Autoliv, Inc. · NYSE:ALV
Autoliv — Q3 2025 Earnings Presentation
27 slides from Autoliv's earnings presentation, Oct 17, 2025
Slide 1: Earnings Call Presentation 3rd Quarter 2025
Earnings Call Presentation 3rd Quarter 2025 October 17, 2025 October 17, 2025 ALV – Q3 2025 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 2: Safe Harbor Statement
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 A
Slide 3: Q3'25 Key Highlights – Substantial Sales & Margin Expansion
Q3’25 Key Highlights – Substantial Sales & Margin Expansion Record third quarter for sales, gross profit and operating income, as well as earnings per share Significant sales growth, driven by higher-than-expected LVP** across multiple regions − Sales in Americas exceeded expectations, emerging
Slide 4: Other Key Highlights – Strategic Partnership with CATARC in China
Other Key Highlights – Strategic Partnership with CATARC in China The collaboration will focus on four key areas: Collaborative Research in Safety Technologies: Advancing next-generation safety systems through quality and innovation. Testing and Certification Support: Enhancing efficiency and re
Slide 5: Other Key Highlights – Strategic JV to Advance Automotive Safety Electronics
Other Key Highlights – Strategic JV to Advance Automotive Safety Electronics Unlocking Value by increasing vertical integration of our current product portfolio Products Scope: J/V Partner: Hangsheng Electric Co., Ltd. Location: Shanghai, China ECUs for active seatbelt controllers Key Benefits:
Slide 6: Q3'25 Financial Overview
Q3’25 Financial Overview Record sales and adjusted operating income* for a third quarter Consolidated Sales Adjusted Operating Income* Operating Cash Flow US$ -Millions US$ -Millions US$ -Millions 6% 14% 46% $2,706 $271 $2,555 $237 $258 10.0% Adj. Op. Margin* $177 9.3% Adj. Op. Margin* Q3’24 Q3’25 Q
Slide 7: Substantial Cost Improvements
Substantial Cost Improvements Partly offset by lower engineering income due to timing Direct Labor Productivity Index Gross Margin SG&A and RD&E, net Operating Cash flow LTM Sales in relations to Average Headcount % US$ -Millions and in relations to sales US$ -Millions 300 11.0% 1,250 160 22% 140 25
Slide 8: Q3'25 Light Vehicle Market Development
Q3’25 Light Vehicle Market Development More than 1 pp of headwinds from regional mix; Improved call-off accuracy both Y-o-Y and sequentially Q3´25 LVP* Customer Call-off Accuracy** % % China 16% COEMs 100% 14% Normal 12% 10% Global 8% Total E.Europe Rest N. Americas 4.6% 6% of Asia 80% 4% 2% 0% Chin
Slide 9: Q3'25 Sales Growth and Regional Sales Split
Q3’25 Sales Growth and Regional Sales Split Sales Bridge Sales by Region Q3´25 US$ millions % $52 $2,706 $94 $14 -$8 $2,555 China 19% Asia 39% Americas 33% Japan 8% Rest of Asia 12% Europe 28% 3.9% Organic growth* * Non-US GAAP measure ** Light Vehicle Production (LVP up to 3.5 tons) according to S&
Slide 10: Q3'25 Sales Growth - Organic Sales Underperforming Global LVP by 1pp
Q3’25 Sales Growth - Organic Sales1 Underperforming Global LVP by 1pp Outperformance - Organic growth1 vs. LVP2 (Percentage points) China EUROPE -3pp Main Net Sales -1pp JAPAN CHINA3 GOEMs +0pp Growth Drivers CHINA3 COEMs -5pp Stellantis AMERICAS +8pp +1pp Suzuki Toyota Chery Rest of ASIA Great Wall
Slide 11: Q3'25 Key Model Launches
Q3’25 Key Model Launches * Autoliv is not allowed to communicate the name of the customer or model October 17, 2025 ALV – Q3 2025 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 12: Financials
Financials October 17, 2025 ALV – Q3 2025 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 13: Q3'25 Financial Overview
Q3’25 Financial Overview US$ Millions unless specified Q3’25 Q3’24 Sales $2,706 $2,555 Gross Profit $522 19.3% $459 18.0% Adj. Operating Income1 $271 10.0% $237 9.3% Adj. EPS -assuming dilution1 $2.32 $1.84 Adj. RoCE1,2 25.5% 23.9% Adj. RoE1,2 28.3% 25.3% Operating cash flow $258 $177 Dividend paid
Slide 14: Q3'25 Margin expansion driven by execution of operational improvement plans
Q3’25 Margin expansion driven by execution of operational improvement plans Adjusted Operating Income* Bridge $34 300 $43 -$1 $15 $271 Operations -$8 -$4 $14 250 $237 $6 Primarily driven by -$30 200 Higher operational efficiency US$ Millions Improved call-off accuracy 150 Organic sales growth
Slide 15: Cash Flow
Cash Flow Capex and D&A Continued solid performance from higher net income -US$ Millions unless Q3´25 Q3´24 LTM 2024 2023 specified Net Income $175 $139 $754 $648 $489 Depreciation & Amortization 103 97 397 387 378 Other, net 32 10 1 -29 -119 Change in operating WC -53 -68 -109 53 235 Operating cash
Slide 16: Trade Working Capital in Relation to Sales
Trade Working Capital in Relation to Sales * Increasing receivables following higher sales towards the end of the quarter 18% 16% 14% 12% We view the increase in trade working capital as temporary, as our 10% multi-year improvement program continues to deliver results 8% 6% 4% 2% 0% 2019 2020 2021 2
Slide 17: Debt Leverage Ratio
Debt Leverage Ratio* remains below our target limit of 1.5x Net Debt * / EBITDA ** Net Debt* and EBITDA** per the Policy Times US$ Millions 2.0 Net Debt EBITDA LTM 2,000 Long-Term Target: ≤1.5x 1.5 1.3x 1,500 1.0 1,000 0.5 0.0 500 Q3´23 Q4´23 Q1´24 Q2´24 Q3´24 Q4´24 Q1´25 Q2´25 Q3´25 Q1´23 Q3´23 Q1´
Slide 18: Light Vehicle Production Outlook
Light Vehicle Production Outlook Autoliv guidance is based on global LVP increasing around 1.5% in 2025 Global Light Vehicle Production* according to S&P Global in October LVP* per Quarter Q4´25 Detailed LVP* Outlook % % 15% 25 S. Americas 24 -2.7% 10% 23 3.5% 4.6% 22 3.6% 5% Q4´25 Global 21 Million
Slide 19: Q4'25 Business Outlook – Navigating a Transitional Quarter
Q4’25 Business Outlook – Navigating a Transitional Quarter Q4´25 Outlook Adjusted Operating Margin* Development from 2022 % Consistent with typical seasonal patterns, the fourth quarter is expected to be the strongest of the year. + Despite the expected decline in global LVP year-over-year, we fores
Slide 20: Full Year 2025 Guidance & Assumptions
Full Year 2025 Guidance1 & Assumptions Full Year 2025 Guidance Organic sales increase2 Around 3% unchanged Adjusted Operating margin2 Around 10 to 10.5% unchanged Operating Cash flow3 Around $1.2 billion unchanged Capex, net % of sales Around 4.5% (previous: ~5%) Assumptions Exchange Rates US$/EUR 0
Slide 21: Q&A
Q&A October 17, 2025 ALV – Q3 2025 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 22: Q3'25 Product Volumes
Q3´25 Product Volumes Autoliv Quantities Delivered Q3’25 vs. PY** (%) (Millions unless specified) Seatbelts 35.3 3% Pretensioners (of which) 24.7 5% Active Seatbelts (of which) 1.4 6% Frontal Airbags 15.0 4% Knee Airbags (of which) 1.8 18% Side Airbags 36.2 13% Chest (Thorax) 19.4 14% Head
Slide 23: Reconciliation of GAAP "Operating margin" to Non-GAAP "Adjusted Operating margin"
Reconciliation of GAAP measure "Operating margin" to Non-GAAP measure "Adjusted Operating margin" 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 co
Slide 24: Reconciliation of Non-US GAAP measure "Leverage ratio & Adjusted EBITDA"
Reconciliation of Non-US GAAP measure “Leverage ratio & Adjusted EBITDA" The non-U.S. GAAP measure “net debt” is also used in the non-U.S. 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 t
Slide 25: Reconciliation of Non-US GAAP measure "Net Debt"
Reconciliation of Non-US GAAP measure “Net Debt" (Dollars in millions) 2025 2024 2023 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Short-term debt $654 $679 $540 $387 $624 $455 $310 $538 $590 $481 $577 Long-term debt 1,374 1,372 1,565 1,522 1,586 1,540 1,830 1,324 1,2
Slide 26: Reconciliation of Non-US GAAP measure "Trade Working Capital"
Reconciliation of Non-US 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
Slide 27: Saving More Lives
Saving More Lives October 17, 2025 ALV – Q3 2025 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public