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 FLOWTRANSFORMATION UNDERWAYGUIDANCE CONFIRMED
STRICT COST AND CASH DISCIPLINE DRIVING IMPROVEMENT
Organic growth of 1.1%, driven by Electronics and Seating.
Operating margin up 20bps, supported by strict cost control, well-contained impact of US tariffs and the first benefits of the EU-FORWARD program.
Net Cash Flow more than doubled vs H1 2024, driven by recurring elements: EBITDA increased by €127m and Capex and Capitalized R&D reduced by €232m.
Net result penalized by non-cash financial assets depreciation related to SYMBIO.
In €m
H1 2025
H1 2024
Change
Sales
13,477
13,534
-0.4%
Organic growth (constant scope & currencies)
+1.1%
Adj. EBITDAAs % of sales
1,76213.1%
1,63512.1%
+7.8%+100bps
Operating income
722
700
+3.1%
As % of sales
5.4%
5.2%
+20bps
Net result, Group share
(269)
5
-
Net cash flow
418
201
+€217m
Net debt/Adj. EBITDA ratio
1.8x
2.0x
-20bps
ORGANIZATIONAL TRANSFORMATION TO PROMOTE FURTHER ACCOUNTABILITY AND OPERATIONAL EXCELLENCE
Design of a new division centric organization with clear lines of P&L responsibility to drive business performance.
Launch of Simplify project to streamline organization and reduce indirect and structural costs; €110m cost base reduction target by 2028, backed by c.€150m restructuring costs over 2025–2028.
CONFIRMED FULL-YEAR 2025 GUIDANCE
Sales, operating margin, net cash flow, and leverage targets reiterated.
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)
H1 2025 Group consolidated sales and operating income
GROUP (in €m)
H1 2024
Currency effect
Organic growth
H1 2025
Reported change
Sales
13,534
-205
+148
13,477
-57
-1.5%
+1.1%
-0.4%
Operating income
700
722
+3.1%
As a % of sales
5.2%
5.4%
+20bps
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:
Product sales organic growth at +2.9% were in line with market volume growth, driven by Electronics, Seating and Interiors. Tooling sales were exceptionally high in the first half of 2024.
Excluding the unfavorable geographic mix, organic growth represented an outperformance of 2 points, driven by Europe and Asia excluding China.
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:
Increased flexibility in production costs and reduction in operating costs (hiring freeze, travel restrictions, marketing expenses cut…),
The first benefits of the EU-FORWARD program which contributed to the 100bps margin expansion of EMEA to 4.1% of sales, and synergies with FORVIA HELLA, for a combined amount of €65 million,
and despite:
Volume effect and operational challenges in the North American Interiors and Lighting businesses,
A negative currency impact of €20 million.
H1 2025 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
in €m
H1 2025
H1 2024
Change
Sales
13,477
13,534
Operating income before PPA
722
700
Purchase Price Allocation
-92
-93
Restructuring
-248
-222
-26
Other non-recurring operating income and expense
-16
-43
+27
Net financial interest
-236
-250
+14
Other financial income and expense
-72
79
-151
Income before tax of fully consolidated companies
59
171
-112
Income taxes
-124
-59
-65
Share of net income of associates
-154
-12
-142
Consolidated net income before minority interest
-219
100
-319
Minority interest
-50
-95
+45
Consolidated net income, Group share
-269
5
-274
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:
Restructuring expenses
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
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.
Other financial income and expenses
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.
Share of net income of associates: SYMBIO
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.
H1 2025 CONSOLIDATED CASH FLOW STATEMENT
in €m
H1 2025
H1 2024
Change
Operating income
722
700
+22
