2025 ANNUAL RESULTS: Performance significantly improved, solid progress on Group key priorities, on trajectory to 1.5x leverage at the end of 2026

PRESS
RELEASE

NANTERRE, FRANCE

Tuesday, February 24, 2026   

2025 ANNUAL RESULTS

• Performance significantly improved in 2025
  • Solid progress on Group key priorities
  • On trajectory to 1.5x leverage at the end of 2026
  • 2025 results demonstrate ongoing margin improvement and deleveraging, backed by strong cash flow generation

(All figures presented are before IFRS 5 application, unless stated otherwise)

• Sales of €26.2bn as reported, or €27bn at constant currency (flat year-on-year)
• Operating margin at 5.6% of sales, up 40bps vs 2024
• Net cash flow of €962m, up 47% vs 2024
• Net debt/adjusted EBITDA 1.7x vs 2.0x at end-2024, with net debt down €0.6bn to €6.0bn

• Full-year net loss of €2.1 billion (after IFRS 5 application), mostly reflecting non-cash exceptional charges related to portfolio transformation and rationalization
• Planned divestiture of Interiors Business Group, key step in sharpening portfolio focus and strengthening the Group’s financial profile
  • Advanced negotiations underway with several parties
  • Transaction would reduce net debt by at least €1bn
• 2026 Outlook: profitability gain and deleveraging to 1.5x amid softer sales

Martin FISCHER, Chief Executive Officer of FORVIA, declared:

” Rigorous execution on our three strategic priorities — delivering performance, driving business transformation and invigorating our culture — has delivered tangible results in 2025 and laid a solid foundation as we start a new chapter in FORVIA’s journey.

The strength and quality of our 2025 underlying results reflect the outstanding commitment of our teams and our unwavering focus on disciplined execution. Sustained improvement in operating margin and cash flow generation has enabled a significant reduction of our financial leverage.

We also took decisive initiatives in a transformative phase for FORVIA, reshaping our portfolio and sharpening our strategic focus. The planned divestiture of our Interiors Business Group, now in advanced negotiations, would mark a major milestone in refocusing the Group on the domains where we are best positioned to win and create long-term value. Upon completion, the transaction is expected to reduce our net debt by more than €1 billion and further strengthen our financial profile.

These strategic steps have resulted in significant non-cash exceptional charges in our 2025 accounts, reflecting clear and disciplined portfolio decisions. While they weigh on reported net income, they are fully aligned with our objective to simplify the Group, enhance resilience and position FORVIA for sustainable value-creation.

With these foundations firmly in place, today’s Capital Markets Day marks the next step in our transformation. We are presenting our new strategic roadmap, with a clear commitment to drive what matters and unlock FORVIA’s next phase of value creation.”

Safe harbour

The planned Interiors divestiture requires the application of IFRS 5 accounting treatments in financial statements. The Interiors business has been retrospectively classified as “discontinued operations”. All 2025 financial figures are presented before the application of IFRS 5, unless otherwise stated in this document.

For reference, detailed financial statements following the application of
IFRS 5 are provided in the appendices.

2025 FINANCIAL RESULTS (detailed analysis in Appendices starting page 10)

• 2025 Group consolidated sales and operating income

In 2025, global automotive production increased by 3.9% to 93.0 million light vehicles (S&P Mobility, February 2026 estimate). Strong growth in China (+10.2%) more than offset declines in Europe and North America (–0.8% and –1.2%, respectively). These regional shifts resulted in an unfavorable geographic mix effect of around 2.5 percentage points for FORVIA.

2025 organic sales flat, with product sales up 1.5%:

• Organic sales were broadly stable (–0.1%), with product sales up 1.5%, fully offset by lower tooling sales, normalizing against a particularly high 2024 base.
• Organic growth was driven by double-digit growth in Electronics and a rebound in Clean Mobility.
• Currency effects, which began to weigh from Q2 onward, had a negative impact of €797 million on sales (–3.0%), mainly due to the US dollar and the Chinese yuan.

2025 consolidated operating income of €1,456 million, up 40bps at 5.6% of sales.

Margin development was supported by all Business Groups, except Lighting.

The year-on-year improvement was driven by:

• The first tangible benefits from EU-FORWARD, combined with additional restructuring savings outside Europe, totaling €165 million,
• €63 million of synergies from FORVIA HELLA, enabling the Group to reach its €400 million target by the end of 2025,
• Rigorous control of production and operating costs, including a hiring freeze, tighter travel policies and reduced marketing expenses,
• Continued improvements in industrial performance,

and despite:

• A €146 million impact from the reduction in R&D capitalization,
• A €69 million negative currency effect.

The implementation of increased tariffs in the U.S. had no material impact, thanks to effective countermeasures.

• 2025 CONSOLIDATED CASH FLOW STATEMENT

Net cash flow rose by 47% to €962 million, with a marked improvement in quality driven by three recurring factors:

• Higher EBITDA, reaching 13.4% of sales, up 100 bps versus 2024,
• A 28% reduction in capital expenditure, driven by our capex discipline strategy and delayed programs,
• and a 15% decline in capitalized R&D, primarily driven by a 12% decrease in development costs (–€249 million) while increasing innovation spending. Both represented 6.0% of sales, compared with 7.5% in 2024.

Change in working capital and factoring generated a net inflow of €303 million, driven by strong cash collections more than offsetting the reduction in supplier payables. Outstanding receivables factoring stood at €1.2 billion at year-end 2025 vs €1.3 billion end of 2024.

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 (€105 million), new leases contracted (€178 million, reduced by 20% vs 2024) and €66 million of other flows (mainly on change in currencies), net financial debt at December 31, 2025 was reduced by 613 million vs December 31, 2024 and stood at €6,010 million.

Net debt/Adj. EBITDA ratio stood at 1.7x at end-2025, vs. 2.0x at end 2024.

• MAIN KPIs BEFORE AND AFTER IFRS 5 APPLICATION

*€823m and 3.9% of sales excluding change in factoring

• 2025 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS5)

The consolidated net income, Group share, was a net loss of €2,091 million in 2025, essentially due to extraordinary charges of around €1.85 billion, reflecting the profound Group’s portfolio transformation and rationalization.

These charges are split into three main categories:

• €920 million of impairment charges essentially related to:
  • Lighting, reflecting short-term sales projections and operational challenges,
  • Electronics (primarily Clarion Electronics), due to ongoing portfolio rationalization and a more modest growth outlook.

• Recognition of a non-cash capital loss estimated at €578 million related to the planned divestiture of Interiors, in application of the IFRS 5 accounting rule. €150 million of tax transaction costs will be booked upon closing of the deal.
• €209 million depreciation of the Group’s stake in Symbio (jointly held by Michelin, Stellantis and FORVIA), reflecting the full impact of Stellantis’ decision to halt its hydrogen activities.
• €135 million depreciation of deferred tax assets in France and Germany.

Group net result also reflected:

• Restructuring expenses

The rapid rollout of the EU-FORWARD program — with 6,400 headcount reductions announced by year-end 2025, ahead of schedule — explains the elevated level of restructuring costs, which reached €410 million. These costs are expected to have peaked in 2025 and to decline from 2026 onward.

• Net financial interest

Net financial expenses amounted to €430 million and are projected to decline.

• Income taxes

Excluding the non-cash impact mentioned above, income taxes amounted to a charge of
€251 million.

STRONG IMPROVEMENT OF DEBT MATURITY PROFILE

FORVIA raised approximately €2.7 billion new debt and repaid €3.4 billion short-term borrowings, while smoothing its debt maturity profile from 2027 to beyond 2032.

New issuances reflected a diversification of funding sources. In addition to transactions on the euro bond and Schuldschein markets, the Group accessed the U.S. bond market for the first time, issuing a total of USD 1 billion, and raised a bank loan denominated in Chinese yuan.

These proceeds were used to fully redeem 2025 maturities, buy back most 2026 maturities, and significantly reduce 2027 maturities. As a result, Group debt maturities are now well spread from 2027 to 2031 and beyond.

Overall, these transactions extended the average debt maturity to 3.4 years at year-end 2025, compared with 3.1 years at year-end 2024.

In addition, leveraging cash upstream initiatives, gross debt was reduced by €852 million to €10,280 million at end-2025 and gross cash by €243 million to €4,257m. FORVIA intends to continue upstreaming cash to further optimize gross debt and thus reduce interest costs.

2026 DIVIDEND

At its meeting on February 23, 2026, the Board of Directors decided to revise the dividend policy. FORVIA remains committed to delivering long-term capital returns to shareholders. Dividends and share buybacks will be determined based on the Group’s financial performance and financial position, including its leverage target.

Consistent with the Group’s ongoing deleveraging priorities, the Board of Directors resolved to propose that no dividend be distributed in 2026.

OTHER 2025 HIGHLIGHTS

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 centric to our product divisions in the regions, 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 driven by Chinese OEMs and Electronics

In 2025, FORVIA recorded order intake of €27 billion, compared to €31 billion in 2024, mainly reflecting delayed tenders in the context of electrification slowdown, while making further progress in upfront costs.

This order intake continued to demonstrate solid momentum in Electronics and in fast-growing regions:

• Electronics accounted for 28% of the total order intake, driven by HELLA Electronics
• Asia represented 34% and China 28% of 2025 order intake, driven by Chinese OEMs

PLANNED DIVESTITURE OF INTERIORS BUSINESS GROUP

FORVIA is in advanced negotiations with several parties to divest its Interiors Business Group.

The planned divestiture would enable to sharpen the Group’s focus on high-growth technological domains and strengthen financial flexibility while supporting the long-term development of the Interiors business under new ownership.

Upon completion, the transaction would reduce net debt by at least €1bn.

2026 OUTLOOK

The Group expects the production environment to remain volatile and uncertain in 2026. Based on S&P Mobility February estimates, global automotive production is projected at 92.8 million light vehicles in 2026, down 0.2% versus 2025. This reflects declines across all major regions where FORVIA operates (Europe: –1.8%, North America: –1.6%, China: –1.2%), resulting in a projected negative geographic mix effect of 1 point for 2026.

In this environment, FORVIA will continue to enforce rigorous cost control and disciplined cash management. The Group notably expects further support from EU-FORWARD execution and the first benefits of its SIMPLIFY program underway.

For 2026, FORVIA expects*:

• Sales between €20.0bn and €21.0bn, at constant exchange rates** (€21.3bn in 2025 after IFRS 5 restatement)
• Operating margin between 6.0% and 6.5% of sales (6.0% in 2025 after IFRS 5 restatement)
• Net Cash-flow of at least 3.0% of sales (3.9% in 2025 after IFRS 5 excluding factoring variations)
• Net debt/Adjusted EBITDA ratio at 1.5x at December 31, 2026 (1.7x at end-2025)

*The guidance assumes no major disruption materially impacting production or retail sales in any major automotive region during the year
** 2025 average exchange rates: EUR/USD = 1.13, EUR/CNY = 8.11

• Full-year 2025 consolidated financial statements have been approved by the Board of Directors at its meeting held on February 23, 2026 under the chairmanship of Michel de ROSEN.
• Audit procedures on the consolidated financial statements have been completed. The auditors are in the process of issuing their unqualified report.
• All financial terms used in this press release are explained at the end of this document, under the section “Definitions of terms used in this document”.
• All figures related to worldwide or regional automotive production refer to the S&P Global Mobility forecast dated February 2026 (93.0m LVs in 2025 and 92.8m LVs in 2026).

FINANCIAL CALENDAR

• April 24, 2026                Q1 2026 sales announcement (before market hours)
• June 4, 2026                FORVIA 2026 General Assembly (Nanterre HQ)
• July 21, 2026                 H1 2026 Results (before market hours)
• November 2, 2026        Q3 2026 sales announcement (before market hours)

A webcasted conference call will be held today from 09:30am to 1:00pm (CET) to present the FY 2025 results and the Capital Markets Day.

If you wish to follow the presentation using the webcast, please access the following link:
FORVIA 2025 Full Year Results & Capital Markets Day

A replay will be available as soon as possible.

You may also follow the presentation via conference call:

• France:                     +33 (0) 1 7037 7166
• United Kingdom:    +44 (0) 33 0551 0200
• Germany:                +49 (0) 30 3001 90612
• United States:            +1 786 697 3501

APPENDICES

2025 SALES AND OPERATING MARGIN BY BUSINESS GROUPS

Sales

Organic growth was primarily driven by Electronics and Clean Mobility.

• Seating delivered a solid first half, but second-half sales were affected by an unfavorable customer mix in Europe and in China, where its customer BYD experienced a production slowdown.
• Electronics recorded double-digit growth across all major regions, with ramp up of programs in radar and electronic power steering in Europe and North America, and strong demand from Japanese OEMs.
• Interiors achieved organic product sales growth of 4.5%; however, overall performance was weighed down by the normalization of tooling sales following exceptionally high levels in 2024.
• Lighting sales continued to be negatively impacted by the discontinuation of high-volume series programs, notably in North America and China, as well as by persistent market weakness in Europe.
• Clean Mobility returned to organic growth in 2025, supported by double-digit expansion in the Americas and a strong rebound in Europe driven by a business takeover from a major car manufacturer.
• Lifecycle Solutions resumed growth in the second half, supported by sustained activity in the commercial vehicle segment.

Operating income

Before the application of IFRS 5, all business groups delivered operating margin improvements, except for Lighting.

• Seating profitability increased by 70 basis points, primarily reflecting ongoing efficiency gains
• Electronics operating margin improved by 140 basis points, supported by performance progress at both HELLA Electronics and Clarion Electronics
• Interiors profitability rose by 20 basis points versus 2024, driven by cost-reduction
• Lighting operating margin was impacted by lower volumes and operational challenges
• Clean Mobility recorded a third consecutive year of margin expansion (+90 basis points), reflecting continued efficiency improvements
  • Lifecycle Solutions profitability returned to double-digit levels in the second half, resulting in a 40 basis-point year-on-year increase

2025 SALES AND OPERATING MARGIN BY REGIONS

Sales

Overall sales performance was impacted by an unfavorable customer mix in China.

• EMEA: Sales slightly outperformed market production volumes, despite an unfavorable customer mix in the second half and the impact of several one-off items.
• Americas: Sales were broadly in line with market volumes in North America, with strong momentum in Clean Mobility and Electronics offsetting softer activity in Interiors and Lighting.
• Asia: The Group delivered strong outperformance across Asia excluding China, supported by commercial successes with OEMs from Japan and South Korea. In China, activity was affected by a production slowdown in the second half at BYD and Li Auto, only partially offset by strong momentum with Chery.

Operating income

Operating margin trends were contrasted across regions:

• EMEA: Operating margin increased by 150 basis points, mostly reflecting the strong execution of the EU-FORWARD competitiveness program
• Americas: Profitability was impacted by operational challenges in Interiors and Lighting, which weighed on regional performance.
• Asia: Margin remained at double-digit levels, supported by strong progress across the rest of Asia and a disciplined cost-flexing approach in China.

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 www.forvia.com). 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 www.hella.com. 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”.

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).

Attachment

• 2026 02 24 FY2025 RESULTS ENG