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What changed in AUTOLIV INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of AUTOLIV INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+476 added−445 removedSource: 10-K (2026-02-19) vs 10-K (2025-02-20)

Top changes in AUTOLIV INC's 2025 10-K

476 paragraphs added · 445 removed · 394 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

41 edited+5 added−1 removed64 unchanged
Biggest changeIn addition, the Company’s employees in other regions are represented by the following unions: Unifor in Canada; Sindicato de Jornaleros y Obreros Industriales y de la Industria Maquiladora de H.Matamoros, Tamaulipas (CTM); Sindicato Nacional de Trabajadores de la Industria Metalúrgica y Similares, Federación Valle de Toluca (CTM); Sindicato Nacional “Nueva Cultura Laboral” de trabajadores de la fabricación, manufactura, ensamble de autopartes mecánicas y eléctricas y componentes de la Industria Automotriz, C.R.O.C.; Sindicato Nacional de Trabajadores de la Industria Arnesera, Eléctrica, Automotriz y Aeronáutica de la República Mexicana; “Nueva Cultura Laboral” “de trabajadores de la fabricación, manufactura, ensamble de autopartes mecánicas y eléctricas y componentes de la industria Automotriz (CROC); Sindicato Nacional de Trabajadores de la Industria de Autopartes en General y/o Similares, Conexos y sus Servicios de la República Mexicana, in Mexico; Sindicato Industrial de Trabajadores de la Transformación, Construcción, Automotriz, Agropecuaria, Plásticos y de la Industria en General, del Comercio y Servicios, Similares, anexos y conexos del Estado de Querétaro “Ángel Castillo Resendiz”; Sindicato dos Metalúrgicos de Taubaté e Região in Brazil; Autoliv India Employees Association, Bangalore & Mysore in India; Korean Metal Workers Union (FKTU) in South Korea; Autoliv Japan Roudou Kumiai in Japan, and All-China Federation of Trade Unions in China.
Biggest changeMatamoros, Tamaulipas (CTM); Sindicato Nacional de Trabajadores de la Industria Metalúrgica y Similares, Federación Valle de Toluca; Sindicato Nacional “Nueva Cultura Laboral” de Trabajadores de la Fabricación, Manufactura, Ensamble de Autopartes Mecánicas Eléctricas y Componentes de la Industria Automotriz (CROC); Sindicato Nacional de Trabajadores de la Industria Arnesera, Eléctrica, Automotriz y Aeronáutica de la República Mexicana; Sindicato Industrial de Trabajadores de la Transformación Construcción Automotriz Agropecuaria Plásticos y de la Industria en General, del Comercio y Servicios Similares, Anexos y Conexos del Estado de Querétaro “Angel Castillo Reséndiz" and Sindicato Nacional de Trabajadores de la Industria de Autopartes en General y/o Similares, Conexos y sus Servicios de la República Mexicana (CTM) in Mexico; Sindicato dos Metalúrgicos de Taubaté e Região and Sindicato dos Trabalhadores nas Indústrias Metalúrgicas, Mecânicas e de Material Elétrico de Pernambuco in Brazil; Autoliv India Employees Association, Bangalore & Mysore in India; Quang Yen Union in Vietnam; Korean Metal Workers Union (FKTU) in South Korea; Autoliv Japan Roudou Kumiai in Japan, and All-China Federation of Trade Unions in China.
The successful execution of the Company's strategies relies on its ability to shape a quality and performance-oriented culture, and to adapt quickly to sudden shifts in its circumstances, such as supply chain disruptions and geopolitical instability.
The successful execution of the Company's strategies relies on its ability to shape a quality and performance-oriented culture, and to adapt quickly to sudden shifts in circumstances, such as supply chain disruptions and geopolitical instability.
While there have been a small number of minor labor disputes historically, such disputes have not had a significant or lasting impact on the Company's relationship with its employees, and customer perception of its employee practices or its business results. Around 60 percent of the Company’s workforce outside the United States is covered by a collective bargaining agreement.
While there have been a small number of minor labor disputes historically, such disputes have not had a significant or lasting impact on the Company's relationship with its employees, and customer perception of its employee practices or its business results. Around 60% of the Company’s workforce outside the United States is covered by a collective bargaining agreement.
In seatbelts, Autoliv has reached a global market share of around 45%, primarily due to being the technology leader with several important innovations such as pretensioners and active seatbelts. The Company's strong market position is also a reflection of its superior global footprint.
In seatbelts, Autoliv has a global market share of around 45%, primarily due to being the technology leader with several important innovations such as pretensioners and active seatbelts. The Company's strong market position is also a reflection of its superior global footprint.
Passive safety systems include modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, pedestrian protection systems, steering wheels, inflator technologies, battery cut-off switches and seatbelts. To expand its product offerings, the Company has formed Mobility Safety Solutions.
Passive safety systems include modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, pedestrian protection systems, steering wheels, inflator technologies, battery cut-off switches and seatbelts. To expand its product offerings, the Company formed Mobility Safety Solutions.
In high-income markets (Western Europe, North America, Japan, and South Korea) the average CPV is around $340. CPV growth in these regions mainly comes from new safety systems such as active seatbelts, knee airbags, and front-center airbags along with improved protection for pedestrians and rear-seat occupants like bag-in-belt or more advanced seatbelts.
In high-income markets (Western Europe, North America, Japan, and South Korea) the average CPV is around $350. CPV growth in these regions mainly comes from new safety systems such as active seatbelts, knee airbags, and front-center airbags along with improved protection for pedestrians and rear-seat occupants like bag-in-belt or more advanced seatbelts.
Item 1. Business General Autoliv, Inc. (“Autoliv”, the “Company” or “we”) is a Delaware corporation with its principal executive offices in Stockholm, Sweden where it currently employs approximately 110 people. The Company functions as a holding corporation and owns two principal subsidiaries, Autoliv AB and Autoliv ASP, Inc. The Company's fiscal year ends on December 31.
Item 1. Business General Autoliv, Inc. (“Autoliv”, the “Company” or “we”) is a Delaware corporation with its principal executive offices in Stockholm, Sweden where it currently employs approximately 113 people. The Company functions as a holding corporation and owns two principal subsidiaries, Autoliv AB and Autoliv ASP, Inc. The Company's fiscal year ends on December 31.
The automotive passive safety market is driven by two primary factors: light vehicle production (LVP) and content per vehicle (CPV). 3 The first growth driver, LVP, has increased at an average annual growth rate of around 1.8% since the start of Autoliv in 1997 despite persistent headwinds in Europe and North America.
The automotive passive safety market is driven by two primary factors: light vehicle production (LVP) and content per vehicle (CPV). 3 The first growth driver, LVP, has increased at an average annual growth rate of around 1.9% since the start of Autoliv in 1997 despite persistent headwinds in Europe and North America.
The Company's outperformance is a result of a steady flow of new passive safety technologies, strong focus on quality and a superior global footprint both in products and engineering. This has enabled Autoliv to increase its global market share in passive safety from 27% in 1997 to around 44% in 2024.
The Company's outperformance is a result of a steady flow of new passive safety technologies, strong focus on quality and a superior global footprint both in products and engineering. This has enabled Autoliv to increase its global market share in passive safety from 27% in 1997 to around 44% in 2025.
An important cornerstone of each employee’s growth is the ongoing dialogue between the team member and manager, which is summarized during an annual Performance and Development Dialogue (PDD). During the year, 99% of targeted employees conducted a PDD with their managers.
An important cornerstone of each employee’s growth is the ongoing dialogue between the team member and manager, which is summarized during an annual Performance and Development Dialogue (PDD). During the year, 100% of targeted employees conducted a PDD with their managers.
Since 1997, the Company’s sales compound annual growth rate (CAGR) for passive safety has been around 5% compared to the market rate of around 2.7% which includes an LVP growth of around 1.8%.
Since 1997, the Company’s sales compound annual growth rate (CAGR) for passive safety has been around 5% compared to the market rate of around 2.8% which includes an LVP growth of around 1.9%.
Environmental and Safety Regulations For information on how environmental and safety regulations impact the Company's business, see “Risk Factors – ‘Our business may be adversely affected by laws or regulations, including environmental, occupational health and safety, and other governmental regulations’, “Global climate change could negatively affect our business”, “Our goals, targets, and ambitions related to sustainability and emissions reduction, and our public statements and disclosures regarding them, expose us to numerous risks” and “Our business may be adversely affected by changes in automotive safety regulations or concerns that drive further regulation of the automobile safety market”” in Item 1A and “Risks and Risk Management” in Item 7 of this Annual Report.
Environmental and Safety Regulations For information on how environmental and safety regulations impact the Company's business, see “Risk Factors – ‘Our business may be adversely affected by laws or regulations, including environmental, occupational health and safety, and other governmental regulations’, “Global climate change could negatively affect our business”, “Our goals, targets, and ambitions related to sustainability and emissions reduction, and our public statements and disclosures regarding them, may, from time to time, result in additional considerations or expectations and expose us to risks” and “Our business may be adversely affected by changes in automotive safety regulations or concerns that drive further regulation of the automobile safety market”” in Item 1A and “Risks and Risk Management” in Item 7 of this Annual Report.
During 2024 the volatility of LVP continued to improve, although it is still more volatile than prior to the COVID-19 pandemic. Additionally, when there is significant demand for a given product due to a major recall of a competitor’s product, like certain of the Company's customers have experienced, capacity adjustments may take time.
During 2025 the volatility of LVP improved, although it is still more volatile than prior to the COVID-19 pandemic. Additionally, when there is significant demand for a given product due to a major recall of a competitor’s product, like certain of the Company's customers have experienced, capacity adjustments may take time.
These include: 1) Society becoming increasingly focused on Vision Zero and its goal of reducing traffic fatalities and their associated costs; 2) Demographic trends of increased urbanization, aging driver populations, and increased safety focus in growth markets; 3) Evolving government regulations and test rating systems to improve the safety of vehicles in various markets, such as the updated European New Car Assessment Program (Euro NCAP), China NCAP, and USNCAP; and 4) The trend towards more electrical vehicles may lead to roomier interiors that may require more advanced passive safety systems, as well as products to cut the electrical power in case of an accident.
These include: 1) Society becoming increasingly focused on Vision Zero and its goal of reducing traffic fatalities and their associated costs; 2) Demographic trends of increased urbanization, aging driver populations, and increased safety focus in growth markets; 3) Evolving government regulations and test rating systems to improve the safety of vehicles in various markets, such as the updated European New Car Assessment Program (Euro NCAP), China NCAP, and USNCAP; and 4) The trend towards autonomous vehicles may lead to roomier interiors that may require more advanced passive safety systems.
The Company’s sales in 2024 were $10.4 billion, approximately 68% of which consisted of airbag and steering wheel products and approximately 32% of which consisted of seatbelt products. The Company's business is conducted in the following geographical regions: The Americas, Europe, China, and Asia, excluding China.
The Company’s sales in 2025 were $10.8 billion, approximately 68% of which consisted of airbag and steering wheel products and approximately 32% of which consisted of seatbelt products. The Company's business is conducted in the following geographical regions: The Americas, Europe, China, and Asia, excluding China.
Execution of the system is monitored through internal and external ISO 45001 occupational health and safety management system audits. At the end of 2024, 66% of the Company's production facilities were certified to the ISO 45001 standard. 8 Labor Relations The Company offers fair terms and conditions of employment.
Execution of the system is monitored through internal and external ISO 45001 occupational health and safety management system audits. At the end of 2025, 70% of the Company's production facilities were certified to the ISO 45001 standard. Labor Relations The Company offers fair terms and conditions of employment.
In medium- and low-income markets (all markets other than the high-income markets above), the Company sees great opportunities for CPV growth from more airbags and advanced seatbelt products. Average CPV in these markets is around $200 or almost $140 less than in the high-income markets.
In medium- and low-income markets (all markets other than the high-income markets mentioned above), the Company sees great opportunities for CPV growth from more airbags and advanced seatbelt products. The average CPV in these markets is around $210, which is almost $140 less than in the high-income markets.
The Chinese OEMs as a group accounted for around 7% of the Company's consolidated net sales in 2024, with Geely representing more than 2% of the Company's consolidated net sales. European based brands accounted for 30% of the Company's consolidated net sales in 2024.
As a group the Chinese OEMs accounted for around 8% of the Company's consolidated net sales in 2025, with Geely representing more than 2% of the Company's consolidated net sales. European based brands accounted for 30% of the Company's consolidated net sales in 2025.
Major unions in Europe to which some of the Company's employees belong include: IG Metall in Germany; Unite the union in the United Kingdom; Confédération Générale des Travailleurs (CGT), Confédération Française Démocratique du Travail (CFDT), Confédération Française de l’Encadrement Confédération Générale des cadres (CFE-CGC), Force Ouvrière (FO), Confédération Française des Travailleurs Chrétiens (CFTC), Solidaires, Unitaires, Démocratiques (SUD) and Conféderation Autonome du Travail (CAT) in France; Union General de Trabajadores (UGT), Union Sindical Obrera (USO), Comisiones Obereras (CCOO) and Confederacion General de Trabajadores (CGT) in Spain; IF Metall, Unionen, Sveriges Ingenjörer and Ledarna in Sweden; Industriaal- ja Metallitöötajate Ametiühingute Liit (IMTAL) in Estonia; Vasas Szakszervezeti Szövetség (Hungarian Metallworkers‘ Federation) in Hungary; Samorzadny NiezalezĪny Zwiazek Zawodowy Pracownikow and Zakladowa Organizacja Związkowa NSZZ Solidarnosc in Poland; National Union of Metal Workers South Africa (NUMSA) in South Africa; Union Générale des Travailleurs Tunisiens (UGTT) and Union des travailleurs Tunisiens (UTT) in Tunisia, and Türk Metal Sendikasi in Turkey.
Major unions in Europe to which some of the Company's employees belong include: IG Metall in Germany; Unite the union in the United Kingdom; Confédération Générale des Travailleurs (CGT), Confédération Française Démocratique du Travail (CFDT), Confédération Française de l’Encadrement Confédération Générale des cadres (CFE-CGC), Force Ouvrière (FO), Confédération Française des Travailleurs Chrétiens (CFTC), Solidaires, Unitaires, Démocratiques (SUD) and Conféderation Autonome du Travail (CAT) in France; Union General de Trabajadores (UGT), Union Sindical Obrera (USO), Comisiones Obereras (CCOO) and Confederacion General de Trabajadores (CGT) in Spain; IF Metall, Unionen, Sveriges Ingenjörer and Ledarna in Sweden; Industriaal- ja Metallitöötajate Ametiühingute Liit (IMTAL) in Estonia; Vasas Szakszervezeti Szövetség (Hungarian Metallworkers‘ Federation) in Hungary; Samorzadny NiezalezĪny Zwiazek Zawodowy Pracownikow and Zakladowa Organizacja Związkowa NSZZ Solidarnosc in Poland; National Union of Metal Workers South Africa (NUMSA) in South Africa; Union Générale des Travailleurs Tunisiens (UGTT) and Union des travailleurs Tunisians (UTT) in Tunisia, and Türk Metal Sendikasi in Turkey. 8 In addition, the Company’s employees in other regions are represented by the following unions: Unifor in Canada; Sindicato de Jornaleros y Obreros Industriales y de la Industria Maquiladora de H.
For information on the Company's dependence on customers, see “Risk Factors – Our business could be materially and adversely affected if we lost any of our largest customers or if they were unable to pay their invoices” in Item 1A of this Annual Report, and “Dependence on Customers” under the section “Strategic Risks” in Item 7 of this Annual Report, and Note 20 “Segment Information” to the Consolidated Financial Statements Customer sales trends Asian vehicle producers have steadily become increasingly important, mainly driven by growth with Japanese and Chinese OEMs.
For information on the Company's dependence on customers, see “Risk Factors – Our business could be materially and adversely affected if we lost any of our largest customers, lose business from any of our largest customers, or if any of such customers are unable to pay their invoices” in Item 1A of this Annual Report, and “Dependence on Customers” under the section “Strategic Risks” in Item 7 of this Annual Report, and Note 21, Segment Information, to the Consolidated Financial Statements Customer sales trends Asian OEMs have steadily become increasingly important, mainly driven by growth with Japanese and Chinese OEMs.
For information concerning the material effects on the Company's business relating to its compliance with government safety regulations, see “Risk Factors – ‘Our business may be adversely affected by laws or regulations, including environmental, occupational health and safety, and other governmental regulations’ and ‘Our business may be adversely affected by changes in automotive safety regulations or concerns that drive further regulation of the automobile safety market’” in Item 1A of this Annual Report and in Item 7 under the section “Risks and Risk Management” of this Annual Report. 7 Human Capital Management The Company's drive for excellence is what makes Autoliv the world’s leading supplier of automotive safety systems.
For information concerning the material effects on the Company's business relating to its compliance with government safety regulations, see “Risk Factors – ‘Our business may be adversely affected by laws or regulations, including environmental, occupational health and safety, and other governmental regulations’ and ‘Our business may be adversely affected by changes in automotive safety regulations or concerns that drive further regulation of the automobile safety market’” in Item 1A of this Annual Report and in Item 7 under the section “Risks and Risk Management” of this Annual Report.
Despite this negative regional LVP mix effect, the annual passive safety market (seatbelts and airbags, including steering wheels), is expected to grow from around $23 billion in 2024 to more than $25 billion over the next three years, based on the current macro-economic outlook and the Company's internal market intelligence and estimates.
Despite this negative regional LVP mix effect, the annual passive safety market (seatbelts and airbags, including steering wheels), is expected to grow from around $24 billion in 2025 to almost $26 billion over the next three years, based on the current macro-economic outlook and the Company's internal market intelligence and estimates.
On December 31, 2024, the Company had approximately 65,200 personnel worldwide, with 9% being temporary personnel. Additional information required by this Item 1 regarding developments in the Company’s business during 2024 is contained under Item 7 in this Annual Report.
On December 31, 2025, the Company had approximately 64,300 personnel worldwide, with 10% being temporary personnel. Additional information required by this Item 1 regarding developments in the Company’s business during 2025 is contained under Item 7 in this Annual Report.
As a group they represented around 46% of the Company's consolidated net sales in 2024, of which Japanese OEMs accounts for almost two thirds. This is a result of the Company's stronger market position based on its local presence in Japan.
As a group Asian OEMs represented around 48% of the Company's consolidated net sales in 2025, of which Japanese OEMs accounted for almost two thirds. This is a result of the Company's stronger market position based on its local presence in Japan.
The products manufactured by Autoliv’s consolidated subsidiaries in 2024 consisted of 142 million complete seatbelt systems (of which 98 million were fitted with pretensioners), 132 million side airbags (including curtain airbags and front center airbags), 60 million frontal airbags and 21 million steering wheels.
The products manufactured by Autoliv’s consolidated subsidiaries in 2025 consisted of 143 million complete seatbelt systems (of which 100 million were fitted with pretensioners), 143 million side airbags (including curtain airbags and front center airbags), 61 million frontal airbags and 21 million steering wheels.
By combining its core competence and industry experience, the Company also develops and manufactures mobility safety solutions such as pedestrian protection, battery cut-off switches, connected safety services, and safety solutions for riders of powered two-wheelers. The Company has 62 production facilities in 23 countries and its customers include the world’s largest car manufacturers.
By combining its core competence and industry experience, the Company also develops and manufactures mobility safety solutions such as passive safety systems for commercial vehicles, battery cut-off switches, and safety solutions for riders of motorcycles and bikes. The Company has 62 production facilities in 23 countries and its customers include the world’s largest car manufacturers.
As the Company moves forward its workforce (employees plus temporary personnel) strives to respond with agility to new possibilities to grow and improve the Company's business whilst delivering with excellence to its customers. The Company builds a winning team by focusing on creating a work environment that attracts, retains, and engages its employees.
As the Company moves forward, its workforce including both employees and temporary personnel, strives to respond with agility to new opportunities for growth and improvement while delivering excellence to its customers. The Company builds a winning team by focusing on creating a work environment that attracts, retains, and engages its employees.
Of the R,D&E, net expense in 2024, 86% was for projects and programs where the Company has customer orders, typically related to vehicle models in development. The remaining 14% was mainly for new innovations, products and standardizations that will yield benefits over time.
Net of this income, R,D&E expenditures in 2025 was $413 million compared to $398 million in 2024. Of the gross R,D&E expense in 2025, 79% was for projects and programs where the Company has customer orders, typically related to vehicle models in development. The remaining 21% was mainly for new innovations, products and standardizations that may yield benefits over time.
Research, Development and Engineering, net (R,D&E) No single customer project accounted for more than 3% of Autoliv’s total R,D&E, net spending during 2024. To support Autoliv’s product portfolio, additional expertise is brought in-house via technology partnerships and licensing agreements. During 2024, gross expenditures for R,D&E amounted to $612 million compared to $618 million in 2023.
No single customer project accounted for more than 2% of Autoliv’s total gross R,D&E spending during 2025. To support Autoliv’s product portfolio, additional expertise is brought in-house via technology partnerships and licensing agreements.
According to S&P Global, LVP is forecasted to grow to close to 91 million by 2027 from almost 87 million in 2024, due to growing demand and export in medium- and low-income markets.
According to S&P Global, LVP is forecasted to grow to close to 92 million by 2028 from just over 90 million in 2025, due to growing demand and export in medium- and low-income markets.
The company's five largest customers accounted for around 41%, and the ten largest customers for around 59% of global LVP in 2024. A delivery contract is typically for the lifetime of a vehicle model, which is normally between five and seven years depending on customer platform sourcing preferences and strategies.
A delivery contract is typically for the lifetime of a vehicle model, which is normally between five and seven years depending on customer platform sourcing preferences and strategies.
The U.S. based OEMs (including Chrysler and new EV manufactures) accounted for 21% of the Company's global sales in 2024. Globally one of the Company's strongest growing customers from 2023 to 2024 was Geely followed by Mercedes and Renault.
The U.S. based OEMs (including Chrysler and new EV manufactures) accounted for 20% of the Company's global sales in 2025. Globally, the Company's strongest growing customers from 2024 to 2025 were Stellantis, followed by Suzuki, Toyota and Chery .
Of these amounts, $214 million in 2024 and $193 million in 2023 were related to customer-funded engineering projects and crash tests reimbursed by the customers. Net of this income, R,D&E expenditures in 2024 was $398 million compared to $425 million in 2023.
Research, Development and Engineering, net (R,D&E) During 2025, gross expenditures for R,D&E amounted to $616 million compared to $612 million in 2024. Of these amounts, $202 million in 2025 and $214 million in 2024 were related to customer-funded engineering projects and crash tests reimbursed by the customers.
The Company takes several actions to manage the raw material fluctuations, such as competitive sourcing and looking for alternative materials. The Company is also taking necessary actions to gradually implement raw materials with a lower carbon emission footprint.
The Company is also taking necessary actions to gradually implement raw materials with a lower carbon emission footprint.
For information on the Company's use of intellectual property and its importance to the Company, see “Risk Factors – If our patents are declared invalid or our technology infringes on the proprietary rights of others, our ability to compete may be impaired” in Item 1A of this Annual Report. 6 Backlog The Company has frame contracts with automobile manufacturers and such contracts are typically entered into up to three years before the start of production of the relevant car model or platform and provide for a term covering the life of such car model or platform including service parts after a vehicle model is no longer produced.
Backlog The Company has frame contracts with automobile manufacturers and such contracts are typically entered into up to three years before the start of production of the relevant car model or platform and provide for a term covering the life of such car model or platform including service parts after a vehicle model is no longer produced.
The market for airbags and steering wheels, where Autoliv has a global market share of around 44%, is expected to grow mainly as result of higher installation rates of inflatable curtains, side airbags, knee airbags, center airbags as well as the trend towards higher-value steering wheels with leather and additional features.
The market for airbags and steering wheels is expected to grow primarily due to increasing installation rates of inflatable curtains, side airbags, knee airbags, and front‑center airbags, as well as rising demand for higher‑value steering wheels with leather and additional integrated functions.
For more information about order intake see “Risk Factors – The cyclical nature of automotive sales and production can adversely affect our business. Our business is directly related to LVP in the global market and by our customers, and automotive sales and LVP are the most important drivers for our sales” in Item 1A of this Annual Report.
Our business is directly related to LVP in the global market and by our customers, and automotive sales and LVP are the most important drivers for our sales” in Item 1A of this Annual Report. 6 Dependence on Customers In 2025, the Company's top five customers represented around 44% of its consolidated net sales and the Company's top ten customers represented around 70% of its consolidated net sales.
The Company offers an inclusive work environment where its employees are challenged and achieve great things together. The Company seeks individuals who hold varied experiences and viewpoints to create a workplace that allows each employee to do their best work and drive the Company's collective success.
The Company seeks individuals who hold varied experiences and viewpoints to create a workplace that allows each employee to do their best work and drive the Company's collective success. The Company's workforce reflects the diversity of the countries and cultures in which it operates. Supporting the development of the employees is essential in a highly competitive and rapidly changing environment.
Dependence on Customers In 2024, the Company's top five customers represented around 44% of its consolidated net sales and the Company's top ten customers represented around 71% of its consolidated net sales. This reflects the concentration of manufacturers in the automotive industry.
This reflects the concentration of manufacturers in the automotive industry. In 2025 the Company's five largest customers accounted for around 40% of global LVP and the ten largest customers for around 56% of global LVP.
For more information about how climate change impacts the Company's business, see "Risk factors – Global climate change could negatively affect our business” in Item 1A of this Annual Report. Raw Materials Direct material cost represents approximately 55% of the Company's net sales in 2024. The Company mainly purchases manufactured components and raw materials for its operations.
For more information about how climate change impacts the Company's business, see "Risk Factors – Global climate change could negatively affect our business” in Item 1A of this Annual Report. 7 Human Capital Management The Company's drive for excellence is what makes Autoliv the world’s leading supplier of automotive safety systems.
The table below shows the Company's total workforce as of December 31, 2024, and 2023. 2024 2023 Total workforce 65,200 70,300 Whereof: Direct workforce in manufacturing 48,000 52,400 Indirect workforce 17,200 17,800 Temporary workforce 9 % 11 % Talent Attraction, Development, and Retention The Company believes that attraction, development, and retention of talent is essential to its success, especially in today's environment.
The table below shows the Company's total workforce as of December 31, 2025, and 2024. 2025 2024 Total workforce 64,300 65,200 Whereof: Direct workforce in manufacturing 47,300 48,000 Indirect workforce 17,000 17,200 Temporary workforce 10 % 9 % Of the Company’s total workforce as of December 31, 2025, 29% (2024: 30%) is located in the Americas, 22% (2024: 19%) in Asia (excluding China), 14% (2024: 14%) in China, and 35% (2024: 37%) in Europe (including South Africa, Tunisia and Turkey).
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The Company's workforce reflects the diversity of the countries and cultures in which it operates. 30% of the Company’s workforce is located in the Americas, 19% in Asia (excluding China), 14% in China, and 37% in Europe (including South Africa, Tunisia and Turkey). Supporting the development of the employees is essential in a highly competitive and rapidly changing environment.
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Autoliv holds a leading position in both airbags and steering wheels, with a combined market shares of around 44%.
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Raw Materials Direct material cost represents approximately 54% of the Company's net sales in 2025. The Company mainly purchases manufactured components and raw materials for its operations. The Company takes several actions to manage the raw material fluctuations, such as competitive sourcing and looking for alternative materials.
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For information on the Company's use of intellectual property and its importance to the Company, see “Risk Factors – If our patents are declared invalid or our technology infringes on the proprietary rights of others, our ability to compete may be impaired” in Item 1A of this Annual Report.
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For more information about order intake see “Risk Factors – The cyclical nature of automotive sales and production can adversely affect our business, operating results, and financial condition.
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Talent Attraction, Development, and Retention The Company believes that attraction, development, and retention of talent is essential to its success. The Company offers an inclusive work environment where its employees are challenged and achieve great things together.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

152 edited+36 added−21 removed112 unchanged
Biggest changeWhile we have recently received inflation related pricing concessions from most of our customers, there is no guarantee that this will occur in the future. Our future profitability will depend upon, among other things, our ability to continuously reduce our cost per unit and maintain our cost structure, enabling us to remain cost-competitive.
Biggest changePrice reductions have impacted our sales and profit margins and are expected to continue to do so in the future. While we in the past received inflation related pricing concessions from most of our customers, there is no guarantee that this will occur in the future.
Item 1A. Ri sk Factors Our business, financial condition, operating results and cash flows may be impacted by a number of factors. A discussion of the risks associated with these material risk factors is included below. RISKS RELATED TO OUR INDUSTRY The cyclical nature of automotive sales and production can adversely affect our business.
Item 1A. Ri sk Factors Our business, operating results, cash flows, and financial condition may be impacted by a number of factors. A discussion of the risks associated with these material risk factors is included below. RISKS RELATED TO OUR INDUSTRY The cyclical nature of automotive sales and production can adversely affect our business, operating results, and financial condition.
Some of our competitors may also have a “preferred status” as a result of special relationships or ownership interests with certain customers.
Some of our competitors may also have “preferred status” as a result of special relationships or ownership interests with certain customers.
A vehicle manufacturer may attempt to hold us responsible for some or the entire repair or replacement costs of defective products under new vehicle warranties when the product supplied did not perform as represented. Accordingly, the future costs of warranty claims by our customers may be material.
A vehicle manufacturer may attempt to hold us responsible for some or the entire repair or replacement costs of defective products under new vehicle warranties when the product supplied did not perform as represented. Accordingly, future warranty claims by our customers may be material.
When we fail to timely deliver, we may have to absorb our own costs for identifying and resolving the ultimate problem as well as expeditiously producing and shipping replacement components or products. Generally, we must also carry the costs associated with “catching up,” such as overtime and premium freight.
When we fail to deliver timely, we may have to absorb our own costs for identifying and resolving the ultimate problem as well as expeditiously producing and shipping replacement components or products. Generally, we must also carry the costs associated with “catching up,” such as overtime and premium freight.
We cannot provide assurance that we will be able to install and certify the equipment needed to produce products for new programs in time for the start of production, or that the transitioning of our manufacturing facilities and resources to full production for such new programs will not impact production rates or other operational efficiency measures at our facilities.
We cannot provide assurance that we will be able to install and certify the equipment needed to produce products for new programs in time for the start of production, or that transitioning our manufacturing facilities and resources to full production for such new programs will not impact production rates or other operational efficiency measures at our facilities.
These matters may include, without limitation, disputes with our suppliers and customers, intellectual property claims, shareholder litigation, government investigations, class action lawsuits, personal injury claims, product liability claims, environmental issues, antitrust, customs and VAT disputes, and employment and tax issues.
These matters may include, without limitation, disputes with our suppliers and customers, intellectual property claims, shareholder litigation, government investigations, class action lawsuits, personal injury claims, product liability claims, environmental issues, antitrust, customs and VAT disputes, employment, and tax issues.
The imposition of customs duties on imports into the U.S., Mexico or Canada could negatively impact our financial performance. 18 Our foreign operations may subject us to risks relating to laws governing international relations Due to our global operations, we are subject to many laws governing international relations (including, but not limited to, the Foreign Corrupt Practices Act, and other anti-bribery regulations in foreign jurisdictions where we do business), which prohibit improper payments to government officials and restrict where and how we can do business, what information or products we can supply to certain countries and what information we can provide to authorities in governmental authorities.
The imposition of customs duties on imports into the U.S., Mexico, or Canada could negatively impact our financial performance. 18 Our foreign operations may subject us to risks relating to laws governing international relations Due to our global operations, we are subject to many laws governing international relations (including, but not limited to, the Foreign Corrupt Practices Act, and other anti-bribery regulations in foreign jurisdictions where we do business), which prohibit improper payments to government officials and restrict where and how we can do business, what information or products we can supply to certain countries and what information we can provide to governmental authorities.
Additionally, environmental laws, regulations, and permits and the enforcement thereof change frequently and have tended to become increasingly stringent over time, which may necessitate substantial capital expenditures or operating costs or may require changes of production processes.
Additionally, environmental laws, regulations, and permits and the enforcement thereof change frequently and have tended to become increasingly stringent over time, which may necessitate substantial capital expenditures or operating costs or require changes of production processes.
Although we periodically assess the likelihood of adverse outcomes, negative or unexpected results from one or more of such reviews and audits, including any related interest or penalties imposed by governmental authorities, could increase our effective tax rate and adversely impact our operating results, cash flows or financial condition.
Although we periodically assess the likelihood of adverse outcomes, negative or unexpected results from one or more of such reviews and audits, including any related interest or penalties imposed by governmental authorities, could increase our effective tax rate and adversely impact our operating results, cash flows, and financial condition.
Although we seek to deploy comprehensive security measures to prevent, detect, address and mitigate these threats, there has been an increased level of activity, and an associated level of sophistication, in cyber-attacks against large multinational companies. Threat actors, including nation state attackers, could also use artificial intelligence for malicious purposes, increasing the frequency and complexity of their attacks.
Although we seek to deploy comprehensive security measures to prevent, detect, address and mitigate these threats, there has been an increased level of activity, and an associated level of sophistication, in cyber-attacks against large multinational companies. Threat actors, including nation state attackers, could also use artificial intelligence for malicious purposes, increasing the frequency, velocity, and complexity of their attacks.
In the future, we could experience material warranty or product liability losses and incur significant costs to process and defend these claims. A successful claim brought against us in excess of available insurance coverage, if any, or a requirement to participate in any product recall, could have a material adverse effect on our operating results, cash flows, or financial condition.
In the future, we could incur material warranty or product liability losses and significant costs to process and defend these claims. A successful claim brought against us in excess of available insurance coverage, if any, or a requirement to participate in any product recall, could have a material adverse effect on our operating results, cash flows, and financial condition.
We continue to invest in technology and innovation which we believe will be critical to our long-term growth. Our ability to maintain and improve existing products, while successfully developing and introducing distinctive new and enhanced products that anticipate changing customer and consumer preferences and capitalize upon emerging technologies will be a significant factor in our ability to remain competitive.
We continue to invest in technology and innovation, which we believe are critical to our long-term growth. Our ability to maintain and improve existing products, while successfully developing and introducing distinctive new and enhanced products that anticipate changing customer and consumer preferences and capitalize upon emerging technologies will be a significant factor in our ability to remain competitive.
The manifestations of climate change, such as extreme weather conditions or more frequent extreme weather events, including wildfires, flooding, water stress and extreme heat, could disrupt our operations, damage our facilities, disrupt our supply chain, including our customers or suppliers, impact the availability and cost of materials needed for manufacturing or increase insurance and other operating costs.
The manifestations of climate change, such as extreme weather conditions or more frequent extreme weather events, including wildfires, flooding, water stress and extreme heat, could also disrupt our operations, damage our facilities, disrupt our supply chain, including our customers or suppliers, impact the availability and cost of materials needed for manufacturing or increase insurance and other operating costs.
Significant judgment and estimation are required in determining our effective tax rate and in evaluating our tax positions, in many cases where the 21 ultimate tax determination is uncertain. Although we believe that our tax estimates are reasonable, the final determination of our tax liability may be different from what is reflected in our historical income tax provisions and accruals.
Significant judgment and estimation are required in determining our effective tax rate and in evaluating our tax positions, in many cases where the ultimate tax determination is uncertain. Although we believe that our tax estimates are reasonable, the final determination of our tax liability may be different from what is reflected in our historical income tax provisions and accruals.
Thus, any such supply chain disruptions could severely impact our operations and/or those of our customers and force us to halt production for prolonged periods of time which could expose us to material claims for compensation and have a material adverse effect on our business prospects, operating results, or financial condition.
Thus, any such supply chain disruptions could severely impact our operations and/or those of our customers and force us to halt production for prolonged periods of time which could expose us to material claims for compensation and have a material adverse effect on our business, operating results, and financial condition.
In addition, we cannot provide assurance that our customers will execute on schedule the launch of their new product programs, for which we might supply products. Additionally, as a Tier 1 supplier, we must effectively coordinate the activities of numerous suppliers in order to launch programs successfully.
In addition, we cannot provide assurance that our customers will execute on schedule the launch of their new product programs, for which we might supply products. As a Tier 1 supplier, we must effectively coordinate the activities of numerous suppliers in order to launch programs successfully.
Changes in tax laws or policies by the U.S. or foreign jurisdictions could result in a higher effective tax rate on our worldwide earnings, and any such change could have a material adverse effect on our business prospects, cash flows, operating results and financial condition.
Changes in tax laws or policies by the U.S. or foreign jurisdictions could result in a higher effective tax rate on our worldwide earnings, and any such change could have a material adverse effect on our business , operating results, cash flows, and financial condition.
We may face reputational challenges if we determine that certain of our products contain minerals not determined to be conflict free or if we are unable to sufficiently verify the origins for all minerals used in our products through the procedures we may implement.
We may face reputational challenges 12 if we determine that certain of our products contain minerals not determined to be conflict free or if we are unable to sufficiently verify the origins for all minerals used in our products through the procedures we may implement.
Significant changes in the United States Mexico Canada Agreement (USMCA) could adversely affect our financial performance The U.S., Mexico and Canada entered into the USMCA, a successor to the North American Free Trade Agreement (NAFTA), effective as of July 1, 2020.
Significant changes in the United States Mexico Canada Agreement ("USMCA") could adversely affect our financial performance The U.S., Mexico and Canada entered into the USMCA, a successor to the North American Free Trade Agreement, effective as of July 1, 2020.
There are significant resources associated with complying with these requirements, including diligence efforts 12 to determine the sources of conflict minerals used in our products and potential changes to our processes or supplies as a consequence of such diligence efforts.
There are significant resources associated with complying with these requirements, including diligence efforts to determine the sources of conflict minerals used in our products and potential changes to our processes or supplies as a consequence of such diligence efforts.
If we are unable to maintain our position in the Asian markets, the pace of growth slows, or vehicle sales in these markets decrease, our business prospects, operating results and financial condition could be materially adversely affected.
If we are unable to maintain our position in the Asian markets, the pace of growth slows, or vehicle sales in these markets decrease, our business, operating results, and financial condition could be materially adversely affected.
These open source licenses typically mandate that proprietary 20 software, when combined in specific ways with open source software, become subject to the open source license. If we combine our proprietary software in such ways with open source software, we could be required to release the source code of our proprietary software.
These open source licenses typically mandate that proprietary software, when combined in specific ways with open source software, become subject to the open source license. If we combine our proprietary software in such ways with open source software, we could be required to release the source code of our proprietary software.
International sales and operations, especially in growth markets, subject us to certain risks inherent in doing business abroad, including: exposure to local economic conditions; unexpected changes in laws, regulations, trade, or monetary or fiscal policy, including interest rates, foreign currency exchange rates, and changes in inflation rates; foreign tax consequences; inability to collect, or delays in collecting, value-added taxes and/or other receivables associated with remittances and other payments by subsidiaries; exposure to local political turmoil and challenging labor conditions; changes in general economic and political conditions in countries where we operate, particularly in emerging markets; expropriation and nationalization; enforcing legal agreements or collecting receivables through foreign legal systems; wage inflation; currency controls, including lack of liquidity in foreign currency due to governmental restrictions, trade protection policies and currency controls, which may create difficulty in repatriating profits or making other remittances; compliance with the requirements of an increasing body of applicable anti-bribery laws; reduced intellectual property protection in various markets; investment restrictions or requirements; and the imposition of product tariffs and the burden of complying with a wide variety of international and U.S. export laws.
International sales and operations, especially in growth markets, subject us to certain risks inherent in doing business abroad, including: exposure to local economic conditions; unexpected changes in laws, regulations, trade, or monetary or fiscal policy, including interest rates, foreign currency exchange rates, and changes in inflation rates; foreign tax consequences; inability to collect, or delays in collecting, value-added taxes and/or other receivables associated with remittances and other payments by subsidiaries; exposure to local political turmoil and challenging labor conditions; changes in general economic and political conditions in countries where we operate, particularly in emerging markets; expropriation and nationalization; enforcing legal agreements or collecting receivables through foreign legal systems; wage inflation; currency controls, including lack of liquidity in foreign currency due to governmental restrictions, trade protection policies and currency controls, which may create difficulty in repatriating profits or making other remittances; compliance with the requirements of an increasing body of applicable anti-bribery laws; reduced intellectual property protection in various markets; investment restrictions or requirements; the imposition of tariffs and duties, and the burden of complying with a wide variety of international and U.S. export control and economic sanctions laws.
Although business with any given customer is typically split into several contracts (either on the basis of one contract per vehicle model or on a broader platform basis), the loss of business from any of our major customers (whether by lower overall demand for vehicles, cancellation of existing contracts or the failure to award us new business) could have a material adverse effect on our business, results of operations, and financial condition.
Although business with any given customer is typically split into several contracts (either on the basis of one contract per vehicle model or on a broader platform basis), the loss of business from any of our major customers (whether by lower overall demand for vehicles, cancellation of existing contracts or the failure to award us new business) could have a material adverse effect on our business, operating results, and financial condition.
In addition, with global platforms and procedures, vehicle manufacturers are increasingly evaluating our quality performance on a global basis; any one or more quality, warranty or other recall issue(s) (including issues affecting few units and/or having a small financial impact) may cause a vehicle manufacturer to implement measures which may have a severe impact on our operations, such as a global, temporary or prolonged suspension of new orders.
In addition, with global platforms and procedures, vehicle manufacturers are increasingly evaluating our quality performance on a global basis; any one or more quality, warranty or other recall issue(s) (including issues affecting few units and/or having a small financial impact) may cause a vehicle manufacturer to implement measures that may have a severe impact on our operations, such as a global, temporary or prolonged suspension of new orders.
The potential consequences of a material cybersecurity incident include reputational damage, damaged customer relationships, loss of revenue, lower order intake in the future, theft of intellectual property, litigation with third parties, diminution in the value of our investment in research, development and engineering, diversion of the attention of management away from the operation of our business and increased cybersecurity protection and remediation costs, legal claims and liability, regulatory scrutiny, sanctions, fines or penalties (which may not be covered by our insurance policies), negative publicity, release of sensitive and/or confidential information, increases in operating expenses, or lost revenues which in turn could adversely affect our competitiveness and results of operations.
The potential consequences of a material cybersecurity incident include reputational damage, damaged customer relationships, loss of revenue, lower order intake in the future, theft of intellectual property, litigation with third parties, diminution in the value of our investment in research, development and engineering, diversion of the attention of management away from the operation of our business and increased cybersecurity protection and remediation costs, legal claims and liability, regulatory scrutiny, sanctions, fines or penalties (which may not be covered by our insurance policies), negative publicity, release of sensitive and/or confidential information, or increases in operating expenses, which in turn could adversely affect our competitiveness and operating results.
Any allegations of noncompliance with these laws could harm our reputation, divert management attention and result in significant expenses, and could therefore materially harm our business prospects, operating results and financial condition.
Any allegations of noncompliance with these laws could harm our reputation, divert management attention and result in significant expenses, and could therefore materially harm our business, operating results, and financial condition.
In addition, there is a risk that inflation, high-turnover rates, and increased competition may reduce the efficiencies now available in best-cost countries to levels that no longer allow for cost-beneficial restructuring opportunities. Therefore, there can be no assurances that any future restructurings or capacity alignments will be completed as planned or achieve the desired results.
In addition, there is a risk that inflation, high turnover rates, and increased competition may reduce the efficiencies currently available in best-cost countries to levels that no longer allow for cost-beneficial restructuring opportunities. Therefore, there can be no assurances that any future restructurings or capacity alignments will be completed as planned or will achieve the desired results.
These 17 proposals, if adopted by countries in which we operate, could result in changes to tax policies, including transfer pricing policies, which could ultimately impact our tax liabilities.
These proposals, if adopted by countries in which we operate, could result in changes to tax policies, including transfer pricing policies, which could ultimately impact our tax liabilities.
A warranty, recall or product liability claim brought against us in excess of our available insurance may have a material adverse effect on our business. Vehicle manufacturers are also increasingly requiring their outside suppliers to guarantee or warrant their products and bear the costs of repair and replacement of such products under new vehicle warranties.
A warranty, recall or product liability claim brought against us in excess of available insurance may have a material adverse effect on our business. Vehicle manufacturers are also increasingly requiring their suppliers to guarantee or warrant their products and bear repair and replacement costs of such products under new vehicle warranties.
We are also subject to the existing U.S. Transportation Recall Enhancement, Accountability and Documentation (“TREAD”) Act, which requires equipment manufacturers, such as Autoliv, to comply with “Early Warning” requirements by reporting certain information to NHTSA such as: information related to defects or reports of injury related to our products.
We are also subject to the existing U.S. Transportation Recall Enhancement, Accountability and Documentation (“TREAD”) Act, which requires equipment manufacturers, such as Autoliv, to comply with “Early Warning” reporting requirements by providing NHTSA with certain information, including information related to defects or reports of injury related to our products.
Changes in government regulations in response to these and other considerations could have a severe impact on our business. Although we believe that over time safety will continue to be a regulatory priority, if government priorities shift and we are unable to adapt to changing regulations, our business may suffer material adverse effects.
Changes in government regulations in response to these and other factors could have a severe impact on our business. Although we believe that safety will continue to be a regulatory priority over time, if government priorities shift and we are unable to adapt to changing regulations, our business may suffer material adverse effects.
We are subject to existing stringent requirements under the National Traffic and Motor Vehicle Safety Act of 1966 (the “Vehicle Safety Act”), including a duty to report, subject to strict timing requirements, safety defects with our products. The Vehicle Safety Act imposes potentially significant civil penalties for violations including the failure to comply with such reporting actions.
We are subject to existing stringent requirements under the National Traffic and Motor Vehicle Safety Act of 1966 (the “Vehicle Safety Act”), including a duty to report safety defects with our products, subject to strict timing requirements. The Vehicle Safety Act imposes potentially significant civil penalties for violations, including the failure to comply with such reporting obligations.
Changes in national policy or continued uncertainty could depress economic activity and restrict our access to suppliers or customers and have a material adverse effect on our cash flows, operating results and financial condition. Additionally, such trade restrictions or material increases in tariffs could impact our targets, earnings guidance, and estimates.
Changes in national policy or continued uncertainty could depress economic activity and restrict our access to suppliers or customers and have a material adverse effect on our business, operating results, cash flows, and financial condition. Additionally, trade restrictions or material increases in tariffs could impact our targets, earnings guidance, and estimates.
In addition, the OSHA hazard communication standard requires that we maintain information about hazardous materials used or produced in our operations and that we provide this information to employees, state and local governmental authorities and residents. We are also subject to occupational safety regulations in other countries.
In addition, the OSHA hazard communication standard requires us to maintain information about hazardous materials used or produced in our operations and to provide this information to employees, state and local governmental authorities and residents. We are also subject to occupational safety regulations in other countries.
A work stoppage or other labor disruption at one or more of our facilities or our customers’ facilities could cause us to shut down production facilities supplying these products, which could have a material adverse effect on our business, results of operations, and financial condition.
A work stoppage or other labor disruption at one or more of our facilities or our customers’ facilities could cause us to shut down production facilities supplying these products, which could have a material adverse effect on our business, operating results, and financial condition.
Although we have invested and will continue to invest in our engineering, design, and quality infrastructure, we cannot give any assurance that our products will not suffer from defects or other deficiencies or that we will not experience material warranty claims or product recalls.
Although we have invested and will continue to invest in our engineering, design, and quality infrastructure, we cannot give any assurance that our products will be free suffer from defects or other deficiencies or that we will not experience material warranty claims or product recalls.
If we are unable to offset continued price reductions through improved operating efficiencies and reduced expenditures, these price reductions may have a material adverse effect on our business prospects, operating results, cash flows or financial condition.
If we are unable to offset continued price reductions through improved operating efficiencies and reduced expenditures, these price reductions may have a material adverse effect on our business, operating results, cash flows, and financial condition.
As a result, severe weather or a natural disaster that results in a prolonged disruption to our operations, or the operations of our customers or suppliers, could have a material adverse effect on our operating results, cash flows or financial condition.
As a result, severe weather or a natural disaster that results in a prolonged disruption to our operations, or the operations of our customers or suppliers, could have a material adverse effect on our business, operating results, cash flows and financial condition.
Our sales are also affected by the inventory levels of our customers, which we cannot predict. Customers may choose to increase or reduce inventory levels at any time, and new inventory levels may not align with historical trends. These fluctuations can add variability to our production schedules and order intake, potentially impacting our revenues and financial condition.
Our sales are also affected by the inventory levels of our customers, which we cannot predict. Customers may choose to increase or reduce inventory levels at any time, and new inventory levels may not align with historical trends. These fluctuations can add variability to customer call-offs, our production schedules, and order intake, potentially impacting our revenues and financial condition.
Some regions around the world may at various times be more particularly impacted by these factors than other regions. Economic declines that result in a significant reduction in automotive sales and production by our customers have in the past had, and may in the future have, a material adverse effect on our business, results of operations, and financial condition.
Some regions around the world may at various times be more particularly impacted by these factors than other regions. Economic declines that result in a significant reduction in automotive sales and production by our customers have in the past had, and may in the future have, a material adverse effect on our business, operating results, and financial condition.
If we are not successful in expanding our product offerings or if it takes longer or costs are more than expected, it could negatively impact our financial results, competitive position, and future business prospects.
If we are not successful in expanding our product offerings or if it takes longer or costs more than expected, it could negatively impact our operating results, financial condition, competitive position, and future business prospects.
The net exposure can be significant and creates a transaction exposure risk for the Company. The Company does not hedge translation exposure. However, we do engage in foreign exchange rate hedging from time to time related to foreign currency transactions. For additional information, see Part II, Item 7A. Quantitative and Qualitative Disclosures about Market Risk - Currency risks.
The net exposure can be significant and creates a transaction exposure risk for us. We do not hedge translation exposure. However, we do engage in foreign exchange rate hedging from time to time related to foreign currency transactions. For additional information, see Part II, Item 7A. Quantitative and Qualitative Disclosures about Market Risk - Currency risks.
Although we currently carry product liability and product recall insurance in excess of our self-insured amounts, no assurance can be made that such insurance will provide adequate coverage against potential claims, such insurance is available or will continue to be available in the appropriate markets, or that we will be able to obtain such insurance on acceptable terms in the future.
Although we currently carry product liability and product recall insurance in excess of our self-insured amounts, there can be no assurance that such insurance will provide adequate coverage against potential claims, that such insurance will be available or continue to be available in the appropriate markets, or that we will be able to obtain such insurance on acceptable terms in the future.
If LVP were to remain on low levels for an extended period of time, we would experience a significantly negative cash flow. Similarly, if cash losses for customer defaults rise sharply, we would experience a negative cash flow.
If LVP were to remain on low levels for an extended period of time, we would experience a significantly negative cash flow. Similarly, if cash losses resulting from customer defaults were to rise sharply, we would experience negative cash flow.
Our inability to effectively manage the timing, quality and costs of these new program launches could adversely affect our business prospects, operating results, cash flows, or financial condition. Changes in our product mix may impact our financial performance We sell products that have varying profit margins.
Our inability to effectively manage the timing, quality and costs of these new program launches could adversely affect our business, operating results, cash flows, and financial condition. Changes in our product mix may impact our operating results and financial condition We sell products that have varying profit margins.
There is no guarantee that these measures will be fully implemented, complied with, or effective in safeguarding against all data security breaches, system compromises or misuses of data.
There is no guarantee that these measures will be fully implemented, complied with, or effective in safeguarding against all data security incidents, system compromises or misuses of data.
Among other factors, our products compete on the basis of price, quality, manufacturing and distribution capability, design and performance, technological innovation, delivery, and service. Some of our competitors are subsidiaries (or divisions, units or similar) of companies that are larger and have greater financial and other resources than us.
Among other factors, our products compete on the basis of price, quality, manufacturing and distribution capability, design and performance, technological innovation, delivery, and service. Some of our competitors are subsidiaries (or divisions, units or similar) of larger companies with greater financial and other resources than us.
TREAD imposes criminal liability for violating such requirements if a defect subsequently causes death or bodily injury. In addition, the Vehicle Safety Act authorizes NHTSA to require a manufacturer to recall and repair vehicles that contain safety defects or fail to comply with U.S. federal motor vehicle safety standards. Sales into foreign countries may be subject to similar regulations.
The TREAD Act imposes criminal liability for violations if a defect subsequently causes death or bodily injury. In addition, the Vehicle Safety Act authorizes NHTSA to require a manufacturer to recall and repair vehicles that contain safety defects or fail to comply with U.S. federal motor vehicle safety standards. Sales into foreign countries may be subject to similar regulations.
In addition, as we adopt new technology, we face an inherent risk of exposure to the claims of others that we have allegedly violated their intellectual property rights.
In addition, as we adopt new technologies, we face an inherent risk of exposure to the claims of others that we have allegedly violated their intellectual property rights.
In addition, our future success will depend on, among other factors, our ability to attract, develop, and retain other qualified personnel, particularly engineers and other employees with software and technical expertise.
Our future success will depend on, among other factors, our ability to attract, develop, and retain other qualified personnel, particularly engineers and other employees with software and technical expertise.
The USMCA changed the automotive rules of origin that dictate what percentage of an automobile must be built from parts that originated from countries in the NAFTA region. The rules require that at least 75% of parts be made in North America and that 40-45% of an automobile must be made by workers earning at least $16 an hour.
The USMCA changed the automotive rules of origin that dictate what percentage of an automobile must be built from parts that originated from countries in the USMCA territory. The rules require that at least 75% of parts be made in North America and that 40-45% of an automobile must be made by workers earning at least $16 an hour.
The ultimate impact of any tariffs, including any related responses, are uncertain and will depend on various factors, including if any tariffs are ultimately implemented, the timing of implementation, and the amount, scope, and nature of the tariffs. Any or all of these actions could adversely affect our business, financial condition and cash flows.
The ultimate impact of any tariffs, including any related responses, are uncertain and will depend on various factors, including the timing of implementation, and the amount, scope, and nature of the tariffs. Any or all of these actions could adversely affect our business, financial condition and cash flows.
Because mobility safety product offerings are currently in the development stages, it is difficult for us to anticipate the level of sales they may generate.
Because mobility safety product offerings are still in the development stages, it is difficult for us to anticipate the level of sales they may generate.
Our international operations also depend upon favorable trade relations between the countries where we manufacture and sell products and those foreign countries in which our customers and suppliers have operations.
Our international operations also depend upon trade relations between the countries where we manufacture and sell products and those countries in which our customers and suppliers have operations.
RISKS RELATED TO GOVERNMENT REGULATIONS AND TAXES Our business may be adversely affected by laws or regulations, including environmental, occupational health and safety, and other governmental regulations We are subject to various federal, state, local and foreign laws and regulations, including those related to the requirements of environmental, occupational health and safety, financial, and other matters.
RISKS RELATED TO GOVERNMENT REGULATIONS AND TAXES Our business may be adversely affected by laws or regulations, including environmental, occupational health and safety, and other governmental regulations We are subject to various federal, state, local and foreign laws and regulations, including those related to environmental, occupational health and safety, financial, and other requirements.
Given the competitive nature of our business, the number of awards we are awarded relative to our peers may decrease over time and our past order intake is not an indicator of future levels or order intake. Additionally, OEMs rigorously evaluate our performance and products against those of our competitors on the basis of product quality, reliability and cost-effectiveness.
Given the competitive nature of our business, the number of awards we are awarded relative to our peers may decrease over time and our past order intake is not an indicator of future levels or order intake. Additionally, OEMs rigorously evaluate our products and performance against competitors on the basis of quality, reliability, cost-effectiveness, and the overall competitive landscape.
The Company is subject to taxation in the U.S. and numerous foreign jurisdictions. The Organization for Economic Co-operation and Development (“OECD”) continues its base erosion and profit shifting (“BEPS”) project begun in 2015 with new proposals for a global minimum tax, further development of a coordinated set of rules for taxation and the allocation of taxing rights between jurisdictions.
We are subject to taxation in the U.S. and numerous foreign jurisdictions. The Organization for Economic Co-operation and Development (“OECD”) continues its base erosion and profit shifting (“BEPS”) project begun in 2015 with new proposals for a global minimum tax, further development of a coordinated set of rules for taxation and the allocation of taxing rights between jurisdictions.
Cybersecurity incidents or other damage to our technology infrastructure could disrupt business operations, result in the loss of critical and confidential information, and adversely impact our reputation and operating results We rely extensively on information technology (“IT”) networks and systems, our global data centers and services provided over the internet to process, transmit and store electronic information, and to manage or support a variety of business processes or activities across our facilities worldwide.
Cybersecurity incidents or other damage to our technology infrastructure could disrupt business operations, result in the loss of critical and confidential information, and adversely impact our reputation and operating results We rely extensively on information technology (“IT”) networks and systems, and those of our third-party service providers, and our global data centers and services provided over the internet to process, transmit and store electronic information, and to manage or support a variety of business processes or activities across our facilities worldwide.
Any significant reduction in automotive sales and/or LVP by our customers, whether due to general economic conditions or any other factors relevant to sales or LVP, could have a material adverse effect on our business, results of operations, and financial condition.
Any significant reduction in automotive sales and/or LVP by our customers, whether due to general economic conditions or any other factors relevant to sales or LVP, could have a material adverse effect on our business, operating results, and financial condition.
Product recalls in our industry, even when they do not involve our products, can harm the reputations of our customers, competitors, and us, particularly if those recalls cause consumers to question the safety or reliability of products similar to those we produce.
Product recalls in our industry, even when they do not involve our products, can harm the reputations of our customers, competitors, and us, particularly if those recalls cause consumers to question the safety or reliability of products similar to ours.
The introduction of new laws or regulations or changes in existing laws or regulations, or the interpretations thereof, could increase the costs of doing business for us or our customers or suppliers or restrict our actions and adversely affect our business prospects, operating results, cash flows or financial condition.
The introduction of new laws or regulations, changes in existing laws or regulations, or changes in their interpretations, could increase the costs of doing business for us, our customers, or our suppliers, or restrict our actions and adversely affect our business, operating results, cash flows, and financial condition.
In addition, we may be required to incur significant costs to protect against damage caused by these disruptions or security breaches in the future.
In addition, we may be required to incur significant costs to protect against damage caused by these disruptions or security incidents in the future.
Disruptions and attacks on our IT systems or the systems of third parties storing our data or employee malfeasance or human or technological error could result in the misappropriation, loss, destruction or corruption of our critical data and confidential or proprietary information, personal information of our employees, the leakage of our or our customers’ confidential information, improper use of our systems and networks, production downtimes and both internal and external supply shortages, which could have a material adverse effect on our results of operations.
Disruptions and attacks on our IT systems or the systems of third parties storing our data, or employee malfeasance or human or technological error, could result in the unauthorized access, misappropriation, loss, destruction or corruption of our critical data and confidential or proprietary information, personal information of our employees, our customers’ confidential information, and/or the improper use of our systems and networks, production downtimes and both internal and external supply shortages, which could have a material adverse effect on our operating results.
Information concerning our benefit plans is included in Note 19, Retirement Plans, of the Consolidated Financial Statements in this Annual Report.
Information concerning our benefit plans is included in Note 20, Retirement Plans, of the Consolidated Financial Statements in this Annual Report.
We currently license certain proprietary technology to third parties and, if such technology becomes obsolete or less attractive, those licensees could terminate our license agreements, which could adversely affect our results of operations.
We currently license certain proprietary technology to third parties and, if such technology becomes obsolete or less attractive, those licensees could terminate our license agreements, which could adversely affect our operating results.
Our financial performance can be impacted depending on the mix of products we sell during a given period. Our earnings guidance, estimates, and financial targets assume a certain product sales mix as well as a geographic sales mix as many of the growth markets have a lower content per vehicle.
Our financial performance can be impacted depending on the mix of products we sell during a given period. Our earnings guidance, estimates, and financial targets assume a certain product sales mix as well as a geographic sales mix as many of the growth markets have a lower CPV.
Our business may be adversely affected by changes in automotive safety regulations or concerns that drive further regulation of the automobile safety market Government vehicle safety regulations are a key driver in our business. Historically, these regulations have imposed ever more stringent safety regulations for vehicles.
Our business may be adversely affected by changes in automotive safety regulations or concerns that drive further regulation of the automobile safety market Government vehicle safety regulations are a key driver in our business. Historically, these regulations have imposed increasingly stringent safety requirements for vehicles.
In addition to our in-house research and development efforts, we seek to acquire rights to new intellectual property through corporate acquisitions, asset acquisitions, licensing and joint venture arrangements. Our patents and licenses expire on various dates during the period from 2025 to 2044.
In addition to our in-house research and development efforts, we seek to acquire rights to new intellectual property through corporate acquisitions, asset acquisitions, licensing and joint venture arrangements. Our patents and licenses expire on various dates during the period from 2026 to 2045.
Due to the concentration of the majority of the growth in global LVP over time in growth markets, our operating results may be impacted if the passive safety content per vehicle remains low and if the penetration of automotive safety systems does not increase in these regions.
Due to the concentration of the majority of the growth in global LVP over time in growth markets, our operating results may be impacted if the passive safety CPV remains low and if the penetration of automotive safety systems does not increase in these regions.
Despite the implementation of security measures at third party locations, these IT systems, data centers and cloud services are also vulnerable to security breaches or other disruptions. Additionally, we and certain of our third-party vendors, collect and store personal information in connection with human resources operations and other aspects of our business.
Despite the implementation of security measures at third party locations, these IT systems, data centers and cloud services are also vulnerable to security incidents or other disruptions. Additionally, we and certain of our third-party service providers collect and store personal information in connection with human resources operations and other aspects of our business.
The current U.S. presidential administration has created uncertainty about the future relationship between the U.S. and certain of its trading partners, including with respect to the trade policies and agreements, treaties, government regulations and tariffs that could apply to trade between the U.S. and other nations.
The current U.S. presidential administration has created uncertainty about the relationships between the U.S. and certain of its trading partners, including with respect to the trade policies and agreements, treaties, government regulations, and the tariffs that apply to trade between the U.S. and other nations.
Our costs, liabilities, and obligations relating to environmental matters may have a material adverse effect on our business, operating results, cash flows, or financial condition. Our facilities in the U.S. are subject to regulation by the Occupational Safety and Health Administration (“OSHA”), which regulates the protection of the health and safety of workers.
Our costs, liabilities, and obligations relating to environmental matters may have a material adverse effect on our business, operating results, cash flows, and financial condition. Our facilities in the U.S. are subject to regulation by the Occupational Safety and Health Administration (“OSHA”), which oversees the protection of worker health and safety.
Due to our numerous foreign operations, our tax rate may be impacted by our global mix of earnings if our pre-tax income is lower than anticipated in countries with lower statutory tax rates and/or is higher than anticipated in countries with higher statutory tax rates.
Due to our numerous foreign operations, our tax rate may be impacted by our global mix of earnings if our pre-tax income is lower than anticipated in countries with lower statutory tax rates and/or is higher than anticipated in countries with higher statutory tax rates. Based on U.S.
Work stoppages, slow-downs or other labor issues at our customers’ facilities or at our facilities could adversely affect our operations Because the automotive industry relies heavily on “just-in-time” delivery of components during the assembly and manufacture of vehicles, a work stoppage or slow-down at one or more of the Company’s facilities could have a material adverse effect on our business.
Work stoppages, slow-downs or other labor issues at our customers’ facilities or at our facilities could adversely affect our business, operating results, and financial condition Because the automotive industry relies heavily on “just-in-time” delivery of components during the assembly and manufacture of vehicles, a work stoppage or slow-down at one or more of our facilities could have a material adverse effect on our business.
Disruptions in our supply chain may result for many reasons, including closures of one of our own or one of our suppliers’ facilities or critical manufacturing lines due to strikes or other labor disputes, mechanical failures, electrical outages, fires, explosions, critical pollution levels, critical health and safety and other working conditions issues (including epidemics and pandemics), natural disasters, war, political upheaval, as well as logistical complications due to labor disruptions, weather or natural disasters, acts of terrorism or violence (such as the disruptions in shipping in the Red Sea), mechanical failures, and legislation or regulation regarding the transport of hazardous goods.
Disruptions in our supply chain may result for many reasons, including closures of one of our own or one of our suppliers’ facilities or critical manufacturing lines due to strikes or other labor disputes, mechanical failures, electrical outages, fires, explosions, critical pollution levels, critical health and safety and other working conditions issues (including epidemics and pandemics), natural disasters, war, geopolitical and economic instability, political upheaval, as well as logistical complications due to labor disruptions, weather or natural disasters, acts of terrorism or violence, mechanical failures, cybersecurity events, and legislation or regulation regarding the transport of hazardous goods.
In the event that our systems are breached or attacked, we may also suffer an outage, failure, or unavailability of data or information technology systems, and interruptions to our business operations while such breach or attacked is being remedied; this may impact data or systems operated by us or by third-party service providers.
In the event that our systems, or those of our third-party service providers, are compromised or attacked, we may also suffer an outage, failure, or unavailability of data or information technology systems, and interruptions to our business operations while such incident or attack is being remedied; this may impact data or systems operated by us or by our third-party service providers.
Our business may face increased scrutiny from investors and other stakeholders related to our sustainability activities, including the goals, targets, and objectives that we announce, and our methodologies and timelines for pursuing them.
Our business may face increased interest from investors and other stakeholders related to our sustainability initiatives, including the goals, targets, and objectives that we announce, and our methodologies and timelines for pursuing them.
To the extent that any disruption or security breach results in a misappropriation, loss, destruction or corruption of our customer’s information, it could affect our relationships with our customers, create significant expense for us to investigate and remediate damage, lead to claims against the Company and ultimately harm our business, strategy, result of operations, or financial condition.
To the extent that any disruption or security incident results in an unauthorized access, misappropriation, loss, destruction or corruption of our customer’s information, it could affect our relationships with our customers, create significant expense for us to investigate and remediate any damage, lead to claims against us and ultimately harm our business, strategy, result of operations, or financial condition.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeBoard of Directors Oversight Our Board, in coordination with the Audit and Risk Committee, oversees the Company’s Enterprise Risk Management process, including the management of risks arising from cybersecurity threats. Our Board has delegated the primary responsibility to oversee cybersecurity matters to the Audit and Risk Committee.
Biggest changeIncidents are escalated in the organization according to defined criteria to engage a level of authority that is deemed appropriate, such as the Corporate Crisis Management Team if necessary. 23 Board of Directors Oversight Our Board, in coordination with the Audit Risk and Compliance Committee (the "ARCC"), oversees the Company’s Enterprise Risk Management process, including the management of risks arising from cybersecurity threats.
Further input is gained from regular maturity assessments executed by third parties as well as TISAX assessments executed by external audit bodies. Autoliv combines expertise from our internal cybersecurity function with additional specialist capacities from external consultants and partners as may be from time to time.
Further input is gained from regular maturity assessments executed by third parties as well as TISAX assessments executed by external audit bodies. Autoliv combines expertise from our internal cybersecurity function with additional specialist capacities from external consultants and partners as may be needed from time to time.
Cybersecurity risk management and strategy Cybersecurity risk management for the Company is undertaken both through dedicated cybersecurity risk management processes and within the Company’s overall Enterprise Risk Management program, which is overseen by the Audit and Risk Committee of the Company’s Board of Directors.
Cybersecurity risk management and strategy Cybersecurity risk management for the Company is undertaken both through dedicated cybersecurity risk management processes and within the Company’s overall Enterprise Risk Management program, which is overseen by the Audit, Risk, and Compliance Committee of the Company’s Board of Directors.
All risks across the Autoliv risk universe, including cybersecurity, are assessed with bottom-up risk assessments and subsequently are aggregated and reported to the Audit and Risk Committee of the Company’s Board of Directors . Autoliv utilizes the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework in combination with other corresponding and partially mandated frameworks to guide cybersecurity risk management.
Risks across the Autoliv risk universe, including cybersecurity, are assessed with bottom-up risk assessments and subsequently are aggregated and reported to the Audit, Risk, and Compliance Committee of the Company’s Board of Directors . Autoliv utilizes the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework in combination with other corresponding and partially mandated frameworks to guide cybersecurity risk management.
The Audit and Risk Committee receives information from the CISO and other members of management on at least a quarterly basis which is supplemented by a more extensive briefing from the CISO and management on at least a semi-annual basis on cybersecurity matters, including updates on cybersecurity training programs and the results of external assessments, as applicable.
The ARCC receives information from the CISO and other members of management on at least a quarterly basis which is supplemented by a more extensive briefing from the CISO and management on at least a semi-annual basis on cybersecurity matters, including updates on cybersecurity training programs and the results of external assessments, as applicable.
The CISO provides at least an annual briefing to the Board of Directors on these same topics. The routine reporting to the Audit and Risk Committee and the Board includes as appropriate the highlights from the full spectrum of work done within the Company’s cybersecurity program.
The CISO provides at least an annual briefing to the Board of Directors on these same topics. The routine reporting to the ARCC and the Board includes as appropriate the highlights from the full spectrum of work done within the Company’s cybersecurity program.
The briefings by the CISO to the Audit and Risk Committee and Board also include the review of certifications and cybersecurity maturity assessments by management and third parties. 24
The briefings by the CISO to the ARCC and Board also include the review of certifications and cybersecurity maturity assessments by management and third parties. 24
Both the Board and the Audit and Risk Committee periodically review the measures we have implemented to identify and mitigate cybersecurity risks.
Our Board has delegated the primary responsibility to oversee cybersecurity matters to the ARCC. Both the Board and the ARCC periodically review the measures we have implemented to identify and mitigate cybersecurity risks.
A documented incident response process and numerous documented playbooks provide the SOC guidance on how to respond for each type of incident, including categorization and principles 23 for escalation. Incidents are escalated in the organization according to defined criteria to engage a level of authority that is deemed appropriate, such as the Corporate Crisis Management Team if necessary.
A documented incident response process and numerous documented playbooks provide the SOC guidance on how to respond for each type of incident, including categorization and principles for escalation.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeNantong Airbag cushions Owned Mei-An Autoliv Co., Ltd. Taipei Seatbelts and airbags Leased Estonia AS Norma Tallinn Seatbelts and belt components Owned France Autoliv France SNC Gournay-en-Bray Airbags Owned Autoliv Isodelta SAS Chiré-en-Montreuil Steering wheels and covers Owned Livbag SAS Pont-de-Buis Airbag inflators Owned N.C.S.
Biggest changeHefei Steering wheels Leased Autoliv (China) Automotive Safety Systems Co., Ltd. Nantong Airbag cushions Owned Mei-An Autoliv Co., Ltd. Taipei Seatbelts and airbags Leased Estonia AS Norma Tallinn Seatbelts and belt components Owned France Autoliv France SNC Gournay-en-Bray Airbags Owned Livbag SAS Pont-de-Buis Airbag inflators Owned N.C.S.
Pyrotechnie et Technologies SAS Survilliers Airbag initiators and seatbelt micro gas generators Owned Hungary Autoliv Kft. Sopronkövesd Seatbelts Owned India Autoliv India Private Ltd. Bangalore Seatbelts, airbags Owned Mysore Seatbelt webbing and Airbag Cushions Owned Badli Airbags and steering wheels Leased Pune Airbag and Airbag cushions Leased Chennai Airbag inflators Owned Indonesia P.T.
Pyrotechnie et Technologies SAS Survilliers Airbag initiators and seatbelt micro gas generators Owned Hungary Autoliv Kft. Sopronkövesd Seatbelts Owned India Autoliv India Private Ltd. Bangalore Seatbelts, airbags Owned Mysore Seatbelt webbing and Airbag Cushions Owned Badli Airbags and steering wheels Leased Autoliv Inflators India Private Limited Pune Airbag and Airbag cushions Leased Chennai Airbag inflators Owned Indonesia P.T.
Chonburi Seatbelts, Airbag cushions and Steering wheels Owned Chonburi Seatbelt components Leased Tunisia STE ASW3 Nadour El Fahs Steering wheels Owned & Leased STE ASW3 Nadour Nadhour Steering wheels Owned Turkey Autoliv Cankor Otomotiv Emniyet Sistemleri Sanayi Ve Ticaret A.S. Gebze-Kocaeli Seatbelts Owned Autoliv Cankor Otomotiv Emniyet Sistemleri Sanayi Ve Ticaret A.S.
Chonburi Seatbelts, Airbags, Airbag cushions and Steering wheels Owned Chonburi Seatbelt and Seatbelt components Leased Tunisia STE ASW3 Nadour El Fahs Steering wheels Owned & Leased STE ASW3 Nadour Nadhour Steering wheels Owned Turkey Autoliv Cankor Otomotiv Emniyet Sistemleri Sanayi Ve Ticaret A.S. Gebze-Kocaeli Seatbelts Owned Autoliv Cankor Otomotiv Emniyet Sistemleri Sanayi Ve Ticaret A.S.
AUTOLIV MANUFACTURING FACILITIES Country/Company Location of Facility Items produced at Facility Owned/Leased Brazil Autoliv do Brasil Ltda. Taubaté Seatbelts, airbags, steering wheels and seatbelt webbing Owned Nova Goiana Seatbelts and steering wheels Leased Canada Autoliv Canada, Inc. Tilbury Airbag cushions Owned VOA Canada, Inc.
AUTOLIV MANUFACTURING FACILITIES Country/Company Location of Facility Items produced at Facility Owned/Leased Brazil Autoliv do Brasil Ltda. Taubaté Seatbelts, airbags and steering wheels Owned Nova Goiana Seatbelts and steering wheels Leased Canada Autoliv Canada, Inc. Tilbury Airbag cushions Owned VOA Canada, Inc.
Nanjing Seatbelts Owned Autoliv Shenda (Nanjing) Automotive Components Co., Ltd. Nanjing Seatbelt webbing Owned Autoliv (Shanghai) Vehicle Safety Systems Co., Ltd. Shanghai Airbags Owned Autoliv Shenda (Tai Cang) Automotive Safety Systems Co., Ltd. Shanghai Seatbelt webbing Owned Autoliv (Jiangsu) Automotive Safety Components Co., Ltd. Jintan Propellant, Airbag initiators and Airbag inflators Owned Autoliv (China) Automotive Safety Systems Co., Ltd.
Nanjing Seatbelts Owned Autoliv Shenda (Nanjing) Automotive Components Co., Ltd. Nanjing Seatbelt webbing Owned Autoliv (Shanghai) Vehicle Safety Systems Co., Ltd. Shanghai Airbags Owned Autoliv Shenda (Tai Cang) Automotive Safety Systems Co., Ltd. Shanghai Seatbelt webbing Owned Autoliv (Jiangsu) Automotive Safety Components Co., Ltd. Jintan Propellant, Airbag initiators and Airbag inflators Owned Autoliv (Hefei) Vehicle Safety Systems Co., Ltd.
Brigham City Airbag inflators Owned Ogden Airbags Owned Ogden Airbags and service parts Leased Promontory Propellant Owned Tremonton Airbag initiators and seatbelt micro gas generators Owned 26 AUTOLIV TECHNICAL CENTERS AND CRASH TEST TRACKS Country/Company Location Product(s) supported China Autoliv (Shanghai) Vehicle Safety System Technical Center Co., Ltd.
Brigham City Airbag inflators Owned Ogden Airbags Owned Ogden Airbags and service parts Leased Promontory Propellant Owned Tremonton Airbag initiators and seatbelt micro gas generators Owned Vietnam Autoliv Vietnam Company Limited Quang Yen Airbag cushions Owned 26 AUTOLIV TECHNICAL CENTERS AND CRASH TEST TRACKS Country/Company Location Product(s) supported China Autoliv (Shanghai) Vehicle Safety System Technical Center Co., Ltd.
Gebze-Subesi Gebze-Kocaeli Airbags, Steering wheels and Seatbelt components Leased United Kingdom Airbags International Ltd Congleton Airbag cushions Owned USA Autoliv ASP, Inc.
Gebze-Subesi Gebze-Kocaeli Airbags, Steering wheels and Seatbelt components Leased USA Autoliv ASP, Inc.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeItem 3. Legal Proceedings In the ordinary course of its business, the Company is subject to legal proceedings brought by or against the Company and its subsidiaries. See Note 18, Contingent Liabilities, to the Consolidated Financial Statements in this Annual Report for a summary of certain ongoing legal proceedings.
Biggest changeItem 3. Legal Proceedings In the ordinary course of its business, the Company is subject to legal proceedings brought by or against the Company and its subsidiaries. See Note 19, Contingent Liabilities, to the Consolidated Financial Statements in this Annual Report for a summary of certain ongoing legal proceedings.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest change(3) In November 2021, the Board of Directors approved a stock repurchase program that authorizes the Company to repurchase up to $1.5 billion or up to 17 million shares, whichever comes first, between January 2022 and the end of 2024.
Biggest change(3) On June 4, 2025, the Company announced that its Board of Directors approved a new stock repurchase program that authorizes the Company to repurchase up to $2.5 billion of common shares and operates from July 1, 2025 through December 31, 2029.
The graph compares our performance to that of the Standard & Poor’s 500 Stock Index (S&P 500) and the Dow Jones US Auto Parts Index. The comparison assumes $100 was invested at the closing price of our common stock on the NYSE on December 31, 2019. Each of the returns shown assumes that all dividends paid were reinvested.
The graph compares our performance to that of the Standard & Poor’s 500 Stock Index (S&P 500) and the Dow Jones US Auto Parts Index. The comparison assumes $100 was invested at the closing price of our common stock on the NYSE on December 31, 2020. Each of the returns shown assumes that all dividends paid were reinvested.
Options in SDRs trade on Nasdaq Stockholm under the name “Autoliv SDB”. Options in Autoliv shares are traded on NASDAQ OMX PHLX and on NYSE Amex Options under the symbol “ALV”. Stock Performance Graph The graph and table below show the cumulative total shareholder return for our common stock since December 31, 2019.
Options in SDRs trade on Nasdaq Stockholm under the name “Autoliv SDB”. Options in Autoliv shares are traded on NASDAQ OMX PHLX and on NYSE Amex Options under the symbol “ALV”. Stock Performance Graph The graph and table below show the cumulative total shareholder return for our common stock since December 31, 2020.
The Company repurchased and immediately retired approximately 5.1 million shares during 2024. During 2024, the weighted average number of shares outstanding (excluding dilution and treasury shares) decreased to 80.2 million from 85.0 million in 2023. Assuming dilution, the weighted average number of shares outstanding for the full year 2024 decreased to 80.4 million from 85.2 million in 2023.
The Company repurchased and immediately retired approximately 3.1 million shares during 2025. During 2025, the weighted average number of shares outstanding (excluding dilution and treasury shares) decreased to 76.6 million from 80.2 million in 2024. Assuming dilution, the weighted average number of shares outstanding for the full year 2025 decreased to 76.9 million from 80.4 million in 2024.
Stock repurchase program The table in Exhibit 26 provides information with respect to total common stock repurchases made by the Company during the three months period ended December 31, 2024 on NYSE.
Stock repurchase program The following table provides information with respect to common stock repurchases by the Company during the three months period ended December 31, 2025 on NYSE.
Stock options (if exercised) and granted Restricted Stock Units (RSUs) and Performance Shares (PSs) could increase the number of shares outstanding as of December 31, 2024 by 0.5 million shares in the aggregate. Combined, this would add 0.6% to the number of shares outstanding as of December 31, 2024.
Granted Restricted Stock Units (RSUs) and Performance Share Units (PSUs) could increase the number of shares outstanding as of December 31, 2025 by 0.6 million shares in the aggregate. Combined, this would add 0.8% to the number of shares outstanding as of December 31, 2025.
On December 31, 2024, the Company had 2.7 million treasury shares compared to 4.9 million as of December 31, 2023. During 2024, the Company also retired 2.0 million shares that had been held in treasury. Shareholders As of February 13, 2025, there were 1,196 holders of record of our common stock.
On December 31, 2025, the Company had 2.6 million treasury shares compared to 2.7 million as of December 31, 2024. Shareholders As of February 13, 2026, there were 1,116 holders of record of our common stock.
New York Stock Exchange (NYSE) Period Total Number of Shares Purchased (1) Average Price Paid per Share (USD) (2) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (3) Aggregate Maximum Number of Shares that Yet May Be Purchased Under the Plans or Programs (3) October 1-31, 2024 225,991 $ 95.57 9,346,800 7,653,200 November 1-30, 2024 549,111 $ 98.27 9,895,911 7,104,089 December 1-31, 2024 268,851 $ 98.34 10,164,762 6,835,238 (1) The repurchases are being executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans.
New York Stock Exchange (NYSE) Period Total Number of Shares Purchased (1) Average Price Paid per Share (USD) (2) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (3) Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (USD) (3) October 1-31, 2025 42,804 $ 116.65 884,933 $ 2,395,006,964 November 1-30, 2025 796,722 $ 119.18 1,681,655 $ 2,300,054,081 December 1-31, 2025 421,199 $ 118.84 2,102,854 $ 2,250,000,205 (1) The repurchases are being executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans.
(USD) 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 Autoliv, Inc. $ 100.00 $ 109.99 $ 125.95 $ 96.47 $ 142.82 $ 124.65 S&P 500 100.00 118.40 152.39 124.79 157.59 197.02 Dow Jones US Auto Parts Index 100.00 116.02 139.01 100.92 99.55 75.85 29 Number of shares As of December 31, 2024, the number of shares of common stock outstanding, net of treasury shares, was 77.7 million, compared to 82.6 million as of December 31, 2023.
(USD) 12-31-2020 12-31-2021 12-31-2022 12-31-2023 12-31-2024 12-31-2025 Autoliv, Inc. $ 100.00 $ 114.51 $ 87.71 $ 129.84 $ 113.33 $ 147.54 S&P 500 100.00 128.71 105.40 133.10 166.40 196.16 Dow Jones US Auto Parts Index 100.00 119.82 86.99 85.80 65.38 74.11 29 Number of shares As of December 31, 2025, the number of shares of common stock outstanding, net of treasury shares, was 74.7 million, compared to 77.7 million as of December 31, 2024.
Removed
On November 11, 2024, the Company announced that the Board of Directors approved the extension of this stock repurchase program through the end of 2025. As of December 31, 2024, the Company may purchase up to $0.5 billion or up to 6.8 million common shares pursuant to the existing program. Item 6. [RESERVED] 30

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeChina Global Autoliv (1.7)% 1.4% (3.2)% 6.6% 0.4% Main growth drivers Toyota, Honda, VW Renault, Mercedes, Ford Geely, Chery, Changan Hyundai, Suzuki, Tata Geely, Mercedes, Renault Main decline drivers Stellantis, EV OEM, Nissan Stellantis, Volvo, Fisker GM, Honda, EV OEM Nissan, Mazda, Renault Stellantis, EV OEM, GM 36 Condensed Statement of Income Years ended December 31, (Dollars in millions, except per share data) 2024 2023 Change Net Sales $ 10,390 $ 10,475 (0.8 )% Gross profit 1,927 1,822 5.8 % % of sales 18.5 % 17.4 % 1.2 pp S, G&A (530 ) (500 ) 6.0 % % of sales (5.1 )% (4.8 )% (0.3 )pp R, D&E, net (398 ) (425 ) (6.3 )% % of sales (3.8 )% (4.1 )% 0.2 pp Other income (expense), net (19 ) (207 ) (91 )% Operating income 979 690 42 % % of sales 9.4 % 6.6 % 2.8 pp Adjusted operating income 1) 1,007 920 9 % % of sales 9.7 % 8.8 % 0.9 pp Financial and non-operating items, net (105 ) (77 ) 35 % Income before taxes 875 612 43 % Income taxes (227 ) (123 ) 84 % Tax rate 26.0 % 20.1 % 5.9 pp Net income 648 489 32 % Earnings per share, diluted 2) 8.04 5.72 40 % Adjusted earnings per share, diluted 1,2) 8.32 8.19 2 % 1) Assuming dilution and net of treasury shares. 2) Non-U.S.
Biggest changeChina Global Autoliv 3.3 % 1.4% 4.0 % 5.9% 3.4% Main growth drivers Stellantis, Toyota, Ford Stellantis, BMW, VW Chery, Great Wall, Nio Suzuki, Toyota, Hyundai Stellantis, Suzuki, Toyota Main decline drivers EV GOEM, GM, Hyundai EV GOEM, JLR, Hyundai EV GOEM, VW, Mercedes Mitsubishi, Honda, GM EV GOEM, JLR, Lixiang 36 Condensed Statement of Income Years ended December 31, (Dollars in millions, except per share data) 2025 2024 Change Net Sales $ 10,815 $ 10,390 4.1 % Gross profit 2,074 1,927 7.6 % % of sales 19.2 % 18.5 % 0.6 pp S, G&A (571 ) (530 ) 7.6 % % of sales (5.3 )% (5.1 )% (0.2 )pp R, D&E, net (413 ) (398 ) 3.8 % % of sales (3.8 )% (3.8 )% 0.0 pp Other income (expense), net (2 ) (19 ) (91 )% Operating income 1,088 979 11 % % of sales 10.1 % 9.4 % 0.6 pp Adjusted operating income 1) 1,114 1,007 11 % % of sales 10.3 % 9.7 % 0.6 pp Financial and non-operating items, net (102 ) (105 ) (2.5 )% Income before taxes 986 875 13 % Income taxes (250 ) (227 ) 10 % Tax rate 25.4 % 26.0 % (0.6 )pp Net income 736 648 14 % Earnings per share, diluted 2) 9.55 8.04 19 % Adjusted earnings per share, diluted 1,2) 9.85 8.32 18 % 1) Non-GAAP Measure . 2) Net of treasury shares .
COMMITMENTS The Company has entered into a number of unrecognized unconditional purchase agreements relating to Solar Farms in US and China during 2024, of which none is individually significant for disclosure. Together these agreements have an aggregated termination fee (discounted) of approximately $51 million as of December 31, 2024.
COMMITMENTS The Company has entered into a number of unrecognized unconditional purchase agreements relating to Solar Farms in US and China during 2024, of which none is individually significant for disclosure. Together these agreements have an aggregated termination fee (discounted) of approximately $51 million as of December 31, 2025.
Such liability could be based on activities which are not related to the Company’s current activities. 45 TRADE Autoliv is subject to various international trade regulations and regimes and changes in these regimes could lead to increased compliance costs and costs of raw materials and other components.
Such liability could be based on activities which are not related to the Company’s current activities. 45 TRADE AND TARIFFS Autoliv is subject to various international trade regulations and regimes and changes in these regimes could lead to increased compliance costs and costs of raw materials and other components.
However, such insurance may not be sufficient to cover every possible claim that can arise in the Company’s businesses, now or in the future, or may not always will be available should the Company, now or in the future, wish to extend, renew, increase or otherwise adjust such insurance.
However, such insurance may not be sufficient to cover every possible claim that can arise in the Company’s businesses, now or in the future, or may not always be available should the Company, now or in the future, wish to extend, renew, increase or otherwise adjust such insurance.
In addition, the Company from time to time identifies and evaluates emerging or changing risks to the Company in order to ensure that identified risks and related risk management are updated in this fast-moving environment. 43 Operational Risks LIGHT VEHICLE PRODUCTION Around 30% of Autoliv’s costs are fixed; therefore, short-term earnings are dependent on sales volumes and highly dependent on capacity utilization in the Company’s plants.
In addition, the Company from time to time identifies and evaluates emerging or changing risks to the Company in order to ensure that identified risks and related risk management are updated in this fast-moving environment. 43 Operational Risks LIGHT VEHICLE PRODUCTION Around 35% of Autoliv’s costs are fixed; therefore, short-term earnings are dependent on sales volumes and highly dependent on capacity utilization in the Company’s plants.
These barriers are impacting the raw material market and creating pricing and availability uncertainties. There is also volatility in the sea freight rates driven by geopolitical events. In 2024, raw material inflation was limited. Cost inflation remained significant and related primarily to labor. The Company took actions, including pricing discussions with customers and suppliers, competitive sourcing and exploring alternative materials.
These barriers are impacting the raw material market and creating pricing and availability uncertainties. There is also volatility in the sea freight rates driven by geopolitical events. In 2025, raw material inflation was limited. Cost inflation remained significant and related primarily to labor. The Company took actions, including pricing discussions with customers and suppliers, competitive sourcing and exploring alternative materials.
The Company may elect to make contributions in excess of the minimum funding requirements for the U.S. plans in response to investment performance and changes in interest rates, or when the Company believes that it is financially advantageous to do so and based on other capital requirements. See Note 19, Retirement Plans, to the Consolidated Financial Statements included herein.
The Company may elect to make contributions in excess of the minimum funding requirements for the U.S. plans in response to investment performance and changes in interest rates, or when the Company believes that it is financially advantageous to do so and based on other capital requirements. See Note 20, Retirement Plans, to the Consolidated Financial Statements included herein.
Net debt The Company, from time to time enters into “debt-related derivatives” (DRDs) as a part of its debt management and as part of efficiently managing the Company’s overall cost of funds. Creditors and credit rating agencies use net debt adjusted for DRDs in their analyses of the Company’s debt, therefore we provide this non-U.S. GAAP measure.
Net debt The Company, from time to time enters into “debt-related derivatives” (DRDs) as a part of its debt management and as part of efficiently managing the Company’s overall cost of funds. Creditors and credit rating agencies use net debt adjusted for DRDs in their analyses of the Company’s debt, therefore we provide this Non-GAAP measure.
This interrelationship makes it difficult to isolate the impact of costs on any single program, therefore, the Company monitors key measures such as costs in relation to sales and productivity. In 2024, due to cost pressures from labor and other items the Company engaged in extensive negotiations with its customers regarding compensations.
This interrelationship makes it difficult to isolate the impact of costs on any single program; therefore, the Company monitors key measures such as costs in relation to sales and productivity. In 2025, due to cost pressures from labor and other items the Company engaged in extensive negotiations with its customers regarding compensations.
See Note 18, Contingent Liabilities, to the Consolidated Financial Statements included herein and Item 3 – Legal Proceedings. 44 PRODUCT WARRANTY AND RECALLS If our products are alleged to fail to perform as expected or are defective, the Company may be exposed to various claims for damages and compensation.
See Note 19, Contingent Liabilities, to the Consolidated Financial Statements included herein and Item 3 – Legal Proceedings. 44 PRODUCT WARRANTY AND RECALLS If our products are alleged to fail to perform as expected or are defective, the Company may be exposed to various claims for damages and compensation.
Quality has been and always will be the Company's number one priority, and the Company continues to sharpen its focus in this area. The Company now holds a global market share in passive safety of around 44%, while the Company has been involved in around 2% of recalls in the industry in the past ten years.
Quality has been and always will be the Company's number one priority, and the Company continues to sharpen its focus in this area. The Company now holds a global market share in passive safety of around 44%, while the Company has been involved in around 3% of recalls in the industry in the past ten years.
Borrowings under the facility are unsecured. On December 31, 2024, the Company’s unutilized long-term credit facilities were $1,225 million, represented by the RCF and the Bilateral RCF. These facilities are not subject to any financial covenants nor is any other substantial financing of Autoliv.
Borrowings under the facility are unsecured. On December 31, 2025, the Company’s unutilized long-term credit facilities were $1,225 million, represented by the RCF and the Bilateral RCF. These facilities are not subject to any financial covenants nor is any other substantial financing of Autoliv.
Inflation Cost pressures from labor, in our own operations and related to our suppliers' labor costs, had a negative impact on our profitability in 2024. Most of the inflationary cost pressure was offset by customer price and other compensations. Changes in raw material costs had a limited impact on our profitability in 2024.
Inflation Cost pressures from labor, in our own operations and related to our suppliers' labor costs, had a negative impact on our profitability in 2025. Most of the inflationary cost pressure was offset by customer price and other compensations. Changes in raw material costs had a limited impact on our profitability in 2025.
Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's Form 10-K for the year ended December 31, 2023, which was filed with the United States Securities and Exchange Commission on February 20, 2024. Autoliv, Inc.
Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's Form 10-K for the year ended December 31, 2024, which was filed with the United States Securities and Exchange Commission on February 20, 2025. Autoliv, Inc.
The Company believes this presentation may be useful to investors and industry analysts who utilize these adjusted non-U.S. GAAP measures in their ROCE and ROE calculations to exclude certain items for comparison purposes across periods.
The Company believes this presentation may be useful to investors and industry analysts who utilize these adjusted Non-GAAP measures in their ROCE and ROE calculations to exclude certain items for comparison purposes across periods.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Important Trends The discussions and analysis in this section are focused on the Company’s results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Important Trends The discussions and analysis in this section are focused on the Company’s results of operations for the year ended December 31, 2025 compared to the year ended December 31, 2024.
COMPONENT COSTS AND RAW MATERIAL PRICES The cost of direct materials was approximately 55% of sales in 2024 (55% in 2023). The main raw materials being used as input material for the Company's operations are steel, textiles, plastic and non-ferrous metals. The Company still sees effects coming from import tariffs and trade barriers across borders.
COMPONENT COSTS AND RAW MATERIAL PRICES The cost of direct materials was approximately 54% of sales in 2025 (55% in 2024). The main raw materials being used as input material for the Company's operations are steel, textiles, plastic and non-ferrous metals. The Company still sees effects coming from import tariffs and trade barriers across borders.
In the year-end 2024 and 2023 respectively the capitalized amount has been insignificant. CONTINGENT LIABILITIES Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of matters that arise in the ordinary course of its business activities with respect to commercial, product liability or other matters.
In the year-end 2025 and 2024 respectively the capitalized amount has been insignificant. 48 CONTINGENT LIABILITIES Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of matters that arise in the ordinary course of its business activities with respect to commercial, product liability or other matters.
However, the Company had not achieved its 5% productivity target since the COVID-19 pandemic in 2020, due to the related decline in LVP in 2020 and the high volatility in customer call-offs in 2021, 2022 and 2023 driven by the industry wide supply chain instability, especially for semiconductors.
However, the Company has not achieved its 5% productivity target since the COVID-19 pandemic in 2020, due to the decline in LVP in 2020 and the high volatility in customer call-offs in 2021, 2022 and 2023, driven by the industry wide supply chain instability, especially for semiconductors.
Strategic Risks REGULATIONS In addition to vehicle production, the Company’s market is driven by the safety content per vehicle, which is affected by new regulations and new vehicle rating programs, in addition to consumer demand for new safety technologies. The most important regulations are the seatbelt installation laws that exist in all vehicle-producing countries.
Strategic Risks REGULATIONS In addition to vehicle production, the Company’s market is driven by the safety CPV, which is affected by new regulations and new vehicle rating programs, in addition to consumer demand for new safety technologies. The most important regulations are the seatbelt installation laws that exist in all vehicle-producing countries.
Assumption (in millions) Change 2024 net periodic benefit cost increase (decrease) 2024 projected benefit obligation increase (decrease) Discount rate 1pp increase $ 1 $ (14 ) Discount rate 1pp decrease (1 ) 16 Return on plan assets 1pp decrease 2 n/a 49 INCOME TAXES Significant judgment is required in determining the worldwide provision for income taxes.
Assumption (in millions) Change 2025 net periodic benefit cost increase (decrease) 2025 projected benefit obligation increase (decrease) Discount rate 1pp increase $ 1 $ (14 ) Discount rate 1pp decrease (1 ) 16 Return on plan assets 1pp decrease 2 n/a INCOME TAXES Significant judgment is required in determining the worldwide provision for income taxes.
Customer % of Autoliv sales % of Global LVP 1) VW 9.2 % 10.0 % Toyota 9.1 % 12.1 % Stellantis 9.1 % 5.9 % Honda 8.7 % 4.4 % Hyundai 7.6 % 8.4 % Ford 6.8 % 4.1 % General Motors 5.6 % 4.7 % Nissan 5.4 % 4.7 % Mercedes 5.2 % 2.7 % Major EV maker 4.5 % 2.0 % 1) Source: S&P Global January 2025 Although business with every major customer is split into at least several contracts (usually one contract per vehicle platform) and although the customer base has become more balanced and diversified as a result of the Company's significant expansion in China and other rapidly-growing markets, the loss of all business from a major customer (whether by a cancellation of existing contracts or not awarding Autoliv new business), the consolidation of one or more major customers or a bankruptcy of a major customer could have a material adverse effect on the Company.
Customer % of Autoliv sales % of Global LVP 1) Stellantis 9.8 % 5.8 % Toyota 9.6 % 12.3 % VW 9.0 % 9.6 % Honda 8.3 % 3.8 % Hyundai 7.0 % 8.1 % Ford 6.8 % 3.8 % Nissan 5.3 % 3.4 % General Motors 5.2 % 4.4 % Mercedes Benz 5.0 % 2.4 % BMW 4.0 % 2.7 % 1) Source: S&P Global January 2026 Although business with every major customer is split into at least several contracts (usually one contract per vehicle platform) and although the customer base has become more balanced and diversified as a result of the Company's significant expansion in China and other rapidly-growing markets, the loss of all business from a major customer (whether by a cancellation of existing contracts or not awarding Autoliv new business), the consolidation of one or more major customers or a bankruptcy of a major customer could have a material adverse effect on the Company.
Discussions of the Company's results of operations for the year ended December 31, 2023 compared to the year ended December 31, 2022 can be found in Part II, Item 7.
Discussions of the Company's results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023 can be found in Part II, Item 7.
The average global safety CPV (airbags, pedestrian safety, seatbelts, and steering wheels) amounted to around $260 in 2024. The Company believes that the more stringent crash rating requirements and consumer demand for more safety should enable the global automotive safety market to grow around 1-2 percentage points per year faster than the global LVP in the medium and long term.
The average global safety CPV (airbags, pedestrian safety, seatbelts, and steering wheels) amounted to around $268 in 2025. The Company believes that the more stringent crash rating requirements and consumer demand for more safety should enable the global automotive safety market to grow around 1-2 percentage points per year faster than the global LVP in the medium and long term.
As of December 31, 2021, the main U.S defined benefit plan was frozen for further benefits. Many of the Company’s non-U.S. employees are also covered by pension arrangements. At December 31, 2024, the Company’s net pension liability (i.e. the actual funded status) for its U.S. and non-U.S. plans was $153 million compared to $159 million at December 31, 2023.
As of December 31, 2021, the main U.S defined benefit plan was frozen for further benefits. Many of the Company’s non-U.S. employees are also covered by pension arrangements. At December 31, 2025, the Company’s net pension liability (i.e. the actual funded status) for its U.S. and non-U.S. plans was $169 million compared to $153 million at December 31, 2024.
The Company's sales in the important Chinese market was 19% of total sales in 2024 compared to 20% in 2023. The balanced regional sales mix has been achieved through timely investments and strengthening of technical and support capabilities in growth markets.
The Company's sales in the important Chinese market was 19% of total sales in 2025 compared to 19% in 2024. The balanced regional sales mix has been achieved through timely investments and strengthening of technical and support capabilities in growth markets.
The Company evaluates its uncertain tax positions based on enacted tax laws and consideration of all facts and circumstances, including key factors such as interpretation of applicable tax laws, on-going tax audits or anticipated tax controversies. The unrecognized tax benefits amounted to $35 million and $83 million respectively for the year 2024 and 2023.
The Company evaluates its uncertain tax positions based on enacted tax laws and consideration of all facts and circumstances, including key factors such as interpretation of applicable tax laws, on-going tax audits or anticipated tax controversies. The unrecognized tax benefits amounted to $36 million and $35 million respectively for the year 2025 and 2024.
The Company's historic experience is that the continuous improvement strategies have enabled productivity improvement at or above its target of 5%.
The Company's historical experience is that its continuous improvement strategies have enabled productivity improvements at or above its historic target of 5%.
This indicates that the Company is delivering on its quality strategy. For more information see product warranty and recalls in Note 13, Product Related Liabilities, to the Consolidated Financial Statements in this Annual Report. CHANGES IN COMPETITIVE AND CUSTOMER LANDSCAPE The Company has not noted any significant changes in the competitive landscape in 2024.
This indicates that the Company is delivering on its quality strategy. For more information see product warranty and recalls in Note 14, Product Related Liabilities, to the Consolidated Financial Statements in this Annual Report. CHANGES IN COMPETITIVE AND CUSTOMER LANDSCAPE The Company has not noted any significant changes in the competitive landscape in 2025.
These Solar Farm agreements have a contract period ranging from 20-25 years. The future payments (undiscounted) relating to these unrecognized unconditional purchase agreements are in total $62 million to be paid over the following years: 1-3 years: $6 million; 4-5 years: $4 million and; more than 5 years: $52 million.
These Solar Farm agreements have a contract period ranging from 20-25 years. The future payments (undiscounted) relating to these unrecognized unconditional purchase agreements are in total $60 million to be paid over the following years: 1-3 years: $6 million; 4-5 years: $4 million and; more than 5 years: $50 million.
Product recall costs are estimated based on the expected cost of replacing the product and the customer´s cost of carrying out the recall, which is affected by the number of vehicles subject to recall and the cost of labor and materials to remove and replace the defective product.
Product recall costs are estimated based on the expected cost of replacing the product and the customers' cost of carrying out the recall, which is affected by the number of vehicles subject to recall and the cost of labor and materials to remove and replace the defective product.
Due to the uncertainty and potential volatility of the factors contributing to developing these estimates, changes in our assumptions could materially affect our results of operations. The provision recorded for product liabilities for the years ended December 31, 2024 and 2023 were $65 million and $96 million respectively.
Due to the uncertainty and potential volatility of the factors contributing to developing these estimates, changes in our assumptions could materially affect our results of operations. The provision recorded for product liabilities for the years ended December 31, 2025 and 2024 were $87 million and $65 million respectively.
For the year-end 2024 the company recognized an accrual amounting to $185 million net for variable considerations to be received or paid for variable considerations versus $173 million the year before. In addition, from time to time, the Company may make payments to customers in connection with ongoing and future business.
For the year-end 2025 the Company recognized an accrual amounting to $242 million net for variable considerations to be received or paid for variable considerations versus $185 million the year before. In addition, from time to time, the Company may make payments to customers in connection with ongoing and future business.
LVP growth for Domestic Chinese OEMs with typically lower CPV was 18% compared to global OEMs with typically higher CPV saw LVP decline by 9.5%. Combined with the regional growth differences, we estimate this shift in LVP mix contributed negatively to our sales growth by between 2 to 3 pp.
LVP growth for Domestic Chinese OEMs with typically lower CPV was 16% compared to global OEMs with typically higher CPV saw LVP decline by 1.3%. Combined with the regional growth differences, we estimate this shift in LVP mix contributed negatively to our sales growth by between 2 to 3 pp.
The risk of fluctuating sales has also been mitigated by Autoliv’s rapid expansion in Asia and other growth markets, which has reduced the Company’s former high dependence on sales in Europe to a diversified mix with Europe, the Americas and Asia each accounting for approximately 28%, 33% and 39%, respectively, of the Company's 2024 total sales.
The risk of fluctuating sales has also been mitigated by Autoliv’s rapid expansion in Asia and other growth markets, which has reduced the Company’s former high dependence on sales in Europe to a diversified mix with Europe, the Americas and Asia, each accounting for approximately 29%, 32% and 39%, respectively, of the Company's 2025 total sales.
In China, the Company estimates that around 60% of order intake in 2024 was with domestic Chinese OEMs, which supports our expectation that domestic OEMS in China will continue to increase its share of the Company's sales in China in 2025. New order intake is defined as the sales value of awards for future business, received within that year.
In China, the Company estimates that around 50% of order intake in 2025 was with domestic Chinese OEMs, which supports our expectation that domestic OEMs in China will continue to increase their share of the Company's sales in China in 2026. New order intake is defined as the sales value of awards for future business received within that year.
Reconciliation of GAAP measure "Total debt" to non-GAAP measure “Net debt” DECEMBER 31 (Dollars in millions) 2024 2023 Short-term debt $ 387 $ 538 Long-term debt 1,522 1,324 Total debt 1,909 1,862 Cash and cash equivalents (330 ) (498 ) Debt issuance cost/Debt-related derivatives, net (24 ) 3 Net debt $ 1,554 $ 1,367 Adjusted operating income, adjusted operating margin and adjusted diluted Earnings per share (EPS) Adjusted operating margin and adjusted diluted EPS are non-GAAP measures the Company uses to evaluate its business, because the Company believes it assists investors and analysts in comparing the Company's performance across reporting periods on a consistent basis by excluding items that are non-operational or non-recurring in nature (such as costs related to capacity alignments, costs related to antitrust matters and for diluted EPS unusual tax items) and that the Company does not believe are indicative of its core operating performance and underlying business trends.
Reconciliation of GAAP measure "Total debt" to Non-GAAP measure “Net debt” DECEMBER 31 (Dollars in millions) 2025 2024 Short-term debt $ 419 $ 387 Long-term debt 1,734 1,522 Total debt 2,153 1,909 Cash and cash equivalents (604 ) (330 ) Debt issuance cost/Debt-related derivatives, net 17 (24 ) Net debt $ 1,566 $ 1,554 Adjusted operating income, adjusted operating margin and adjusted diluted Earnings per share (EPS) Adjusted operating margin and adjusted diluted EPS are Non-GAAP measures the Company uses to evaluate its business, because the Company believes it assists investors and analysts in comparing the Company's performance across reporting periods on a consistent basis by excluding items that are non-operational or non-recurring in nature (such as costs related to capacity alignments, costs related to antitrust matters and for diluted EPS unusual tax items) and that the Company does not believe are indicative of its core operating performance and underlying business trends.
The Company expects only limited raw material price changes in 2025. We also expect continued cost pressure from inflation relating mainly to labor, including increased labor costs for our suppliers, especially in Europe and the Americas.
The Company expects limited raw material price impact also in 2026. We also expect continued cost pressure from inflation relating mainly to labor, including increased labor costs for our suppliers, especially in Europe and the Americas.
GAAP reconciliation of these measures because items that impact these measures, such as costs related to capacity alignments and antitrust matters, cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts and Autoliv is unable to determine the probable significance of the unavailable information. Significant Legal Matters See Item 3.
Autoliv has not provided a GAAP reconciliation of these measures because items that impact these measures, such as costs related to capacity alignments and antitrust matters, cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts and Autoliv is unable to determine the probable significance of the unavailable information.
Full year 2025 Guidance Organic sales growth Around 2% Adjusted operating margin 1) Around 10-10.5% Operating cash flow 2) Around $1.2 billion Capital expenditures, net, % of sales Around 5% 1) Excluding effects from capacity alignments, antitrust related matters and other discrete items. 2) Excluding unusual items.
Full year 2026 Guidance Organic sales growth Around 0% Adjusted operating margin 1) Around 10.5-11.0% Operating cash flow 2) Around $1.2 billion Capital expenditures, net, % of sales Less than 5% 1) Excluding effects from capacity alignments, antitrust related matters and other discrete items. 2) Excluding unusual items.
The plans had a total net unamortized actuarial loss before tax of $36 million recorded in Accumulated Other Comprehensive (Loss) Income in the Consolidated Balance Sheets at December 31, 2024, compared to $34 million at December 31, 2023. The amortization of the actuarial loss is expected to be $22 million in 2025.
The plans had a total net unamortized actuarial loss before tax of $29 million recorded in Accumulated Other Comprehensive (Loss) Income in the Consolidated Balance Sheets at December 31, 2025, compared to $36 million at December 31, 2024. The amortization of the actuarial loss is expected to be $2 million in 2026.
In February 2024, the Company priced and issued a 5.5-year green bond for a total of €500 million in the Eurobond market. The bond carries a coupon of 3.625% and matures in August 2029. In March 2023, the Company priced and issued a 5-year green bond for a total of €500 million in the Eurobond market.
The bond carries a coupon of 3.625% and matures in August 2029. In March 2023, the Company priced and issued a 5-year green bond for a total of €500 million in the Eurobond market. The bond carries a coupon of 4.25% and matures in March 2028.
Sales by Product Years ended December 31, Components of change in net sales 2024 2023 Reported change Currency effects 1) Organic 3) Airbags, Steering Wheels and Other 2) $ 7,023 $ 7,055 (0.5 )% (1.2 )% 0.7 % Seatbelt products and Other 2) 3,367 3,420 (1.6 )% (1.3 )% (0.2 )% Total $ 10,390 $ 10,475 (0.8 )% (1.2 )% 0.4 % 1) Effects from currency translations. 2) Including Corporate and Other sales.
Sales by Product Years ended December 31, Components of change in net sales 2025 2024 Reported change Currency effects 1) Organic 3) Airbags, Steering Wheels and Other 2) $ 7,302 $ 7,023 4.0 % 0.6 % 3.4 % Seatbelt products and Other 2) 3,513 3,367 4.3 % 0.8 % 3.5 % Total $ 10,815 $ 10,390 4.1 % 0.7 % 3.4 % 1) Effects from currency translations. 2) Including Corporate and Other sales.
In addition to the structural improvements outlined above, the Company continues to implement the strategic initiatives to improve the efficiency of its value chain from end to end, not least through the Autoliv Production System and increased digitalization and automation.
In addition to the structural improvements outlined above, the Company continues to implement the strategic initiatives to improve the efficiency of its value chain from end to end, not least through the Autoliv Production System and increased digitalization and automation. The Company has a high pace in the planning and implementation of the strategic initiatives.
As of December 31, 2024, the Company had $151 million reserved in its balance sheet related to restructuring compared to $213 million last year. For more information, see Note 12, Restructuring, to the Consolidated Financial Statements included herein.
As of December 31, 2025, the Company had $82 million reserved in its balance sheet related to restructuring compared to $151 million last year. For more information, see Note 13, Restructuring, to the Consolidated Financial Statements included herein.
The Company had a net debt position (see section Non-U.S. GAAP Performance Measures) at December 31, 2024 and 2023 of $1,554 million and $1,367 million, respectively. In July 2024, the Company entered into a $125 million bilateral revolving credit facility (Bilateral RCF) with substantially the same terms as the revolving credit facility (RCF) with the 11 banks (see below).
The Company had a net debt position (see section Non-GAAP Performance Measures) on December 31, 2025 and 2024 of $1,566 million and $1,554 million, respectively. In July 2024, the Company entered into a $125 million bilateral revolving credit facility (Bilateral RCF) with substantially the same terms as the revolving credit facility (RCF) with the 11 banks (see below).
It is the Company’s strategy to reduce the risks associated with fluctuating LVP by using temporary personnel in direct production, when appropriate. During 2024 and 2023, the level of temporary personnel in relation to total personnel in direct production decreased to 11% from 13%.
It is the Company’s strategy to reduce the risks associated with fluctuating LVP by using temporary personnel in direct production, when appropriate. During 2025 and 2024, the level of temporary personnel in relation to total personnel in direct production increased to 12% from 11%.
Autoliv have therefore increasingly focused resources on developing new products and to strengthen our position with new automakers to capture the growth opportunities that comes with these changes. This includes long term development agreements with several new automakers in China in recent years as well as increased investments in capacity and capabilities in India.
Autoliv has therefore increasingly focused resources on developing new products and strengthening its position with new automakers to capture the growth opportunities that come with these changes. This includes long-term development agreements with several new automakers in China in recent years, as well as increased investments in capacity and capabilities in India.
Based on the intended indirect workforce reductions, the Company estimates that the annual cost reductions will amount to around $135 million in total annual savings when fully implemented, with around $50 million in savings recorded in 2024, which is expected to increase to around $100 million in 2025 and the remaining amount in 2026 and 2027.
Based on the intended indirect workforce reductions, the Company estimates that total annual cost reductions will amount to around $130 million when fully implemented, with approximately $50 million in savings recorded in 2024, increasing to around $100 million in 2025 and the remaining amount expected in 2026 and 2027.
The weighted average number of shares outstanding assuming dilution in 2024 was 80.4 million compared to 85.2 million in 2023. Non-GAAP Performance Measures In this annual report, the Company sometimes refers to non-GAAP measures that the Company and securities analysts use in measuring Autoliv’s performance.
The weighted average number of shares outstanding assuming dilution in 2025 was 76.9 million compared to 80.4 million in 2024. 37 Non-GAAP Performance Measures In this annual report, the Company sometimes refers to Non-GAAP measures that the Company and securities analysts use in measuring Autoliv’s performance.
The Company has summarized in Note 2, Summary of Significant Accounting Policies, to the Consolidated Financial Statements each of the recently issued accounting standards and stated the impact or whether management is continuing to assess the impact.
Significant Accounting Policies and Critical Accounting Estimates NEW ACCOUNTING STANDARDS The Company has considered all applicable recently issued accounting standards. The Company has summarized in Note 2, Summary of Significant Accounting Policies, to the Consolidated Financial Statements each of the recently issued accounting standards and stated the impact or whether management is continuing to assess the impact.
For the U.S. plans, the assumptions used for calculating the 2024 pension expense were a discount rate of 5.13% and an expected long-term rate of return on plan assets of 6.21%. The assumptions used in calculating the U.S. benefit obligations disclosed, as of December 31, 2024 were a discount rate of 5.60%.
For the U.S. plans, the assumptions used for calculating the 2025 pension expense were a discount rate of 5.60% and an expected long-term rate of return on plan assets of 5.61%. The assumptions used in calculating the U.S. benefit obligations disclosed, as of December 31, 2025 were a discount rate of 5.22%.
The change mainly relates to expiration of statutes of limitations. See also the discussion of reserves for uncertain tax positions, and the determination of valuation allowances on the Company's deferred tax assets in Note 5, Income Taxes, to the Consolidated Financial Statements. 50
See also the discussion of reserves for uncertain tax positions, and the determination of valuation allowances on the Company's deferred tax assets in Note 5, Income Taxes, to the Consolidated Financial Statements. 50
A key strategy for Autoliv to be and to remain cost competitive is to reduce labor costs, through continuously implementing productivity improvement programs, optimizing the Company's production footprint, and instituting restructuring and capacity alignment activities as well as other actions to address the Company's cost structure. The Company's productivity improvement target is to achieve at least 5% savings per year.
A key strategy for Autoliv to be and to remain cost competitive is to reduce labor costs, through continuously implementing productivity improvement programs, optimizing the Company's production footprint, and instituting restructuring and capacity alignment activities as well as other actions to address the Company's cost structure.
Reconciliation of GAAP measure "Return on Total Equity" to Non-GAAP measure "Adjusted Return on Total Equity" 2024 2023 Return on total equity 1) (GAAP) 27.2 % 19.0 % Non-GAAP adjustments: Less: Capacity alignments 0.7 % 7.5 % Less: The Andrews litigation settlement - 0.3 % Less: Antitrust related items 0.3 % 0.1 % Less: Tax on non-GAAP adjustments (0.2 %) (0.7 %) Total non-GAAP adjustments to Return on total equity 1) 0.8 % 7.2 % Adjusted Return on total equity 1) (Non-GAAP) 28.0 % 26.2 % Adjustment on Return on capital employed 1) (in millions) $ 22 $ 210 1) The average total equity amount is calculated as an average of the opening balance amount and the closing balance amounts for each quarter included in the period. 40 Liquidity, Capital Resources, and Financial Position Years ended December 31 (DOLLARS IN MILLIONS) 2024 2023 Net cash provided by operating activities $ 1,059 $ 982 Net cash used in investing activities (563 ) (569 ) Net cash used in financing activities (680 ) (490 ) Effect of exchange rate changes on cash and cash equivalents 16 (20 ) Decrease in cash and cash equivalents (168 ) (96 ) Cash and cash equivalents at beginning of year 498 594 Cash and cash equivalents at end of year $ 330 $ 498 NET CASH PROVIDED BY OPERATING ACTIVITIES Cash flow from operations, together with available financial resources and credit facilities, is expected to be sufficient to fund the Company’s anticipated working capital requirements, capital expenditures and future dividend payments.
Reconciliation of GAAP measure "Return on Total Equity" to Non-GAAP measure "Adjusted Return on Total Equity" (Percentage) 2025 2024 Return on total equity 1) (GAAP) 30.0 % 27.2 % Non-GAAP adjustments: Less: Capacity alignments 0.8 % 0.7 % Less: Antitrust related items 0.1 % 0.3 % Less: Tax on non-GAAP adjustments (0.1 %) (0.2 %) Total non-GAAP adjustments to Return on total equity 1) 0.9 % 0.8 % Adjusted Return on total equity 1) (Non-GAAP) 30.8 % 28.0 % Adjustment on Return on capital employed 1) (in millions) $ 23 $ 22 1) The average total equity amount is calculated as an average of the opening balance amount and the closing balance amounts for each quarter included in the period. 40 Liquidity, Capital Resources, and Financial Position Years ended December 31 (DOLLARS IN MILLIONS) 2025 2024 Net cash provided by operating activities $ 1,157 $ 1,059 Net cash used in investing activities (423 ) (563 ) Net cash used in financing activities (369 ) (680 ) Effect of exchange rate changes on cash and cash equivalents (90 ) 16 Decrease in cash and cash equivalents 274 (168 ) Cash and cash equivalents at beginning of year 330 498 Cash and cash equivalents at end of year $ 604 $ 330 NET CASH PROVIDED BY OPERATING ACTIVITIES Cash flow from operations, together with available financial resources and credit facilities, is expected to be sufficient to fund the Company’s anticipated working capital requirements, capital expenditures and future dividend payments.
These U.S. plans represent approximately 50% of the Company’s total pension benefit obligation. See Note 19, Retirement Plans to the Consolidated Financial Statements included herein. The Company, in consultation with its actuarial advisors, determines certain key assumptions to be used in calculating the projected benefit obligation and annual pension expense.
The most significant plans exist in the U.S. These U.S. plans represent approximately 46% of the Company’s total pension benefit obligation. See Note 20 Retirement Plans to the Consolidated Financial Statements. The Company, in consultation with its actuarial advisors, determines certain key assumptions to be used in calculating the projected benefit obligation and annual pension expense.
The 1P1P strategy, combined with initiatives to reduce costs for components from external suppliers, ensures that the Company continuously optimize its supply base footprint, consolidate purchase volumes to fewer suppliers, improve productivity in the Company's supply chain, standardize components and redesign its products. • Strategic Initiatives, including Automation, Digitalization, Supply Chain Management Effectiveness and RD&E Effectiveness.
The 1P1P strategy, combined with initiatives to reduce costs for components from external suppliers, ensures that the Company continuously optimizes its supply base footprint, consolidates purchase volumes to fewer suppliers, improves productivity in the Company's supply chain, standardizes components and redesign its products. • Strategic Initiatives, including Automation, Digitalization, Machine Learning and AI, Supply Chain Management Effectiveness and RD&E Effectiveness.
Deferred net tax assets amounted to $394 million for the year 2024 including a valuation allowance of $126 million. For 2023 the deferred net tax assets amounted to $394 million including a valuation allowance of $129 million.
Deferred net tax assets amounted to $446 million for the year 2025 including a valuation allowance of $109 million. For 2024, the deferred net tax assets amounted to $394 million including a valuation allowance of $126 million.
Japan’s share decreased to 8.9% from 9.7%. Additional dilution to global CPV came from the difference in growth within China, where lower CPV models and segments grew strongly while higher CPV models and segments growth was limited or negative.
CPV in China is below the global average, and China’s share of global LVP increased from 33.7% to 35.7%. Japan’s share decreased to 8.7% from 8.9%. Additional dilution to global CPV came from the difference in growth within China, where lower CPV models and segments grew strongly while higher CPV models and segments growth was limited or negative.
The order intake in 2024 supports the Company's ability to defend its around 45% sales market share in the near and medium term. For several years, the automotive industry face some key trends that impacts the industry, notably changes in technologies as well as geographic growth differences with the emergence of new automakers are particularly visible in China.
The order intake in 2025 supports the Company's ability to defend its around 44% sales market share in the near and medium term. For several years, the automotive industry has faced key trends that impact the industry, notably changes in technologies as well as geographic growth differences, with the emergence of new automakers being particularly visible in China.
The Company foresees opportunities for further productivity on organic sales growth and increased call-off stability when global supply chains have stabilized at pre-pandemic levels, but also from increasing use of automation in its assembly for lean manufacturing processes. Additionally, automated cells typically perform the manufacturing process with reduced variability. This results in greater control and consistency of product quality.
The Company foresees opportunities for further productivity on organic sales growth and increased call-off stability when global supply chains continue to stabilize further to pre-pandemic levels, but also from increasing use of automation in its assembly for lean manufacturing processes. Additionally, automated cells typically perform the manufacturing process with reduced variability.
Additionally, the Company has to build up production capacity, in the form of new lines, to meet future product launches. In 2024, OEMs sourcing of new business was at the lowest level since 2018 for the industry, as OEMs are reconsidering certain future product offerings due to geopolitical and technological uncertainties.
Additionally, the Company has to build up production capacity, in the form of new lines, to meet future product launches. In 2025, OEMs sourcing of new business was at a low level for the industry, as OEMs are reconsidering certain future product offerings due to technological and geopolitical uncertainties, including uncertainties regarding costs for tariffs.
In addition, a quality issue, shortcomings in the Company's service to a customer or uncompetitive prices or products could result in the customer not awarding the Company new business, which will gradually have a negative impact on the Company's sales when current contracts start to expire.
In addition, a quality issue, shortcomings in the Company's service to a customer or uncompetitive prices or products could result in the customer not awarding the Company new business, which will gradually have a negative impact on the Company's sales when current contracts start to expire. See also Note 21, Segment Information, to the Consolidated Financial Statements included herein.
Reconciliation of GAAP measure "Operating income" to Non-GAAP measure "Adjusted Operating income" (Dollars in millions) 2024 2023 Operating income (GAAP) $ 979 $ 690 Non-GAAP adjustments: Less: Capacity alignments 19 218 Less: The Andrews litigation settlement - 8 Less: Antitrust related items 8 4 Total non-GAAP adjustments to operating income 27 230 Adjusted Operating income (Non-GAAP) $ 1,007 $ 920 38 Reconciliation of GAAP measure "Operating margin" to Non-GAAP measure "Adjusted Operating margin" 2024 2023 Operating margin (GAAP) 9.4 % 6.6 % Non-GAAP adjustments: Less: Capacity alignments 0.2 % 2.1 % Less: The Andrews litigation settlement - 0.1 % Less: Antitrust related items 0.1 % 0.0 % Total non-GAAP adjustments to operating margin 0.3 % 2.2 % Adjusted Operating margin (Non-GAAP) 9.7 % 8.8 % Reconciliation of GAAP measure "Earnings per share - diluted" to Non-GAAP measure "Adjusted Earnings per share - diluted" 2024 2023 Earnings per share - diluted (GAAP) $ 8.04 $ 5.72 Non-GAAP adjustments: Less: Capacity alignments 0.24 2.56 Less: The Andrews litigation settlement - 0.09 Less: Antitrust related items 0.10 0.05 Less: Tax on non-GAAP adjustments (0.06 ) (0.24 ) Total non-GAAP adjustments to Earnings per share - diluted 0.28 2.46 Adjusted Earnings per share - diluted (Non-GAAP) $ 8.32 $ 8.19 Weighted average number of shares outstanding - diluted (in millions) 80.4 85.2 The following tables reconcile Income before income taxes, Net income, Net income attributable to controlling interest, Capital employed, which are inputs utilized to calculate Return On Capital Employed (“ROCE”), adjusted ROCE, Return On Total Equity (“ROE”) and adjusted ROE.
Reconciliation of GAAP measure "Operating income" to Non-GAAP measure "Adjusted Operating income" (Dollars in millions) 2025 2024 Operating income (GAAP) $ 1,088 $ 979 Non-GAAP adjustments: Less: Capacity alignments 23 19 Less: Antitrust related items 3 8 Total non-GAAP adjustments to operating income 26 27 Adjusted Operating income (Non-GAAP) $ 1,114 $ 1,007 38 Reconciliation of GAAP measure "Operating margin" to Non-GAAP measure "Adjusted Operating margin" (Percentage) 2025 2024 Operating margin (GAAP) 10.1 % 9.4 % Non-GAAP adjustments: Less: Capacity alignments 0.2 % 0.2 % Less: Antitrust related items 0.0 % 0.1 % Total non-GAAP adjustments to operating margin 0.2 % 0.3 % Adjusted Operating margin (Non-GAAP) 10.3 % 9.7 % Reconciliation of GAAP measure "Earnings per share - diluted" to Non-GAAP measure "Adjusted Earnings per share - diluted" (Dollars) 2025 2024 Earnings per share - diluted (GAAP) $ 9.55 $ 8.04 Non-GAAP adjustments: Less: Capacity alignments 0.29 0.24 Less: Antitrust related items 0.04 0.10 Less: Tax on non-GAAP adjustments (0.04 ) (0.06 ) Total non-GAAP adjustments to Earnings per share - diluted 0.30 0.28 Adjusted Earnings per share - diluted (Non-GAAP) $ 9.85 $ 8.32 Weighted average number of shares outstanding - diluted (in millions) 76.9 80.4 Income before income taxes, Net income, Net income attributable to controlling interest, Capital employed The following tables reconcile Income before income taxes, Net income, Net income attributable to controlling interest, Capital employed, which are inputs utilized to calculate Return On Capital Employed (“ROCE”), adjusted ROCE, Return On Total Equity (“ROE”) and adjusted ROE.
FOCUS ON QUALITY The number of vehicle recalls in the automotive industry continues on a relatively high level. The Company expects overall recall numbers to remain high for years to come and, although the Company strives for the highest quality in its processes, it cannot be ruled out that the Company may also be adversely impacted by a future recall.
The Company expects overall recall numbers to remain high for years to come and, although the Company strives for the highest quality in its processes, it cannot be ruled out that the Company may also be adversely impacted by a future recall.
The reversal of the reserve in 2024 was related to certain recall issues that were settled with a favorable outcome. For further information, see Note 13 Product Related Liabilities and Note 18 Contingent Liabilities. DEFINED BENEFIT PENSION PLANS The Company has defined benefit pension plans in thirteen countries. The most significant plans exist in the U.S.
The reversal of the reserve in 2024 was related to certain recall issues that were settled with a favorable outcome. For further information, see Note 14 Product Related Liabilities and Note 19 Contingent Liabilities, to the Consolidated Financial Statements. DEFINED BENEFIT PENSION PLANS The Company has defined benefit pension plans in thirteen countries.
Sales by Region Years ended December 31, Components of change in net sales 2024 2023 Reported change Currency effects 1) Organic 3) Americas $ 3,424 $ 3,526 (2.9 )% (1.2 )% (1.7 )% Europe 2,946 2,877 2.4 % 1.0 % 1.4 % China 2,010 2,105 (4.5 )% (1.3 )% (3.2 )% Asia excl.
Sales by Region Years ended December 31, Components of change in net sales 2025 2024 Reported change Currency effects 1) Organic 3) Americas $ 3,480 $ 3,424 1.6 % (1.7 )% 3.3 % Europe 3,116 2,946 5.8 % 4.4 % 1.4 % China 2,095 2,010 4.2 % 0.2 % 4.0 % Asia excl.
Reconciliation of GAAP measure "Income before income taxes" to Non-GAAP measure "Adjusted Income before income taxes" (Dollars in millions) 2024 2023 Income before income taxes (GAAP) $ 875 $ 612 Non-GAAP adjustments: Less: Capacity alignments 19 218 Less: The Andrews litigation settlement - 8 Less: Antitrust related items 8 4 Total non-GAAP adjustments to Income before income taxes 27 230 Adjusted Income before income taxes (Non-GAAP) $ 902 $ 842 39 Reconciliation of GAAP measure "Net income" to Non-GAAP measure "Adjusted Net income" (Dollars in millions) 2024 2023 Net income (GAAP) $ 648 $ 489 Non-GAAP adjustments: Less: Capacity alignments 19 218 Less: The Andrews litigation settlement - 8 Less: Antitrust related items 8 4 Less: Tax on non-GAAP adjustments (5 ) (20 ) Total non-GAAP adjustments to Net income 22 210 Adjusted Net income (Non-GAAP) $ 670 $ 699 Reconciliation of GAAP measure "Net income attributable to controlling interest" to Non-GAAP measure "Adjusted Net income attributable to controlling interest" (Dollars in millions) 2024 2023 Net income attributable to controlling interest (GAAP) $ 646 $ 488 Non-GAAP adjustments: Less: Capacity alignments 19 218 Less: The Andrews litigation settlement 0 8 Less: Antitrust related items 8 4 Less: Tax on non-GAAP adjustments (5 ) (20 ) Total non-GAAP adjustments to Net income attributable to controlling interest 22 210 Adjusted Net income attributable to controlling interest (Non-GAAP) $ 668 $ 697 Reconciliation of GAAP measure "Return on Capital Employed" to Non-GAAP measure "Adjusted Return on Capital Employed" 2024 2023 Return on capital employed 1) (GAAP) 25.0 % 17.7 % Non-GAAP adjustments: Less: Capacity alignments 0.4 % 5.1 % Less: The Andrews litigation settlement - 0.2 % Less: Antitrust related items 0.2 % 0.1 % Total non-GAAP adjustments to Return on capital employed 1) 0.6 % 5.3 % Adjusted Return on capital employed 1) (Non-GAAP) 25.6 % 23.1 % Adjustment on Return on capital employed 1) (in millions) $ 27 $ 230 1) The average capital employed amount is calculated as an average of the opening balance amount and the closing balance amounts for each quarter included in the period.
Reconciliation of GAAP measure "Income before income taxes" to Non-GAAP measure "Adjusted Income before income taxes" (Dollars in millions) 2025 2024 Income before income taxes (GAAP) $ 986 $ 875 Non-GAAP adjustments: Less: Capacity alignments 23 19 Less: Antitrust related items 3 8 Total non-GAAP adjustments to Income before income taxes 26 27 Adjusted Income before income taxes (Non-GAAP) $ 1,012 $ 902 39 Reconciliation of GAAP measure "Net income" to Non-GAAP measure "Adjusted Net income" (Dollars in millions) 2025 2024 Net income (GAAP) $ 736 $ 648 Non-GAAP adjustments: Less: Capacity alignments 23 19 Less: Antitrust related items 3 8 Less: Tax on non-GAAP adjustments (3 ) (5 ) Total non-GAAP adjustments to Net income 23 22 Adjusted Net income (Non-GAAP) $ 759 $ 670 Reconciliation of GAAP measure "Net income attributable to controlling interest" to Non-GAAP measure "Adjusted Net income attributable to controlling interest" (Dollars in millions) 2025 2024 Net income attributable to controlling interest (GAAP) $ 735 $ 646 Non-GAAP adjustments: Less: Capacity alignments 23 19 Less: Antitrust related items 3 8 Less: Tax on non-GAAP adjustments (3 ) (5 ) Total non-GAAP adjustments to Net income attributable to controlling interest 23 22 Adjusted Net income attributable to controlling interest (Non-GAAP) $ 758 $ 668 Reconciliation of GAAP measure "Return on Capital Employed" to Non-GAAP measure "Adjusted Return on Capital Employed" (Percentage) 2025 2024 Return on capital employed 1) (GAAP) 26.4 % 25.0 % Non-GAAP adjustments: Less: Capacity alignments 0.5 % 0.4 % Less: Antitrust related items 0.1 % 0.2 % Total non-GAAP adjustments to Return on capital employed 1) 0.6 % 0.6 % Adjusted Return on capital employed 1) (Non-GAAP) 27.0 % 25.6 % Adjustment on Return on capital employed 1) (in millions) $ 26 $ 27 1) The average capital employed amount is calculated as an average of the opening balance amount and the closing balance amounts for each quarter included in the period.
ORDER INTAKE ADDING TO AN ALREADY STRONG CUSTOMER BASE The Company's order intake in 2024, with high win rates for new platforms with both new and traditional OEMs as well as for both EV and ICE platforms, added to the Company's already strong base, which includes supplying products to more than 1,300 vehicle models and around 100 car brands.
ORDER INTAKE IMPACTED BY SHIFTS IN TECHNOLOGY, CUSTOMER LANDSCAPE AND GEOPOLITICS The Company's order intake in 2025, with high win rates for new platforms with both new and traditional OEMs as well as for both EV and ICE platforms, supports the Company's already strong base, which includes supplying products to more than 1,400 vehicle models and around 100 car brands.
Full year 2025 Assumptions LVP growth Around 0.5% negative Foreign currency impact on net sales Around 2% negative Tax rate 3) Around 28% 3) Excluding unusual tax items. The forward-looking non-U.S. GAAP financial measures above are provided on a non-U.S. GAAP basis. Autoliv has not provided a U.S.
Full year 2026 Assumptions LVP growth Around 1% negative Foreign currency impact on net sales Around 1% positive Tax rate 3) Around 28% 3) Excluding unusual tax items. The forward-looking non-GAAP financial measures above are provided on a non-GAAP basis.
The treasury department handles external financial transactions and functions as the Company’s in-house bank for its subsidiaries. The Board of Directors monitors compliance with the financial risk policy on an on-going basis.
The treasury department handles external financial transactions and functions as the Company’s in-house bank for its subsidiaries. The Board of Directors monitors compliance with the financial risk policy on an on-going basis. For information about specific financial risks, see Item 7A – Quantitative and Qualitative Disclosures about Market Risk.
China 2,010 1,968 2.2 % (4.4 )% 6.6 % Total $ 10,390 $ 10,475 (0.8 )% (1.2 )% 0.4 % 1) Effects from currency translations. Autoliv’s global sales increased organically (Non-U.S. GAAP measure, see reconciliation table above) by 0.4% in 2024 compared to 2023, which was around 1.6 percentage points better than global LVP (according to S&P Global, January 2025).
China 2,124 2,010 5.7 % (0.2 )% 5.9 % Total $ 10,815 $ 10,390 4.1 % 0.7 % 3.4 % 1) Effects from currency translations. Autoliv’s global sales increased organically (Non-GAAP measure, see reconciliation table above) by 3.4% in 2025 compared to 2024, which was around 0.5 percentage points below global LVP growth (according to S&P Global, January 2026).
For the years ended December 31, 2024 and 2023 respectively management’s estimation process has been consistent and the ultimate outcome for settled product recall matters during the years ended December 31, 2024 and 2023 as compared to management estimations have been favorable.
For the years ended December 31, 2025 and 2024 respectively, management’s estimation process has been consistent and the ultimate outcome for settled product recall matters during the years ended December 31, 2025 have been in line with estimates and for December 31, 2024 were favorable compared to Management’s estimate.
In 2024, however, the Company achieved its 5% productivity target, as gradual improvement in customer call -off volatility enabled an improved operational efficiency.
In 2024, however, the Company achieved its 5% productivity target, as gradual improvement in customer call-off volatility enabled improved operational efficiency. In 2025, the Company achieved its new target of 8% labor minutes per unit productivity.
Commercial customer recoveries compensating for increased labor costs also added to CPV in 2024, partly offset by negative effects from continued productivity related pricing pressure from vehicle manufacturers. CPV increased in Japan, Europe and India, was unchanged in North America while it decreased in China due to the changes in LVP mix outlined above.
Commercial customer recoveries compensating for increased labor costs and tariffs also added to CPV in 2025, partly offset by negative effects from continued productivity related pricing pressure from vehicle manufacturers. CPV increased in India, South America, South Korea, Europe and North America, was unchanged in Japan and China and decreased in Other Asia.
These patents expire on various dates during the period from 2025 to 2044 The expiration of any single patent is not expected to have a material adverse effect on the Company’s financial results.
At the end of 2025, the Company held more than 6,600 patents and patents applications. These patents expire on various dates during the period from 2026 to 2045. The expiration of any single patent is not expected to have a material adverse effect on the Company’s financial results.
Airbags, Steering Wheels and Other Sales grew organically (Non-U.S. GAAP measure, see reconciliation table above) by 0.7% in 2024. The largest contributor to the increase was steering wheels, followed by center airbags, side airbags, inflatable curtains and inflators, partly offset by decreases for passenger airbags, knee airbags and driver airbags.
Airbags, Steering Wheels and Other Sales for Airbags, Steering Wheels and Other grew organically (Non-GAAP measure, see reconciliation table above) by 3.4% in 2025. The largest contributor to the increase was side airbags and inflatable curtains, followed by steering wheels, center airbags and driver airbags.
Despite macro-economic uncertainties in parts of the world, we expect light vehicle markets to grow both in the medium and long term, driven by pent-up end user demand and a growing GDP/capita.
Through timely investments in capacity for both manufacturing and R, D&E, the Company is the clear market leader in India. Despite macro-economic uncertainties in parts of the world, we expect light vehicle markets to grow both in the medium and long term, driven by pent-up end user demand and a growing GDP/capita.
In the year ended December 31, 2024, a number of factors influenced the Company’s results of operations, including: • Customer call-off volatility improved, yet remains above pre-pandemic levels, limiting productivity. • Cost inflation moderated but remains elevated, especially for labor • Continued growth above LVP despite unfavorable LVP mix development • Order intake impacted by developments in technology, geopolitics and customer landscape. • Strategic and structural initiatives • Continued focus on operational excellence and quality 2024 2023 YEARS ENDED DEC. 31 (DOLLARS IN MILLIONS, EXCEPT EPS) Reported 1) change Reported 1) change Global light vehicle production (in thousands) 86,708 (1.2 ) % 87,772 10 % Consolidated net sales $ 10,390 (0.8 ) % $ 10,475 18 % Operating income 979 42 % 690 4.7 % Operating margin, % 9.4 2.8 pp 6.6 (0.9 ) pp Net income attributable to controlling interest 646 33 % 488 15 % Earnings per share - diluted 2) 8.04 40 % 5.72 18 % Net cash provided by operating activities 1,059 7.8 % 982 38 % Return on capital employed, % 25.0 7.3 pp 17.7 0.2 pp 1) Reported figures impacted by costs for capacity alignments and antitrust related matters.
In the year ended December 31, 2025, a number of factors influenced the Company’s results of operations, including: • Geopolitical uncertainties and tariffs • Cost inflation moderated but remains somewhat elevated, especially for labor • Growth impacted by LVP, shifting OEM landscape and safety content per vehicle • Order intake impacted by shifts in technology, customer landscape and geopolitics. • Strategic and structural initiatives • Continued focus on operational excellence and quality 2025 2024 YEARS ENDED DEC. 31 (DOLLARS IN MILLIONS, EXCEPT EPS) Reported 1) change Reported 1) change Global light vehicle production (in thousands) 90,268 3.9 % 86,895 (1.0 ) % Consolidated net sales $ 10,815 4.1 % $ 10,390 (0.8 ) % Operating income 1,088 11 % 979 42 % Operating margin, % 10.1 0.6 pp 9.4 2.8 pp Net income attributable to controlling interest 735 14 % 646 33 % Earnings per share - diluted 2) 9.55 19 % 8.04 40 % Net cash provided by operating activities 1,157 9.3 % 1,059 7.8 % Return on capital employed, % 26.4 1.5 pp 25.0 7.3 pp 1) Reported figures impacted by costs for capacity alignments and antitrust related matters.
The number of shares outstanding is expected to increase by 0.5 million when all RSUs and PSs vest and if all SOs to key employees are exercised, see Note 17, Stock Incentive Plans, to the Consolidated Financial Statements included herein. During 2024 the Company repurchased and retired approximately 5.1 million shares equal to $552 million.
The number of shares outstanding is expected to increase by 0.6 million when all RSUs and PSUs vest, see Note 18, Stock Incentive Plans, to the Consolidated Financial Statements included herein. During 2025, the Company repurchased and retired approximately 3.1 million shares equal to $351 million.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeCALCULATION OF NON-GAAP MEASURE LEVERAGE RATIO December 31, 2024 2023 Net debt 1) $ 1,554 $ 1,367 Pension liabilities 153 159 Debt per the Policy 1,708 1,527 Net income 2) 648 489 Income taxes 2) 227 123 Interest expense, net 2,3) 95 80 Other non-operating items, net 2) 16 3 Income from equity method investments 2) (7 ) (5 ) Depreciation and amortization of intangibles 2) 387 378 Capacity alignments costs and antitrust related matters 2) 27 230 EBITDA per the Policy (Adjusted EBITDA) $ 1,394 $ 1,297 Leverage ratio 1.2 1.2 1) Net debt is short- and long-term debt and debt-related derivatives less cash and cash equivalents (non-GAAP measure). 2) Latest 12 months. 3) Interest expense, net is interest expense including cost for extinguishment of debt, if any, less interest income. 52 CREDIT RISK IN FINANCIAL MARKETS Credit risk refers to the risk of a financial counterparty being unable to fulfill an agreed-upon obligation.
Biggest changeCALCULATION OF NON-GAAP MEASURE LEVERAGE RATIO December 31, 2025 2024 Net debt 1) $ 1,566 $ 1,554 Pension liabilities 169 153 Debt per the Policy 1,736 1,708 Net income 2) 736 648 Income taxes 2) 250 227 Interest expense, net 2,3) 93 95 Other non-operating items, net 2) 15 16 Income from equity method investments 2) (6 ) (7 ) Depreciation and amortization of intangibles 2) 407 387 Capacity alignments costs 2) 23 19 Antitrust related matters 2) 3 8 Other items 2) — — EBITDA per the Policy (Adjusted EBITDA) $ 1,521 $ 1,394 Leverage ratio 1.1 1.2 1) Net debt is short- and long-term debt and debt-related derivatives less cash and cash equivalents (non-GAAP measure). 2) Latest 12 months. 3) Interest expense, net is interest expense including cost for extinguishment of debt, if any, less interest income. 52 CREDIT RISK IN FINANCIAL MARKETS Credit risk refers to the risk of a financial counterparty being unable to fulfill an agreed-upon obligation.
Autoliv is committed to maintain a “strong investment grade credit rating." As of December 31, 2024, the Company had a long-term credit rating from S&P Global Ratings of BBB, from Moody’s of Baa1 and from Fitch of BBB+. As of February 7, 2025, S&P Global Ratings withdrew the ratings for Autoliv on the company’s request.
Autoliv is committed to maintain a “strong investment grade credit rating." As of December 31, 2025, the Company had a long-term credit rating from Moody’s of Baa1 and from Fitch of BBB+. As of February 7, 2025, S&P Global Ratings withdrew the ratings for Autoliv on the company’s request.
The amount of interest-bearing debt held impacts the future financial flexibility as well as the credit rating. Management uses the non-GAAP measure “Leverage Ratio” to analyze the amount of debt the Company can incur under its debt policy.
The amount of interest-bearing debt impacts future financial flexibility as well as the credit rating. Management uses the non-GAAP measure “Leverage Ratio” to analyze the amount of debt the Company can incur under its debt policy.
IMPAIRMENT RISK Impairment risk refers to the risk that the Company will write down a material amount of its goodwill of close to $1.4 billion as of December 31, 2024. This risk is assessed at least annually in the fourth quarter each year when the Company performs its impairment testing.
IMPAIRMENT RISK Impairment risk refers to the risk that the Company will write down a material amount of its goodwill of close to $1.4 billion as of December 31, 2025. This risk is assessed at least annually in the fourth quarter each year when the Company performs its impairment testing.
The management of the financing risk ensures access to funding in a cost-efficient way by diversification of funding sources and debt maturities. Autoliv has diversified its long-term funding sources by issuing notes in the USPP and Eurobond markets, and by signing a long-term credit agreement with 12 banks.
The management of the financing risk ensures access to funding in a cost-efficient way by diversification of funding sources and debt maturities. Autoliv has diversified its long-term funding sources by issuing notes in the USPP and Eurobond markets, and by signing long-term credit agreements with 12 banks.
Consequently, changes in currency rates relating to funding and foreign currency accounts normally have a small impact on the Company’s income. In 2024 and 2023, the impact from the Company’s currency exposure were not material. INTEREST RATE RISK Interest rate risk refers to the risk that interest rate changes will affect the Company’s borrowing costs.
Consequently, changes in currency rates relating to funding and foreign currency accounts normally have a small impact on the Company’s income. In 2025 and 2024, the impact from the Company’s currency exposure were not material. INTEREST RATE RISK Interest rate risk refers to the risk that interest rate changes will affect the Company’s borrowing costs.
The Company estimates that a 1% increase in the value of the U.S. dollar versus European currencies will decrease reported U.S. dollar annual net sales in 2025 by $28 million, while operating income for 2025 will decline by $3 million, assuming reported corporate average margin. The Company’s policy is not to hedge this type of translation exposure.
The Company estimates that a 1% increase in the value of the U.S. dollar versus European currencies will decrease reported U.S. dollar annual net sales in 2026 by $30 million, while operating income for 2026 will decline by $3 million, assuming reported corporate average margin. The Company’s policy is not to hedge this type of translation exposure.
The four largest net exposures are U.S. dollars (sell) against the Mexican Peso, Romanian Lei (buy) against the Euro, U.S. dollars (buy) against Korean Won and U.S. dollars (buy) against Japanese Yen. Together these currencies accounted for approximately 50% of the Company’s net currency transaction exposure.
The four largest net exposures are U.S. dollars (sell) against the Mexican Peso, Romanian Lei (buy) against the Euro, U.S. dollars (buy) against Korean Won and Thai Baht (buy) against Japanese Yen. Together these currencies accounted for approximately 43% of the Company’s net currency transaction exposure.
Revaluation effects come from valuation of assets and liabilities denominated in other currencies than the reporting currency of each unit. The Company's net transaction exposure in 2024 was approximately $2.4 billion.
Revaluation effects come from valuation of assets and liabilities denominated in other currencies than the reporting currency of each unit. The Company's net transaction exposure in 2025 was approximately $2.9 billion.
The Company estimates that 27% of its consolidated net sales will be denominated in Euro or other European currencies during 2025, while 18% of its consolidated net sales are estimated to be denominated in U.S. dollars.
The Company estimates that 27% of its consolidated net sales will be denominated in Euro or other European currencies during 2026, while 16% of its consolidated net sales are estimated to be denominated in U.S. dollars.
In addition, deposits can be made in U.S. and Swedish government short-term notes and certain AAA rated money market funds, as approved by the Company’s Board of Directors. At December 31, 2024, the Company held $31 million in AAA rated money market funds.
In addition, deposits can be made in U.S. and Swedish government short-term notes and certain AAA rated money market funds, as approved by the Company’s Board of Directors. On December 31, 2025, the Company held $267 million in AAA rated money market funds.
Given the Company’s current capital structure, we estimate that a one-percentage point interest rate increase would increase net interest expense by approximately $0.7 million on an annual basis.
Given the Company’s current capital structure, we estimate that a one-percentage point interest rate increase would increase net interest income by approximately $4.7 million on an annual basis.
The Company's interest rate risk policy states that the average interest rate fixing period should be minimum 1 year and maximum 5 years. At December 31, 2024, the average interest rate fixing period for the Company’s outstanding debt was 2.8 years, and at December 31, 2023, the average interest rate fixing period for the Company’s outstanding debt was 2.1 years.
The Company's interest rate risk policy states that the average interest rate fixing period should be minimum 1 year and maximum 5 years. On December 31, 2025, the average interest rate fixing period for the Company’s outstanding debt was 2.9 years, and on December 31, 2024, the average interest rate fixing period for the Company’s outstanding debt was 2.8 years.
This is based on the capital structure at the end of 2024 when the gross fixed-rate debt was $1,522 million while the Company had a net debt position of $1,554 million (see section Non-U.S. GAAP Performance Measures). Thus, a change in the interest rate environment would not have a notable impact on the Company’s interest expense.
This is based on the capital structure at the end of 2025 when the gross fixed-rate debt was $1,734 million while the Company had a net debt position of $1,566 million (see section Non-GAAP Performance Measures). Thus, a change in the interest rate environment would not have a notable impact on the Company’s interest expense.
See Note 14 to the Consolidated Financial Statements included herein. 51 FINANCING RISK Financing risk refers to the risk that it will be difficult and/or expensive to finance new or existing debt to meet the financing needs of the Autoliv Group.
See Note 15, Debt and Credit Agreements, to the Consolidated Financial Statements. 51 FINANCING RISK Financing risk refers to the risk that it will be difficult and/or expensive to finance new or existing debt to meet the financing needs of the Autoliv Group.
Per December 31, 2024, 20% corresponding to $387 million of the Autoliv Group’s total debt had maturity less than 12 months. This amount was fully covered by unutilized committed credit facilities with maturity in excess of 12 months.
On December 31, 2025, 19% corresponding to $419 million of the Autoliv Group’s total debt had maturity less than 12 months. This amount was fully covered by unutilized committed credit facilities with maturity in excess of 12 months.
Management believes that this policy also provides guidance to credit and equity investors regarding the extent to which the Company would be prepared to leverage its operations. Autoliv’s long-term target for the leverage ratio (sum of net debt plus pension liabilities divided by EBITDA) is 1.0x with the aim to operate within the range of 0.5x to 1.5x.
Management believes that this policy also provides guidance to credit and equity investors regarding the extent to which the Company would be prepared to leverage its operations. It is Autoliv’s target to operate with a leverage ratio (sum of net debt plus pension liabilities divided by EBITDA) of 1.5x or below.
At December 31, 2024, the leverage ratio (non-GAAP measure, see calculation table below) was 1.2x. For details and calculation of leverage ratio, refer to the table below.
On December 31, 2025, the leverage ratio (Non-GAAP measure, see calculation table below) was 1.1x. For details and calculation of leverage ratio, refer to the table below.
Fixed interest rate debt can be achieved both by issuing fixed rate notes and through interest rate swaps. The most notable debt carrying fixed interest rates is the €500 million bond issued in 2023, the €500 million bond issued in 2024, and the U.S. private placement notes totaling $470 million.
The most notable debt carrying fixed interest rates are the €500 million bond issued in 2023, the €500 million bond issued in 2024, the €300 million bond issued in 2025 and the U.S. private placement notes totaling $470 million.
The Company also has established programs for short-term issuance of commercial papers in the Swedish and US markets and short-term credit agreements, e.g., bank overdrafts and money market loans.
The Company has a Euro Medium Term Note Program in place for being able to issue notes to be listed at Euronext Dublin. The Company has established programs for short-term issuance of commercial papers in the Swedish and US markets and short-term credit agreements, e.g. bank overdrafts and money market loans.
As of December 31, 2024, the Company had $330 million in cash and cash equivalents of which the majority were subject to a floating interest rate.
On December 31, 2025, the Company had $604 million in cash and cash equivalents of which the majority was subject to a floating interest rate. Fixed interest rate debt may be achieved both by issuing fixed rate notes and through interest rate swaps.
Removed
Taking the cash and cash equivalents of $330 million (which is primarily subject to floating interest rates) minus the portion of debt carrying floating interest rates, we estimated that a one-percentage point interest rate increase would increase net interest expense by approximately $0.7 million on an annual basis.
Removed
The Company also has a lending facility with the Swedish Export Credit Corporation. The Company has a Euro Medium Term Note Program in place for being able to issue notes to be listed at Euronext Dublin.

Other ALV 10-K year-over-year comparisons