FORVIA reported significant performance improvement in 2025, with sales of €26.2bn and an operating margin of 5.6%. Net cash flow increased by 47% to €962m, while net debt decreased to €6.0bn. The planned divestiture of the Interiors Business Group is expected to reduce net debt by at least €1bn. 2026 outlook includes profitability gain and deleveraging to 1.5x. CEO Martin Fischer highlighted the solid results and strategic focus.
In 2025, global automotive production increased by 3.9% to 93.0 million light vehicles, with China showing strong growth. FORVIA’s organic sales were flat, with product sales up 1.5%. The operating income improved by 40bps to 5.6% of sales, supported by cost control measures and synergies. The company’s cash flow rose by 47% to €962m, driven by higher EBITDA and reduced capital expenditure.
FORVIA’s consolidated net income in 2025 was a net loss of €2.1bn, mainly due to charges related to portfolio transformation and rationalization. These charges included impairments, capital losses, and tax transaction costs. The company’s divestiture of the Interiors Business Group is expected to reduce net debt by at least €1bn. The financial calendar for 2026 includes various announcements and meetings.
FORVIA improved its debt maturity profile in 2025 by raising new debt and repaying short-term borrowings. The company’s average debt maturity extended to 3.4 years, compared to 3.1 years in 2024. FORVIA intends to continue optimizing its debt structure to reduce interest costs. The Board of Directors decided not to distribute a dividend in 2026, aligning with the focus on deleveraging.
FORVIA’s outlook for 2026 includes sales between €20.0bn and €21.0bn, an operating margin between 6.0% and 6.5%, and a net debt/Adjusted EBITDA ratio at 1.5x. The company remains committed to delivering long-term capital returns to shareholders based on financial performance and leverage targets. Strategic initiatives focus on agility, performance, and a streamlined organizational model.
Read more at GlobeNewswire: 2025 ANNUAL RESULTS: Performance significantly improved,