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Yahoo
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Forvia SE (FURCF) H1 2025 Earnings Call Highlights: Navigating Growth Amidst Market Challenges
Revenue: EUR13.5 billion, up 1.1% organically. Product Sales Growth: Increased by 2.9%. Operating Margin: Improved by 20 basis points to 5.4%. Net Cash Flow: EUR418 million, driven by stronger EBITDA and reduced CapEx. Net Debt Reduction: Decreased by EUR193 million to EUR6.3 billion. Leverage Ratio: Reduced to 1.8 times. Order Intake: EUR14 billion, with Asia and Electronics as key growth drivers. Net Loss: EUR269 million, impacted by a EUR136 million charge related to SYMBIO. Cost Reduction: EUR90 million reduction in fixed costs. CapEx Reduction: Tangible CapEx down 35%. Currency Impact: Negative 1.5% impact on revenues due to currency effects. Warning! GuruFocus has detected 8 Warning Signs with FURCF. Release Date: July 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Forvia SE (FURCF) reported an increase in operating margin by 20 basis points to 5.4%, supported by strict cost control and effective tariff mitigation. The company achieved significant net cash flow improvement, reaching EUR418 million, driven by stronger EBITDA and reduced CapEx. Forvia SE (FURCF) reduced its net debt by almost EUR200 million, lowering the leverage ratio to 1.8 times. The company secured EUR14 billion in new orders, with strong commercial success in China, accounting for 30% of global order intake. The Electronics business recorded strong commercial success, representing 34% of the order intake, with significant orders in zone controllers and battery management systems. Negative Points Forvia SE (FURCF) posted a net loss of EUR269 million in H1, primarily due to a non-cash charge related to SYMBIO and high restructuring charges. The company experienced a 0.4% decline in reported sales due to negative currency effects, impacting revenues by 1.5%. Organic growth of 1.1% represented an underperformance of 2 points compared to global automotive production. The Interiors division faced operational challenges in North America, impacting profitability. The company is facing uncertainty and volatility in the automotive market, with a forecasted 2.2% decline in production compared to H2 of the prior year. Q & A Highlights Q: Can you discuss the sustainability of the impressive CapEx decline and what you are targeting for the second half of the year? A: Martin Fischer, CEO: We have worked on CapEx and R&D very carefully, achieving true reductions in gross R&D and maintaining a strict regime on CapEx. Some program delays helped hold CapEx back in H1. We expect to maintain good discipline in H2, but the reduction might not be as significant as in H1. Q: With the new restructuring plan, Simplify, can you provide more details on the phasing of expected savings and restructuring costs? A: Martin Fischer, CEO: Project Simplify is a longer-term effort spanning three years, aiming for EUR110 million in savings by 2028, with restructuring costs of EUR150 million spread over 2026-2028. We aim to achieve 40% of the savings by 2026. Q: Regarding disposals, should we expect any significant disposals by the next Capital Markets Day? A: Martin Fischer, CEO: We are working full speed on disposals and have received positive market feedback. We are committed to reducing the leverage ratio to 1.5 times by next year, but the timing of disposals will depend on negotiations. Q: Can you comment on the plan to improve the profitability of the Interior division? A: Martin Fischer, CEO: We have seen improvements but need to address operational challenges in North America. We are reinforcing teams and leadership, focusing on becoming more locally adapted, and implementing the FORVIA Excellence System to drive improvements. Q: What are your goals for gross debt reduction and ideal cash balance in the intermediate term? A: Olivier Durand, CFO: Our objective is to be below 1.5 times leverage by the end of 2026, with a midterm goal of EUR3.5 billion in gross cash. We aim for investment-grade eligibility, targeting a leverage ratio around 1.2 times. Q: How do you plan to improve the outperformance of the business in China? A: Martin Fischer, CEO: We have a strong local team empowered to cater to customer needs, focusing on cost efficiency and innovation. We aim to be first to market with new products, leveraging local competencies and speed to market. Q: Can you update on the factoring program for this year and next? A: Olivier Durand, CFO: We are committed to keeping factoring below EUR1.3 billion, which is a cap we have maintained since acquiring HELLA. This is one of our funding sources, and we monitor its cost and value closely. Q: With better-than-expected free cash flow in H1, why not increase the full-year guidance? A: Olivier Durand, CFO: We confirm our guidance to be above last year's EUR655 million. While H1 results are encouraging, we must consider potential volume declines and increased restructuring in H2. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
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Nomura Profit Exceeds Estimates on Stock Trading Boom
By and Ryo Horiuchi Updated on Save Nomura Holdings Inc. 's profit beat expectations last quarter, as the Japanese firm joined the equity trading boom that fueled earnings for Wall Street banks. Net income rose 52% from a year earlier to ¥104.6 billion ($706 million) in the fiscal first quarter ended June 30, Japan's biggest brokerage said in a statement Tuesday.
Entrepreneur
20 minutes ago
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Ashish Kashyap and Sayali Karanjkar Join Lenskart Board as Independent Directors
The move follows the exit of Sumer Juneja, managing partner at SoftBank Investment Advisers, who stepped down from the board on June 17, 2025. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Eyewear retailer Lenskart has appointed Ashish Kashyap, founder of INDmoney, and Sayali Karanjkar, co-founder of PaySense, as independent directors on its board, according to recent regulatory filings. The appointments were finalised last week. The development comes after the exit of Sumer Juneja, managing partner at SoftBank Investment Advisers, who stepped down from the board on June 17, 2025. SoftBank has generally vacated board positions at portfolio companies either before or soon after their public listings, as seen in cases involving Swiggy, Meesho, PB Fintech and Paytm. The inclusion of independent directors is intended to strengthen corporate governance standards and bring seasoned external oversight. Lenskart's board already has Jayesh Tulsidas Merchant, former chief financial officer of Asian Paints, and Bijou Kurien, former chief operating officer of Titan, serving in similar roles. These board changes come at a time when Lenskart has received shareholder approval to go public, as per filings with the Registrar of Companies. The eyewear major plans to raise INR 2,150 crore (about USD 250 million) through a fresh share issue. The overall initial public offering size is expected to be about INR 8,500 crore (USD 1 billion), which will also include a secondary sale by existing investors. The proposal was approved during the company's annual general meeting on July 26. Ahead of the listing, the NCR-based firm transitioned into a public limited entity last month, changing its name from Lenskart Solutions Private Limited to Lenskart Solutions Limited after an extraordinary general meeting on May 30. With a targeted valuation of INR 85,000 crore (about USD 10 billion), the planned listing is expected to be a significant milestone for India's consumer internet space. Lenskart joins other startups such as Meesho, PhysicsWallah, Pine Labs, Urban Company, Wakefit, Groww and Shadowfax in preparing for public market entry.
