Finance
Autoliv beats profit estimates, recoups 75% of tariff costs in Q3
Published by Global Banking and Finance Review
Posted on October 17, 2025
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Published by Global Banking and Finance Review
Posted on October 17, 2025
(Reuters) -Autoliv, the world's largest producer of airbags and seatbelts, reported a third-quarter adjusted operating profit above market expectations on Friday and said it had recouped around 75% of the tariff-related costs it had incurred during the quarter.
"We continue to closely monitor the situation, and remain adaptive and agile," CEO Mikael Bratt said in the earnings statement. Autoliv expects to recover most of the remaining costs during the fourth quarter, it said.
The company recorded a hit of 20 basis points from U.S. import tariffs on its operating margin in the quarter, though most of the costs were transferred to its customers.
In the second quarter, Autoliv had managed to recover 80% of its tariff costs by the end of the period.
The company's adjusted operating profit grew 14% to $271 million in the third quarter, beating analysts' mean forecast of $248 million provided by it.
"The performance was driven by better than expected sales, especially in Americas and Europe, and successful actions to reduce costs and achieve tariff compensation," Bratt said.
Autoliv also outperformed in its business with Chinese automakers, according to the CEO. "The ramp-up of certain models started slower than expected, but improved gradually during the quarter," he said about China.
The company also expects "increased outperformance" in China in the final quarter of 2025, he said.
Autoliv's New York-listed shares were down 2.8% in pre-market. In Stockholm, the shares were down around 2%, at a similar level to what they were trading at before the results were published.
"The result is strong and well above (consensus) but in line to slightly below buy-side we speak to. A lot to like but not a lot of incrementally positive news," Jefferies analysts said in a note to investors.
(Reporting by Tomasz Kanik and Elviira Luoma in Gdansk, editing by Milla Nissi-Prussak)