Car equipment supplier Autoliv's Q3 sales, profit rises on strong sales and cost reduction

Reuters
Oct 17
Car equipment supplier Autoliv's Q3 sales, profit rises on strong sales and cost reduction 

Overview

  • Autoliv Q3 sales rise 5.9% yr/yr to $2.7 bln, achieving record sales

  • Adjusted EPS for Q3 increases 26% yr/yr, reaching $2.32

  • Operating income for Q3 rises 18% yr/yr to $267 mln

Outlook

  • Autoliv expects around 3% organic sales growth for full year 2025

  • Company anticipates a 1% FX effect on net sales for 2025

  • Autoliv forecasts adjusted operating margin of 10-10.5% for 2025

  • Company projects operating cash flow of around $1.2 bln in 2025

Result Drivers

  • ORGANIC SALES GROWTH - Autoliv reported a 3.9% organic sales growth, slightly below the global LVP increase, with strong performance in Asia ex. China and Americas

  • COST REDUCTIONS - Profitability improved due to cost reductions and successful tariff compensations, with a minor negative impact from U.S. tariffs

  • CASH FLOW IMPROVEMENT - Operating cash flow increased by 46% due to improved profit and reduced capital expenditure

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

$2.70 bln

Q3 Adjusted EPS

$2.32

Q3 EPS

$2.28

Q3 Adjusted EBIT

$271 mln

Q3 Adjusted EBIT Margin

10%

Q3 EBIT

$267 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

  • Wall Street's median 12-month price target for Autoliv Inc is $137.00, about 11.6% above its October 16 closing price of $121.15

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nWkr4Fk6rC

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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