Sparks

FORVIA’s H126 group sales fell 4.3% to €10,509m (H125: €10,986m), a 1.9% organic decline compounded by a €268m currency drag, yet operating income rose 1.6% to €632m, and the margin gained 30bp to 6.0%. Net cash flow rose 18.8% to €432m, or 4.1% of sales (H125: 3.3%), with recurring net cash flow, excluding working capital and factoring movements, at €403m, or 3.8% of sales (H125: 3.1%). Adjusted EBITDA eased 26% to €1,438m (H125: €1,464m) on a 40bp margin increase of 13.7%. Group net income was €3m against a €269m loss in H125, although continuing operations remained €9m loss-making: the swing rested on a €65m contribution from Interiors as a discontinued operation and the absence of H125’s €136m Symbio impairment. Before IFRS 5, net debt fell €0.5bn to €5,507m, taking leverage down 10bp to 1.6x (December 2025: 1.7x).

The Value cluster margin rose 60bp to 6.0% on organic sales growth of 1.5% to €4,982m, with Clean Mobility up 180bp to 9.7%, Lifecycle Solutions up 280bp to 12.9% and Clarion up 310bp to 5.3% on 22.8% organic growth. This is despite Lighting, where operating income fell to €5m from €81m and the margin fell to 0.3% from 4.4%, a trough the group expects to recover to the c 3% FY25 level by 2028. Growth cluster organic sales fell 4.8% to €5,526m, with Seating down 9.3% on an adverse China customer mix and Electronics up 7.3% on radar and energy management. The Growth cluster margin rose 20bp to 6.1%. Organic sales grew 0.3% in EMEA and 4.4% in the Americas, each ahead of local production, while China fell 19.3%, 14pp below market. Order intake excluding Interiors rose 15% to €13.4bn, 60% of it in the Growth cluster at a 1.5x book-to-bill ratio.

FY26 guidance was confirmed: sales of €20–21bn at constant fx (H126: c €10.8bn), an operating margin of 6.0–6.5%, net cash flow of at least 3.0% of sales and leverage of 1.5x at year-end, based on S&P Global Mobility’s July forecast of 91.1m light vehicles and no change to tariffs in force at 31 July, against H2 production forecast to fall 3.2% y-o-y. Three H2 cash headwinds are already flagged: capex and capitalised R&D rising to 6.0–6.5% of full-year sales from 4.8% in H1, cash restructuring peaking in 2026 and the reversal of a €49m H1 tax phasing benefit. The Interiors sale to Apollo remains on track to close in Q4, cutting net debt by at least €1.0bn and gross debt by at least €1.4bn. Q3 sales are due on 2 November 2026.