Forvia Boosts Operating Profits and Cash Flow in H1 2026
Nanterre, Friday, 31 July 2026.
Despite a 4.3% revenue decline to €10.5 billion, auto supplier Forvia expanded its H1 2026 operating margin to 6.0% and surged net cash flow by 18.8% to €432 million.
Operational Efficiency Drives Margin Growth
The automotive supplier’s operating income rose to €632 million, representing an operating margin of 6.014 percent of sales, an improvement of 30 basis points compared to the previous year [1]. This expansion occurred despite a reported sales decrease of 4.3% to €10,509 million, highlighting the company’s focus on profitability over volume during a period of macroeconomic volatility [1]. Net cash flow generation proved particularly robust, increasing by 18.8% to reach €432 million, which equates to 4.1% of sales [1]. The Board of Directors reviewed and approved these results on July 30, 2026, prior to the public release on July 31, 2026 [1][2]. Financial leverage also showed improvement, with the net debt-to-Adjusted EBITDA ratio decreasing to 1.6x from 1.8x in the first half of 2025 [1].
Ignite Roadmap and Portfolio Transformation
Execution of the ‘Ignite’ strategic roadmap remains central to the company’s financial structure, highlighted by the planned divestiture of the Interiors division [1]. The sale of the Interiors business to Apollo, agreed upon on April 26, 2026, is expected to close in the fourth quarter of 2026, subject to regulatory approvals [1]. This transaction is projected to reduce net debt by at least €1.0 billion and gross debt by at least €1.4 billion upon completion [1]. Consequently, the company has confirmed its full-year 2026 guidance, anticipating sales between €20 billion and €21 billion at constant exchange rates [1]. Capital expenditure for the full year is expected to range between 6.0% and 6.5% of sales, supporting ongoing innovation and restructuring efforts [1].
Strategic Expansion in Emerging Markets
Parallel to its financial restructuring, the group is expanding its industrial footprint in India with a new dedicated manufacturing plant for complete seat assembly [3]. This facility, marking the company’s 10th manufacturing site in India, is scheduled to begin production in 2027 and will utilize proprietary Cover Carving Technology [3]. The expansion aligns with record automotive market sales in India, which reached 2.6 million vehicle sales in the first half of 2026 [3]. Furthermore, the company continues to strengthen its engineering capabilities in the region, employing over 2,400 technical experts and filing 61 patent applications since the start of the year [3]. These developments underscore a broader strategy to localize production and capture growth in high-demand markets while maintaining global operational resilience [1][3].