[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  LongYield [@LongYield](/creator/twitter/LongYield) on x 4471 followers Created: 2025-07-20 16:38:25 UTC $ALV Autoliv, Inc. Earnings Call Key Highlights: (2/2) 📊 Cash Flow, CapEx, and Working Capital Trends Free operating cash flow was $XXX million, down from $XXX million YoY due to working capital buildup but partially offset by lower CapEx. CapEx-to-sales ratio declined to XXX% from XXX% last year, driven by reduced footprint investments in Europe and Americas and moderated capacity expansion in Asia. Trade working capital rose to XXXX% of sales, up from XXXX% YoY, driven by $XXX million in higher receivables; seen as a temporary shift due to strong Q2 close. Cash conversion over the last XX months was ~65%, slightly below the XX% target but expected to normalize as receivables ease. 💼 Capital Allocation and Shareholder Returns Reaffirmed commitment to annual stock repurchases of $300–$500 million as presented during June Capital Markets Day; $XX million of buybacks executed in Q2. Dividend increased to $XXXX per share in Q3, reflecting ongoing financial strength and confidence in long-term cash generation. Leverage ratio stable at 1.3x, well below 1.5x target threshold, despite $XXX million in shareholder returns over the past XX months. Balance sheet flexibility supports capital returns, innovation investment, and tariff cost management without compromising financial stability. 📉 2025 Guidance and Seasonal Expectations Full-year 2025 organic sales growth expected at ~3%, raised from 2%, largely due to tariff compensation; adjusted operating margin projected at 10%–10.5%. Operating cash flow forecasted at $XXX billion; assumptions include global LVP decline of ~0.5%, stable tariffs (as of July 10), and no major supply chain disruptions. Seasonal cadence expected to return to historical norms: Q3 forecasted as weakest quarter due to a nearly X% decline in global LVP; Q4 anticipated to be strongest. No quarterly margin increase expected as seen in prior years due to differing inflationary environment; Q4 benefit to include higher engineering income. 🔬 Product Launches and CPV Growth Q2 featured a strong wave of model launches, notably in China and Asia, with Autoliv content per vehicle ranging from $XXX to over $XXX. Key launches included midsize EV crossovers and small Japanese K-cars—marking increased penetration in historically underrepresented segments. Six new models featured front center airbags, and several included knee airbags, supporting long-term CPV uplift and safety leadership. Ongoing product diversification and collaboration with both global and local OEMs enhance long-term revenue visibility. 🔒 Strategic Outlook and Long-Term Targets Reiterated XX% medium-term adjusted operating margin target, contingent on stable LVP (~85 million units), call-off predictability, and internal cost execution. Growth strategy emphasizes increased market share in China and India, innovation in core safety systems, and expansion in next-gen mobility safety. Capital Markets Day reaffirmed focus on structural margin levers including automation, digitalization, commercial excellence, and optimized manufacturing. Long-term tailwinds include rising safety content per vehicle, OEM safety mandates, and emerging market vehicle growth. 📉 Risks and Macro Environment Tariff-related uncertainty remains a headwind for Q3 and full-year outlook; timing of customer compensation affects reported margins intra-quarter. S&P forecasts a XXX% YoY decline in global LVP for H2 2025, with North America facing elevated risk from higher vehicle prices and import duties. EV-related model launches delayed due to tariff concerns and economic uncertainty; OEMs extending lifecycles of existing platforms. China domestic vehicle growth supported by government policies, though global market remains susceptible to trade restrictions and consumer affordability challenges. XXX engagements  **Related Topics** [cash flow](/topic/cash-flow) [quarterly earnings](/topic/quarterly-earnings) [$alv](/topic/$alv) [alvey chain](/topic/alvey-chain) [coins layer 2](/topic/coins-layer-2) [alv autoliv inc](/topic/alv-autoliv-inc) [Post Link](https://x.com/LongYield/status/1946972978291356124)
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LongYield @LongYield on x 4471 followers
Created: 2025-07-20 16:38:25 UTC
$ALV Autoliv, Inc. Earnings Call Key Highlights: (2/2)
📊 Cash Flow, CapEx, and Working Capital Trends
Free operating cash flow was $XXX million, down from $XXX million YoY due to working capital buildup but partially offset by lower CapEx.
CapEx-to-sales ratio declined to XXX% from XXX% last year, driven by reduced footprint investments in Europe and Americas and moderated capacity expansion in Asia.
Trade working capital rose to XXXX% of sales, up from XXXX% YoY, driven by $XXX million in higher receivables; seen as a temporary shift due to strong Q2 close.
Cash conversion over the last XX months was ~65%, slightly below the XX% target but expected to normalize as receivables ease.
💼 Capital Allocation and Shareholder Returns
Reaffirmed commitment to annual stock repurchases of $300–$500 million as presented during June Capital Markets Day; $XX million of buybacks executed in Q2.
Dividend increased to $XXXX per share in Q3, reflecting ongoing financial strength and confidence in long-term cash generation.
Leverage ratio stable at 1.3x, well below 1.5x target threshold, despite $XXX million in shareholder returns over the past XX months.
Balance sheet flexibility supports capital returns, innovation investment, and tariff cost management without compromising financial stability.
📉 2025 Guidance and Seasonal Expectations
Full-year 2025 organic sales growth expected at ~3%, raised from 2%, largely due to tariff compensation; adjusted operating margin projected at 10%–10.5%.
Operating cash flow forecasted at $XXX billion; assumptions include global LVP decline of ~0.5%, stable tariffs (as of July 10), and no major supply chain disruptions.
Seasonal cadence expected to return to historical norms: Q3 forecasted as weakest quarter due to a nearly X% decline in global LVP; Q4 anticipated to be strongest.
No quarterly margin increase expected as seen in prior years due to differing inflationary environment; Q4 benefit to include higher engineering income.
🔬 Product Launches and CPV Growth
Q2 featured a strong wave of model launches, notably in China and Asia, with Autoliv content per vehicle ranging from $XXX to over $XXX.
Key launches included midsize EV crossovers and small Japanese K-cars—marking increased penetration in historically underrepresented segments.
Six new models featured front center airbags, and several included knee airbags, supporting long-term CPV uplift and safety leadership.
Ongoing product diversification and collaboration with both global and local OEMs enhance long-term revenue visibility.
🔒 Strategic Outlook and Long-Term Targets
Reiterated XX% medium-term adjusted operating margin target, contingent on stable LVP (~85 million units), call-off predictability, and internal cost execution.
Growth strategy emphasizes increased market share in China and India, innovation in core safety systems, and expansion in next-gen mobility safety.
Capital Markets Day reaffirmed focus on structural margin levers including automation, digitalization, commercial excellence, and optimized manufacturing.
Long-term tailwinds include rising safety content per vehicle, OEM safety mandates, and emerging market vehicle growth.
📉 Risks and Macro Environment
Tariff-related uncertainty remains a headwind for Q3 and full-year outlook; timing of customer compensation affects reported margins intra-quarter.
S&P forecasts a XXX% YoY decline in global LVP for H2 2025, with North America facing elevated risk from higher vehicle prices and import duties.
EV-related model launches delayed due to tariff concerns and economic uncertainty; OEMs extending lifecycles of existing platforms.
China domestic vehicle growth supported by government policies, though global market remains susceptible to trade restrictions and consumer affordability challenges.
XXX engagements
Related Topics cash flow quarterly earnings $alv alvey chain coins layer 2 alv autoliv inc