Half Year 2026 Forvia SE Earnings Call Transcript
Key Points
- Forvia SE (FURCF) delivered a third consecutive half-year of improved performance, with operating margin up 30 basis points to 6% and net cash flow up 18% to EUR432 million.
- The company achieved its largest organic net debt reduction since the HELLA acquisition, cutting net debt by EUR503 million and lowering leverage to 1.6 times.
- Order intake surged 15% year-over-year to EUR13.4 billion, with strong momentum in growth areas like Electronics and Seating, and a book-to-bill ratio of 1.5 times.
- The Interiors divestiture to Apollo is on track for Q4 2026, with all major regulatory approvals secured and expected to generate over EUR1 billion in additional net debt reduction.
- North America showed a sharp margin improvement to 7.1%, driven by operational excellence and quality awards from key customers like General Motors.
- Global automotive production declined by 1% in H1, and the company expects a further 3% decline in H2, creating a challenging market environment.
- The Lighting business underperformed, with operating income at just 0.3% and organic sales down 4.7%, requiring an accelerated transformation program.
- China sales were impacted by an unfavorable customer mix, particularly with BYD, leading to a 4.8% organic sales decline in the growth cluster.
- The company faces one-off cash outflows of approximately EUR150 million in H2, including a purchase option exercise in Mexico and historical tax litigation settlements.
- Reported net income is expected to be negative in H2 due to a one-off charge of around EUR150 million related to the Interiors divestiture.
Good morning, ladies and gentlemen, and welcome to our H1 2026 results call, which I'm, as usual, presenting together with our CFO, Olivier Durand.
Good morning.
Before we start, let me remind you that our 2026 and also the 2025 H1 results are presented excluding Exteriors, excluding Interiors, since we plan to divest from it by year-end. So here's a brief look on today's agenda. I will start with our key highlights for the first half before handing over to Olivier, who will present our financial results. I will then come back to discuss our outlook for 2026, and we will conclude the program with a Q&A session.
So let's start with key takeaways from the first half. Our activities have been fully focused on the
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