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STOCKHOLM - Autoliv Inc. (NYSE:ALV), a leading automotive safety systems supplier, reported fourth-quarter earnings that beat analyst expectations, but revenue fell short of estimates, causing shares to decline.
The Swedish-American company posted adjusted earnings per share of $3.05 for the fourth quarter, surpassing the analyst consensus of $2.88. However, revenue came in at $2.62 billion, below the $2.7 billion analysts had projected. Compared to the same quarter last year, revenue decreased by 4.9%.
Autoliv’s organic sales declined by 3.3% YoY, underperforming the global light vehicle production growth of 0.4%. The company attributed this underperformance to regional and customer mix issues, which contributed about 4 percentage points to the shortfall.
Following the earnings release, Autoliv’s stock fell 2.41% in early trading, reflecting investor disappointment with the revenue miss.
Despite the sales decline, Autoliv reported record profitability for the quarter. Operating income reached a new high of $353 million, with an operating margin of 13.5%. Adjusted operating income also hit a record at $349 million, with an adjusted operating margin of 13.4%.
Mikael Bratt, President & CEO of Autoliv, commented on the results: "I am pleased that we delivered strong profitability and cash flow in the fourth quarter. We reached new record highs in the quarter for operating profit, operating margin and EPS."
Looking ahead, Autoliv provided guidance for the full year 2025, projecting organic sales growth of around 2% and an adjusted operating margin of approximately 10-10.5%. The company expects operating cash flow of around $1.2 billion for the year.
Autoliv anticipates a challenging 2025 for the automotive industry, with light vehicle production expected to decline slightly amid continued geopolitical risks. However, the company remains focused on efficiency improvements to support further profitability gains.
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