Industria
H1 2025 Results: Increase in Operating Margin & Net Cash Flow, Transformation Underway, Guidance Confirmed
NANTERRE (FRANCE)
JULY 28, 2025
H1 2025 RESULTS
INCREASE IN OPERATING MARGIN & NET CASH FLOW
TRANSFORMATION UNDERWAY
GUIDANCE CONFIRMED
Martin FISCHER, Chief Executive Officer of FORVIA, declared:
"Our three key priorities — delivering performance, driving business transformation and invigorating our culture— shape our decisions and actions.
The quality of our first-half results demonstrates the remarkable commitment of our teams and our strong focus on these priorities. This performance, together with the rising outcomes of self-help measures and the continued strict cost and cash control, enables us to confirm our full-year guidance in a challenging and volatile environment. It also further supports our primary objective of debt reduction.
In the first half, we launched major initiatives that underpin our strategic shift.
We are streamlining our operating model into a division-centric structure that enhances agility, accelerates decision-making and fosters accountability. Meanwhile, the SIMPLIFY project is building a leaner organization, generating additional cost savings.
At the same time, we are transforming our business portfolio through a thorough strategic review of each business group and all product lines, while actively pursuing asset disposals.
We will present our strategy and mid-term financial goals at our Capital Market Day on February 24, 2026.”
H1 2025 FINANCIAL RESULTS (detailed analysis in Appendices)
In H1 2025, worldwide auto production rose by 3.1%, to 44.9 million LVs (S&P Mobility July estimate). Strong growth in Asia (+7.8%) more than offset volume decline in EMEA
(-3.1%) and Americas (-2.4%). These regional variations represented an unfavorable geographic mix of close to 4 points for FORVIA.
H1 2025 organic growth stood at +1.1% of last year’s sales:
The currency effect represented a negative impact of €205 million on sales (-1.5%), that started to materialize in Q2.
H1 2025 consolidated operating income of €722 million, up 20bps at 5.4% of sales.
Margin development was supported by improvement in Seating, Electronics and Interiors.
Tariffs had no material impact thanks to effective counter measures.
The year-on-year increase in operating income to €722 million in H1 2025, mainly reflected:
and despite:
The consolidated net income, Group share, was a net loss of €269 million in H1 2025, penalized by €136 million non-cash financial asset depreciation related to SYMBIO joint venture, while the €5 million profit generated in H1 2024 included a capital gain on disposal of €134 million.
It also reflected:
The rapid pace of deployment of the EU-FORWARD program explains the high level of restructuring costs. The new operations in H1 2025 accounted for around 2,100 announced job cuts. With a total of 2,900 reductions in 2024, EU-FORWARD has already achieved half of its original target of 10,000 cuts, ahead of schedule.
Net financial interest represented a charge of €236 million, an improvement of
€14 million vs. H1 2024, notably reflecting impact of lower interest rates on floating-rate debt.
H1 2024 financial income included €134 million in capital gains realized by FORVIA HELLA from the sale of its stake in BHTC to AUO Corporation in China.
SYMBIO is a French company specializing in hydrogen systems for vehicles, jointly held by FORVIA, Michelin and Stellantis. Mid July 2025, Stellantis announced the termination of its hydrogen fuel cell technology development program, a decision with major implications for SYMBIO, which relies on the carmaker for over 80% of its business volume.
Considering serious operational and financial risks for SYMBIO’s future, FORVIA booked a non-cash depreciation of the financial assets related to the joint venture, consolidated under equity method, for €136 million.
Net cash flow increased by 108% to €418 million, with a quality improvement reflecting three recurring elements:
Change in working capital and factoring represented an outflow of €24 million, resulting from:
The year-on-year increase in tax cash-out mainly reflects the €68 million withholding tax refund received in H1 2024, linked to the extraordinary dividend from FORVIA HELLA received in 2023.
After dividends paid to minorities (€56 million), new leases contracted (€72 million, reduced by 42%) and €90 million of other flows (mainly on change in currencies), net financial debt at June 30, 2025 was reduced by 193 million vs December 31, 2024 and stood at €6,430 million.
Net debt/Adj. EBITDA ratio stood at 1.8x at June 30, 2025, vs. 2.0x at December 31, 2024.
GROUP DEBT MATURITY
Improved debt profile through active refinancing since the start of 2025
Since the start of the year and to date, the Group has successfully issued cumulated amount of c. €1.7 billion of new debt instruments, essentially maturing in 2030.
New issuances reflected enhanced diversification of sources (Euro bond market, inaugural bond on the USD and c.€220 million of Schuldschein notes issued in July 2025). These proceeds were used to buy back 2026 maturities, now mostly cleared like the 2025 ones, as well as a portion of 2027 maturities. In parallel, the Group extended from June 2027 to June 2028 the maturity of a €650m bank loan.
In all, these transactions allowed FORVIA to extend its average debt maturity , now of 3.3 years compared to 3.1 at end of 2024.
Gross debt was reduced by €321 million to €10,802 million at June 30, 2025 and gross cash by €128 million to 4,372 million.
OTHER H1 2025 HIGHLIGHTS
Business transformation and deleveraging
We have been conducting a comprehensive review of the portfolio to prioritize leadership positions per product line over overall size. It includes an analysis across the 6 business groups and 24 product lines of the Group, to identify higher synergies, simplify scopes, and discontinue certain activities. In particular, it was decided to reduce the cash burn of the hydrogen activities while maintaining their long-term strategic importance.
Concurrently, disposal processes have progressed, with the number of eligible assets revised upward and sizeable disposal processes on going.
Major initiatives to boost agility and performance through a highly efficient organization
The automotive industry is navigating a complex and fast-evolving environment, demanding greater agility and responsiveness. To support its profound transformation, the Group initiated two strategic projects to lead change effectively.
The organization model is being transformed , with a clear P&L reporting structure defined. The new setup is division-centric, promoting higher levels of accountability and empowerment across teams.
Through the SIMPLIFY Project , the Group aims to reinvent its ways of working across SG&A and indirect operations. It conducted a thorough benchmarking exercise to identify areas for improvement, leading to the definition of key structural levers, such as eliminating non-essential tasks, automating transactional activities with GenAI, and optimizing organizational design.
The project ambition is to reduce the cost baseline by 110 million euros by 2028, supported by restructuring costs of c.150 million euros over 2025–2028.
Order intake
In H1 2025, FORVIA recorded order intake of €14 billion, compared to €15 billion in H1 2024, reflecting delayed tenders, notably in North America in the context of new tariffs imposed by the US administration.
This order intake continued to demonstrate solid momentum in Electronics and in China:
H2 2025 OUTLOOK AND 2025 FULL-YEAR GUIDANCE CONFIRMED
The Group anticipates the production environment to remain volatile and uncertain. Based on S&P Mobility July estimates, the automotive market production is expected to reach 45 million LVs in H2 2025, slightly above H1 volumes.
This would represent a drop by 2.2% vs. H2 2024, with all main regions being impacted, including China. The geographic mix that was strongly unfavorable in H1 (-4 pts) is expected to level off.
To preserve its performance, the Group will maintain rigorous cost control and disciplined cash management. It will also benefit from higher savings related to
the EU-FORWARD program.
Therefore, taking into account the tariffs enacted to date, the Group confirms its 2025 full-year guidance*:
Beyond this organic deleveraging target, the Group is committed to restore a solid balance sheet with the objective of reducing Net debt/Adjusted EBITDA ratio below 1.5x in 2026, supported by disposals.
*The guidance assumes no other major disruption materially impacting production or retail sales in any major automotive region during the year
** 2024 average exchange rates: EUR/USD = 1.08, EUR/CNY = 7.79
***With no net contribution from asset disposals
FINANCIAL CALENDAR
Capital Market Day
A webcasted conference call will be held today at 09:00am (CET).
If you wish to follow the presentation using the webcast, please access the following link:
https://www.sideup.fr/webcast-forvia-2025-hy-results
A replay will be available as soon as possible.
You may also follow the presentation via conference call:
About FORVIA, whose mission is: “We pioneer technology for mobility experiences that matter to people”.
FORVIA, a global automotive technology supplier, comprises the complementary technology and industrial strengths of Faurecia and HELLA. With around 250 industrial sites and 78 R&D centers, over 150,000 people, including more than 15,000 R&D engineers across 40+ countries, FORVIA provides a unique and comprehensive approach to the automotive challenges of today and tomorrow. Composed of 6 business groups and a strong IP portfolio of over 13,000 patents, FORVIA is focused on becoming the preferred innovation and integration partner for OEMs worldwide. In 2024, the Group achieved a consolidated revenue of 27 billion euros. FORVIA SE is listed on the Euronext Paris market under the FRVIA mnemonic code and is a component of the CAC SBT 1.5° index. FORVIA aims to be a change maker committed to foreseeing and making the mobility transformation happen. www.forvia.com
APPENDICES
H1 SALES AND OPERATING MARGIN BY BUSINESS GROUPS
Sales
Organic growth was mostly driven by Electronics and Seating:
Operating income
Group operating margin expansion in H1 2025 was supported by noticeable margin improvement at Seating, Interiors and Electronics:
H1 SALES AND OPERATING MARGIN BY REGIONS
Sales
FORVIA recorded outperformance in all regions but China in H1:
Operating income
Operating margin evolution were contrasted by region:
Q2 SALES BY BUSINESS GROUPS AND REGIONS
By Business Groups
By Regions
DISCLAIMER
This presentation contains certain forward-looking statements concerning FORVIA. Such forward-looking statements represent trends or objectives and cannot be construed as constituting forecasts regarding the future FORVIA’s results or any other performance indicator. In some cases, you can identify these forward-looking statements by forward-looking words, such as "estimate," "expect," "anticipate," "project," "plan," "intend," "objective", "believe," "forecast," "foresee," "likely," "may," "should," "goal," "target," "might," "would,", “will”, "could,", "predict," "continue," "convinced," and "confident," the negative or plural of these words and other comparable terminology. Forward looking statements in this document include, but are not limited to, financial projections and estimates and their underlying assumptions including, without limitation, assumptions regarding present and future business strategies (including the successful integration of HELLA within the FORVIA Group), expectations and statements regarding FORVIA's operation of its business, and the future operation, direction and success of FORVIA's business. Although FORVIA believes its expectations are based on reasonable assumptions, investors are cautioned that these forward-looking statements are subject to numerous various risks, whether known or unknown, and uncertainties and other factors, all of which may be beyond the control of FORVIA and could cause actual results to differ materially from those anticipated in these forward-looking statements. For a detailed description of these risks and uncertainties and other factors, please refer to public filings made with the Autorité des Marchés Financiers (“AMF”), press releases, presentations and, in particular, to those described in the chapter 2."Risk factors & Risk management” of FORVIA's 2024 Universal Registration Document filed by FORVIA with the AMF on March 7, 2025 under number D. 24-0080 (a version of which is available on www.forvia.com). Subject to regulatory requirements, FORVIA does not undertake to publicly update or revise any of these forward-looking statements whether as a result of new information, future events, or otherwise. Any information relating to past performance contained herein is not a guarantee of future performance. Nothing herein should be construed as an investment recommendation or as legal, tax, investment or accounting advice. The historical figures related to HELLA included in this presentation have been provided to FORVIA by HELLA within the context of the acquisition process. These historical figures have not been audited or subject to a limited review by the auditors of FORVIA. FORVIA HELLA remains a listed company. For more information on FORVIA HELLA, more information is available on www.hella.com. This presentation does not constitute and should not be construed as an offer to sell or a solicitation of an offer to buy FORVIA securities.
DEFINITIONS OF TERMS USED IN THIS DOCUMENT
Sales growth
FORVIA’s year-on-year sales evolution is made of three components:
As “Scope effect”, FORVIA presents all acquisitions/divestments, whose sales on an annual basis amount to more than €250 million.
Other acquisitions below this threshold are considered as “bolt-on acquisitions” and are included in “Growth at constant currencies”.
In 2021, there was no effect from “bolt-on acquisitions”; as a result, “Growth at constant currencies” is equivalent to sales growth at constant scope and currencies also presented as organic growth.
Operating income
Operating income is the FORVIA group’s principal performance indicator. It corresponds to net income of fully consolidated companies before:
Adjusted EBITDA
In compliance with the ESMA (European Securities and Markets Authority) regulation, the term “Adjusted EBITDA” has been used since January 1, 2022.
Net cash flow
Net cash flow is defined as follow: Net cash from (used in) operating and investing activities less (acquisitions)/disposal of equity interests and businesses (net of cash and cash equivalents), other changes and proceeds from disposal of financial assets, and new or extended leases. Repayment of IFRS 16 debt is not included.
Net financial debt
Net financial debt is defined as follow: Gross financial debt less cash and cash equivalents and derivatives classified under non-current and current assets. It includes the lease liabilities (IFRS 16 debt).
1 Excluding commercial paper, leases and overdraft
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