Lippstadt (Germany)

8 May 2025

First quarter of 2025: FORVIA HELLA starts the new fiscal year with solid sales and earnings development  

• Group sales in the first three months of 2025 amount to €2.0 billion, largely at the previous year's level   
• Operating income is at €109 million, operating income margin is 5.5 percent
• Net cash flow amounts to €-61 million; net cash flow as a percentage of reported sales is -3.0 percent
• Phase-outs of series projects lead to sales decline in Lighting business;
  Electronics with successful radar business; Lifecycle Solutions negatively impacted by low investments in the commercial vehicle sector
• Company outlook for the fiscal year 2025 confirmed

HELLA GmbH & Co. KGaA ("FORVIA HELLA") today presented its full financial results for the first quarter of the fiscal year 2025. As the Company had already announced on 16 April, group-wide sales amounted to €2.0 billion and were thus largely at the level of the previous year. Adjusted for currency effects, this corresponds to a slight decline of 0.8 percent compared to the previous year and by 0.3 percent on a reported basis. Driven by the automotive market in Asia, global light vehicle production increased by 1.3 percent over the same period.

Operating income in the first quarter of 2025 amounted to €109 million (previous year: €111 million), resulting in an operating income margin of 5.5 percent (previous year: 5.6 percent). Net cash flow was €-61 million (previous year: €-51 million); in relation to reported sales, net cash flow is therefore at -3.0 percent (previous year: -2.6 percent).

"In the first three months of 2025, sales, earnings as well as net cash flow developed in line with our expectations. Despite the challenging, very volatile industry environment, the start to the new year was therefore solid overall," says Bernard Schäferbarthold, CEO of FORVIA HELLA. "This not only underlines our good strategic alignment with regard to major market trends. Above all, it demonstrates our ability to consistently manage our cost base under high market pressure. In the first quarter of 2025, we accelerated our program to increase competitiveness further and, in this context, initiated important measures with which we are structurally preparing ourselves for the further tightening of framework conditions."

Phase-outs of series projects lead to sales decline in Lighting business; Electronics with successful radar business; Lifecycle Solutions negatively impacted by low investments in the commercial vehicle sector

In the first quarter of 2025, sales in the Business Group Lighting fell by 5.6 percent to €946 million (previous year: €1,002 million). This is primarily due to the discontinuation of various series projects, especially in China and the Americas. New series launches and ramp-ups of existing series projects in Europe supported the business development of the Lighting division. 

In the Electronics Business Group, sales grew by 6.4 percent to €865 million (previous year: €813 million). This was mainly due to the continuous growth in the radar business, in particular with further ramp-ups in the American market and new series launches in Europe. In the Chinese market, business in the area of energy management, such as low-voltage battery management systems, as well as with vehicle access systems has also developed successfully.

In the Lifecycle Solutions Business Group, sales fell by 8.7 percent to €254 million (previous year: €278 million). The independent spare parts business was stable, partly in connection with an expanded range in Asia. However, investments remained weak both in the commercial vehicle sector, particularly among manufacturers of agricultural and construction machinery, as well as in the workshop equipment business.

Company outlook for the fiscal year 2025 confirmed

With the presentation of the complete results for the first quarter of 2025, FORVIA HELLA confirms the outlook for the year as a whole. Accordingly, the Company continues to expect to generate currency-adjusted consolidated sales of between around €7.6 and 8.0 billion and an operating income margin of between around 5.3 and 6.0 percent in 2025. In terms of net cash flow, a figure of at least €200 million is still expected.

CEO Bernard Schäferbarthold: "The already challenging industry environment is expected to worsen further. Instead of a largely stable development of vehicle production, a decline of 1.7 percent is now expected as a result of new trade restrictions. This means that, according to current assumptions, an estimated 1.6 million fewer vehicles will be produced this year than forecast just a few weeks ago. We are preparing for this with foresight. On the one hand, we will continue and reinforce our consistent cost management. On the other, we will take measures within our supply chain in close, constructive coordination with our customers and suppliers in order to be as well prepared as possible to mitigate restrictions in international trade."

Selected key financial figures in € millions or as a percentage of reported sales for the first quarter of the fiscal year (1 January to 31 March each):
 

Note: The financial statement for the first quarter of the fiscal year 2025  is also available on the
website of HELLA GmbH & Co. KGaA. This text and suitable images can also be found in our press database at: www.hella.com/press