Autoliv Reports 4.2% Revenue Growth and 20% Operating Income Increase in Q2 2025

Autoliv Inc. reported a notable financial performance for the second quarter of 2025, with net sales reaching $2.714 billion, a 4.2% increase from $2.605 billion in the same period last year. The company’s operating income also saw a significant rise, climbing 20% to $247 million, compared to $206 million in the prior year. This growth was attributed to a combination of organic sales growth of 3.4% and effective cost management strategies, which included a reduction in selling, general, and administrative expenses. The diluted earnings per share increased by 27% to $2.16, up from $1.71 in the previous year.

In comparison to the first half of 2024, Autoliv's financial results showed a similar upward trend. For the six months ended June 30, 2025, net sales totaled $5.292 billion, a slight increase from $5.220 billion in the same period last year. The gross profit for the first half rose to $980 million, reflecting a gross margin of 18.5%, up from 17.6%. The company’s net income for the first half also increased by 26% to $335 million, compared to $266 million in the previous year.

Strategically, Autoliv has focused on operational efficiency and cost reduction, which included a 6% reduction in direct headcount. The company has also launched several new products, including advanced airbag systems and seatbelts, which contributed to its sales growth. Additionally, Autoliv announced a new share repurchase program of up to $2.5 billion, alongside a 21% increase in its quarterly dividend to $0.85 per share, reflecting its commitment to returning value to shareholders.

Operationally, Autoliv reported a total headcount of 65,100 as of June 30, 2025, down from 68,700 a year earlier. The company’s performance was bolstered by strong sales in the Americas, Europe, and Asia, excluding China, despite challenges in the Chinese market. The company expects to improve its sales performance in China in the latter half of 2025, driven by a record number of new product launches and improved relationships with local OEMs.

Looking ahead, Autoliv has raised its guidance for organic sales growth to around 3% for 2025, supported by ongoing tariff compensations and a positive outlook for new product launches. The company anticipates an adjusted operating margin of approximately 10-10.5% and aims to generate around $1.2 billion in operating cash flow for the year. Autoliv remains vigilant regarding potential geopolitical risks and market conditions that could impact its operations, but it is confident in its strategies to navigate these challenges effectively.