HELLA (HLE) investor relations material

Executive summary

• Nine-month constant-FX sales rose 1.0% to €5,925m; reported sales increased 0.3% to €5,883m, outperforming a 0.7% decline in global light-vehicle production.

• Electronics and Lifecycle Solutions drove growth while Lighting declined; adjusted OI margin fell 76 bps to 5.0%, and net cash flow was -€99m.

• FY2026 guidance was confirmed: sales are expected in the upper half of €7.4bn–€7.9bn, OI margin at the lower end of 5.4%–6.0%, and net cash flow at least 1.8% of sales.

Financial highlights

• Reported sales were €5,883m versus €5,868m; adjusted gross profit was €1,268m versus €1,340m, and adjusted OI was €294m versus €338m.

• EBIT rose 13.4% to €236.1m and net income increased 22.8% to €132.7m; EPS was €1.18 versus €0.92.

• Restructuring costs were €35.4m versus €118.0m; non-recurring OI and OE totaled €48.2m versus €129.4m.

• R&D expenses fell 4.6% to €528m and SG&A decreased 0.7% to €446m.

Outlook and guidance

• FY2026 currency-adjusted sales guidance remains €7.4bn–€7.9bn, expected in the upper half; OI margin guidance remains 5.4%–6.0%, expected at the lower end.

• Net cash flow is targeted at least at 1.8% of sales, based on forecast global light-vehicle production of 91.6m units.

• Q4 margin recovery is expected from customer inflation reimbursements, cost measures and typical year-end performance; most Lighting launch costs were absorbed in Q3, with some continuing in Q4.

• Q4 cash improvement is expected from inventory reduction, higher collections of sales reimbursements, lower restructuring outflows and higher EBITDA.

• Lighting sales and margin are expected below prior-year levels; Electronics and Lifecycle Solutions sales are expected to grow moderately, with margins roughly in line with prior year.