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Jun 30, 2023

Autoliv Q2 2023 Earnings Report

Achieved record second quarter sales and improved profitability

Key Takeaways

Autoliv reported a strong Q2 2023 with record second quarter sales, driven by organic growth and price increases. Profitability improved substantially, positively impacted by price increases, organic growth and cost reduction activities. The company reiterates its full year indications.

Sales increased organically by 27%, outperforming global LVP growth.

Profitability improved substantially due to price increases, organic growth, and cost reduction.

Operating cash flow increased significantly, driven by improved adjusted operating income and positive working capital effects.

The company reiterates its full year indications.

Total Revenue
$2.64B
Previous year: $2.08B
+26.6%
EPS
$1.93
Previous year: $0.9
+114.4%
Adjusted operating margin
8%
Previous year: 6%
+33.3%
Operating cash flow
$379M
Return on capital employed
9.5%
Previous year: 13.1%
-27.5%
Gross Profit
$447M
Previous year: $326M
+37.1%
Cash and Equivalents
$475M
Previous year: $327M
+45.3%
Free Cash Flow
$255M
Previous year: -$190M
-234.2%
Total Assets
$7.96B
Previous year: $7.03B
+13.2%

Autoliv

Autoliv

Forward Guidance

Autoliv's full year 2023 indications are mainly based on customer call-offs, a full year 2023 global LVP growth of around 4%, achievement of targeted cost compensation effects, and reduced customer call-off volatility.

Positive Outlook

  • Around 15% organic sales growth
  • Around 1% positive FX effect on net sales
  • Adjusted operating margin around 8.5%-9%
  • Operating cash flow around $900 million
  • Capex, net, of sales around 6%