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Autoliv: Financial Report January - March 2025

1. ALV reported Q1 2025 net sales of $2,578 million, a 1.4% decrease. 2. Organic sales growth was 2.2%, outperforming global LVP decrease of 0.4%. 3. Operating income rose 31% to $254 million; diluted EPS increased by 41%. 4. ALV maintains guidance of 2% organic sales growth and a 10-10.5% margin. 5. The company repurchased 0.5 million shares and paid a $0.70 dividend.

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FAQ

Why Bullish?

ALV's improved profitability indicators and share buyback support a positive outlook.

How important is it?

Strong performance metrics and shareholder returns indicate potential for price appreciation.

Why Short Term?

Immediate impact expected from strong quarterly results but geopolitical uncertainties linger.

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, /PRNewswire/ -- (NYSE: ALV) (SSE: ALIV.sdb) Q1 2025: Good sales and execution of cost reduction programs Financial highlights Q1 2025 $2,578 million net sales 1.4% net sales decrease2.2% organic sales growth*9.9% operating margin9.9% adjusted operating margin*$2.14 diluted EPS, 41% increase$2.15 adjusted diluted EPS*, 37% increase Full year 2025 guidance Around 2% organic sales growthAround 3% negative 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 first quarter of 2025 First quarter sales increased organically* by 2.2%, which was 2.6pp higher than the global LVP decrease of 0.4% (S&P Global March 2025). A strong LVP in March resulted in a stronger than expected global LVP in the quarter. Regional and customer LVP mix is estimated to have contributed to about 3pp underperformance. Compared to March S&P Global LVP data, we outperformed Europe, Americas and in Asia excl. China, mainly due to product launches and positive pricing. Our sales to domestic Chinese OEMs grew by 19%, in line with their LVP growth. As lower content vehicles in China outgrew higher content vehicles, we underperformed in China overall. We expect that our record number of new launches will significantly improve our relative sales performance in China in 2025. Profitability improved, mainly due to organic sales growth and successful execution of cost reductions. Total headcount decreased by 6%. Impacts from the U.S. tariffs and counter tariffs in Q1 had a negligible impact on operating profit in the quarter as we managed to pass on the costs of tariff increases to our customers. Operating income was $254 million and adjusted operating income* was $255 million. Operating margin and adjusted operating margin* were both 9.9%.ROCE and adjusted ROCE* were both 25.6%. Free operating cash flow* was in line with last year, despite that operating cash flow was slightly lower than last year. A larger working capital build up reflecting higher sales at the end of the quarter was offset by lower capex, net. The leverage ratio* of 1.3x is within our target range. 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) Q1 2025 Q1 2024 Change Net sales $2,578 $2,615 (1.4) % Operating income 254 194 31 % Adjusted operating income1) 255 199 28 % Operating margin 9.9 % 7.4 % 2.4pp Adjusted operating margin1) 9.9 % 7.6 % 2.3pp Earnings per share - diluted 2.14 1.52 41 % Adjusted earnings per share - diluted1) 2.15 1.58 37 % Operating cash flow 77 122 (37) % Return on capital employed2) 25.6 % 19.7 % 5.9pp Adjusted return on capital employed1,2) 25.6 % 20.2 % 5.4pp 1) Excluding effects from capacity alignments and antitrust related matters. Non-U.S. GAAP measure, see reconciliation table.2) Annualized operating income and income from equity method investments, relative to average capital employed. Comments from Mikael Bratt, President & CEO "I am pleased that we delivered good sales and profitability in the first quarter. Thanks to our adaptability and resilience, driven by our diverse product portfolio and strong customer relationships, we successfully navigated through the first month of North American tariffs. It is encouraging that we, based on LVP data from March, outperformed global LVP despite continued significant headwinds from LVP mix shifts, particularly in China. Based on a record high number of new launches we look forward to a significantly improved sales performance in China in 2025.  Our strong profitability improvement was a result of well executed operational and commercial efforts. Our structural cost reduction program continued to generate indirect work force reductions, and direct headcount was also reduced significantly although sales grew organically. Results were also supported by reaching Q1 customer compensation agreements for increased costs related to inflation and tariffs. Our continued repurchase of shares also supported a record first quarter EPS.  After the slow end to 2024, OEM sourcing of safety products for future car models picked up in the first quarter, despite the geopolitical uncertainty. Our navigation of the new tariff environment in the first quarter gives us confidence that it is possible to continue on that course when facing increasing or changing tariffs, although there is significant uncertainty. We continue to closely monitor and evaluate the situation, focusing on being adaptive and agile, and we consider our regionalized footprint to be a valuable source for flexibility in a challenging geopolitical environment. The current geopolitical and business environment uncertainties makes it difficult to predict 2025. However, based on the strong first quarter performance and encouraging near term call-off indications, we reiterate our 2025 guidance of an organic sales growth of around 2% and an adjusted operating margin of around 10-10.5%. Our strong balance sheet and cash conversion set a solid foundation for our commitment to high shareholder returns. I am looking forward to our Capital Markets Day, on June 4, 2025. Next Report Autoliv intends to publish the quarterly earnings report for the second quarter of 2025 on Friday, July 18, 2025. Inquiries: Investors and Analysts Anders TrappVice President Investor RelationsTel +46 (0)8 5872 0671 Henrik KaarDirector Investor RelationsTel +46 (0)8 5872 0614 Inquiries: Media Gabriella EtemadSenior Vice President CommunicationsTel +46 (0)70 612 6424 Autoliv, Inc. is obliged to make this information public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the VP of Investor Relations set out above, at 12.00 CET on April 16, 2025. This information was brought to you by Cision http://news.cision.com https://news.cision.com/autoliv/r/financial-report-january---march-2025,c4136887 The following files are available for download: SOURCE Autoliv WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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