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1. Company Snapshot

1.a. Company Description

Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies passive safety systems to the automotive industry in Europe, the Americas, China, Japan, and rest of Asia.It offers passive safety systems, including modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, inflator technologies, and battery cut-off switches, as well as anti-whiplash systems and pedestrian protection systems, and connected safety services and solutions for riders of powered two wheelers.The company primarily serves car manufacturers.


Autoliv, Inc.was founded in 1953 and is headquartered in Stockholm, Sweden.

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1.b. Last Insights on ALIV

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1.c. Company Highlights

2. Autoliv's Q4 2025 Earnings: A Strong Finish to a Record Year

Autoliv reported a robust fourth quarter, with sales reaching $2.8 billion, an 8% year-over-year increase driven by strong outperformance relative to light vehicle production, favorable currency effects, and tariff-related compensations. Adjusted earnings per share diluted increased by $0.14, beating analyst estimates of $22.39 with an actual EPS of $28.01. Despite a 4% decrease in adjusted operating income to $337 million, the company's full-year 2025 results were impressive, with record sales, adjusted operating profit, operating cash flow, and adjusted earnings per share.

Publication Date: Feb -04

📋 Highlights
  • Record Sales Growth:: Net sales rose 8% to $2.8 billion in Q4 2025, driven by outperformance vs. LVP, favorable currency, and tariff compensations.
  • Free Cash Flow Surge:: Generated $734 million in free operating cash flow, a $230 million increase, supporting $216 million in shareholder returns and $150 million in share repurchases.
  • Margin Pressure Despite Profitability:: Adjusted operating income fell 4% to $337 million, with the margin dropping 140 bps to 12.0%, amid higher raw material and depreciation costs.
  • Strategic Product Innovation:: Launched first foldable steering wheel for Tensor's Robocar (vol. production by 2026) and expects record 2026 product launches, especially in China.
  • Market Share Expansion:: Global market share climbed to 44% in 2025 (up 500 bps since 2018), with 30% of order intake from Chinese OEMs, and expects 1% LVP outperformance in 2026.

Financial Highlights and Cash Flow Generation

The company's financial performance was characterized by strong cash flow generation, with $734 million in free operating cash flow, an increase of over $230 million. Autoliv returned $216 million to shareholders while reducing its debt leverage ratio to 1.1x. For the full year 2025, the company achieved a record year for sales, adjusted operating profit, operating cash flow, and adjusted earnings per share, with net sales of $10.8 billion, a 4% increase compared to 2024.

Guidance and Outlook for 2026

Autoliv expects flat organic sales overall in 2026, with growth in China, India, and South America offset by lower sales in North America and Europe. The company anticipates margin expansion supported by higher operational efficiency, ongoing structural cost reductions, and improved light vehicle production call volatility. Autoliv expects continued strong operating and free operating cash flow generation, with CapEx expected to be slightly higher than in 2025 but still below 5% of sales.

Valuation and Key Metrics

With a P/E Ratio of 12.55 and an EV/EBITDA of 7.44, Autoliv's valuation appears reasonable. The company's Return on Equity (ROE) of 29.57% and Return on Invested Capital (ROIC) of 15.7% indicate strong profitability. The Dividend Yield of 2.55% and Free Cash Flow Yield of 7.69% suggest that Autoliv is an attractive investment opportunity. As Mikael Bratt concluded, the company is confident in its strong market position and growth momentum in Asia, particularly in China and India, and its ability to strengthen profitability in a low-growth environment.

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.65%)

6. Segments

Airbag, Steering Wheels and Other

Expected Growth: 4%

Autoliv's Airbag segment growth is driven by increasing safety regulations, rising demand for advanced safety features, and growing vehicle production. Steering Wheels growth is fueled by the adoption of advanced driver-assistance systems (ADAS) and autonomous driving technologies. The Other segment benefits from the increasing popularity of electric and hybrid vehicles, which require specialized safety components.

Seatbelt

Expected Growth: 6%

Autoliv's seatbelt segment growth is driven by increasing demand for safety features, stringent government regulations, and rising adoption of advanced safety systems in emerging markets. Additionally, the company's focus on innovation, such as introducing active safety systems, and its strong relationships with major OEMs contribute to its 6% growth.

7. Detailed Products

Airbags

Autoliv's airbags are designed to deploy in the event of a crash, cushioning the impact and reducing the risk of injury or fatality.

Seatbelts

Autoliv's seatbelts are designed to restrain occupants in their seats, reducing the risk of ejection or injury in the event of a crash.

Steering Wheels

Autoliv's steering wheels are designed to provide a comfortable and safe driving experience, with integrated airbags and other safety features.

Radar and Camera Systems

Autoliv's radar and camera systems are designed to provide advanced driver assistance systems (ADAS) features, such as lane departure warning and adaptive cruise control.

Night Vision Systems

Autoliv's night vision systems are designed to enhance visibility in low-light conditions, using infrared cameras and displays to provide a clear view of the road ahead.

Autonomous Driving Systems

Autoliv's autonomous driving systems are designed to enable semi-autonomous and autonomous driving capabilities, using a combination of sensors and software.

8. Autoliv, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Autoliv, Inc. is medium due to the presence of alternative safety systems and components in the market.

Bargaining Power Of Customers

The bargaining power of customers for Autoliv, Inc. is low due to the company's strong relationships with major automotive manufacturers and its position as a leading supplier of safety systems.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Autoliv, Inc. is medium due to the company's dependence on a few key suppliers for critical components and the potential for supply chain disruptions.

Threat Of New Entrants

The threat of new entrants for Autoliv, Inc. is low due to the high barriers to entry in the automotive safety systems market, including significant capital investments and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Autoliv, Inc. is high due to the competitive nature of the automotive safety systems market, with several established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 44.33%
Debt Cost 5.72%
Equity Weight 55.67%
Equity Cost 12.59%
WACC 9.54%
Leverage 79.62%

11. Quality Control: Autoliv, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Pirelli

A-Score: 6.6/10

Value: 7.6

Growth: 3.7

Quality: 5.7

Yield: 6.9

Momentum: 6.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
CIE Automotive

A-Score: 6.1/10

Value: 6.9

Growth: 5.3

Quality: 2.7

Yield: 6.2

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Autoliv

A-Score: 5.5/10

Value: 5.5

Growth: 5.7

Quality: 5.4

Yield: 6.2

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
HELLA

A-Score: 4.8/10

Value: 3.6

Growth: 5.7

Quality: 4.7

Yield: 2.5

Momentum: 3.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Knorr-Bremse

A-Score: 4.7/10

Value: 2.6

Growth: 3.4

Quality: 5.3

Yield: 3.8

Momentum: 6.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Continental

A-Score: 3.9/10

Value: 5.1

Growth: 3.3

Quality: 2.6

Yield: 5.6

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1128.0$

Current Price

1128$

Potential

-0.00%

Expected Cash-Flows