Key Takeaways

Shares of Autoliv ( ALV ) surged Wednesday morning after the Swedish automotive safety supplier reported first-quarter profit well above expectations.

Autoliv, which manufactures seatbelts and airbags, registered $2.58 billion in net sales, a 1.4% year-over-year decline but above Visible Alpha consensus.

The company posted adjusted earnings per share (EPS) of $2.15, up 37% and well above the $1.59 per share that analysts had forecast.

Autoliv Affirms 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.

Shares of Autoliv were up about 7% shortly after markets opened Wednesday but are still down 6% since the start of the year.

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