Forvia: 1H‘26 First Take: Strong first half beating expectations

First-page research excerpt

J P M O R G A N

Europe Equity Research

31 July 2026

Forvia

Overweight

1H’26 First Take: Strong first half beating expectations

FRVIA.PA, FRVIA FP

Price (30 Jul 26):€9.55

Price Target (Jun-27):€39.00

Our Take: All in all, a solid beat to company-sourced expectations with operating

margin expanding by 30bps to 6.0%, supported by successful self-help initiatives

and disciplined cost management. The improvement was primarily driven by the

Value Cluster (+0.6 pt), despite the expected decline in Lighting, and

supplemented by the Growth Cluster (+0.2 pt).

European Autos & Auto Parts

Jose M Asumendi AC

(44-20) 7742-5315

J.P. Morgan Securities plc

Piyush Singla

(91-22) 6157-3324

J.P. Morgan India Private Limited

Table 1: Forvia 1H 2025

€ in million, %

Value Added Sales

Operating Income

Operating Margin

1H25 A

10,986

623

5.7%

1H26 A

10,509

632

6.0%

YoY

-4.3%

1.4%

34 bps

1H26 JPMe

10,435

584

5.6%

1H26 Cons.

10,637

602

5.7%

% Diff JPMe

0.7%

8.2%

41 bps

% Diff Cons.

-1.2%

5.1%

36 bps

Source: Company data, J.P. Morgan estimates

Noteworthy Areas: 1) Operating margin expanded by 30bps to 6.0%,

supported by successful self-help initiatives and disciplined cost management.

The improvement was primarily driven by the Value Cluster (+0.6 pt), despite

the expected decline of Lighting, and supplemented by the Growth Cluster

(+0.2 pt). 2) Interiors: Interiors divestiture on track for closing in Q4; building

momentum on cultural transformation. 3) Restructuring: Restructuring

expenses amounted to €156 million in H1 2026, down €46 million year-onyear, reflecting the peak level reached in 2025 following the accelerated rollout

of EU-FORWARD and the launch of SIMPLIFY. 4) One-off items: The

expected closing of the divestiture in H2 2026 will result in tax charges at

closing and the recycling of currency translation reserves, estimated at

approximately €150 million. 5) Net Income: Net income, group share,

improved by €272 million improvement year-on-year. 6) Before IFRS5, net

debt was reduced by €0.5 billion to €5.5 billion. Net debt-to-adjusted

EBITDA ratio improved to 1.6x at June 30, 2026, compared with 1.8x at June

30, 2025 and 1.7x at December 31, 2025.

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