May 5 (Reuters) - German machine and car parts maker Schaeffler reported a higher-than-expected first-quarter operating profit on Tuesday, as its diversified business model helped offset challenging market trends.

The company said its adjusted earnings before interest and tax rose to 285 million euros ($333 million) in the quarter, beating the 279 million euros expected by analysts in a company-provided consensus. The corresponding margin of 5% was also slightly ahead of the 4.9% forecast.

The stock was up 7.9% at 0836 GMT.

"While 5% margin is pointing in the right direction, I still see some elements that we can further optimize," CEO Klaus Rosenfeld told Reuters in an interview.

Despite the stronger-than-expected performance, Schaeffler confirmed its conservative outlook for 2026, underscoring persistent uncertainty across the global auto industry. The sector is grappling with U.S. tariffs, higher energy and commodity costs linked to the Iran war, and unfavourable moves in currency exchange rates.

Analysts were encouraged by the results.

"We see the group as well set to manage uncertainty in the months ahead," Jefferies said in a note.

Addressing the conflict in the Middle East, Rosenfeld said the direct impact on Schaeffler remains limited and well within its guidance range. He noted that the company is not directly dependent on oil, depending instead mainly on steel and semiconductors.

E-MOBILITY IN FOCUS

Revenue growth in the quarter was driven by the company's E-Mobility division, which supplies components and drive systems for electrified powertrains. Sales in the unit rose 6% year on year on a constant-currency basis, supported by product ramp-ups in Europe and the Asia-Pacific region.

Rosenfeld said Schaeffler outperformed the broader market in the battery electric vehicle segment during the quarter.

Battery electric vehicle registrations in Europe jumped by around 42% in March, following gains of about 15% in January and February, according to the European auto lobby ACEA, a sign that consumers could be shunning internal combustion engines over fuel price rises due to the Iran war.

($1 = 0.8560 euros)

(Reporting by Amir Orusov and Emanuele Berro in Gdansk, editing by Milla Nissi-Prussak and Matt Scuffham)

By Amir Orusov and Emanuele Berro