FORVIA HELLA Reports Preliminary FY 2025 Financial Results
HELLA GmbH & Co. KGaA today released its preliminary financial results for fiscal year 2025, covering the period from 1 January to 31 December 2025. The company reported that currency-adjusted sales remained stable at €8.0 billion, matching the prior year’s performance. However, when accounting for negative exchange rate effects, total sales declined by 2.1 percent, reaching €7.9 billion compared with €8.0 billion in 2024. Operating income saw an increase to €474 million, up from €446 million in the previous year, reflecting an improved operating income margin of 6.0 percent, up from 5.6 percent. Net cash flow also experienced a notable increase, rising to €318 million from €189 million in 2024. Consequently, the ratio of net cash flow to sales improved to 4.0 percent, up from 2.4 percent in the prior year.
CEO Statement on FY 2025 Performance
Prof. Dr. Peter Laier, CEO of FORVIA HELLA, commented on the results: “Overall, fiscal year 2025 was successful for us. We maintained stable sales at prior-year levels, driven primarily by our Electronics business, which addresses core future mobility areas such as automated driving, electromobility, and software-defined vehicle architectures. Additionally, we significantly increased operating income and net cash flow, supported by disciplined cost management, sustainable improvements to our cost structures, and targeted investment allocation. Despite global supply chain and trade risks, we achieved our company outlook for the year, underscoring our high resilience and adaptability in a challenging environment.”
Group-Wide Sales Growth Driven by Electronics
The Group’s sales performance in 2025 was largely driven by the Electronics Business Group, which recorded a year-on-year increase of 4.5 percent, reaching €3.4 billion compared with €3.3 billion in the prior year. This growth was primarily fueled by radar sales, resulting from both new customer projects and the continued expansion of existing series production. In Europe and China, FORVIA HELLA benefited from rising demand for vehicle access systems, while the low-voltage battery management systems business in China also performed strongly, boosted by new series launches during the previous year. Operating income for the Electronics Business Group improved significantly to €269 million from €226 million, resulting in a higher operating margin of 7.8 percent, up from 6.9 percent.
Lighting Business Faces Sales Decline
The Lighting Business Group experienced a decline in sales of 8.3 percent, falling to €3.7 billion from €4.0 billion in 2024. This reduction was primarily attributable to the phase-out of high-volume series projects, which negatively impacted revenue, especially in China and the Americas. Additionally, lower production volumes in Europe led to reduced call-off volumes, further affecting sales. Operating income in the Lighting Business Group decreased to €106 million from €126 million, resulting in a reduced operating margin of 2.9 percent compared with 3.2 percent in the previous year. Despite these challenges, FORVIA HELLA continues to focus on transforming its Lighting operations, aiming for long-term profitability improvements through strategic initiatives and innovation in automotive lighting technologies.
Lifecycle Solutions Maintains Stable Sales
Sales in the Lifecycle Solutions Business Group remained broadly stable at €1.0 billion, consistent with the prior year. The independent aftermarket business performed steadily, particularly due to an expanded product portfolio in the Asian region. Nevertheless, investment restraint in the agricultural and construction machinery sectors and the workshop business had a slightly negative impact on overall business development. Operating income for Lifecycle Solutions increased to €109 million from €99 million, improving the operating margin to 11.1 percent, up from 9.6 percent. This reflects the company’s ability to maintain profitability even in segments facing moderate market constraints, driven by operational efficiency and targeted growth in high-potential markets.
Operating Income and Net Cash Flow Improvement
Across the company, FORVIA HELLA achieved significant improvements in operating income and net cash flow, demonstrating effective cost management and disciplined allocation of capital. The company’s operating income of €474 million represents a year-on-year increase, while net cash flow reached €318 million, marking an improvement of over 68 percent compared with the previous year. The improved ratio of net cash flow to sales, rising to 4.0 percent from 2.4 percent, underscores the Group’s strengthened liquidity position and ability to fund strategic initiatives, support innovation, and maintain resilience in volatile market conditions.
Strategic Focus on Electronics, Lighting, and Lifecycle Solutions
FORVIA HELLA continues to prioritize the Electronics Business Group as a key driver of long-term growth, capitalizing on major mobility trends such as automated driving, electric mobility, and software-defined vehicle systems. In the Lighting Business Group, the company is actively managing the transformation of its portfolio, aiming to enhance profitability and adapt to evolving market demands. For Lifecycle Solutions, FORVIA HELLA seeks to secure sustainable double-digit margins through operational efficiency, expansion of aftermarket offerings, and selective growth in high-potential regional markets.
Outlook for Fiscal Year 2026
For fiscal year 2026, covering 1 January to 31 December, FORVIA HELLA expects currency-adjusted sales to range between €7.4 billion and €7.9 billion. The company anticipates an operating income margin between approximately 5.4 and 6.0 percent. Net cash flow is projected to reach at least 1.8 percent of sales. CEO Prof. Dr. Peter Laier highlighted that the market environment is expected to remain challenging in 2026, with production volumes likely to stagnate and limited positive market impulses.
Medium-Term Strategic Priorities
In response to anticipated market conditions, FORVIA HELLA plans to further enhance agility, accelerate innovation, and strengthen competitiveness across all business groups. In Lighting, the focus will be on transforming the business and improving profitability sustainably. In Electronics, the company will continue to leverage its market-leading position in radar sensors and intelligent, complex control electronics to capture opportunities from future mobility trends. For Lifecycle Solutions, FORVIA HELLA aims to maintain a sustainable double-digit margin through operational excellence and regional expansion.
Commitment to Innovation and Regional Diversification
FORVIA HELLA’s strategy emphasizes innovation speed and regional diversification to mitigate market risks and seize growth opportunities. By focusing on cutting-edge technologies in Electronics and strategically transforming the Lighting business, the company is positioning itself to capture future automotive trends and maintain long-term competitiveness. Lifecycle Solutions will continue to benefit from operational efficiency and regional product expansion, particularly in Asia, ensuring a balanced and resilient business portfolio.
Summary of FY 2025 Achievements
In summary, fiscal year 2025 was characterized by stable sales, improved operating income, and significantly higher net cash flow. The Electronics Business Group drove growth, while Lighting faced transitional challenges, and Lifecycle Solutions maintained steady performance. FORVIA HELLA met its company outlook despite global supply chain risks, demonstrating resilience, adaptability, and strong financial discipline. Looking ahead, the company remains focused on strategic priorities, medium-term growth opportunities, and long-term value creation for stakeholders across all regions and business segments.
Source Link:https://www.hella.com/
