PARIS (Reuters) -Forvia climbs on Monday on the stock market on Monday after having confirmed its 2025 objectives despite a difficult context in the first half and after the announcement of a trade agreement between the United States and the European Union likely to appease uncertainties on customs duties.

The automotive supplier, whose sales fell 0.4% in the first half due in particular to exchange effects, saw its operating margin increase from 20 base points to 5.4% and its Cash Flow net double to 418 million euros.

The Forvia action is 11%, at the top of the SBF120 index.

“It is a solid set of results from Forvia in a difficult context, with online sales with consensus, an EBIT 4% higher than consensus and a significantly higher net cash flow, thanks to significantly declining investment expenditure,” comments Jefferies in a note.

The group launched a reorganization plan, “Simplify”, to reduce its cost base by an additional 110 million euros by 2028. It will also present its next medium -term strategic plan, to which the new managing director Martin Fischer, fell, on February 24, 2026,

Forvia confirmed to target a turnover between 26.3 and 27.5 billion euros over 2025, as well as an operating margin between 5.2% and 6% “taking into account the customs duties set up to date”.

Olivier Durand said that the customs duties agreement announced on Sunday between the United States and the European Union, with a rate of 15% for automotive imports, did not change the 2025 forecasts.

“All other things being equal, this agreement has two advantages: these are customs duties lower than what had been exercised for a few months by the American administration, and if it reduces volatility and uncertainty, it is better for all economic actors,” he said.

The group, specializing in seats and lighting,, on the other hand, reports a net loss, starts from the group, of 269 million euros in the first half due to a depreciation of assets of 136 million euros non-cash linked to the co-company of Hydrogen Symbio, shaken by the withdrawal of Stellantis.

Forvia had released a net profit last year at the same time, part of the group, of 5 million euros. But mid-July, the automaker Stellantis announced the cessation of its program to develop the technology of hydrogen batteries, which represented more than 80% of the business volume of the symbio co-enterprise also owned with Michelin.

As part of its deleveraging, Forvia priority, “it was decided to reduce the cash consumption of hydrogen -related activities while maintaining their long -term strategic potential,” the group said in a statement. “At the same time, the asset disposal procedures have progressed, the number of eligible assets having been revised upwards and processes for significant transfers being in progress.”

“The context is complicated, we will make transactions when we find conditions that are correct. There may be this year, there may be next year,” added financial director Olivier Durand during a press teleconference.

Forvia managed to bring back its debt ratio to 1.8x at the end of the first half, consolidating its objective of a debt/Ebitda ratio adjusted less than or equal to 1.8 at the end of the year, and less than 1.5 in 2026.

(Gilles Guillaume and Mathias de Rozario, with Claude Chendjou, edited by Augustin Turpin and Kate Entringer)

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