Autoliv Stock Jumps After Q1 Beat As Tariff Pressures Prove Negligible

Autoliv, Inc. ALV shares traded higher in the premarket session on Wednesday after the company reported its first quarter results.

Autoliv reported quarterly adjusted earnings per share of $2.15, beating the street view of $1.67. Quarterly sales of $2.58 billion (down 1.4% year over year) outpaced the analyst consensus estimate of $2.52 billion.

The company noted that its first-quarter organic sales rose by 2.2%, outperforming the global light vehicle production decline of 0.4% by 2.6 percentage points.

The impact of U.S. tariffs and counter-tariffs in the first quarter was minimal, as the company was able to pass on the additional costs to customers. Overall headcount was reduced by 6%.

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“Thanks to our adaptability and resilience, driven by our diverse product portfolio and strong customer relationships, we successfully navigated through the first month of North American tariffs,” said Mikael Bratt, president & CEO. 

Adjusted operating income jumped 28% year over year to $255 million. Adjusted operating margin expanded 230 basis points year over year.

The company stated that profitability improved, mainly driven by organic sales growth and effective cost-cutting measures.

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According to S&P Global data, Autoliv outperformed in Europe, the Americas and Asia (excluding China), driven by new product launches and favorable pricing.

Sales to Chinese domestic automakers rose 19%, matching their LVP growth, but overall performance in China lagged due to stronger growth in lower-content vehicles. The company expects its record number of upcoming launches to boost relative sales in China in 2025.

Outlook: “The current geopolitical and business environment uncertainties makes it difficult to predict 2025,” said Bratt.

The company reiterates 2025 guidance of an organic sales growth of around 2% and an adjusted operating margin of around 10%-10.5%.

Autoliv projects a negative foreign exchange effect of around 3% on net sales and operating cash flow of approximately $1.2 billion.

Price Action: ALV shares are trading higher by 6.38% to $87.49 premarket at last check Wednesday.

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