Hella Publish Preliminary ’24 Results, ’25 Outlook

Forvia Hella have presented preliminary results for the fiscal year running 1 January to 31 December 2024. In a challenging market environment, currency-adjusted sales improved by 1.3 per cent to €8.1bn; reported sales are at €8.0bn—on par with 2023. Operating income declined to €446m (versus 2023’s €486m); the operating income margin fell to 5.6 per cent (versus 6.1 per cent). At the end of 2024, net cash flow was 2.4 per cent of reported sales (the 2023 figure was 2.6 per cent). Group-wide sales development was largely driven by the Lighting Business Group. Primarily a result of the full consolidation of Chinese joint venture Beijing Hella BHAP Lighting, sales increased by 2.8 per cent to €4.0bn (versus €3.9bn in 2023). The lighting business was supported by slight growth in the American region, driven by launches for headlamp and rear lamp projects. The operating income of the Lighting BG decreased slightly to €126m (down from €132m in 2023), reducing the 2024 operating income margin to 3.2 per cent from 3.4 per cent the year before.

In the Electronics Business Group, sales fell by 2.3 per cent, from €3.4bn to €3.3bn. The radar business has gained traction, partly due to new series launches in the Americas. However, in addition to the declining industry environment, postponements of series projects, effects from the customer and product mix in China, and the electrification slowdown in Europe all dragged down business development in the electronics sector. Operating income declined slightly, from $232m in 2023 to €226m in 2024, with the operating income margin holding steady at 6.9 per cent.

In the Lifecycle Solutions Business Group, sales fell by 3.6 per cent, from €1.1bn to €1.0bn. On account of expansion of the electric/electronics portfolio, the independent spare parts business grew in key European markets. But due to an overall weaker market, major makers of agricultural and construction machinery, trucks, and trailers invested significantly less in new vehicles. So the operating income of the Lifecycle Solutions BG fell from 2023’s €128m to €99m, reducing the operating income margin from 11.9 to 9.6 per cent.

For the current fiscal year 2025, the company expect currency-adjusted sales of between €7.6bn and €8.0bn, approximately, and an operating income margin of between 5.3 and 6.0 per cent. Net cashflow is expected to be at least €200m.