Forvia (FRVIA) Q2 2025 earnings summary

Executive summary

• H1 2025 sales reached €13.5 billion, up 1.1% organically, with Electronics and Seating leading growth despite a 0.4% reported decline due to currency effects.

• Operating margin improved by 20bps to 5.4% of sales (€722 million), supported by cost control and transformation programs.

• Net cash flow more than doubled to €418 million, driven by higher EBITDA and reduced CapEx and R&D.

• Net loss of €269 million, mainly due to €136 million non-cash charge related to SYMBIO and high restructuring costs.

• Full-year 2025 guidance and leverage targets for 2026 confirmed, with a new strategic plan to be presented in early 2026.

Financial highlights

• Adjusted EBITDA margin rose to 13.1% (up 100bps year-over-year), with operating income at €722 million (5.4% of sales).

• Net debt reduced by €193 million to €6.3 billion; leverage ratio improved to 1.8x.

• CapEx intensity reduced to ~5% in H1, targeting 7% mid-term; capitalized R&D down 17% year-over-year.

• Gross profit margin decreased by ~100bps to 23.1%, mainly due to lower margins in Electronics.

• Net cash flow to sales improved to 3.1% from 1.5% year-over-year.

Outlook and guidance

• 2025 full-year guidance reiterated: sales €26.3–27.5bn, operating margin 5.2–6.0%, net cash flow ≥€655m, net debt/EBITDA ≤1.8x.

• Targeting net debt/EBITDA below 1.5x in 2026, supported by asset disposals.

• Automotive production expected to remain volatile, with H2 2025 production forecast slightly above H1.

• Measures in place to offset anticipated tariff impacts in H2 2025.

• Net cash flow guidance at least €200m for FY 2025.