Wed, Apr 16, 1:35 PM (11 days ago)
**Autoliv, Inc. (ALV) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $2,578 million, a 1.4% decrease year-over-year (YoY), with a 2.2% organic sales growth. - **Profit Margins:** Gross margin at 18.6%, operating margin at 9.9%. - **Earnings:** Net income of $167 million, up 32.1% YoY. Earnings per share (EPS) increased by 41% to $2.14. - **Cash Flow:** Operating cash flow was $77 million, down from $122 million YoY due to increased working capital. - **Earnings Changes:** Adjusted operating income increased by 28.2% to $255 million. **Key Metrics & Trends:** - **Sales Performance:** Organic sales growth of 2.2%, outperforming global LVP (Light Vehicle Production) trends. - **Cost Management:** Successful execution of cost reduction initiatives, including structural and indirect workforce reductions. - **Geopolitical Impact:** New tariffs had a negligible impact on operating profit due to customer compensations. - **Future Operations:** Guidance for 2025 includes an organic sales growth of around 2% and an adjusted operating margin of 10-10.5%. **Uncertainties & Future Impact:** - **Tariffs & Trade Restrictions:** Continued uncertainty regarding tariffs and trade restrictions, which may impact future operations. - **Supply Chain:** Call-off volatility remains higher than pre-pandemic levels, affecting production efficiency. - **Inflation:** Moderating cost pressure from general inflation, but labor and raw material costs remain concerns. **Summary:** Autoliv demonstrated strong profitability improvements in Q1 2025, driven by operational efficiency and cost reduction initiatives. Despite geopolitical uncertainties and supply chain challenges, the company maintained robust financial performance and provided optimistic guidance for the year. The focus on cost management and strategic initiatives positions Autoliv for continued growth and resilience in a challenging market environment.