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Key Takeaways
- Autoliv shares rose Wednesday after the automotive safety provider surpassed first-quarter profit expectations.
- The airbag and belt maker reported a 37% increase in adjusted earnings per shares (EPS) despite slight sales declines.
- Autoliv's CEO said tariffs are making 2025 "difficult to predict," but the company affirmed its outlook.
Autoliv (ALV), a Swedish automotive safety supplier, reported a first-quarter profit that was well above expectations on Wednesday morning.
Autoliv, a manufacturer of seatbelts, airbags and other automotive safety products, reported $2.58 billion net sales in the first quarter, a decline of 1.4% over the same period last year, but still above Visible Alpha’s consensus.
The company’s adjusted earnings per Share (EPS) was $2.15, a 37% increase and far above the $1.59 per Share analysts had predicted.
Autoliv Affirms its 2025 Outlook
"Our navigation of the new tariff environment in the first quarter gives us confidence that it is possible to continue on that course when facing increasing or changing tariffs, although there is significant uncertainty," Autoliv CEO Mikael Bratt said. "We continue to closely monitor and evaluate the situation, focusing on being adaptive and agile, and we consider our regionalized footprint to be a valuable source for flexibility in a challenging geopolitical environment."
Bratt added that it is "difficult to predict 2025," but said the company is affirming its outlook of around 2% organic sales growth and an adjusted operating margin of roughly 10% to 10.5% because of its Q1 "performance and encouraging near term call-off indications." Sourcing of auto parts increased in the quarter "despite the geopolitical uncertainty" after slowing late last year, Bratt added.
Autoliv shares rose about 7% after the market opened on Wednesday. However, they are still down about 6% from the start of the current year.
