Core Insights - FORVIA's 2025 results show ongoing margin improvement and deleveraging, supported by strong cash flow generation [2][3] - The company is focused on three strategic priorities: delivering performance, driving business transformation, and invigorating culture [2][3] Financial Performance - Reported sales for 2025 were €26.2 billion, or €27 billion at constant currency, remaining flat year-on-year [7] - Operating margin improved to 5.6% of sales, up 40 basis points compared to 2024 [7] - Net cash flow increased by 47% to €962 million [7] - Net debt decreased by €0.6 billion to €6.0 billion, with a net debt to adjusted EBITDA ratio of 1.7x, down from 2.0x at the end of 2024 [7][18] Strategic Initiatives - The planned divestiture of the Interiors Business Group is in advanced negotiations and is expected to reduce net debt by over €1 billion [4][36] - The company has undertaken significant non-cash exceptional charges in 2025, reflecting disciplined portfolio decisions aligned with its simplification and resilience objectives [5][24] Market Context - Global automotive production increased by 3.9% to 93 million light vehicles in 2025, with strong growth in China offsetting declines in Europe and North America [9] - The unfavorable geographic mix effect for FORVIA was approximately 2.5 percentage points due to regional shifts [9] Operational Highlights - Organic sales were broadly stable, with product sales up 1.5%, offset by lower tooling sales [12] - The company achieved €165 million in restructuring savings and €63 million in synergies from the FORVIA HELLA integration, reaching a target of €400 million by the end of 2025 [13] 2026 Outlook - FORVIA anticipates a challenging production environment in 2026, with global automotive production projected to decline slightly to 92.8 million light vehicles [37] - The company aims to continue rigorous cost control and cash management, expecting further benefits from the EU-FORWARD and SIMPLIFY programs [38]

Core Insights - FORVIA has launched its new strategic roadmap called IGNITE, aimed at enhancing the Group's profile, reducing complexity, and enabling financial flexibility through disciplined deleveraging, which is expected to foster accelerated growth and sustained net cash flow generation in the medium term [2][4][25] Strategic Roadmap - IGNITE is structured around two key phases: Focus & Strengthen (2025-2028) and Lead & Grow (post-2028) [5][9] - The roadmap emphasizes a new portfolio framework that includes a Growth cluster (Electronics and Seating) and a Value cluster (Clarion, Clean Mobility, Lifecycle Solutions, and Lighting) [6][10] Financial Projections - By 2028, FORVIA anticipates sales of €21-22 billion at constant exchange rates, with an operating margin of at least 7.0% and net cash flow around 3.5% of sales [5][20] - The leverage ratio is projected to improve to 1.2x by 2028, indicating a solid financial structure [20] Growth and Value Clusters - The Growth cluster is expected to achieve sales of €8.7-€9.1 billion by 2028, with an operating margin of at least 6.5% [12] - The Value cluster's sales are projected to adjust to €8.4-€8.8 billion by 2028, with an operating margin expanding to at least 7.0% [15] Operational Excellence - IGNITE aims to enhance operational excellence through improved capital allocation and a focus on best-in-class performance, supported by initiatives like EU-FORWARD and SIMPLIFY [4][16] - The Group's approach is underpinned by the FORVIA Excellence System, which emphasizes execution discipline and profitability across operations [16][17] Cultural and Organizational Changes - FORVIA is evolving its organizational structure to become simpler and faster, with a focus on regional divisions that enhance proximity to customers and operational accountability [18][19] - The Group is reinforcing its leadership culture, emphasizing accountability, empowerment, and collaboration to support faster decision-making [19]

Core Insights - FORVIA has announced a minority investment in its hydrogen-focused subsidiary, FORVIA Hydrogen Solutions China, through a capital increase of RMB 300 million (approximately €40 million) with Sinopec Capital as a strategic partner [1][2] Group 1: Partnership and Strategic Positioning - The partnership with Sinopec Capital enhances FORVIA's position in the rapidly growing hydrogen market in China, which is supported by favorable government policies [2] - Sinopec Capital's involvement is expected to facilitate access to key government contracts and create industrial synergies for FORVIA Hydrogen Solutions [2][6] Group 2: Market Dynamics and Growth Potential - China's hydrogen energy sector is a national priority, integrated into the national energy management system, and aims to accelerate industrialization [3] - In 2024, China produced 36.5 million tons of hydrogen, a 3.5% increase from 2023, primarily for chemicals, with expanding applications in transport and steel [4] - China is the largest market for hydrogen fuel cell vehicles, with over 30,000 units sold and 559 refueling stations established, targeting 500,000 hydrogen vehicles by 2030 [4] Group 3: Value Creation and Future Outlook - The collaboration with Sinopec Capital is expected to create a clear roadmap for accelerated growth and value creation for FORVIA Hydrogen Solutions China through an optimized supply chain [5] - FORVIA aims to improve cost competitiveness and solidify its leadership in hydrogen solutions globally, contributing to China's energy transition [6][7] Group 4: FORVIA's Presence in China - As of December 2024, China accounts for 21% of FORVIA's global sales, approximately €5.9 billion, making it a strategic market for the company [8] - FORVIA operates 67 plants and 27 R&D centers in over 30 cities in China, employing more than 30,700 people, including 3,000 in R&D [8] - The company collaborates with over 40 international and Chinese OEMs, positioning itself as the 5th largest automotive supplier in China, where EV penetration is projected to reach 45% by 2030 [8]

Core Insights - FORVIA has announced a minority investment in its hydrogen-focused subsidiary in China, FORVIA Hydrogen Solutions China, through a capital increase of RMB 300 million (approximately €40 million) with Sinopec Capital as a strategic partner [1][2] - The partnership aims to enhance FORVIA's position in the rapidly growing hydrogen market in China, which is supported by strong government policies [2][4] - China's hydrogen production reached 36.5 million tons in 2024, marking a 3.5% increase from 2023, with significant applications in chemicals, transport, and steel [4] Investment and Partnership - Sinopec Capital, a leader in China's hydrogen value chain, will provide industrial synergies and access to key government contracts for FORVIA Hydrogen Solutions China [2][6] - The collaboration is expected to accelerate growth and value creation through an optimized supply chain, including materials like carbon fiber and resins [5][6] Market Dynamics - The hydrogen energy sector is a national priority in China, integrated into the national energy management system alongside gasoline and natural gas [3] - China is the largest market for hydrogen fuel cell vehicles, with over 30,000 units sold and 559 refueling stations established [4] Strategic Goals - FORVIA aims to become a leader in hydrogen solutions globally and strengthen its position in China's energy transition through this partnership [6][7] - Sinopec Capital is committed to becoming 'China's No. 1 hydrogen company' and will pursue equity investment partnerships with leading hydrogen enterprises [7] FORVIA's Presence in China - As of December 2024, China accounted for 21% of FORVIA's global sales, totaling approximately €5.9 billion, making it a strategic market for the company [8] - FORVIA operates 67 plants and 27 R&D centers in China, employing over 30,700 people, including 3,000 in R&D [8]

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Core Points - FORVIA is undergoing a strategic review of its portfolio, leading to divestiture processes for parts of its Interiors business group [1] - The company emphasizes adherence to strict disclosure rules and governance standards, refraining from commenting on market rumors or specific confidential offers [2] - The current priority for FORVIA is to execute its roadmap with discipline while driving performance and empowering teams during its strategic transformation [2] Group 1 - FORVIA is engaged in selling parts of its robust portfolio as part of a comprehensive strategic review [1] - The divestiture processes are focused on assets within the Interiors business group [1] - The company is committed to maintaining transparency with employees, partners, and stakeholders regarding these processes [1] Group 2 - FORVIA does not disclose details on market rumors or specific offers, including valuation or pricing [2] - Any potential offers will require negotiation and approval from the Board of Directors [2] - The company aims to advance its strategic transformation while ensuring responsible execution of its plans [2]

Core Insights - FORVIA reported third-quarter 2025 sales of €6.12 billion, stable on an organic basis, but down 3.7% year-over-year due to negative currency effects [1][8][24] - The company confirmed its full-year 2025 guidance, maintaining targets for sales, operating margin, net cash flow, and leverage [3][25][29] Financial Performance - Consolidated sales in Q3 2025 were impacted by a €238 million negative currency effect, primarily from the euro's depreciation against the USD and RMB [8][24] - Organic growth in product sales was 1.1%, with solid growth in Electronics, Clean Mobility, and Lifecycle Solutions [7][10][11] - The company experienced a 440 basis points underperformance compared to global automotive production, which grew by 4.4% [8][15] Segment Analysis - **Seating**: Reported a decline of 12.7% in sales, affected by an unfavorable customer mix in China [9][11] - **Electronics**: Achieved a 14.3% increase in sales, driven by strong demand for radars and battery management systems [9][11] - **Interiors**: Experienced a slight decline in organic sales, primarily due to normalization of tooling sales [12] - **Clean Mobility**: Recorded strong growth, particularly in North America, benefiting from electrification trends [13] - **Lifecycle Solutions**: Returned to growth after five quarters of decline, driven by commercial vehicle business [13] Regional Performance - **EMEA**: Sales decreased by 2.5% on an organic basis, impacted by production shutdowns and market slowdowns [16][17] - **North America**: Organic sales advanced by 5.8%, driven by growth with US and Japanese car manufacturers [18] - **Asia**: Organic sales declined by 2.7%, with China down 7.4% due to an unfavorable customer mix [18][19] Strategic Initiatives - The company is focused on cost reduction and financial discipline through its EU-FORWARD initiative, which includes job reductions and a global SIMPLIFY program aimed at reducing costs by €110 million by 2028 [21][22] - FORVIA successfully raised approximately €1.3 billion in new financing to refinance short-term obligations and enhance its financial profile [23][24]

Core Viewpoint - FORVIA has successfully priced USD 500 million of senior notes due 2033, indicating a strong demand and diversification of its investor base [2][3]. Group 1: Financial Details - The senior notes have a principal amount of USD 500 million and an interest rate of 6.750% [2]. - The notes received credit ratings of "BB+" from Fitch Ratings, "B1" from Moody's, and "BB-" from Standard & Poor's [3]. - Proceeds from the notes will be used to repay existing long-term financial liabilities, aiming to extend the company's debt maturity [3]. Group 2: Market Response and Future Plans - The transaction was significantly oversubscribed, reflecting strong interest from investors [3]. - An application will be made to list the notes on the official list of Euronext Dublin, with settlement expected on September 23, 2025 [4].

Group 1 - Forvia has improved its debt profile by utilizing €600 million from new senior notes due 2031 and available cash to repurchase €700 million of bonds maturing in 2027 [2] - The cash tender offers successfully reduced the outstanding amount of the 2027 Sustainability-Linked Notes from €900 million to €700 million and the 2027 Senior Notes from €890 million to €390 million [3]

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION DIRECTLY OR INDIRECTLY TO ANY U.S. PERSON (AS DEFINED IN REGULATION S OF THE UNITED STATES SECURITIES ACT OF 1993, AS AMENDED (THE “SECURITIES ACT”)) OR ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES OF AMERICA, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE US VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA OR IN ANY OTHER JURISDICTION WHERE IT IS UN ...