Autoliv stock rises as company unveils shareholder return plan

Published 04/06/2025, 10:34
Autoliv stock rises as company unveils shareholder return plan

Investing.com -- Autoliv, Inc. (NYSE:ALV), saw its stock rise 3.2% after announcing shareholder return strategy and reiterating its 2025 financial targets Wednesday.

The company unveiled plans for average annual share repurchases between $300 million and $500 million through 2029, alongside a new $2.5 billion stock buyback program effective July 2025.

Autoliv also hiked its quarterly dividend by 21% to $0.85 per share for the third quarter of 2025, representing a 24% increase from the average quarterly dividend in 2024.

"Our new shareholder return strategy is grounded in Autoliv’s leadership position, which we believe enables us to effectively manage the risks associated with ongoing automotive industry challenges while capitalizing on the opportunities they present," said Mikael Bratt, President and CEO of Autoliv.

The company reiterated its full-year 2025 guidance, projecting organic sales growth of around 2% and an adjusted operating margin of approximately 10-10.5%.

Autoliv also maintained its long-term organic sales growth target of 4-6% on average per year over a 10+ year period.

Autoliv reaffirmed its medium-term adjusted operating margin target of 12%, contingent on executing structural and strategic initiatives and assuming stable global light vehicle production of at least 85 million units.

The company also reiterated its cash conversion target of at least 80% and updated its leverage ratio target to not exceed 1.5x.

"We continue to optimize our operations by building an even more effective and cost-efficient structure, enabling us to better serve our customers and further strengthen our competitive position by being customer-centric," Bratt added.

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