Description

Autoliv’s Global Balancing Act: Cash Flow Strength Amid Europe, China, and India Shifts!

Autoliv reported a robust financial performance for the fourth quarter and the full year 2025, achieving record highs in sales, cash flow, and earnings per share. Sales were driven by strong growth, particularly in India and with Chinese OEMs, with consolidated sales reaching over $2.8 billion for the quarter. The company noted a significant increase of nearly 40% in sales to Chinese OEMs, underscoring its strong position in these dynamic markets. India contributed nearly half of the company’s global organic growth. Despite these successes, Autoliv experienced a slight decrease in adjusted operating income for the quarter, partly due to lower out-of-period compensation and customer RD&E reimbursement. However, the company managed to recover almost all tariff costs in the fourth quarter and generated substantial free operating cash flow, amassing $734 million for the year—a significant increase driven by improved profitability and capital discipline.