Autoliv Q2 Earnings Rise, Expects 3% Organic Sales Growth for FY25

Autoliv's Q2 earnings report shows a significant increase in net income attributable to controlling interest, rising to $167 million from $138 million last year. Net sales also increased to $2.71 billion from $2.61 billion. The company forecasts organic sales growth of 3% for FY25 and an adjusted operating margin of 10-10.5%. Shares are currently trading 4.06% lower at $112 on the NYSE.

Autoliv Inc. (ALV) reported robust second-quarter (Q2) 2025 earnings, highlighting significant improvements in net income, sales, and profitability. The company's net income attributable to controlling interest surged to $167 million, up from $138 million in Q2 2024, reflecting a 21% year-over-year increase [1]. Net sales also grew to $2.71 billion, a 4.2% increase from $2.61 billion in the same period last year [1].

Key highlights of the Q2 2025 financial report include:
- Organic Sales Growth: Autoliv achieved a 3.4% increase in organic sales, outperforming the global LVP increase of 2.7% (S&P Global July 2025) [1].
- Operating Margin: The company's operating margin improved to 9.1%, up from 7.9% in Q2 2024, while the adjusted operating margin reached 9.3% [1].
- Earnings per Share (EPS): EPS increased to $2.16, up from $1.71, representing a 27% year-over-year increase [1].
- Dividend Increase: The board of directors approved a 21% dividend increase to $0.85 per share for the third quarter [1].

Looking ahead, Autoliv has raised its full-year organic sales growth forecast to around 3% for FY25, with an adjusted operating margin target of 10-10.5% [1]. The company expects currency fluctuations to have a broadly neutral impact on net sales and projects operating cash flow of approximately $1.2 billion for the year [1].

Analysts have responded positively to Autoliv's Q2 results. The average 12-month price target from Wall Street analysts is $122.44, suggesting a potential upside of 9.21% from the current share price of $112.12 [2]. Brokerage firms maintain a positive consensus, classifying ALV as an "Outperform" with an average recommendation rating of 2.1 [2].

Autoliv's stock price has been trading 4.06% lower at $112 on the NYSE as of July 2, 2025, reflecting the market's response to the company's earnings report [3].

References:
[1] https://www.prnewswire.com/news-releases/autoliv-financial-report-april---june-2025-302508629.html
[2] https://www.gurufocus.com/news/2987994/autoliv-alv-reports-record-q2-earnings-and-raises-dividend
[3] https://ih.advfn.com/market-news/article/12980/autoliv-tops-q2-expectations-raises-full-year-organic-sales-growth-forecast