Autoliv Beats 3Q25 Forecasts, Mitigates Tariff Impact

Autoliv, the world’s largest manufacturer of airbags and seatbelts, reported better-than-expected financial results for 3Q25, driven by strong sales across the Americas and Europe and continued recovery from tariff-related costs. The company recorded adjusted earnings of US$2.32 per share, surpassing the Zacks Consensus Estimate of US$2.10 and up 26% from US$1.84 per share in the same period last year.

Total quarterly revenue reached US$2.71 billion, up 5.9% year-over-year and above analysts’ expectations of US$2.63 billion. Adjusted operating profit rose 14% to US$271 million, compared with a forecast of US$248 million. “Better-than-expected sales, especially in the Americas and Europe, and successful actions to reduce costs and achieve tariff compensation drove our growth,” said Mikael Bratt, CEO, Autoliv.

Autoliv, operating in the Automotive Original Equipment segment, faced a 20-basis-point impact on operating margin due to US import tariffs but recovered approximately 75% of these costs during the quarter. Bratt noted the company expects “to recover most of the remaining costs during Q4.” In the previous quarter, Autoliv had already recouped 80% of tariff expenses, supporting margin performance amid global trade pressures.

The company also reported progress in China, where business with local automakers improved after a slower start to the year. “The ramp-up of certain models started slower than expected but improved gradually during the quarter,” Bratt said, adding that the company anticipates increased outperformance in China in Q4 2025.

Despite the strong performance, Autoliv shares fell 2.8% in pre-market trading in New York and about 2% in Stockholm, as analysts cited expectations of limited incremental news beyond the forecasted results. “The result is strong and above consensus but in line with slightly below buy-side expectations. A lot to like but not a lot of incrementally positive news,” noted Jefferies analysts.

Autoliv has outperformed broader market benchmarks year-to-date, with shares rising approximately 29.2%, compared to the S&P 500’s 12.7% increase. The company has exceeded consensus EPS estimates for four consecutive quarters, highlighting consistent operational execution.

According to Zacks Research, Autoliv’s current Zacks Rank is #3 (Hold), suggesting the stock is expected to perform in line with the market in the near term. Earnings for the upcoming quarter are projected at US$2.92 per share on revenues of US$2.7 billion, with a full-year forecast of US$9.32 per share on US$10.64 billion in revenues.