Gasgoo Munich- FORVIA HELLA recently released preliminary financial results for fiscal 2025. Amid fluctuating global production and supply chain risks, the company delivered flat sales. Operating margins rose steadily as the company declared it had "fully met expectations."
2025 Performance Review: Stability Prevails as Electronics Business Becomes Growth Engine
FORVIA HELLA posted currency-adjusted sales of 8 billion euros for fiscal 2025, roughly flat year-on-year. The company held its ground amid pressure on the global automotive industry. Profitability improved: the operating margin climbed to 6%. Net cash flow reached 318 million euros, or 4% of sales, marking better financial health.
Image Source: FORVIA HELLA (same below)
Across its three core business units, fiscal 2025 delivered mixed performance. Robust expansion in the electronics division offset headwinds in traditional businesses. The division emerged as the core driver stabilizing the group’s overall performance.
Specifically, the Electronics Division generated full-year sales of 3.4 billion euros, a 4.5% year-on-year increase. The surge was driven by a sharp rise in radar product sales. This was bolstered by new customer projects and ramped-up production. FORVIA HELLA noted robust demand for vehicle access systems in Europe and China. Low-voltage battery management systems in China secured breakthroughs through volume production.
On the profitability front, the division’s operating profit jumped to 269 million euros from 226 million euros. The operating margin rose to 7.8%, an increase of 0.9 percentage points from the previous year’s 6.9%.
The Lighting Division faced headwinds from product cycles and regional market dynamics. It recorded full-year sales of 3.7 billion euros, an 8.3% annual decline. The drop was primarily driven by the phase-out of high-volume projects. This weighed directly on sales in China and the Americas. Falling automotive output in Europe reduced order intake, further squeezing the lighting business.
As sales slipped, operating profit for the unit fell to 106 million euros from 126 million euros. The operating margin narrowed to 2.9% from 3.2%.
The Lifecycle Solutions Division held steady, with full-year sales flat at 1 billion euros. The independent aftermarket business in Asia achieved stable growth. This was driven by a continuous expansion of its product range. However, the division faced headwinds from investment constraints in the agricultural and construction machinery sectors.
Notably, the division delivered growth in both profit and margins. Full-year operating profit rose to 109 million euros from 99 million euros. The operating margin climbed to 11.1%, a 1.5 percentage point increase from the previous year’s 9.6%. This demonstrates strong capability in profitability optimization.
"Overall, fiscal 2025 was a success for us," said Peter Laier, CEO of FORVIA HELLA. "We successfully stabilized sales at the previous year’s level. This was driven primarily by our electronics business—spanning core future fields like intelligent driver assistance, electrification, and software-defined vehicle architectures. Our operating profit and net cash flow grew significantly. This was fueled by cost management, structural optimization, and disciplined investment allocation. We fully met our annual targets despite a complex market environment marked by supply chain and trade risks. This demonstrates our strong resilience and adaptability."
2026 Outlook: Navigating Industry Challenges with Targeted Strategies for Each Division
Building on solid 2025 performance, FORVIA HELLA released its guidance for fiscal 2026. It also released a medium-term strategy. The company plans to navigate industry challenges and seize market opportunities by optimizing its business structure and strengthening core capabilities.
FORVIA HELLA forecasts currency-adjusted sales of 7.4 billion to 7.9 billion euros for fiscal 2026. It expects an operating margin between 5.4% and 6.0%. Net cash flow is expected to reach at least 1.8% of sales.
Peter Laier noted that 2026 will remain challenging for the industry. Production may stagnate, and the market offers little positive momentum. In response, FORVIA HELLA aims to heighten agility, accelerate innovation, and strengthen competitiveness. It is pushing forward with its regional diversification strategy.
Across its three core business units, FORVIA HELLA has set specific transformation and development targets. In Lighting, the focus is on driving business transition to achieve sustainable profitability. In Electronics, the company aims to lead major future mobility trends. It will leverage market-leading products like radar sensors and intelligent control electronics. For Lifecycle Solutions, the goal is to ensure sustainable double-digit profit margins.
"Based on these initiatives, we see significant opportunities for our business in the medium term," said Peter Laier.
