German automotive supplier Hella, which operates under the umbrella brand Forvia, announced that in the first nine months of fiscal year 2025 (Jan. 1 to Sept. 30, 2025), the Lifecycle Solutions Business Group sales decreased by 4.2% year over year to €0.7 billion (previous year: €0.8 billion).

The company said that the independent aftermarket business remained generally stable, supported by an expanded product offering in the Asian market. However, low investment activity among agricultural and construction machinery manufacturers negatively impacted the commercial vehicle business. "Nevertheless, the stabilization observed in this Business Group during the second quarter continued further in the third quarter, resulting in slight sales growth for this selective period," according to a press release.

In overall group-wide sales, the company posted a slight growth in currency-adjusted sales by 0.4% to €6.0 billion. Taking negative exchange rate effects into account, sales remained at €5.9 billion, therefore largely maintaining the level of the prior year, according to the press statement. The company maintained its operating income margin at 5.8% with operating income at €338 million (previous year: €344 million). Net cash flow improved significantly to €68 million (previous year: -€8 million), raising the ratio of net cash flow to sales to 1.2% (previous year: -0.1%), it said.

In a statement, CEO Bernard Schäferbarthold said, “In the first nine months of the current fiscal year, we have continued to demonstrate strong resilience and adaptability. In a volatile industry environment, where only the Asian market is growing, we have managed to keep both sales and earnings stable and to significantly improve our net cash flow ... our various strategic and structural initiatives are paying off as well: Not only by improving our global cost base and supporting efficient capital allocation, but above all by strengthening our position in an increasingly competitive market for the long term.”

Electronics Business Group sales, driven by demand for radar sensors and vehicle access systems in Europe and China, increased by 5.6% to €2.6 billion. "In Europe and China, Forvia Hella's electronics business benefited from higher demand for vehicle access systems. Additionally, in China, the low-voltage battery management systems business developed successfully," the statement added.

Conversely, Business Group Lighting saw its sales drop 8.5% due to weak market conditions and phaseouts in key regions. 

For its forecast for fiscal year 2025, the company continues to expect currency-adjusted sales between €7.6 billion and €8.0 billion, with an operating income margin in the range from 5.3% to 6.0%. Net cash flow is expected to be at least €200 million.

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