EQS-News: FORVIA HELLA presents half-year results for 2025: Sales at previous year's level, largely stable earnings development; outlook is confirmed

Lippstadt (Germany)

25 July 2025

FORVIA HELLA presents half-year results for 2025:
Sales at previous year's level, largely stable earnings development; outlook is confirmed

• Group sales of €4.0 billion in the first half of the year
• Operating income of €237 million, operating income margin at 6.0 percent
• Cash flow improves significantly: net cash flow rises to €114 million, ratio to sales at 2.9 percent
• Electronics growing in radar business in particular; sales decline in Lighting due to series phase-outs; cautiousness to invest negatively affects Lifecycle Solutions
• Company outlook for fiscal year 2025 confirmed; organizational structures to be streamlined, processes to be accelerated

HELLA GmbH & Co. KGaA ("FORVIA HELLA") today presented its financial results for the first half of the fiscal year 2025 (1 January to 30 June 2025). Accordingly, Group-wide sales in the first six months of the current year were €4.0 billion; adjusted for currency effects, sales fell slightly by 0.4 percent and by 1.3 percent on a reported basis. Overall, Group sales are thus almost entirely at the previous year's level. Over the same period, light vehicle production rose by 3.1 percent driven by growth in the Asian region.

Operating income in the first half of 2025 amounted to €237 million (previous year: €248 million), resulting in an operating income margin of 6.0 percent (previous year: 6.2 percent). Net cash flow improved significantly to €114 million; in relation to reported sales, net cash flow is 2.9 percent (previous year: 2.1 percent).

"In the first six months of the current year, we were able to keep sales and earnings largely stable and also to significantly improve our net cash flow as anticipated. Our business development is therefore completely in line with our expectations and has continued to prove to be very robust in a challenging market environment," says Bernard Schäferbarthold, CEO of FORVIA HELLA. "We have been able to consistently improve our cost structures and to efficiently use the financial resources we have. In addition, the various structural measures and performance levers that we have introduced in recent months are gradually taking effect."

Electronics growing in radar business in particular; sales decline in Lighting due to series phase-outs; cautiousness to invest negatively affects Lifecycle Solutions

In the Business Group Electronics, sales increased by 4.0 percent year-on-year to €1.7 billion (previous year: €1.7 billion). This was mainly driven by growth in the radar business, especially in the Americas with a further ramp-up following series launches in the previous year and with new launches in Europe. In the Chinese market, business with low-voltage battery management systems and vehicle access systems, among other things, developed positively.  Operating income stood at €121 million in the first half of the year (previous year: €127 million), the operating income margin consequently dropped to 7.0 percent (previous year: 7.6 percent).

In the Business Group Lighting, sales decreased by 7.3 percent to €1.9 billion (previous year: €2.0 billion). This is primarily due to the phase-out of various large-volume series projects, which had a negative impact on the Lighting business in China and the American market in particular. In addition, the negative industry environment in Europe impacted the business development of the Lighting division in the second quarter. Operating income in the Lighting segment amounted to €63 million (previous year: €66 million), resulting in an improvement in the operating income margin of 3.4 percent (previous year: 3.3 percent).

In the Lifecycle Solutions Business Group, sales decreased by 6.6 percent to €501 million (previous year: €537 million). This was mainly due to the continuing cautiousness to invest within the commercial vehicle business in connection with the weak economic environment. This had a negative impact on the agricultural and construction machinery business in particular. In addition, workshops have also invested less in new equipment. In contrast, the independent spare parts business has developed steadily thanks to an expanded range of products in the Asian region. Operating income fell to €53 million (previous year: €63 million), consequently the operating income margin declined to 10.6 percent (previous year: 11.7 percent).

Company outlook confirmed; organizational structures to be streamlined, processes to be accelerated

With the presentation of its half-year results, FORVIA HELLA confirms its outlook for the current fiscal year 2025 (1 January to 31 December 2025). The company therefore continues to expect currency-adjusted sales of between around €7.6 and 8.0 billion and an operating income margin of between around 5.3 and 6.0 percent this year. Net cash flow is still expected to be at least €200 million.

"The first half of the year has been very solid for us so far. However, we still see a high level of uncertainty in the automotive environment and do not expect a far-reaching market recovery in the mid-term," says CEO Bernard Schäferbarthold. "As part of our competitiveness program for Europe, we are adapting our footprint structurally to the existing overcapacities in the market and at the same time are investing significantly in automation, standardization and artificial intelligence. On the one hand, we will continue to accelerate this program. On the other hand, we will now also further improve our internal set-up, our organizational structures and processes. The transformation of the industry continues to gain momentum. We therefore need to become even faster, leaner and more efficient in a global context."

Against this background, in addition to the competitiveness program for Europe launched in February 2024, the new strategic initiative "SIMPLIFY" was started. The main focus here is on simplifying business structures and processes, reducing complexity and thus cutting costs. Within the framework of “SIMPLIFY”, additional gross savings of around €80 million are to be achieved annually by the end of 2028. For the implementation, additional expenditures of up to €100 million are to be incurred during this period.

Selected key financial figures in € millions or as a percentage of reported sales for the first half of the fiscal year (1 January to 30 June):
 

Note: The financial report for the first half of the fiscal year 2025 is now available on the
website of HELLA GmbH & Co. KGaA. This text and suitable images can also be found in our press database at: www.hella.com/press