Half Year 2025 HELLA GmbH & Co KGaA Earnings Call Transcript
Key Points
- HELLA GmbH & Co KGaA (HLLGY) reported a positive net cash flow of EUR114 million in the first half of 2025, marking a 34% increase compared to the previous year.
- The company's electronics division showed strong growth with a 6.6% increase, driven by the radar business and energy management division.
- HELLA GmbH & Co KGaA (HLLGY) has successfully implemented cost reduction measures, including a 3.4% reduction in headcount, contributing to improved cost efficiency.
- The company confirmed its guidance for the year, expecting sales between EUR7.6 billion and EUR8 billion, and operating income margins between 5.3% and 6%.
- HELLA GmbH & Co KGaA (HLLGY) achieved significant order wins in its lighting and electronics businesses, particularly in North America and China, supporting future growth.
- Organic sales for the first half of 2025 were down by 2.4% year-on-year, with reported sales declining by 1.3%.
- The lighting business experienced a 7.4% decrease in sales, attributed to the end of larger volume projects and challenges in Asia, particularly with the Tesla model transition.
- The life cycle solutions division faced a 6.6% decline due to weak demand in the commercial vehicle sector.
- Gross profit margins decreased to 23.1% from 24.1% last year, impacted by write-offs and lower volumes in certain programs.
- The Asia Pacific region saw a 7.6% decrease in sales, underperforming the market due to challenges in the lighting business and the Tesla model transition.
Good morning, ladies and gentlemen, and welcome to the HELLA investor call on the results for the first-half year of fiscal year 2025.
This call will be hosted by Bernard Schaferbarthold, the CEO; and Philippe Vigner, the CFO of HELLA. (Operator Instructions)
Let me now turn the floor over to your host, Bernard Schaferbarthold.
Very warm welcome to our earnings call for the first half 2025. I'm here together with Philippe, CFO at HELLA and Kerstin Dodel, who is heading investor relations.
So, starting immediately on page four of our presentation, if we look at the key figures and the key achievements in the first half, so looking first on the sales side, so our organic sales are at EUR4 billion, largely at previous year level, minus 2.4% year on year. Reported sales are at minus 1.3% with some headwinds, specifically in the second-quarter.
If we look specifically on our business groups, lighting was down in the
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