Forvia FY operating margin 5.6%, estimate 5.46%

Forvia FY operating margin 5.6%, estimate 5.46%

FORVIA REPORTS FY 2024 OPERATING MARGIN OF 5.2%, IN LINE WITH GUIDANCE

FORVIA (EPA: FV.PA) reported a full-year 2024 operating margin of 5.2% of sales, aligning with its guidance range of 5.0% to 5.3%. This performance reflects resilience amid a challenging global automotive production environment, which declined by 1.1% year-over-year. The company attributed the margin stability to improved operational efficiency in its Seating, Clean Mobility, and Electronics divisions.

For the fiscal year, FORVIA achieved sales of €27 billion, representing a 0.4% organic growth rate despite unfavorable customer and geographic mix factors. The results outperformed broader industry trends, as global automotive production faced headwinds, particularly in Europe and North America. Net cash flow for 2024 totaled €655 million, matching 2023 levels and exceeding the lower bound of guidance (≥ €550 million). This was driven by reduced capital expenditures and inventory optimization.

The company also made progress on its deleveraging strategy, reducing net debt by €400 million to achieve a net debt/adjusted EBITDA ratio below 2.0x at year-end, in line with its target. Looking ahead, FORVIA outlined 2025 guidance, targeting an operating margin between 5.2% and 6.0% of sales, supported by cost-reduction initiatives and operational excellence programs.

FORVIA's 2024 results follow a strategic focus on profitability and balance sheet strength, building on momentum from 2023, when the group reduced net debt by nearly €1 billion and achieved a 5.3% operating margin. The company emphasized its commitment to accelerating deleveraging through organic measures and asset disposals, with a long-term goal of achieving a net debt/adjusted EBITDA ratio below 1.5x by 2026.

CEO Patrick Koller highlighted the team's efforts in navigating a difficult market environment, while incoming CEO Martin Fischer reiterated a focus on innovation, sustainability, and profitability in the coming year.

(https://www.forvia.com/en/press/full-year-2024-results): FORVIA FY 2024 Results Press Release, February 2025. (https://www.forvia.com/en/press/2023-full-year-results-track-deleveraging-and-power25-objectives): FORVIA 2023 Full-Year Results, February 2024.