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Yahoo
2 hours ago
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The Western Union Co (WU) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...
Revenue: $1,026 million for Q2 2025, a 1% decline year-over-year excluding Iraq. Adjusted Operating Margin: 19% for Q2 2025, consistent with the same period last year. Adjusted Earnings Per Share (EPS): $0.42 compared to $0.44 in Q2 2024. Consumer Money Transfer Transactions: Declined 3% in Q2 2025, or 2% excluding Iraq. Branded Digital Business Revenue: Increased by 6% with a 9% rise in transactions for Q2 2025. Consumer Services Adjusted Revenue Growth: Up 40% in Q2 2025, driven by Eurochange acquisition and strong European travel. Cash Flow from Operations: $148 million year-to-date compared to $60 million in the prior year period. Capital Expenditures: $54 million year-to-date, 15% lower than the prior year. Cash and Cash Equivalents: $1 billion. Debt: $2.7 billion. Shareholder Returns: Over $150 million returned via dividends and share repurchases in Q2 2025. 2025 Revenue Outlook: Adjusted revenue expected to be $4,035 million to $4,135 million. 2025 Operating Margin Outlook: Expected to be in the range of 19% to 21%. 2025 Adjusted EPS Outlook: Expected to be in the range of $1.65 to $1.75. Warning! GuruFocus has detected 8 Warning Signs with WU. Release Date: July 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points The Western Union Co (NYSE:WU) reported a reasonable quarter despite a challenging macroeconomic environment, maintaining above industry average margins. The company's branded digital business saw a 9% increase in transactions and a 6% rise in adjusted revenue, marking the seventh consecutive quarter of solid revenue growth. Consumer services adjusted revenue grew by 40%, driven by the acquisition of Eurochange and strong European travel, contributing significantly to the company's performance. The company is actively integrating AI capabilities into its operations, resulting in improved customer service and operational efficiencies. The Western Union Co (NYSE:WU) is exploring opportunities with Stablecoins, which could enhance settlement speed and reduce dependency on legacy banking systems, potentially improving global liquidity management. Negative Points The Western Union Co (NYSE:WU) experienced a 1% decline in adjusted revenue year-over-year, excluding impacts from Iraq, with consumer money transfer transactions down 3%. The retail business in the Americas faced headwinds due to geopolitical challenges, impacting transaction volumes. The company observed a slowdown in digital transactions from the United States to Latin America, particularly in the US to Mexico corridor. Recent immigration enforcement activities in the US have created short-term headwinds, affecting transactional activity and customer behavior. The introduction of a 1% remittance tax on cash-based transactions in the US could impact the company's revenue, although efforts are being made to mitigate this through increased digital and card-based transactions. Q & A Highlights Q: Can you provide more details on the Eurochange acquisition and its impact on revenue growth? A: Matthew Cagwin, CFO, confirmed that Eurochange contributed about 2% to revenue growth in the quarter. The acquisition is performing better than expected, and they are optimistic about its future contributions, especially in the Travel Money business. Q: Are you seeing a shift from retail to digital channels due to the immigration crackdown in North America? A: Devin McGranahan, CEO, stated that there has been no significant shift from retail to digital channels. Both retail and digital channels experienced a slowdown, particularly in the US to Mexico corridor. Q: Can you elaborate on the slowdown in digital transactions and its impact? A: Matthew Cagwin explained that the slowdown in digital transactions is primarily in US outbound to Latin America, especially Mexico. This is consistent with central bank reports of reduced inbound transactions. Q: What opportunities do you see with Stablecoins, particularly regarding on-ramp and off-ramp solutions? A: Devin McGranahan highlighted that Western Union's infrastructure is well-suited for converting Stablecoins to local fiat currencies. They are exploring partnerships and pilots in South America and Africa to leverage this capability. Q: How are political headwinds affecting your business in the US-Mexico corridor? A: Devin McGranahan noted that the impact is volatile, with fluctuations in activity and media attention affecting customer behavior. They are closely monitoring the situation but cannot predict future trends with certainty. Q: What is the demand for Stablecoins in emerging markets, and how is Western Union positioning itself? A: Devin McGranahan mentioned that there is interest from platform providers and B2B solutions for using Stablecoins to improve efficiency in money transfers. They are actively working with partners in Latin America to explore these opportunities. Q: Given the tightening US immigration policy, will you adjust your Evolve 2025 strategy? A: Devin McGranahan affirmed their commitment to the strategy, emphasizing the resilience of their customer base. They plan to focus more on non-remittance products and services, such as their digital wallet, to drive growth. Q: How will the 1% remittance tax impact your business, and what measures are you taking? A: Devin McGranahan explained that the tax will primarily affect cash and prepaid card transactions. They are implementing systems to collect the tax and expect it to incentivize customers to use debit cards and digital wallets, reducing the tax's impact. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
2 hours ago
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Cadence Design Systems Inc (CDNS) Q2 2025 Earnings Call Highlights: Strong AI-Driven Growth ...
Total Revenue: $1.275 billion for Q2 2025. Revenue Growth: 20% year-over-year for Q2 2025. GAAP Operating Margin: 19% for Q2 2025. Non-GAAP Operating Margin: 42.8% for Q2 2025. GAAP EPS: $0.59 for Q2 2025. Non-GAAP EPS: $1.65 for Q2 2025. Cash Balance: $2.823 billion at quarter end. Operating Cash Flow: $378 million for Q2 2025. Debt Outstanding: $2.5 billion principal value. Share Repurchase: $175 million used to repurchase shares in Q2 2025. Core EDA Revenue Growth: 16% year-over-year in Q2 2025. IP Business Revenue Growth: Over 25% year-over-year in Q2 2025. System Design and Analysis Revenue Growth: 35% year-over-year in Q2 2025. Updated 2025 Revenue Outlook: $5.21 billion to $5.27 billion. Updated 2025 Non-GAAP EPS Outlook: $6.85 to $6.95. Updated 2025 Operating Cash Flow Outlook: $1.65 billion to $1.75 billion. Q3 2025 Revenue Outlook: $1.305 billion to $1.335 billion. Q3 2025 Non-GAAP EPS Outlook: $1.75 to $1.81. Warning! GuruFocus has detected 6 Warning Sign with CDNS. Release Date: July 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Cadence Design Systems Inc (NASDAQ:CDNS) exceeded its Q2 revenue and EPS guidance, driven by strong demand across its AI-driven product portfolio. The company raised its financial outlook for 2025 to 13% revenue growth and 16% EPS growth, reflecting confidence in ongoing demand. Cadence's AI-driven portfolio, including the new Millennium M2000 AI supercomputer, is delivering significant performance and efficiency gains for customers. The company reported a 25% year-over-year growth in its IP business, driven by strong demand for AI and HPC use cases. Cadence's system design and analysis business achieved 35% year-over-year revenue growth, highlighting strong customer uptake of its 3D-IC technology. Negative Points Cadence faced export restrictions on China, which impacted its revenue, although strength in other regions offset this impact. The company had to reserve certain China bookings from its backlog due to restrictions, affecting its reported backlog at the end of Q2. Recurring revenue as a percentage of total revenue dipped to 78% in Q2, a multiyear low, due to strong demand for upfront businesses like IP and hardware. Cadence's settlement with the DOJ and BIS over past transactions with China resulted in a $141 million payment, impacting financials. The dynamic export control environment and geopolitical factors present ongoing risks and uncertainties for Cadence's operations in China. Q & A Highlights Q: How is the demand for physical AI impacting Cadence's bookings and customer spending? A: Anirudh Devgan, President and CEO, explained that there is significant optimism around AI, leading to increased customer investment in innovation and Cadence's products. Physical AI, which involves edge devices and autonomous systems, is expected to be a major growth area. It impacts both data center and edge silicon, requiring different design and simulation tools. The market is still evolving, but the customer environment is improving, with more investment in AI infrastructure and physical AI. Q: What led to Cadence's increased growth outlook despite not recognizing one month of China revenue? A: John Wall, CFO, noted that strong demand across all geographies offset any near-term softness related to China. The growth in bookings from AI, HPC, and system design workloads globally contributed to the increased outlook. The backlog at the end of Q2 was stronger than expected, indicating broad-based demand. Q: What is the near and long-term impact of China on Cadence's business? A: John Wall stated that while China was 9% of Q2 revenue, down from 11% in Q1, the outlook for China remains optimistic but prudent. The company expects China sales to be slightly up year-over-year. Anirudh Devgan added that while China will continue to invest in chip design, the rest of the world is also seeing significant investment, which may lead to a slight decrease in China's percentage of total revenue over time. Q: How is the transition to 3.5D advanced packaging architectures contributing to Cadence's bookings and revenue? A: Anirudh Devgan highlighted that the industry is moving towards chiplet-based architectures, especially in HPC and AI. Cadence is well-positioned with its Allegro platform and 3D-IC technology, which are critical for these new packaging architectures. The demand for advanced packaging is significant and contributes to the overall revenue, pulling in other products like analysis tools. Q: What are the adoption barriers for agentic AI, and how does Cadence plan to monetize it? A: Anirudh Devgan explained that Cadence packages agentic AI solutions separately from base tools, offering significant productivity and PPA benefits. The adoption barriers are not significant as customers are used to automation and face increasing workloads. Cadence focuses on delivering value and productivity, with various business models to monetize these solutions over time. 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
Yahoo
2 hours ago
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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
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2 hours ago
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Sanmina Corp (SANM) Q3 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Revenue: $2.04 billion, up 10.9% year over year. Non-GAAP Gross Margin: 9.1%, a 60 basis point improvement year over year. Non-GAAP Operating Margin: 5.7%, a 40 basis point improvement year over year. Non-GAAP Diluted EPS: $1.53, a 22.8% increase year over year. IMS Revenue: $1.65 billion, up 11.6% year over year. CPS Revenue: $422 million, up 8.8% year over year. CPS Non-GAAP Gross Margin: 14.7%, a 320 basis point improvement year over year. Cash and Cash Equivalents: $798 million. Free Cash Flow: $168 million for the quarter. Inventory Turns: Improved to 6.3 times from 5.1 times year over year. Non-GAAP Pretax ROIC: 24.8%, up from 21.1% year over year. Share Repurchase: 0.2 million shares for $13 million during the quarter. Fourth Quarter Revenue Outlook: $2.0 billion to $2.1 billion. Fourth Quarter Non-GAAP EPS Outlook: $1.52 to $1.62. Warning! GuruFocus has detected 4 Warning Sign with RMBS. Release Date: July 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Sanmina Corp (NASDAQ:SANM) reported solid revenue of $2.04 billion for the third quarter, exceeding their outlook. Non-GAAP diluted earnings per share increased by 22.8% year over year, reaching $1.53. The company achieved a non-GAAP operating margin of 5.7%, at the high end of their outlook. Sanmina Corp (NASDAQ:SANM) generated strong cash flow from operations, totaling $201 million for the third quarter. The planned acquisition of ZT Systems is expected to add $5 billion to $6 billion of annual net revenue, potentially doubling Sanmina's revenue within three years. Negative Points Non-GAAP operating expenses were slightly above outlook, reflecting continued strategic investments. The automotive and transportation segment experienced some softness with slower demand. There are ongoing uncertainties related to tariffs and the geopolitical landscape, which could impact future performance. The acquisition of ZT Systems involves a significant investment in working capital, primarily inventory, which carries inherent risks. The company's guidance for the fourth quarter suggests a slowdown in year-over-year revenue growth compared to the third quarter. Q & A Highlights Q: Can you provide an update on the ZT Systems acquisition and its expected revenue impact? Is the business still experiencing declining revenues, and what are your plans to turn it around? A: Jure Sola, CEO: We remain excited about the ZT Systems acquisition, expecting it to add $5 billion to $6 billion in annual net revenue. The business is stable, and we see significant potential for growth. We are already engaging with critical customers and plan to enhance our sales force and technical support to capitalize on opportunities. The business is profitable, and we anticipate further growth post-acquisition. Q: Your Q3 showed strong growth, but Q4 guidance suggests a slowdown. Can you explain this and provide insights into fiscal 2026 expectations? A: Jure Sola, CEO: The business remains stable, and the Q4 guidance reflects a more predictable environment compared to last year's choppy conditions. We are optimistic about fiscal 2026, expecting to maintain or exceed the current growth rate, barring any unforeseen macroeconomic disruptions. Q: CPS margins improved significantly. Were there any one-time factors contributing to this? A: Jon Faust, CFO: The margin improvement was primarily due to business mix and ongoing investments. There were no one-time factors. We aim to maintain margins above 15% and continue to drive improvements across all divisions. Q: What are the risks associated with the inventory in the ZT Systems acquisition? A: Jon Faust, CFO: We have a $2 billion working capital target, primarily inventory, and have thoroughly evaluated it with AMD. While there are inherent risks, we are confident in the inventory's alignment with customer demand and forecasts. Q: With the expected revenue from the ZT acquisition, where do you see operating margins heading? A: Jure Sola, CEO: We anticipate operating margins to exceed 6%, with potential upside as we integrate ZT Systems and leverage our end-to-end solutions for data center and AI markets. We will provide more detailed guidance post-acquisition closure. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
a day ago
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- Yahoo
H1 2025 Results: Increase in Operating Margin & Net Cash Flow, Transformation Underway, Guidance Confirmed
NANTERRE (FRANCE)JULY 28, 2025 H1 2025 RESULTS INCREASE IN OPERATING MARGIN & NET CASH FLOWTRANSFORMATION UNDERWAYGUIDANCE CONFIRMED STRICT COST AND CASH DISCIPLINE DRIVING IMPROVEMENT Organic growth of 1.1%, driven by Electronics and Seating. Operating margin up 20bps, supported by strict cost control, well-contained impact of US tariffs and the first benefits of the EU-FORWARD program. Net Cash Flow more than doubled vs H1 2024, driven by recurring elements: EBITDA increased by €127m and Capex and Capitalized R&D reduced by €232m. Net result penalized by non-cash financial assets depreciation related to SYMBIO. In €m H1 2025 H1 2024 Change Sales 13,477 13,534 -0.4% Organic growth (constant scope & currencies)Adj. EBITDAAs % of sales 1,76213.1% 1,63512.1% +7.8% Operating income 722 700 +3.1% As % of sales 5.4% 5.2%Net result, Group share (269) 5 - Net cash flow 418 201 +€217m Net debt/Adj. EBITDA ratio 1.8x 2.0x -20bps ORGANIZATIONAL TRANSFORMATION TO PROMOTE FURTHER ACCOUNTABILITY AND OPERATIONAL EXCELLENCE Design of a new division centric organization with clear lines of P&L responsibility to drive business performance. Launch of Simplify project to streamline organization and reduce indirect and structural costs; €110m cost base reduction target by 2028, backed by c.€150m restructuring costs over 2025–2028. CONFIRMED FULL-YEAR 2025 GUIDANCE Sales, operating margin, net cash flow, and leverage targets reiterated. Martin FISCHER, Chief Executive Officer of FORVIA, declared: "Our three key priorities — delivering performance, driving business transformation and invigorating our culture— shape our decisions and actions. The quality of our first-half results demonstrates the remarkable commitment of our teams and our strong focus on these priorities. This performance, together with the rising outcomes of self-help measures and the continued strict cost and cash control, enables us to confirm our full-year guidance in a challenging and volatile environment. It also further supports our primary objective of debt reduction. In the first half, we launched major initiatives that underpin our strategic shift. We are streamlining our operating model into a division-centric structure that enhances agility, accelerates decision-making and fosters accountability. Meanwhile, the SIMPLIFY project is building a leaner organization, generating additional cost savings. At the same time, we are transforming our business portfolio through a thorough strategic review of each business group and all product lines, while actively pursuing asset disposals. We will present our strategy and mid-term financial goals at our Capital Market Day on February 24, 2026.' H1 2025 FINANCIAL RESULTS (detailed analysis in Appendices) H1 2025 Group consolidated sales and operating income GROUP (in €m) H1 2024 Currency effect Organic growth H1 2025 Reported change Sales13,534 -205 +148 13,477 -57 -1.5% -0.4% Operating income 700 722 +3.1% As a % of sales 5.2% 5.4% +20bps In H1 2025, worldwide auto production rose by 3.1%, to 44.9 million LVs (S&P Mobility July estimate). Strong growth in Asia (+7.8%) more than offset volume decline in EMEA (-3.1%) and Americas (-2.4%). These regional variations represented an unfavorable geographic mix of close to 4 points for FORVIA. H1 2025 organic growth stood at +1.1% of last year's sales: Product sales organic growth at +2.9% were in line with market volume growth, driven by Electronics, Seating and Interiors. Tooling sales were exceptionally high in the first half of 2024. Excluding the unfavorable geographic mix, organic growth represented an outperformance of 2 points, driven by Europe and Asia excluding China. The currency effect represented a negative impact of €205 million on sales (-1.5%), that started to materialize in Q2. H1 2025 consolidated operating income of €722 million, up 20bps at 5.4% of sales. Margin development was supported by improvement in Seating, Electronics and Interiors. Tariffs had no material impact thanks to effective counter measures. The year-on-year increase in operating income to €722 million in H1 2025, mainly reflected: Increased flexibility in production costs and reduction in operating costs (hiring freeze, travel restrictions, marketing expenses cut…), The first benefits of the EU-FORWARD program which contributed to the 100bps margin expansion of EMEA to 4.1% of sales, and synergies with FORVIA HELLA, for a combined amount of €65 million, and despite: Volume effect and operational challenges in the North American Interiors and Lighting businesses, A negative currency impact of €20 million. H1 2025 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME in €m H1 2025 H1 2024 Change Sales 13,477 13,534 Operating income before PPA 722 700 Purchase Price Allocation -92 -93Restructuring -248 -222 -26 Other non-recurring operating income and expense -16 -43 +27 Net financial interest -236 -250 +14 Other financial income and expense -72 79 -151 Income before tax of fully consolidated companies 59 171 -112 Income taxes -124 -59 -65 Share of net income of associates -154 -12 -142 Consolidated net income before minority interest -219 100 -319 Minority interest -50 -95 +45 Consolidated net income, Group share -269 5 -274 The consolidated net income, Group share, was a net loss of €269 million in H1 2025, penalized by €136 million non-cash financial asset depreciation related to SYMBIO joint venture, while the €5 million profit generated in H1 2024 included a capital gain on disposal of €134 million. It also reflected: Restructuring expenses The rapid pace of deployment of the EU-FORWARD program explains the high level of restructuring costs. The new operations in H1 2025 accounted for around 2,100 announced job cuts. With a total of 2,900 reductions in 2024, EU-FORWARD has already achieved half of its original target of 10,000 cuts, ahead of schedule. Net financial interest Net financial interest represented a charge of €236 million, an improvement of €14 million vs. H1 2024, notably reflecting impact of lower interest rates on floating-rate debt. Other financial income and expenses H1 2024 financial income included €134 million in capital gains realized by FORVIA HELLA from the sale of its stake in BHTC to AUO Corporation in China. Share of net income of associates: SYMBIO SYMBIO is a French company specializing in hydrogen systems for vehicles, jointly held by FORVIA, Michelin and Stellantis. Mid July 2025, Stellantis announced the termination of its hydrogen fuel cell technology development program, a decision with major implications for SYMBIO, which relies on the carmaker for over 80% of its business serious operational and financial risks for SYMBIO's future, FORVIA booked a non-cash depreciation of the financial assets related to the joint venture, consolidated under equity method, for €136 million. H1 2025 CONSOLIDATED CASH FLOW STATEMENT in €m H1 2025 H1 2024 Change Operating income 722 700 +22 Depreciation and amortization 1,040 935 +105 Adj. EBITDA 1,762 1,635 +127 Capex -274 -419 +145 Capitalized R&D -420 -507 +87 Change in WCR including factoring -24 97 -121 Restructuring -109 -90 -19 Other (operational) -27 -52 +25 Financial expenses -269 -289 +20 Taxes -221 -175 -46 Net cash flow 418 201 +217 Net cash flow increased by 108% to €418 million, with a quality improvement reflecting three recurring elements: The increase of the EBITDA that stood at 13.1% of sales, up 100bps vs. H1 2024, The 35% reduction of Capital expenditure, primarily in Europe, The 17% decrease of Capitalized R&D, essentially driven by the 11% reduction of Gross R&D (-€130 million). Change in working capital and factoring represented an outflow of €24 million, resulting from: a limited cash-out (€92 million) from working capital, with controlled inventories and net outflows from account receivables and payables, a €68 inflow from factoring to anticipate collection of tariffs recovery in the US. Amount of receivables factoring was kept below €1.3 billion at June 30, 2025. The year-on-year increase in tax cash-out mainly reflects the €68 million withholding tax refund received in H1 2024, linked to the extraordinary dividend from FORVIA HELLA received in 2023. After dividends paid to minorities (€56 million), new leases contracted (€72 million, reduced by 42%) and €90 million of other flows (mainly on change in currencies), net financial debt at June 30, 2025 was reduced by 193 million vs December 31, 2024 and stood at €6,430 million. Net debt/Adj. EBITDA ratio stood at 1.8x at June 30, 2025, vs. 2.0x at December 31, 2024. GROUP DEBT MATURITY Improved debt profile through active refinancing since the start of 2025 Since the start of the year and to date, the Group has successfully issued cumulated amount of c. €1.7 billion of new debt instruments, essentially maturing in 2030. New issuances reflected enhanced diversification of sources (Euro bond market, inaugural bond on the USD and c.€220 million of Schuldschein notes issued in July 2025). These proceeds were used to buy back 2026 maturities, now mostly cleared like the 2025 ones, as well as a portion of 2027 maturities. In parallel, the Group extended from June 2027 to June 2028 the maturity of a €650m bank loan. In all, these transactions allowed FORVIA to extend its average debt maturity1, now of 3.3 years compared to 3.1 at end of 2024. Gross debt was reduced by €321 million to €10,802 million at June 30, 2025 and gross cash by €128 million to 4,372 million. OTHER H1 2025 HIGHLIGHTS Business transformation and deleveraging We have been conducting a comprehensive review of the portfolio to prioritize leadership positions per product line over overall size. It includes an analysis across the 6 business groups and 24 product lines of the Group, to identify higher synergies, simplify scopes, and discontinue certain activities. In particular, it was decided to reduce the cash burn of the hydrogen activities while maintaining their long-term strategic importance. Concurrently, disposal processes have progressed, with the number of eligible assets revised upward and sizeable disposal processes on going. Major initiatives to boost agility and performance through a highly efficient organization The automotive industry is navigating a complex and fast-evolving environment, demanding greater agility and responsiveness. To support its profound transformation, the Group initiated two strategic projects to lead change effectively. The organization model is being transformed, with a clear P&L reporting structure defined. The new setup is division-centric, promoting higher levels of accountability and empowerment across teams. Through the SIMPLIFY Project, the Group aims to reinvent its ways of working across SG&A and indirect operations. It conducted a thorough benchmarking exercise to identify areas for improvement, leading to the definition of key structural levers, such as eliminating non-essential tasks, automating transactional activities with GenAI, and optimizing organizational design. The project ambition is to reduce the cost baseline by 110 million euros by 2028, supported by restructuring costs of c.150 million euros over 2025–2028. Order intake In H1 2025, FORVIA recorded order intake of €14 billion, compared to €15 billion in H1 2024, reflecting delayed tenders, notably in North America in the context of new tariffs imposed by the US administration. This order intake continued to demonstrate solid momentum in Electronics and in China: Electronics accounted for 34% of the total order intake Asia represented 36%, including 30% from China H2 2025 OUTLOOK AND 2025 FULL-YEAR GUIDANCE CONFIRMED The Group anticipates the production environment to remain volatile and uncertain. Based on S&P Mobility July estimates, the automotive market production is expected to reach 45 million LVs in H2 2025, slightly above H1 would represent a drop by 2.2% vs. H2 2024, with all main regions being impacted, including China. The geographic mix that was strongly unfavorable in H1 (-4 pts) is expected to level off. To preserve its performance, the Group will maintain rigorous cost control and disciplined cash management. It will also benefit from higher savings related to the EU-FORWARD program. Therefore, taking into account the tariffs enacted to date, the Group confirms its 2025 full-year guidance*: Sales between €26.3bn and €27.5bn, at constant exchange rates** Operating margin between 5.2% and 6.0% of sales Net Cash-flow ≥2024 level (i.e. 655M€) Net debt/Adjusted EBITDA ratio ≤1.8x at December 31, 2025 on a organic basis*** Beyond this organic deleveraging target, the Group is committed to restore a solid balance sheet with the objective of reducing Net debt/Adjusted EBITDA ratio below 1.5x in 2026, supported by disposals. *The guidance assumes no other major disruption materially impacting production or retail sales in any major automotive region during the year** 2024 average exchange rates: EUR/USD = 1.08, EUR/CNY = 7.79***With no net contribution from asset disposals FINANCIAL CALENDAR October 20, 2025 Q3 2024 sales announcement (before market hours) February 24, 2026 FY 2025 results announcement (before market hours) Capital Market Day A webcasted conference call will be held today at 09:00am (CET). If you wish to follow the presentation using the webcast, please access the following link: A replay will be available as soon as possible. You may also follow the presentation via conference call: France +33 1 70 91 87 06 United Kingdom +44 (0) 207 107 06 13 United States 1 (1) 631 570 56 13 PRESS ANALYSTS/INVESTORS Christophe MALBRANQUEGroup Media Relations Director+33 (0) 6 21 96 23 Adeline MICKELERGroup Head of Investor Relations+33 (0) 6 61 30 90 Sébastien LEROYDeputy Head of Investor Relations +33 (0) 6 26 89 33 About FORVIA, whose mission is: 'We pioneer technology for mobility experiences that matter to people'. FORVIA, a global automotive technology supplier, comprises the complementary technology and industrial strengths of Faurecia and HELLA. With around 250 industrial sites and 78 R&D centers, over 150,000 people, including more than 15,000 R&D engineers across 40+ countries, FORVIA provides a unique and comprehensive approach to the automotive challenges of today and tomorrow. Composed of 6 business groups and a strong IP portfolio of over 13,000 patents, FORVIA is focused on becoming the preferred innovation and integration partner for OEMs worldwide. In 2024, the Group achieved a consolidated revenue of 27 billion euros. FORVIA SE is listed on the Euronext Paris market under the FRVIA mnemonic code and is a component of the CAC SBT 1.5° index. FORVIA aims to be a change maker committed to foreseeing and making the mobility transformation happen. APPENDICES H1 SALES AND OPERATING MARGIN BY BUSINESS GROUPS Sales In €m H1 2025 H1 2024 Change Organic Change SEATING 4,305 4,197 +2.6% +3.7% ELECTRONICS 2,286 2,091 +9.3% +10.0% INTERIORS 2,497 2,557 -2.3% +0.1% LIGHTING 1,849 1,968 -6.1% -5.5% CLEAN MOBILITY 2,043 2,191 -6.8% -4.2% LIFECYCLE SOLUTIONS 497 530 -6.2% -3.2% GROUP 13,477 13,534 -0.4% +1.1% Organic growth was mostly driven by Electronics and Seating: Sales in Seating benefited from robust dynamic in China, especially with BYD and Chery. Europe recorded mid-single digit growth supported by BMW (frames and complete seats) and Renault (Master and 5 E-Tech), Sales in Electronics rose double-digit with solid growth in all regions. Sales were mostly driven by Japanese OEMs in Asia, by VW and Stellantis in Europe and GM in North America, Interiors: Organic sales were flat, penalized by strong comparable on tooling sales in North America and Europe. Sales in China rose at double-digit, supported by ramp up of programs with BYD, Lighting business was penalized by discontinuation of programs, Clean Mobility were down mid-single digit, notably penalized by the disposal of Hug Engineering. Sales were almost flat in Q2, supported by solid performance in North America (high single digit growth) where activity was lifted by Ford, Lifecycle Solutions activity was penalized by overall low level of its customer investments. Operating income In €m H1 2025 H1 2024 Change SEATING 239 194 +23.0% % of sales 5.5% 4.6% +0.9 pt ELECTRONICS 142 122 +17.0% % of sales 6.2% 5.8% +0.4 pt INTERIORS 48 37 +29.5% % of sales 1.9% 1.4% +0.5 pt LIGHTING 81 99 -17.8% % of sales 4.4% 5.0% -0.6 pt CLEAN MOBILITY 167 187 -10.5% % of sales 8.2% 8.5% -0.3 pts LIFECYCLE SOLUTIONS 45 62 -27.6% % of sales 9.1% 11.7% -2.6 pts GROUP 722 700 +3.1% % of sales 5.4% 5.2% +0.2 pt Group operating margin expansion in H1 2025 was supported by noticeable margin improvement at Seating, Interiors and Electronics: Operating margin expanded by 90 bps at Seating, benefiting from operating leverage in Europe and China, Operating margin improved by 40 bps in Electronics, driven by further catch-up of Clarion activities and on-going improvement of HELLA's activities, Profitability was up 50 bps at Interiors, with more than 100 bps expansion in Europe but with some underperforming plants in North America, Lighting profitability was penalized by missing volumes and operational difficulties in North America but improved in Europe, Clean Mobility maintained a high-quality margin of 8.2% despite sales decline. Operating margin was around 10% excluding hydrogen activities. Lifecycle Solutions profitability suffered from an unfavorable product mix H1 SALES AND OPERATING MARGIN BY REGIONS Sales In €m H1 2025 H1 2024 Change Organic Change Currency change Perf vs. auto prod EMEA 6,570 6,518 +0.8% +1.6% -0.8% +5 pts o/w Europe 6,421 6,353 +1.1% +1.9% -0.8% +6 pts AMERICAS 3,499 3,686 -5.1% -2.4% -2.7% - o/w North America 3,116 3,283 -5.1% -4.0% -1.1% - ASIA 3,408 3,331 +2.3% +4.0% -1.7% -4 pts o/w China 2,563 2,566 -0.1% +1.5% -1.6% -10 pts o/w Rest of Asia 845 764 +10.6% +12.5% -2.0% +10 pts GROUP 13,477 13,534 -0.4% +1.1% -1.5% -2 pts FORVIA recorded outperformance in all regions but China in H1: EMEA: In a market declining by 4% (S&P Mobility July estimate), sales in Europe ex. Russia recorded positive organic growth of 1.9%, showing 6 points of outperformance, driven by Seating, Electronics and Lighting, Americas: in North America, in a market down by 4.1%, product sales (excluding tooling sales that stood at a high level in H1 2024) dropped by only 2%, slightly outperforming the market, notably supported by Electronics and Clean Mobility, Asia: China recorded organic growth of 1.5%, supported by double-digit growth with Chinese OEMs, but underperformed the market. In the Rest of Asia, growth of 12.5% represented an outperformance of 10 points. Operating income In €m H1 2025 H1 2024 Change EMEA 268 202 +32.9% % of sales 4.1% 3.1% +1 pt AMERICAS 122 166 -26.4% % of sales 3.5% 4.5% -1 pt ASIA 331 332 -0.3% of sales 9.7% 10.0% -0.3 pt GROUP 722 700 +3.1% % of sales 5.4% 5.2% +0.2 pt Operating margin evolution were contrasted by region: EMEA: Operating margin was up 100 bps where the execution of EU-FORWARD yielded first significant results, Americas: profitability was penalized by underperformance in North America on missing volumes and operational challenges at Interiors and Lighting, Asia maintained an operating margin close to double digit reflecting strong progress in Rest of Asia and light decline in China. Q2 SALES BY BUSINESS GROUPS AND REGIONS By Business Groups In €m Q2 2025 Q2 2024 Change Organic Change SEATING 2,152 2,221 -3.1% -0.3% ELECTRONICS 1,142 1,081 +5.6% +7.9% INTERIORS 1,280 1,361 -5.9% -1.4% LIGHTING 914 975 -6.2% -4.1% CLEAN MOBILITY 1,041 1,109 -6.1% -1.0% LIFECYCLE SOLUTIONS 246 256 -4.0% +0.6% GROUP 6,775 7,003 -3.3% +0.1% By RegionsQ2 2025 Q2 2024 Change Organic Change Currency change Perf vs. auto prod (bps) EMEA 3,330 3,383 -1.6% -0.3% -1.3% +2 pts o/w Europe 3,252 3,294 -1.3% -0.1% -1.2% +2 pts AMERICAS 1,766 1,904 -7.2% -1.1% -6.2% +1 pt o/w North America 1,561 1,692 -7.8% -2.9% -4.9% - ASIA 1,679 1,716 -2.1% +2.4% -4.5% -4 pts o/w China 1,259 1,320 -4.6% +0.4% -5.0% -9 pts o/w Rest of Asia 420 396 +5.9% +8.9% -3.0% +7 pts GROUP 6,775 7,003 -3.3% +0.1% -3.4% -2 pts DISCLAIMER This presentation contains certain forward-looking statements concerning FORVIA. Such forward-looking statements represent trends or objectives and cannot be construed as constituting forecasts regarding the future FORVIA's results or any other performance indicator. In some cases, you can identify these forward-looking statements by forward-looking words, such as "estimate," "expect," "anticipate," "project," "plan," "intend," "objective", "believe," "forecast," "foresee," "likely," "may," "should," "goal," "target," "might," "would,", 'will', "could,", "predict," "continue," "convinced," and "confident," the negative or plural of these words and other comparable terminology. Forward looking statements in this document include, but are not limited to, financial projections and estimates and their underlying assumptions including, without limitation, assumptions regarding present and future business strategies (including the successful integration of HELLA within the FORVIA Group), expectations and statements regarding FORVIA's operation of its business, and the future operation, direction and success of FORVIA's business. Although FORVIA believes its expectations are based on reasonable assumptions, investors are cautioned that these forward-looking statements are subject to numerous various risks, whether known or unknown, and uncertainties and other factors, all of which may be beyond the control of FORVIA and could cause actual results to differ materially from those anticipated in these forward-looking statements. For a detailed description of these risks and uncertainties and other factors, please refer to public filings made with the Autorité des Marchés Financiers ('AMF'), press releases, presentations and, in particular, to those described in the chapter 2."Risk factors & Risk management' of FORVIA's 2024 Universal Registration Document filed by FORVIA with the AMF on March 7, 2025 under number D. 24-0080 (a version of which is available on Subject to regulatory requirements, FORVIA does not undertake to publicly update or revise any of these forward-looking statements whether as a result of new information, future events, or otherwise. Any information relating to past performance contained herein is not a guarantee of future performance. Nothing herein should be construed as an investment recommendation or as legal, tax, investment or accounting advice. The historical figures related to HELLA included in this presentation have been provided to FORVIA by HELLA within the context of the acquisition process. These historical figures have not been audited or subject to a limited review by the auditors of FORVIA. FORVIA HELLA remains a listed company. For more information on FORVIA HELLA, more information is available on This presentation does not constitute and should not be construed as an offer to sell or a solicitation of an offer to buy FORVIA securities. DEFINITIONS OF TERMS USED IN THIS DOCUMENT Sales growth FORVIA's year-on-year sales evolution is made of three components: A 'Currency effect', calculated by applying average currency rates for the period to the sales of the prior year, A 'Scope effect' (acquisition/divestment), And 'Growth at constant currencies'. As 'Scope effect', FORVIA presents all acquisitions/divestments, whose sales on an annual basis amount to more than €250 million. Other acquisitions below this threshold are considered as 'bolt-on acquisitions' and are included in 'Growth at constant currencies'. In 2021, there was no effect from 'bolt-on acquisitions'; as a result, 'Growth at constant currencies' is equivalent to sales growth at constant scope and currencies also presented as organic growth. Operating income Operating income is the FORVIA group's principal performance indicator. It corresponds to net income of fully consolidated companies before: Amortization of intangible assets acquired in business combinations. Other non-recurring operating income and expense, corresponding to material, unusual and non-recurring items including reorganization expenses and early retirement costs, the impact of exceptional events such as the discontinuation of a business, the closure or sale of an industrial site, disposals of non-operating buildings, impairment losses recorded for property, plant and equipment or intangible assets, as well as other material and unusual losses. Income on loans, cash investments and marketable securities; Finance costs. Other financial income and expense, which include the impact of discounting the pension benefit obligation and the return on related plan assets, the ineffective portion of interest rate and currency hedges, changes in value of interest rate and currency instruments for which the hedging relationship does not satisfy the criteria set forth in relationship cannot be demonstrated under IFRS 9, and gains and losses on sales of shares in subsidiaries. Taxes. Adjusted EBITDA In compliance with the ESMA (European Securities and Markets Authority) regulation, the term 'Adjusted EBITDA' has been used since January 1, 2022. Net cash flow Net cash flow is defined as follow: Net cash from (used in) operating and investing activities less (acquisitions)/disposal of equity interests and businesses (net of cash and cash equivalents), other changes and proceeds from disposal of financial assets, and new or extended leases. Repayment of IFRS 16 debt is not included. Net financial debt Net financial debt is defined as follow: Gross financial debt less cash and cash equivalents and derivatives classified under non-current and current assets. It includes the lease liabilities (IFRS 16 debt). 1 Excluding commercial paper, leases and overdraft Attachment 2025 07 28 FORVIA H1 2025 RESULTS PR_ENError 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
