Autoliv Boosts Shareholder Returns With 21% Dividend Hike, New $2.5 Billion Buyback Program

Autoliv, Inc. ALV shares are trading higher premarket on Wednesday after the company disclosed a dividend boost and buyback program at the capital market day (CMD).

The company’s shareholder return strategy includes a target of average annual share repurchases of $300 million and $500 million through the end of 2029.

The Board of Directors approved a new stock repurchase program of up to $2.5 billion, effective from July 1, 2025, through December 31, 2029.

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The company has terminated any remaining authorization from the previous 2022-2025 program.

Furthermore, the Board of Directors has increased the dividend for the third quarter of 2025 to 85 cents per share.

This represents an increase of 21% from the second-quarter dividend and is 24% higher than the average quarterly dividend paid in 2024.

The company reiterated its full-year 2025 guidance, projecting organic sales growth of approximately 2% and an adjusted operating margin of around 10%-10.5%.

Autoliv reaffirmed its long-term growth outlook for an average annual organic sales growth of 4%-6% over a 10-plus year period.

While Autoliv remains confident in the opportunities within its Mobility Safety Solutions (MSS) business, it anticipates that the impact of MSS on overall group performance will not be significant for several years.

Until around 2030, the company projects growth to be driven by increasing safety content per vehicle and light vehicle production, with a more substantial contribution from MSS projected to start around 2030.

The company reiterated its medium-term target of a 12% adjusted operating margin.

This target assumes a stable global light vehicle production of at least 85 million units, along with successful mitigation of inflationary and tariff-related headwinds.

In April, Autoliv reported first-quarter adjusted earnings per share of $2.15, beating the street view of $1.67, and sales of $2.58 billion (down 1.4% year over year) outpaced the analyst consensus estimate of $2.52 billion.

Price Action: ALV shares are trading higher by 2.36% to $105.10 premarket at last check on Wednesday.

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