Autoliv, Inc. (NYSE:ALV) saw its stock increase by 3.2% after unveiling a new strategy to return value to shareholders and reaffirming its financial outlook for 2025 on Wednesday.
The company revealed intentions to repurchase shares annually in a range between $300 million and $500 million through 2029, along with launching a fresh $2.5 billion stock buyback program set to begin in July 2025.
Additionally, Autoliv raised its quarterly dividend for the third quarter of 2025 by 21%, setting it at $0.85 per share, which marks a 24% rise compared to the average quarterly dividend paid 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 also confirmed its full-year 2025 forecast, anticipating organic sales growth near 2% and an adjusted operating margin in the range of 10% to 10.5%.
Looking further ahead, Autoliv maintained its long-term goal of achieving an average annual organic sales growth of 4% to 6% over a period exceeding ten years.
The firm reaffirmed its medium-term target of a 12% adjusted operating margin, contingent upon successfully executing structural and strategic plans and assuming a steady global production of at least 85 million light vehicles.
Autoliv also restated its goal to achieve a cash conversion rate of no less than 80% and updated its leverage ratio objective to remain below 1.5 times.
“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.