Record Sales — Quarter and Full Year
Q4 sales were over $2.8 billion, an 8% year‑over‑year increase; full‑year 2025 sales reached $10.8 billion, up 4% versus 2024 — both all‑time records for the company.
Record Cash Flow and Strong Cash Conversion
Operating cash flow for Q4 was $544 million (up $124 million or +30% year‑over‑year). Free operating cash flow for 2025 was a record $734 million (up over $230 million year‑over‑year) and full‑year cash conversion was 100%, exceeding the 80% target.
Record Earnings Per Share and Returns to Shareholders
Adjusted diluted EPS for 2025 rose to $9.85 (+18% year‑over‑year). The company returned approximately $590 million to shareholders in 2025 (dividends and buybacks), increased annual dividends to $3.12 per share (+14%), raised the quarterly dividend to $0.87 (+24%), and repurchased $351 million of shares during the year.
Improved Leverage and Balance Sheet Strength
Net debt decreased by over $200 million during the quarter and the net debt/EBITDA leverage ratio improved from 1.3x to 1.1x, supporting continued shareholder returns and financial flexibility.
Outperformance Versus Light Vehicle Production (LVP)
Autoliv outperformed global LVP by ~3 percentage points in Q4, with particularly strong outperformance in rest of Asia (+11 pp) and India (outperformance >30 pp). Sales to Chinese OEMs surged nearly 40% in the quarter, and full‑year sales to Chinese OEMs grew 23%.
Operational Efficiency and Structural Cost Savings
Gross profit increased in Q4 by $22 million; direct labor productivity improvements and strategic initiatives (automation/digitalization) reduced direct production personnel costs by almost $700 million. Of the $130 million structural cost program, ~$100 million has been achieved with ~$30 million remaining.
Product & Technology Wins and Strategic Partnerships
Announced the first foldable steering wheel with Tensor for autonomous Robocar (targeted for volume production late 2026). Secured multiple new orders in advanced safety/electronics (pyro‑safety for 1,000V EVs, occupant safety systems, steering wheel ECUs, rear window inflatable airbags) and a strategic agreement in Qatar.
Full‑Year Profitability Improvement
Adjusted operating income for 2025 rose 11% to approximately $1.1 billion and adjusted operating margin improved to 10.3% (from 9.7% in 2024), demonstrating year‑over‑year margin progress despite headwinds.