Autoliv: Financial Report April - June 2025
STOCKHOLM, July 18, 2025 /PRNewswire/ --
Q2 2025: Q2 records for sales, operating income and margin as well as EPS
Financial highlights Q2 2025$2,714 million net sales 4.2% net sales increase3.4% organic sales growth*9.1% operating margin9.3% adjusted operating margin*$2.16 diluted EPS, 27% increase$2.21 adjusted diluted EPS*, 18% increase
Full year 2025 guidanceAround 3% organic sales growthAround 0% FX effect on net salesAround 10-10.5% adjusted operating marginAround $1.2 billion operating cash flow
All change figures in this release compare to the same period of the previous year except when stated otherwise.
Key business developments in the second quarter of 2025
Net sales increased organically* 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 vs. 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.
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* increased by 14% to $251 million. Operating margin was 9.1% and adjusted operating margin* was 9.3%. ROCE was 23.8% and adjusted ROCE* was 24.1%.
Operating cash flow was 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* 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.
*For non-U.S. GAAP measures see enclosed reconciliation tables.
Key Figures
(Dollars in millions, except per share data)
Q2 2025
Q2 2024
Change
6M ...
