GICS Sector : Consumer Cyclical
Forvia SE, together with its subsidiaries, manufactures and sells automotive technology solutions in France, Germany, other European countries, the Americas, Asia, and internationally.It operates through Seating, Interiors, Clean Mobility, Electronics, Lighting, and Lifecycle Solutions segments.The Seating segment designs and manufactures vehicle seats, seating frames, covers, and comfort solutions, as well as adjustment mechanisms.
FORVIA reported H1 sales of EUR13.5 billion, up 1.1% organically, with product sales growing by 2.9% in line with global vehicle production. The operating margin improved by 20 basis points to 5.4% due to cost reduction programs and synergies with FORVIA HELLA. The net loss of EUR269 million was mainly due to a one-off cost related to SYMBIO and high restructuring charges. The actual EPS came out at '-1.37603' relative to estimates at '-1.37', indicating a slight miss. The company's EBITDA margin increased by 100 basis points year-on-year, driven by strict cost control and the EU-FORWARD program.
Publication Date: Jul -29
Net cash flow more than doubled to EUR418 million, driven by higher EBITDA and reduced investments. The company has been active on the debt market, issuing EUR1.7 billion in new debt to extend maturities and improve its financial debt profile. Net debt decreased by EUR193 million to EUR6.3 billion, and the leverage ratio improved to 1.8x. As Olivier Durand mentioned, "We reduced net debt by EUR193 million and gross cash by EUR128 million, resulting in a EUR321 million reduction in gross debt."
In China, FORVIA achieved strong commercial success, with 30% of global order intake coming from the region. The company secured significant contracts with Chinese automakers, including BYD and Chery. FORVIA booked EUR14 billion of new orders, with Asia and Electronics being key growth drivers. The company expects a positive working capital contribution of around EUR200 million for the year and maintains its 2025 guidance and 2026 leverage target.
With a P/E Ratio of -12.34 and an EV/EBITDA of 3.87, the market seems to be pricing in a challenging environment for FORVIA. However, the company's efforts to improve profitability, reduce debt, and increase cost savings through Project Simplify are expected to drive future growth. Analysts estimate next year's revenue growth at 2.2%. The company's objective is to reduce leverage below 1.5x by the end of '26 through organic performance and disposals.
FORVIA is launching Project Simplify, a global plan aimed at generating EUR110 million in annual cost savings by 2028. The company is also progressing with its business transformation efforts, reviewing its portfolio to identify areas for simplification and disposal. CapEx declined by 25% in H1, driven by strict discipline and some delayed programs, with a midterm goal to achieve a CapEx ratio of around 7%.
FORVIA: Total number of voting rights and shares forming the share capital
Dec -04
Michelin, Forvia, Stellantis seal restructuring deal for Symbio
Dec -04
Evaluating Forvia After 54% Share Price Surge and Major EV Contract News
Dec -02
Forvia confirms divestment moves for vehicle interiors unit
Dec -01
FORVIA Statement on Divestiture Processes
Nov -28
FORVIA: Total number of voting rights and shares forming the share capital
Nov -06
2025 Q3 Sales: Revenue of €6.1 Billion, Stable on an Organic Basis. Strong Financial Discipline. 2025 Guidance Confirmed
Oct -20
Forvia (ENXTPA:FRVIA): Assessing Valuation After Recent Share Price Pullback
Oct -10
Forvia SE's seating segment growth of 1.8% is driven by increasing demand for comfort and safety features, electrification of vehicles, and rising sales of premium vehicles. Additionally, the company's focus on innovation, cost reduction, and strategic partnerships contribute to its growth momentum.
Forvia SE's Interior segment growth of 1.9% is driven by increasing demand for premium and sustainable interior solutions, electrification of vehicles, and rising adoption of autonomous driving technologies. Additionally, the company's focus on innovative materials, lightweighting, and smart interior technologies also contribute to its growth.
Forvia SE's Clean Mobility segment growth of 2.2% is driven by increasing adoption of electric vehicles, stringent emission regulations, and growing demand for sustainable transportation solutions. Additionally, advancements in battery technology, decreasing production costs, and investments in charging infrastructure are also contributing to this growth.
Clarion Electronics' 1.7% growth is driven by increasing demand for in-car infotainment systems, growth in electric vehicle sales, and rising adoption of advanced driver-assistance systems (ADAS). Additionally, Forvia SE's strategic acquisitions and partnerships have expanded Clarion's product offerings and geographic reach, contributing to its growth momentum.
Forvia SE's Lighting segment growth of 1.6% is driven by increasing demand for energy-efficient LED lighting, rising adoption of autonomous vehicles, and growing electrification of vehicles. Additionally, the company's focus on innovative lighting solutions, such as adaptive lighting and smart lighting systems, is contributing to its growth.
Forvia SE's Lifecycle Solutions segment growth of 1.5% is driven by increasing demand for sustainable and eco-friendly mobility solutions, expansion into emerging markets, and strategic partnerships with OEMs. Additionally, investments in digitalization and electrification of vehicles, as well as growing aftermarket demand, contribute to the segment's growth.
Designs and manufactures interior components for vehicles, including dashboards, door panels, and consoles.
Develops and produces exterior components, such as bumpers, spoilers, and exterior trim, for the automotive industry.
A modular, sustainable, and connected seating system for electric vehicles, enhancing passenger comfort and safety.
Develops innovative, interactive, and connected interior surfaces, integrating technology and design for enhanced user experience.
Offers a range of sustainable mobility solutions, including battery systems, electric motors, and charging infrastructure.
Develops and integrates autonomous driving technologies, including sensors, software, and computing platforms.
The threat of substitutes for Forvia SE is moderate, as there are alternative products and services available in the market, but they are not highly attractive to customers.
The bargaining power of customers for Forvia SE is low, as customers have limited options and the company has a strong brand presence.
The bargaining power of suppliers for Forvia SE is moderate, as suppliers have some bargaining power due to the company's dependence on them, but the company also has some negotiating power.
The threat of new entrants for Forvia SE is low, as there are significant barriers to entry in the industry, including high capital requirements and regulatory hurdles.
The intensity of rivalry for Forvia SE is high, as the industry is highly competitive, with many established players and a high level of competition for market share.
| Value | |
|---|---|
| Debt Weight | 69.86% |
| Debt Cost | 5.50% |
| Equity Weight | 30.14% |
| Equity Cost | 13.63% |
| WACC | 7.95% |
| Leverage | 231.75% |
Value: 7.7
Growth: 3.3
Quality: 4.6
Yield: 5.6
Momentum: 4.0
Volatility: 3.0
1-Year Total Return ->
Value: 3.8
Growth: 3.4
Quality: 5.2
Yield: 3.8
Momentum: 4.0
Volatility: 6.7
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Value: 8.3
Growth: 3.8
Quality: 2.5
Yield: 4.4
Momentum: 5.5
Volatility: 2.0
1-Year Total Return ->
Value: 9.6
Growth: 3.2
Quality: 1.5
Yield: 1.2
Momentum: 8.0
Volatility: 1.3
1-Year Total Return ->
Value: 7.0
Growth: 3.6
Quality: 4.3
Yield: 0.0
Momentum: 4.0
Volatility: 2.3
1-Year Total Return ->
Value: 8.2
Growth: 3.6
Quality: 1.5
Yield: 0.0
Momentum: 6.0
Volatility: 1.7
1-Year Total Return ->