Autoliv Drives Resilience in Q1 2025 with Strong Sales and Earnings
The automotive safety industry leader Autoliv Inc. has reported a solid first quarter for 2025, showcasing its adaptability and resilience driven by its diverse product portfolio and strong customer relationships.
During the company's recent conference call, President and Chief Executive Officer Mikael Bratt highlighted that despite continued headwinds from light vehicle production mix shift in China, Autoliv outperformed global light vehicle production in March. The stronger-than-expected sales were partly driven by Light Vehicle Production (LVP) pull forward in Europe and North America.
Autoliv's profit and operating margin significantly improved compared to the same quarter last year, primarily driven by well-executed cost reduction activities. The company reduced its indirect workforce by over 1,500 since Q1 2023, and direct headcount by 3,700 over the past year.
"We neutralized tariffs almost entirely in the quarter by agreements with customers," Bratt stated during the call. "We also achieved record earnings per share for the first quarter, thanks to lower number of shares and high net profit."
Autoliv's structural cost reduction program has contributed to its strong performance, which includes a solid cash flow despite higher receivables from strong sales towards the end of the quarter. The company repurchased and retired 500,000 shares for USD 50 million and paid a dividend of $0.70 per share.
Autoliv's President and CEO also emphasized that Autoliv continues to generate a high level of return on capital employed, supporting its continued high level of shareholder returns.
The company received recognition from the Automotive News in the category "Innovation to Watch" for its airbag module. The award highlights achievements under development with new materials, fresh processes, and bold execution in the automotive and future mobility space.
Autoliv's financial results for Q1 2025 show a decrease of 1% year-over-year in sales due to negative effects from currency, light vehicle production development, and advanced regional and customer mix development. However, the adjusted operating income increased by 28% to USD 255 million from USD 199 million last year.
The adjusted operating margin was 9.9%, 230 basis points better than in the same quarter last year. Operating cash flow remained solid despite a temporary working capital buildup.
