Texte
Faurecia and HELLA, operating together as FORVIA, are today hosting their first joint Capital Markets Day from 11:00am CET, during which the Group will present Power25, its new medium-term plan to drive profitable growth, enhance cash generation and accelerate Group deleveraging.
Having embarked upon a profound transformation marked by Faurecia’s independence from Stellantis and its step-change acquisition of HELLA, the combined Group is now well positioned to be a global leader in sustainable mobility tech, in line with its newly unveiled mission statement: “We pioneer technology for mobility experiences that matter to people”.
The ambitions of FORVIA’s Power25 plan are focused on three key strategic priorities:
Drive sales growth through innovation and sustainability
Enhance profitability and lower breakeven
Generate strong cash conversion and actively manage portfolio to accelerate Group deleveraging
These are translated into the following 2025 financial objectives (based on an assumption of worldwide automotive production of 88 million units in 2025, including vehicles between 3.5t and 6t in Asia vs. 89 million in 2019, and after the estimated effect of the €1bn disposal program already announced and to be completed by end-2023):
2025 sales: c. €30bn
2025 operating margin: above 7% of sales
2025 net cash flow: 4% of sales
Net-debt-to-adjusted-EBITDA at Dec. 31, 2025: below 1.5x
During its Capital Markets Day, FORVIA will also detail Power25 actions to address short-term headwinds in 2023, such as high inflation, rising energy prices and persistent – albeit easing – supply-chain disruptions. The Group confirms the previously announced disposal program of €1 billion by end-2023. This program, combined with targeted net cash flow generation of above 1.5% of sales in 2023, will contribute to significant deleveraging as soon as the end of 2023, moving toward a targeted net-debt-to-adjusted-EBITDA ratio below 1.5 times at end-2025.