Autoliv's (ALV) first-quarter results exceeded Wall Street's estimates, while the Swedish automotive safety supplier affirmed its full-year outlook on Friday amid an uncertain business environment.
Adjusted per-share earnings for the March quarter fell to $2.05 from $2.15 a year earlier, but surpassed the FactSet-polled consensus of $1.83. Sales grew 6.8% to $2.75 billion, while analysts expected $2.62 billion.
Autoliv's New York Stock Exchange-listed stock was up 9% intraday, and has risen 2.4% since the start of the year.
"The first quarter exceeded our expectations, driven by strong sales in March," Chief Executive Mikael Bratt said during an earnings call, according to a FactSet transcript.
Sales in China increased 10% to $492 million. The Europe, the Middle East, and Africa region climbed 9.3% to $835 million, while revenue in the Americas improved 1.3%.
Autoliv continues to expect flat organic sales for 2026, with adjusted operating margin at around 10.5% to 11%. Analysts in a FactSet poll are looking for full-year reported sales of $10.93 billion, compared with last year's $10.82 billion.
"Given the continued uncertainty in the geopolitical environment, the effects of tariffs and trade restrictions may lead to a more adverse inflation environment," the company said in a statement. "We continue to execute on productivity and cost reduction initiatives to offset these cost pressures."
The hostilities in the Persian Gulf had a limited impact this quarter, Bratt told analysts.
Iranian Foreign Minister Seyed Abbas Araghchi said on Friday that the crucial Strait of Hormuz is "completely open" following a ceasefire between Israel and Lebanon.
Energy prices have surged in the aftermath of the US-Israel war with Iran that had spread across the Middle East. The White House is optimistic about reaching a deal with Iran as a two-week ceasefire between Washington and Tehran holds.
Tariffs impacted first-quarter profitability negatively, Autoliv said.
"Although we achieved customer compensations for more than 70% of tariff costs, the net effect on operating margin was around 40 (basis-point) negative, including the dilution effect," the company said. "While it is our ambition and expectation to continue passing tariff costs on to our customers, there is significant uncertainty as future recovery levels may vary."
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