FORVIA improves profitability despite lower sales in H1 2026
2026.09.10 - 09:00
• FORVIA reported H1 2026 sales of €10.51 billion, down 4.3% year-on-year and 1.9% organically. • Operating income increased by 1.6% to €632 million, while the operating margin improved from 5.7% to 6.0%. • Performance varied sharply between business groups: Electronics and Clarion grew strongly, while Seating and Lighting recorded significant declines. • China remained particularly challenging, with FORVIA sales in the country falling 20.1% on a reported basis.
Automotive supplier FORVIA reported improved profitability and cash generation in the first half of 2026 despite a decline in overall sales, highlighting the diverging performance of its businesses and automotive markets. Group sales reached €10.51 billion, down 4.3% compared with the first half of 2025. At constant scope and currencies, the decline was 1.9%. Despite lower revenue, operating income increased by 1.6% to €632 million. The operating margin improved from 5.7% to 6.0%, while net cash flow increased by 18.8% to €432 million. Performance differed considerably between FORVIA's activities. Seating, the group's largest business, recorded sales of €3.84 billion, down 10.7% year-on-year and 9.3% organically. Electronics moved in the opposite direction, with sales increasing 4.9% to €1.68 billion, corresponding to organic growth of 7.3%. Clean Mobility sales declined 4.6% to €1.95 billion, while Lighting fell 6.1% to €1.74 billion. Clarion recorded the strongest growth, with sales increasing 13.7% to €777 million and organic growth reaching 22.8%. Regional performance also shows significant differences. EMEA sales remained broadly stable at €5.32 billion despite a 2.6% decline in regional automotive production. Sales in the Americas decreased 1.2% on a reported basis but increased 4.4% at constant scope and currencies. China was considerably more difficult. FORVIA generated €1.80 billion in the country, representing a reported decline of 20.1% and an organic decline of 19.3%. The company is simultaneously reshaping its portfolio under its IGNITE strategy. Its activities are being organised around a Growth cluster, comprising Seating and Electronics, and a Value cluster focused on performance and cash generation. The planned divestment of the Interiors business remains on track for completion in the fourth quarter. FORVIA confirmed its full-year 2026 guidance. For the European automotive supply chain, the results illustrate a broader transformation: growth is increasingly uneven across technologies, regions and customer segments, while suppliers are responding through portfolio restructuring, cost discipline and a stronger focus on businesses capable of generating sustainable margins and cash flow.