1H26: Operating margin beat, FY guide confirmed

Research evidence excerpt

1H26: Operating margin beat, FY guide confirmed

tive production in all regions except Source: Company data, Visible Alpha consensus, Morgan Stanley Research

estimates (e); Y/Y = year on year

China, with the Americas leading outperformance at +4pp (o/w North America

(+5pp), offset by Asia at -11pp (o/w China -14pp), resulting in group

Exhibit 2 : Forvia Operating margin in context

underperformance of -1pp. In both Europe and the Americas, organic growth and

15%

outperformance was primarily driven by Electronics, Clarion, and Clean Mobility,

10%

largely offsetting the decline in Lighting. In China, Seating was significantly

5%

penalized by an unfavorable customer mix and to a lesser degree, Clean Mobility by

the acceleration of electrification. At a divisional level, the Growth cluster declined 0%

4.8% organically, penalized by unfavorable customer mix in the Seating business in -5% Operating Margin (%)

China, whilst the Value cluster increased 1.5%, driven by Clarion and Lifecycle -10% Consensus

solutions. Within the Growth cluster, Electronics continued solid organic growth -15%

1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 2H24 1H25 2H25 1H26

momentum (up +7.3% y/y) supported by radar and energy management

technologies in Europe and North America, largely offset by a 9.3% organic sales Source: Company data, Visible Alpha consensus, Morgan Stanley Research

decline in Seating due to continued weakness in China and particularly BYD

production. Morgan Stanley does and seeks to do business with

companies covered in Morgan Stanley Research. As a result,

1H26 margins ahead of cons; deleveraging on track.