Investment firm Baird has revised its price target for Autoliv (ALV, Financial), lowering it from $126 to $124 while maintaining a Neutral rating. This adjustment comes after the company released its second-quarter results, which were generally solid. However, projections for the latter half of 2025 appear more uncertain than anticipated, prompting the updated outlook.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Autoliv Inc (ALV, Financial) is $122.86 with a high estimate of $140.00 and a low estimate of $100.00. The average target implies an upside of 9.62% from the current price of $112.08. More detailed estimate data can be found on the Autoliv Inc (ALV) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, Autoliv Inc's (ALV, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Autoliv Inc (ALV, Financial) in one year is $112.71, suggesting a upside of 0.56% from the current price of $112.08. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Autoliv Inc (ALV) Summary page.
ALV Key Business Developments
Release Date: July 18, 2025
- Revenue: Approximately $2.7 billion, a 4% year-over-year increase.
- Gross Margin: Increased by 30 basis points to 18.5%.
- Operating Income: Adjusted operating income increased by 14% to $251 million.
- Operating Margin: Adjusted operating margin improved by 80 basis points to 9.3%.
- Earnings Per Share (EPS): Record EPS for the second quarter, increased by $0.33.
- Cash Flow: Operating cash flow was $277 million.
- Free Operating Cash Flow: $163 million, compared to $194 million in the prior year.
- Dividend: Increased to $0.85 per share for the third quarter.
- Share Repurchases: $51 million spent, retiring 0.5 million shares.
- Debt Leverage Ratio: Remained strong at 1.3 times.
- Sales Growth: Second quarter sales increased by 4% year-over-year.
- Organic Sales Growth: More than 3%, including tariff cost compensations.
- Tariff Recovery: Approximately 80% of tariff costs recovered during the second quarter.
- Return on Capital Employed: Adjusted return was 24%.
- Return on Equity: Adjusted return was 28%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Autoliv Inc (ALV, Financial) reported record sales and earnings for the second quarter of 2025, highlighting the company's resilience and strong market position.
- The company significantly improved its operating profit and operating margin compared to the previous year, driven by efficiency improvements and cost management.
- Autoliv Inc (ALV) successfully recovered approximately 80% of the tariff costs incurred during the second quarter and expects to recover most of the remaining portion later this year.
- The company achieved record earnings per share for the second quarter, more than tripling its earnings per share over the past five years.
- Autoliv Inc (ALV) increased its third-quarter dividend to $0.85 per share, reflecting confidence in its continued financial strength and long-term value creation.
Negative Points
- The company remains cautious about the rest of the year due to complexities of tariffs and other challenging economic factors.
- Autoliv Inc (ALV) experienced an unfavorable regional and customer mix, which partly offset its sales growth.
- The combination of not yet recovered tariffs and the dilutive effect of the recovered portion resulted in a negative impact of approximately 35 basis points on the operating margin.
- Operating cash flow decreased by $63 million compared to the same period last year, primarily due to higher receivables.
- The global light vehicle production outlook for the second half of 2025 has weakened, with production expected to decline by more than 2%.
