Autoliv, Inc. (NYSE:ALV) shares are trading higher on Friday after the firm reported first-quarter results that topped expectations, supported by solid sales growth and resilient demand across key markets.

The company highlighted continued momentum in Asia and improving underlying profitability despite some margin pressure.

Quarterly Details

The company reported first-quarter adjusted earnings per share of $2.05, beating the analyst consensus estimate of $1.89. Quarterly sales of $2.753 billion (+6.8% year over year) beat the Street view of $2.605 billion.

Adjusted operating income in the quarter under review slumped 3.9% year over year to $245 million. Adjusted operating margin contracted to 8.9% from 9.9% a year ago.

“Underlying profitability improved, with gross profit increasing by 10%, although adjusted operating income was slightly lower due to temporary lower R,D&E reimbursements and the one-time income in Q1 last year,” said CEO Mikael Bratt.

Autoliv said its positive trend in Asia continued, driven by strong growth in India, South Korea and China, with performance in China outpacing LVP, particularly among Chinese OEMs, and sales in India rising 38% organically amid higher safety content in vehicles and continued LVP growth, while the company also expanded production capacity in India to support future growth.

Operating cash flow was negative $76 million, and free operating cash flow fell to negative $159 million, mainly due to higher working capital from strong March sales.

“Based on our guidance for sales and adjusted operating margin, we continue to expect strong cash flow for the year, which supports our ambitions to provide attractive shareholder returns, including to repurchase shares of $300-500 million in 2026,” Bratt said.

Outlook

The company expects full-year 2026 organic sales growth to be around 0%, based on stable customer demand and no major macroeconomic or trade disruptions.

Adjusted operating margin is projected at approximately 10.5% to 11%, excluding one-off items.

Operating cash flow is forecast at around $1.2 billion for the year. Capital expenditures are expected to remain below 5% of total sales.

ALV Price Action: Autoliv shares were up 10.21% at $122.70 at the time of publication on Friday, according to Benzinga Pro data.

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