Autoliv reported adjusted earnings per share of $3.19 for the fourth quarter, beating the consensus estimate of $2.90. Quarterly sales reached $2.817 billion, surpassing analyst forecasts of $2.772 billion and representing a 7.7% year-over-year increase. The results mark record high sales for both the quarter and the full year, driven by strong demand for new product launches and steady recovery in global auto production.

Sales to Chinese original equipment manufacturers grew by nearly 40% in the quarter and 23% for the full year, while India also delivered double-digit growth. Autoliv successfully recovered close to 100% of tariff-related cost increases in the fourth quarter and more than 80% for fiscal 2025, reflecting effective pricing strategies and supply-chain resilience despite ongoing volatility and frequent last-minute customer order changes.

For fiscal 2026, Autoliv guided to flat organic sales growth, implying revenue of approximately $10.8 billion compared with $10.82 billion in fiscal 2025. The forecast falls short of the Street’s $11.18 billion estimate, reflecting expected headwinds from tariff uncertainty and supply-chain disruptions. Management plans to offset these challenges through further cost-cutting measures, efficiency improvements and targeted product launches in key markets such as China and India to support margin expansion.

Following the earnings release, Evercore ISI Group maintained an Outperform rating but lowered its price target from $150 to $145, while RBC Capital also kept an Outperform stance and cut its target from $146 to $141. Analysts cited the company’s strong top-line performance and tariff recovery but noted that the conservative 2026 revenue guidance and persistent supply-chain pressures could weigh on near-term stock momentum. Investors are advised to monitor execution on cost initiatives and regional growth plans.