Shares of Autoliv Inc. (NYSE:ALV) rose 3.2% in premarket trading after the automotive safety systems manufacturer delivered stronger-than-expected third-quarter earnings and revenue, signaling robust operational momentum and confidence in its outlook.
The company reported adjusted earnings per share of $2.32 for Q3 2025, surpassing analyst expectations of $2.09 by 11%. Revenue reached $2.71 billion, edging past the $2.7 billion consensus and up 5.9% year over year. Organic sales growth was 3.9%, slightly lagging behind the 4.6% increase in global light vehicle production.
Operating margin improved sharply to 9.9%, with adjusted operating margin reaching 10.0% versus 9.3% a year earlier. The company credited the margin expansion to organic growth, cost-cutting measures, and favorable supplier settlements and compensations.
“I am pleased to, once again, report a record breaking quarter. This quarter is the best third quarter so far, for sales, operating income and EPS,” said Mikael Bratt, President and CEO of Autoliv. “The performance was driven by better than expected sales, especially in Americas and Europe, and successful actions to reduce costs and achieve tariff compensation.”
Operating cash flow surged 46% to $258 million, supported by higher profitability and improved working capital management. The company reaffirmed its full-year 2025 guidance, expecting around 3% organic sales growth and an adjusted operating margin of 10–10.5%, with performance anticipated to land near the midpoint of that range.
Autoliv highlighted robust growth in India, which contributed roughly one-third of its total organic growth during the quarter, and outlined continued investment in China, including the opening of a second R&D center and a strategic collaboration with CATARC to strengthen automotive safety standards.
The company also recovered approximately 75% of tariff-related costs in the third quarter and expects to recoup most of the remainder in Q4.
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