025, total headcount (Full Time
Equivalent) decreased by around 900, or 1.4%, compared to
a year earlier, despite that organic sales* increased by 4.1%
and that we in-sourced about 250 FTEs (mainly indirect) in
Tunisia and expansions in India and Vietnam. The indirect
workforce decreased by around 200, or 1.2%, mainly
reflecting our structural reduction initiatives, partly offset by
the above mentioned in-sourcing. The direct workforce
decreased by approximately 700, or 1.4%. The decrease
was supported by an improvement in customer call-off
accuracy which enabled us to accelerate operating efficiency
improvements.
Compared to September 30, 2025, total headcount (Full
Time Equivalent) decreased by around 900, or 1.4%.
Indirect headcount decreased by around 300, while direct
headcount decreased by approximately 600.
===== SIDA 13 =====
Kvartalsrapport oktober - december 2025
12
Other Items
• On December 29, 2025, Autoliv provided an update
regarding the resignation date of Fredrik Westin. Mr.
Westin will continue his employment as EVP, Finance
and Chief Financial Officer of the Company through
March 31, 2026. The recruitment of Mr. Westin's
successor as Chief Financial Officer and Executive Vice
President, Finance continues.
• On January 5, 2026, Autoliv and Tensor announced the
introduction of world's first foldable steering wheel for
autonomous driving. Seamlessly integrated with Tensor
Robocar's autonomous driving system, the steering
wheel retracts in Level 4 mode-where the vehicle can
handle all driving tasks within defined conditions. When
in autonomous mode, and the steering wheel is
retracted, a passenger airbag integrated into the
instrument panel is enabled. During manual driving, the
airbag located within the steering wheel is used.
• In Q4 2025, Autoliv repurchased and retired 1.26 million
shares of common stock at an average price of $118.98
per share under the Autoliv 2029 stock repurchase
program. Under this program, repurchases may be
made from July 1, 2025 through December 31, 2029.
The maximum value of aggregate repurchases under
this program is $2.5 billion. Repurchases of stock may
be made directly on the NYSE.
Next Report
Autoliv intends to publish the quarterly earnings report
for the first quarter of 2026 on Friday, April 17, 2026.
Footnotes
*Non-GAAP measures, see enclosed reconciliation tables.
Inquiries: Investors and Analysts
Anders Trapp
Vice President Investor Relations
Tel +46 (0)709 578 171
Henrik Kaar
Director Investor Relations
Tel +46 (0)709 578 114
Inquiries: Media
Gabriella Etemad
Senior Vice President Communications
Tel +46 (0)70 612 6424
Denna information är sådan information som Autoliv, Inc.
är skyldigt att offentliggöra enligt EUs
marknadsmissbruksförordning. Informationen lämnades,
genom ovanstående kontaktpersons försorg, för
offentliggörande den 30 januari 2026 kl 12.00 CET.
Definitions and SEC Filings
Please refer to www.autoliv.com or to our Annual Report for
definitions of terms used in this report. Autoliv’s annual
report to stockholders, annual report on Form 10-K,
quarterly reports on Form 10-Q, proxy statements,
management certifications, press releases, current reports
on Form 8-K and other documents filed with the SEC can
be obtained free of charge from Autoliv at the Company’s
address. These documents are also available at the SEC’s
website www.sec.gov and at Autoliv’s corporate website
www.autoliv.com.
This report includes content supplied by S&P Global;
Copyright © Light Vehicle Production Forecast, January
and October 2025 and January 2026. All rights reserved.
S&P Global is a global supplier of independent industry
information. The permission to use S&P Global copyrighted
reports, data and information does not constitute an
endorsement or approval by S&P Global of the manner,
format, context, content, conclusion, opinion or viewpoint in
which S&P Global reports, data and information or its
derivations are used or referenced herein.
===== SIDA 14 =====
Kvartalsrapport oktober - december 2025
13
“Safe Harbor Statement”
This report contains statements that are not historical facts but
rather forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-
looking statements include those that address activities, events or
developments that Autoliv, Inc. or its management believes or
anticipates may occur in the future. All forward-looking statements
are based upon our current expectations, various assumptions
and/or data available from third parties. Our expectations and
assumptions are expressed in good faith and we believe there is a
reasonable basis for them. However, there can be no assurance
that such forward-looking statements will materialize or prove to
be correct as forward-looking statements are inherently subject to
known and unknown risks, uncertainties and other factors which
may cause actual future results, performance or achievements to
differ materially from the future results, performance or
achievements expressed in or implied by such forward-looking
statements. In some cases, you can identify these statements by
forward-looking words such as “estimates”, “expects”,
“anticipates”, “projects”, “plans”, “intends”, “believes”, “may”,
“likely”, “might”, “would”, “should”, “could”, or the negative of these
terms and other comparable terminology, although not all forward-
looking statements contain such words. Because these forward-
looking statements involve risks and uncertainties, the outcome
could differ materially from those set out in the forward-looking
statements for a variety of reasons, including without limitation:
general global and regional economic conditions, including the
impact of inflation; changes in light vehicle production; fluctuation
in vehicle production schedules for which the Company is a
supplier; global supply chain disruptions, including port,
transportation, and distribution delays or interruptions; supply
chain disruptions, and component shortages specific to the
automotive industry or the Company; potential changes to
beneficial free trade agreements and regulations, such as the
United States-Mexico-Canada Agreement; changes in geopolitical
and other economic and political conditions or developments,
including inflation, changes trade policies, tariff regimes, and other
developments in and by countries in which we do business that
could materially impact supply chains, margins, access to capital,
or overall business performance; political stability or geopolitical
conflicts; changes in general industry or market conditions,
including regional economic growth or decline; changes in and the
successful execution of our capacity alignment, restructuring, cost
reduction, and efficiency initiatives and the market reaction
thereto; loss of business from increased competition; volatility or
increases in raw material, fuel, and energy costs; changes in
consumer and customer preferences for end products; loss of
customers or sales; legislative or regulatory changes; customer
bankruptcies, consolidations or restructuring or divestiture of
customer brands; unfavorable fluctuations in currencies or interest
rates among the various jurisdictions in which we operate; market
acceptance of our new products; costs or difficulties related to the
integration of any new or acquired businesses and technologies;
continued uncertainty in pricing and other negotiations with
customers, including inflation and tariff compensations;
successful integration of acquisitions and operations of joint
ventures; successful implementation of strategic partnerships
and collaborations; our ability to be awarded new business;
product liability, warranty and recall claims and investigations
and other litigation, civil judgments or financial penalties and
customer reactions thereto; higher expenses for our pension
and other postretirement benefits, including higher funding
needs for our pension plans; work stoppages or other labor
issues; possible adverse results of pending or future litigation
or infringement claims, and the availability of insurance with
respect to such matters; our ability to protect our intellectual
property rights; negative impacts of antitrust investigations or
other governmental investigations and associated litigation
relating to the conduct of our business; tax assessments or
results of tax audits by governmental authorities and changes
in our effective tax rate; dependence on key personnel; our
ability to meet our sustainability targets, goals and
commitments; dependence on and relationships with
customers and suppliers; the conditions necessary to hit our
financial targets; and other risks and uncertainties identified
under the headings “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” in our Annual Reports and Quarterly Reports on
Forms 10-K and 10-Q and any amendments thereto. For any
forward-looking statements contained in this or any other
document, we claim the protection of the safe harbor for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995, and we assume no obligation to
update publicly or revise any forward-looking statements in light
of new information or future events, except as required by law.
===== SIDA 15 =====
Kvartalsrapport oktober - december 2025
14
Consolidated Statements of Income
Fourth quarter Full year
(Dollars in millions, except per share data, unaudited) 2025 2024 2025 2024
Airbags, Steering Wheels and Other1) $1,907 $1,760 $7,302 $7,023
Seatbelt products and Other1) 910 856 3,513 3,367
Total net sales 2,817 2,616 10,815 10,390
Cost of sales (2,245) (2,065) (8,741) (8,463)
Gross profit 572 551 2,074 1,927
Selling, general & administrative expenses (144) (132) (571) (530)
Research, development & engineering expenses, net (94) (74) (413) (398)
Other income (expense), net (15) 8 (2) (19)
Operating income 319 353 1,088 979
Income from equity method investments 2 2 6 7
Interest income 3 3 10 13
Interest expense (26) (27) (103) (108)
Other non-operating items, net (5) (9) (15) (16)
Income before income taxes 293 321 986 875
Income taxes (68) (78) (250) (227)
Net income 226 243 736 648
Less: Net income attributable to non-controlling interest (0) 0 1 1
Net income attributable to controlling interest $226 $243 $735 $646
Earnings per share - diluted $2.98 $3.10 $9.55 $8.04
1) Including Corporate sales.
===== SIDA 16 =====
Kvartalsrapport oktober - december 2025
15
Consolidated Balance Sheets
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Dollars in millions, unaudited) 2025 2025 2025 2025 2024
Assets
Cash & cash equivalents $604 $225 $237 $322 $330
Receivables, net 2,236 2,357 2,341 2,205 1,993
Inventories, net 992 1,036 957 913 921
Prepaid expenses 212 226 249 184 167
Other current assets 57 102 146 75 72
Total current assets 4,101 3,946 3,929 3,699 3,483
Property, plant & equipment, net 2,419 2,402 2,399 2,286 2,239
Operating leases right-of-use assets 171 167 171 168 158
Goodwill and intangible assets, net 1,386 1,387 1,389 1,380 1,375
Investments and other non-current assets 568 561 588 581 548
Total assets 8,644 8,463 8,476 8,114 7,804
Liabilities and equity
Short-term debt 419 654 679 540 387
Accounts payable 2,007 1,889 1,945 1,839 1,799
Accrued liabilities 1,050 1,172 1,138 1,053 1,056
Operating lease liabilities - current 43 44 44 42 41
Other current liabilities 404 383 430 327 351
Total current liabilities 3,923 4,141 4,235 3,800 3,633
Long-term debt 1,734 1,374 1,372 1,565 1,522
Pension liability 169 167 167 163 153
Operating lease liabilities - non-current 122 118 121 120 118
Other non-current liabilities 113 105 102 103 92
Total non-current liabilities 2,138 1,763 1,762 1,952 1,885
Total parent shareholders’ equity 2,572 2,549 2,469 2,351 2,276
Non-controlling interest 10 10 11 10 10
Total equity 2,582 2,559 2,480 2,361 2,285
Total liabilities and equity $8,644 $8,463 $8,476 $8,114 $7,804
===== SIDA 17 =====
Kvartalsrapport oktober - december 2025
16
Consolidated Statements of Cash Flow
Fourth quarter Full year
(Dollars in millions, unaudited) 2025 2024 2025 2024
Net income $226 $243 $736 $648
Depreciation and amortization 108 98 407 387
Gain on divestiture of property (0) - (6) -
Other non-cash adjustments, net 6 (29) 32 (29)
Net change in operating working capital:
Receivables 73 50 (98) 47
Other current assets 97 58 (26) 67
Inventories 44 26 (8) 28
Accounts payable 109 (7) 119 (83)
Accrued expenses (137) (65) (30) (12)
Income taxes 19 45 30 6
Net cash provided by operating activities 544 420 1,157 1,059
Expenditures for property, plant and equipment (118) (139) (441) (579)
Proceeds from sale of property, plant and equipment 8 7 18 17
Net cash used in investing activities (110) (132) (423) (563)
Net (decrease) increase in short term debt (237) (211) 11 (126)
Decrease in long-term debt - (54) (311) (306)
Increase in long-term debt 399 - 521 526
Dividends paid (66) (55) (238) (219)
Share repurchases (150) (102) (351) (552)
Common stock options exercised - 0 0 1
Dividend paid to non-controlling interests - - (1) (5)
Net cash used in financing activities (53) (422) (369) (680)
Effect of exchange rate changes on cash (2) 49 (90) 16
Increase (decrease) in cash and cash equivalents 379 (84) 274 (168)
Cash and cash equivalents at period-start 225 415 330 498
Cash and cash equivalents at period-end $604 $330 $604 $330
===== SIDA 18 =====
Kvartalsrapport oktober - december 2025
17
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
In this report we sometimes refer to Non-GAAP measures that we and securities analysts use in measuring Autoliv's
performance. We believe that these measures assist investors and management in analyzing trends in the Company's
business for the reasons given below. Investors should not consider these Non-GAAP measures as substitutes, but rather as
additions, to financial reporting measures prepared in accordance with GAAP. It should be noted that these measures, as
defined, may not be comparable to similarly titled measures used by other companies.
Components in Sales Increase/Decrease
Since the Company historically generates approximately 75% of sales in currencies other than in the reporting currency (i.e.,
U.S. dollars) and currency rates have been volatile, we analyze the Company's sales trends and performance as changes in
organic sales growth. This presents the increase or decrease in the overall U.S. dollar net sales on a comparable basis,
allowing separate discussions of the impact of acquisitions/divestitures and exchange rates. The tables on pages 5 and 6
present changes in organic sales growth as reconciled to the change in the total GAAP net sales.
Reconciliation of GAAP measure "Working Capital" to Non-GAAP Measure
"Trade Working Capital"
Due to the need to optimize cash generation to create value for shareholders, management focuses on operationally derived
trade working capital as defined in the table below. Trade working capital is an indicator of operational efficiency, which
impacts the Company’s ability to return value to shareholders either through dividends or share repurchases. We believe this
is useful for readers to understand the efficiency of the Company’ operational capital management. The reconciling items
used to derive this measure are, by contrast, managed as part of our overall management of cash and debt, but they are not
part of the responsibilities of day-to-day operations management.
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Dollars in millions) 2025 2025 2025 2025 2024
Total current assets $4,101 $3,946 $3,929 $3,699 $3,483
Total current liabilities (3,923) (4,141) (4,235) (3,800) (3,633)
Working capital (GAAP) 178 (195) (305) (101) (150)
Less: Cash and cash equivalents (604) (225) (237) (322) (330)
Prepaid expenses (212) (226) (249) (184) (167)
Other current assets (57) (102) (146) (75) (72)
Less: Short-term debt 419 654 679 540 387
Accrued expenses 1,050 1,172 1,138 1,053 1,056
Operating lease liabilities - current 43 44 44 42 41
Other current liabilities 404 383 430 327 351
Trade working capital (Non-GAAP) $1,221 $1,504 $1,354 $1,279 $1,115
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Dollars in millions) 2025 2025 2025 2025 2024
Receivables, net $2,236 $2,357 $2,341 $2,205 $1,993
Inventories, net 992 1,036 957 913 921
Accounts payable (2,007) (1,889) (1,945) (1,839) (1,799)
Trade working capital (Non-GAAP) $1,221 $1,504 $1,354 $1,279 $1,115
Quarterly sales $2,817 $2,706 $2,714 $2,578 $2,616
Annualized quarterly sales1) 11,269 10,822 10,857 10,312 10,463
Trade working capital in relation to annualized quarterly
sales 10.8% 13.9% 12.5% 12.4% 10.7%
1) Calculated as the current quarterly sales multiplied by four.
===== SIDA 19 =====
Kvartalsrapport oktober - december 2025
18
Dec 31 Dec 31 Dec 31 Dec 31
(Dollars in millions) 2023 2022 2021 2020
Total current assets $3,974 $3,714 $3,675 $4,269
Total current liabilities (4,035) (3,642) (2,821) (3,147)
Working capital (GAAP) (61) 72 853 1,122
Less: Cash and cash equivalents (498) (594) (969) (1,178)
Prepaid expenses (173) (160) (164) (164)
Other current assets (93) (84) (65) (307)
Less: Short-term debt 538 711 346 302
Accrued expenses 1,135 915 996 1,270
Operating lease liabilities - current 39 39 38 37
Other current liabilities 345 283 297 284
Trade working capital (Non-GAAP) $1,232 $1,183 $1,332 $1,366
Dec 31 Dec 31 Dec 31 Dec 31
(Dollars in millions) 2023 2022 2021 2020
Receivables, net $2,198 $1,907 $1,699 $1,822
Inventories, net 1,012 969 777 798
Accounts payable (1,978) (1,693) (1,144) (1,254)
Trade working capital (Non-GAAP) $1,232 $1,183 $1,332 $1,366
Quarterly sales $2,751 $2,335 $2,119 $2,517
Annualized quarterly sales1) 11,006 9,340 8,476 10,067
Trade working capital in relation to annualized quarterly sales 11.2% 12.7% 15.7% 13.6%
1) Calculated as the fourth quarterly sales multiplied by four.
===== SIDA 20 =====
Kvartalsrapport oktober - december 2025
19
Net Debt
Autoliv from time to time enters into “debt-related derivatives” (DRDs) as a part of its debt management and as part of
efficiently managing the Company’s overall cost of funds. Creditors and credit rating agencies use net debt adjusted for
DRDs in their analyses of the Company’s debt, therefore we provide this Non -GAAP measure. DRDs are fair value
adjustments to the carrying value of the underlying debt. Also included in t he DRDs is the unamortized fair value adjustment
related to a discontinued fair value hedge that will be amortized over the remaining life of the debt. By adjusting for DRDs,
the total financial liability of net debt is disclosed without grossing debt up w ith currency or interest fair values.
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Dollars in millions) 2025 2025 2025 2025 2024
Short-term debt $419 $654 $679 $540 $387
Long-term debt 1,734 1,374 1,372 1,565 1,522
Total debt (GAAP) 2,153 2,027 2,051 2,105 1,909
Cash & cash equivalents (604) (225) (237) (322) (330)
Debt issuance cost/Debt-related derivatives, net 17 (30) (62) 4 (24)
Net debt (Non-GAAP) $1,566 $1,772 $1,752 $1,787 $1,554
Dec 31 Dec 31 Dec 31 Dec 31
(Dollars in millions) 2023 2022 2021 2020
Short-term debt $538 $711 $346 $302
Long-term debt 1,324 1,054 1,662 2,110
Total debt (GAAP) 1,862 1,766 2,008 2,411
Cash & cash equivalents (498) (594) (969) (1,178)
Debt issuance cost/Debt-related derivatives, net 3 12 13 (19)
Net debt (Non-GAAP) $1,367 $1,184 $1,052 $1,214
Leverage ratio
The Non-GAAP measure “net debt” is also used in the Non-GAAP measure “Leverage ratio”. Management uses this
measure to analyze the amount of debt the Company can incur under its debt policy. Management believes that this policy
also provides guidance to credit and equity investors regarding the extent to which the Company would be prepared to
leverage its operations. Autoliv’s policy is to maintain a leverage ratio commensurate with a strong investment grade credit
rating. The Company measures its leverage ratio as net debt* adjusted for pension liabilities in relation to adjusted EBITDA* .
The long-term target is to maintain a leverage ratio equal to or below 1.5x.
Dec 31 Sep 30 Dec 31
(Dollars in millions) 2025 2025 2024
Net debt1) (Non-GAAP) $1,566 $1,772 $1,554
Pension liabilities 169 167 153
Net debt per the Policy (Non-GAAP) $1,736 $1,939 $1,708
Net income2) $736 $754 $648
Income taxes2) 250 261 227
Interest expense, net2, 3) 93 94 95
Other non-operating items, net2) 15 20 16
Income from equity method investments2) (6) (6) (7)
Depreciation and amortization of intangibles2) 407 397 387
Capacity alignments2) 23 (1) 19
Antitrust related items2) 3 5 8
Other items2) - - 0
EBITDA per the Policy (Adjusted EBITDA) (Non-GAAP) $1,521 $1,524 $1,394
Leverage ratio (Non-GAAP) 1.1 1.3 1.2
1) Short- and long-term debt less cash and cash equivalents and debt-related derivatives. 2) Latest 12 months. 3) Interest expense, including cost for extinguishment of debt, if
any, less interest income.
===== SIDA 21 =====
Kvartalsrapport oktober - december 2025
20
Reconciliation of GAAP measure "Operating cash flow" to Non-GAAP measures
"Free operating cash flow" and "Cash conversion"
Management uses the Non-GAAP measure “free operating cash flow” to analyze the amount of cash flow being generated
by the Company’s operations after capital expenditure, net. This measure indicates the Company’s cash flow generation
level that enables strategic value creation options such as dividends or acquisitions. For details on free operating cash flo w,
see the reconciliation table below. Management uses the Non-GAAP measure “cash conversion” to analyze the proportion of
net income that is converted into free operating cash flow. The measure is a tool to evaluate how efficiently the Company
utilizes its resources. For details on cash conversion, see the reconciliation table below.
Fourth quarter Full year
(Dollars in millions) 2025 2024 2025 2024
Net income $226 $243 $736 $648
Depreciation and amortization 108 98 407 387
Gain on divestiture of property (0) - (6) -
Other, net 6 (29) 32 (29)
Changes in operating working capital, net 205 107 (12) 53
Operating cash flow (GAAP) 544 420 1,157 1,059
Expenditures for property, plant and equipment (118) (139) (441) (579)
Proceeds from sale of property, plant and equipment 8 7 18 17
Capital expenditure, net1) (110) (132) (423) (563)
Free operating cash flow2) (Non-GAAP) $434 $288 $734 $497
Cash conversion3) (Non-GAAP) 192% 118% 100% 77%
1) Defined as Expenditures for property, plant and equipment less Proceeds from sale of property, plant and equipment. 2) Operating cash flow less Capital expenditure, net.
3) Free operating cash flow relative to Net income.
Full year Full year Full year Full year
(Dollars in millions) 2023 2022 2021 2020
Net income $489 $425 $437 $188
Depreciation and amortization 378 363 394 371
Gain on divestiture of property - (80) - -
Other, net (119) (54) (15) 13
Changes in operating working capital, net 235 58 (63) 277
Operating cash flow (GAAP) 982 713 754 849
Expenditures for property, plant and equipment (572) (585) (458) (344)
Proceeds from sale of property, plant and equipment 4 101 4 4
Capital expenditure, net1) (569) (485) (454) (340)
Free operating cash flow2) (Non-GAAP) $414 $228 $300 $509
Cash conversion3) (Non-GAAP) 85% 54% 69% 270%
1) Defined as Expenditures for property, plant and equipment less Proceeds from sale of property, plant and equipment. 2) Operating cash flow less Capital expenditure, net.
3) Free operating cash flow relative to net income.
===== SIDA 22 =====
Kvartalsrapport oktober - december 2025
21
Items Affecting Comparability
We believe that comparability between periods is improved through the exclusion of certain items. To assist investors in
understanding the operating performance of Autoliv's business, it is useful to consider certain GAAP measures exclusive of
these items.
The following tables reconcile Income before income taxes, Net income attributable to controlling interest, Capital employed,
which are inputs utilized to calculate Return On Capital Employed (“ROCE”), adjusted ROCE and Return On Total Equity
(“ROE”). The Company believes this presentation may be useful to investors and industry analysts who utilize these adjusted
non-U.S. GAAP measures in their ROCE and ROE calculations to exclude certain items for comparison purposes across
periods. Autoliv’s management uses the ROCE, adjusted ROCE and ROE measures for purposes of comparing its financial
performance with the financial performance of other companies in the industry and providing useful information regarding the
factors and trends affecting the Company’s business.
As used by the Company, ROCE is annualized operating income and income from equity method investments, relative to
average capital employed. Adjusted ROCE is annualized operating income and income from equity method investments,
relative to average capital employed as adjusted to exclude certain non-recurring items. See definitions of "annualized
operating income" and "average capital employed" in footnote to the tables below. The Company believes ROCE and
adjusted ROCE are useful indicators of long-term performance both absolute and relative to the Company's peers as it
allows for a comparison of the profitability of the Company’s capital employed in its business relative to that of its peers.
ROE is the ratio of annualized income (loss) relative to average total equity for the periods presented. See definitions of
"annualized income" and "average total equity" in footnote to the tables below. Adjusted ROE is annualized income (loss)
relative to average total equity for the periods presented as adjusted to exclude certain non -recurring items.The Company’s
management believes that ROE and Adjusted ROE is a useful indicator of how well management creates value for its
shareholders through its operating activities and its capital management.
With respect to the Andrews litigation settlement, the Company has treated this specific settlement as a non -recurring charge
because of the unique nature of the lawsuit, including the facts and legal issues involved.
Accordingly, the tables below reconcile from GAAP to the equivalent Non-GAAP measures.
Reconciliation of GAAP measure "Operating income" to Non-GAAP measure
"Adjusted Operating income"
Fourth quarter Full year
(Dollars in millions) 2025 2024 2025 2024
Operating income (GAAP) $319 $353 $1,088 $979
Non-GAAP adjustments:
Less: Capacity alignments 17 (6) 23 19
Less: Antitrust related items 0 2 3 8
Total non-GAAP adjustments to operating income 17 (4) 26 27
Adjusted Operating income (Non-GAAP) $337 $349 $1,114 $1,007
(Dollars in millions) 2023 2022 2021 2020
Operating income (GAAP) $690 $659 $675 $382
Non-GAAP adjustments:
Less: Capacity alignments1) 218 (61) 8 99
Less: The Andrews litigation settlement 8 - - -
Less: Antitrust related items 4 - - 1
Total non-GAAP adjustments to operating income 230 (61) 8 99
Adjusted Operating income (Non-GAAP) $920 $598 $683 $482
1) For 2022, including a gain on divestiture of property of $80 million.
===== SIDA 23 =====
Kvartalsrapport oktober - december 2025
22
Reconciliation of GAAP measure "Operating margin" to Non-GAAP measure
"Adjusted Operating margin"
Fourth quarter Full year
2025 2024 2025 2024
Operating margin (GAAP) 11.3% 13.5% 10.1% 9.4%
Non-GAAP adjustments:
Less: Capacity alignments 0.6% (0.2)% 0.2% 0.2%
Less: Antitrust related items 0.0% 0.1% 0.0% 0.1%
Total non-GAAP adjustments to operating margin 0.6% (0.2)% 0.2% 0.3%
Adjusted Operating margin (Non-GAAP) 12.0% 13.4% 10.3% 9.7%
2023 2022 2021 2020
Operating margin (GAAP) 6.6% 7.5% 8.2% 5.1%
Non-GAAP adjustments:
Less: Capacity alignments 2.1% (0.7)% 0.1% 1.4%
Less: The Andrews litigation settlement 0.1% - - -
Less: Antitrust related items 0.0% - - 0.0%
Total non-GAAP adjustments to operating margin 2.2% (0.7)% 0.1% 1.4%
Adjusted Operating margin (Non-GAAP) 8.8% 6.8% 8.3% 6.5%
Reconciliation of GAAP measure "Income before income taxes" to Non-GAAP
measure "Adjusted Income before income taxes"
Fourth quarter Full year
(Dollars in millions) 2025 2024 2025 2024
Income before income taxes (GAAP) $293 $321 $986 $875
Non-GAAP adjustments:
Less: Capacity alignments 17 (6) 23 19
Less: Antitrust related items 0 2 3 8
Total non-GAAP adjustments to Income before income taxes 17 (4) 26 27
Adjusted Income before income taxes (Non-GAAP) $310 $317 $1,012 $902
Reconciliation of GAAP measure "Net income" to Non-GAAP measure "Adjusted
Net income"
Fourth quarter Full year
(Dollars in millions) 2025 2024 2025 2024
Net income (GAAP) $226 $243 $736 $648
Non-GAAP adjustments:
Less: Capacity alignments 17 (6) 23 19
Less: Antitrust related items 0 2 3 8
Less: Tax on non-GAAP adjustments (1) 0 (3) (5)
Total non-GAAP adjustments to Net income 16 (4) 23 22
Adjusted Net income (Non-GAAP) $242 $240 $759 $670
===== SIDA 24 =====
Kvartalsrapport oktober - december 2025
23
Reconciliation of GAAP measure "Net income attributable to controlling interest" to
Non-GAAP measure "Adjusted Net income attributable to controlling interest"
Fourth quarter Full year
(Dollars in millions) 2025 2024 2025 2024
Net income attributable to controlling interest (GAAP) $226 $243 $735 $646
Non-GAAP adjustments:
Less: Capacity alignments 17 (6) 23 19
Less: Antitrust related items 0 2 3 8
Less: Tax on non-GAAP adjustments (1) 0 (3) (5)
Total non-GAAP adjustments to Net income attributable to controlling
interest 16 (4) 23 22
Adjusted Net income attributable to controlling interest (Non-GAAP) $242 $239 $758 $668
Reconciliation of GAAP measure "Earnings per share - diluted" to Non-GAAP
measure "Adjusted Earnings per share - diluted"
Fourth quarter Full year
2025 2024 2025 2024
Earnings per share - diluted (GAAP) $2.98 $3.10 $9.55 $8.04
Non-GAAP adjustments:
Less: Capacity alignments 0.23 (0.08) 0.29 0.24
Less: Antitrust related items 0.00 0.03 0.04 0.10
Less: Tax on non-GAAP adjustments (0.01) 0.00 (0.04) (0.06)
Total non-GAAP adjustments to Earnings per share - diluted 0.22 (0.05) 0.30 0.28
Adjusted Earnings per share - diluted (Non-GAAP) $3.19 $3.05 $9.85 $8.32
Weighted average number of shares outstanding - diluted 75.7 78.5 76.9 80.4
Reconciliation of GAAP measure "Return on Capital Employed" to Non-GAAP
measure "Adjusted Return on Capital Employed"
Fourth quarter Full year
2025 2024 2025 2024
Return on capital employed1) (GAAP) 30.3% 35.8% 26.4% 25.0%
Non-GAAP adjustments:
Less: Capacity alignments 1.5% (1.0)% 0.5% 0.4%
Less: Antitrust related items 0.0% 0.4% 0.1% 0.2%
Total non-GAAP adjustments to Return on capital employed1) 1.5% (0.6)% 0.6% 0.6%
Adjusted Return on capital employed1) (Non-GAAP) 31.8% 35.2% 27.0% 25.6%
Annualized adjustment2) on Return on capital employed1) $69 $(16) $26 $27
1) Annualized operating income and income from equity method investments, relative to average capital employed. The average capi tal employed amount is calculated as an
average of the opening balance amount and the closing balance amounts for each quarter inc luded in the period.
2) The quarterly annualized adjustment to the operating income and income from equity method investments amount is calculated as the quarterly amount multiplied by four. The
year-to-date annualized adjustment to the operating income and income from equity me thod investments amount is calculated as the year-to-date amount divided by the quarterly
period number (two, three or four) multiplied by four.
===== SIDA 25 =====
Kvartalsrapport oktober - december 2025
24
Reconciliation of GAAP measure "Return on Total Equity" to Non-GAAP measure
"Adjusted Return on Total Equity"
Fourth quarter Full year
2025 2024 2025 2024
Return on total equity1) (GAAP) 35.1% 42.5% 30.0% 27.2%
Non-GAAP adjustments:
Less: Capacity alignments 2.4% (1.9)% 0.8% 0.7%
Less: Antitrust related items 0.0% 0.7% 0.1% 0.3%
Less: Tax on non-GAAP adjustments (0.1)% 0.1% (0.1)% (0.2)%
Total non-GAAP adjustments to Return on total equity1) 2.3% (1.1)% 0.9% 0.8%
Adjusted Return on total equity1) (Non-GAAP) 37.4% 41.4% 30.8% 28.0%
Annualized adjustment2) on Return on total equity1) $65 $(15) $23 $22
1) Annualized net income relative to average total equity. The average total equity amount is calculated as an average of the op ening balance amount and the closing balance
amounts for each quarter included in the period.
2) The quarterly annualized adjustment to net income amount is calculated as the quarterly amount multiplied by four. The year -to-date annualized adjustment to the net income
amount is calculated as the year-to-date amount divided by the quarterly period number (two, three or four) multiplied by four.
===== SIDA 26 =====
Kvartalsrapport oktober - december 2025
25
(Dollars in millions, except per share data, unaudited) 2025 2024 2023 2022 2021
Sales and Income
Net sales $10,815 $10,390 $10,475 $8,842 $8,230
Airbags, Steering Wheels and Other1) 7,302 7,023 7,055 5,807 5,380
Seatbelt Products and Other1) 3,513 3,367 3,420 3,035 2,850
Operating income 1,088 979 690 659 675
Net income attributable to controlling interest 735 646 488 423 435
Earnings per share – basic2) 9.59 8.06 5.74 4.86 4.97
Earnings per share – diluted2) 9.55 8.04 5.72 4.85 4.96
Gross margin3) 19.2% 18.5% 17.4% 15.8% 18.4%
S,G&A in relation to sales (5.3)% (5.1)% (4.8)% (4.9)% (5.3)%
R,D&E net in relation to sales (3.8)% (3.8)% (4.1)% (4.4)% (4.7)%
Operating margin4) 10.1% 9.4% 6.6% 7.5% 8.2%
Adjusted operating margin5,6) 10.3% 9.7% 8.8% 6.8% 8.3%
Balance Sheet
Trade working capital6,7) 1,221 1,115 1,232 1,183 1,332
Trade working capital in relation to sales8) 10.8% 10.7% 11.2% 12.7% 15.7%
Receivables outstanding in relation to sales9) 19.8% 19.0% 20.0% 20.4% 20.0%
Inventory outstanding in relation to sales10) 8.8% 8.8% 9.2% 10.4% 9.2%
Payables outstanding in relation to sales11) 17.8% 17.2% 18.0% 18.1% 13.5%
Total equity 2,582 2,285 2,570 2,626 2,648
Total parent shareholders’ equity per share 34.43 29.26 30.93 30.30 30.10
Current assets excluding cash 3,497 3,153 3,475 3,119 2,705
Property, plant and equipment, net 2,419 2,239 2,192 1,960 1,855
Goodwill and Intangible assets 1,386 1,375 1,385 1,382 1,395
Capital employed 4,148 3,840 3,937 3,810 3,700
Net debt6) 1,566 1,554 1,367 1,184 1,052
Total assets 8,644 7,804 8,332 7,717 7,537
Long-term debt 1,734 1,522 1,324 1,054 1,662
Return on capital employed12) 26.4% 25.0% 17.7% 17.5% 18.3%
Return on total equity13) 30.0% 27.2% 19.0% 16.3% 17.1%
Total equity ratio 30% 29% 31% 34% 35%
Cash flow and other data
Operating cash flow 1,157 1,059 982 713 754
Depreciation and amortization 407 387 378 363 394
Capital expenditures, net 423 563 569 485 454
Capital expenditures, net in relation to sales 3.9% 5.4% 5.4% 5.5% 5.5%
Free operating cash flow6,14) 734 497 414 228 300
Cash conversion6,15) 100% 77% 85% 54% 69%
Direct shareholder return16) 590 771 577 339 165
Cash dividends paid per share 3.12 2.74 2.66 2.58 1.88
Number of shares outstanding (millions)17) 74.7 77.7 82.6 86.2 87.5
Number of employees, December 31 58,000 59,500 62,900 61,700 55,900
1) Including Corporate sales 2) Net of treasury shares. 3) Gross profit relative to sales. 4) Operating income relative to sales. 5) Excluding effects from capacity alignments, antitrust
related matters and for FY 2023 the Andrews litigation settlement. 6) Non-GAAP measure, for reconciliation see tables above. 7) Outstanding receivables and outstanding inventory
less outstanding payables. 8) Outstanding receivables and outstanding inventory less outstanding payables relative to annualized fourth quarter sales. 9) Outstanding receivables
relative to annualized fourth quarter sales. 10)Outstanding inventory relative to annualized fourth quarter sales. 11) Outstanding payables relative to annualized fourth quarter sales.
12) Operating income and income from equity method investments, relative to average capital employed. 13) Income relative to total equity. 14) Operating cash flow less Capital
expenditures, net. 15) Free operating cash flow relative to Net income. 16) Dividends paid and Shares repurchased.
17) At year end, excluding dilution and net of treasury shares.