FORVIA HELLA Reports Resilient First-Half 2025 Results Amid Market Challenges; Confirms Full-Year Outlook and Advances Strategic Transformation
FORVIA HELLA, officially HELLA GmbH & Co. KGaA, has released its financial results for the first half of the fiscal year 2025, covering the period from January 1 to June 30. Despite ongoing global economic pressures and fluctuating industry dynamics, the company has reported largely stable performance across key financial indicators, maintaining a sales level close to the previous year while also achieving significant improvements in net cash flow.
Sales Hold Steady Despite Market Headwinds
During the first six months of 2025, FORVIA HELLA generated consolidated group sales of €4.0 billion. When adjusted for currency fluctuations, sales declined only slightly by 0.4%, and by 1.3% on a reported basis. These results indicate a near-flat performance compared to the same period in 2024, demonstrating the company’s ability to maintain stability amid ongoing market uncertainty. In the same timeframe, global light vehicle production saw a 3.1% increase, largely driven by gains in the Asian automotive sector.
Operating income for the half-year totaled €237 million, compared to €248 million in the first half of 2024. This equates to an operating income margin of 6.0%, slightly down from 6.2% in the previous year. Notably, FORVIA HELLA achieved a marked improvement in net cash flow, which rose to €114 million, up from €84 million a year ago. As a percentage of reported sales, net cash flow increased to 2.9%, from 2.1% in 2024.
“We are pleased that our performance in the first half of 2025 aligns with our expectations,” said Bernard Schäferbarthold, CEO of FORVIA HELLA. “In an environment that remains challenging across the global automotive landscape, we succeeded in maintaining stable sales and earnings. At the same time, we made significant progress in optimizing our cost structures and improving operational efficiency. The structural and performance-enhancing measures we’ve introduced are beginning to yield tangible results.”
Electronics Growth Driven by Radar Systems, Lighting Faces Headwinds
FORVIA HELLA’s three primary business groups—Electronics, Lighting, and Lifecycle Solutions—experienced varied developments during the reporting period.
The Electronics Business Group posted a 4.0% year-on-year increase in sales, reaching €1.7 billion. This growth was primarily attributed to strong performance in radar systems, particularly in the Americas and Europe, where the company benefited from a ramp-up of ongoing series programs and the introduction of new projects. Additionally, the Chinese market saw positive momentum in areas such as low-voltage battery management systems and vehicle access technologies. Despite the sales growth, operating income in the Electronics division fell to €121 million from €127 million, resulting in a margin of 7.0%, down from 7.6%.
Conversely, the Lighting Business Group saw a 7.3% decline in sales to €1.9 billion, compared to €2.0 billion in the prior year. This downturn was driven by the phase-out of major volume programs in both China and the Americas. Compounding the challenge, a weakening automotive industry in Europe had a negative effect during the second quarter. Despite the revenue contraction, the segment’s operating income margin improved slightly to 3.4%, up from 3.3%, with earnings totaling €63 million, down modestly from €66 million.
The Lifecycle Solutions Business Group, which encompasses aftermarket and commercial vehicle operations, also faced declines. Sales fell by 6.6% to €501 million, down from €537 million in the same period last year. This was largely due to subdued investment in commercial vehicles, especially in the agricultural and construction machinery sectors, amid ongoing macroeconomic softness. Workshops also reduced their spending on new diagnostic and repair equipment. On a positive note, the aftermarket spare parts business held steady, thanks to an expanded product offering in Asia. Operating income dropped to €53 million from €63 million, with the operating margin declining to 10.6%, from 11.7%.
2025 Outlook Reaffirmed Amid Continued Transformation
FORVIA HELLA has reaffirmed its guidance for the full fiscal year 2025. The company continues to expect currency-adjusted sales in the range of €7.6 to €8.0 billion, with an operating income margin between 5.3% and 6.0%. Net cash flow is forecasted to remain strong, with expectations of reaching at least €200 million.
“The first half has been stable for us, but we are fully aware of the high level of volatility still present in the automotive sector,” noted CEO Schäferbarthold. “A broad-based market recovery in the medium term remains unlikely. That’s why we are pressing forward with our transformation strategy.”
Strategic Initiative “SIMPLIFY” Launched to Cut Complexity and Boost Efficiency
To support its long-term competitiveness, FORVIA HELLA is accelerating its transformation efforts. Following the launch of its European competitiveness program in February 2024, the company has introduced a new strategic initiative called “SIMPLIFY.” This initiative is focused on streamlining organizational structures, reducing internal complexity, and enhancing operational agility.
As part of “SIMPLIFY,” FORVIA HELLA aims to generate gross annual savings of approximately €80 million by the end of 2028. The implementation of the initiative will require upfront expenditures of up to €100 million over the same period.
“Our goal is to become leaner, faster, and more globally efficient,” Schäferbarthold concluded. “With ongoing investments in automation, standardization, and artificial intelligence, we are laying the foundation for future growth while adapting our footprint to meet evolving market realities.”
FORVIA HELLA’s first-half 2025 performance illustrates a company navigating a turbulent industry landscape with strategic discipline and financial resilience—positioning itself to emerge stronger as automotive transformation accelerates.
