Forvia: third-quarter sales down 0.6% organically, outperforming the auto market
Forvia published third-quarter revenue of €5.1 bn on November 2, 2026, down 0.6% organically, while global automotive production fell 1.6%. The supplier thus outperformed the market by 100 basis points, compared with a negative gap of 80 basis points over the first nine months.
This improvement is based on Europe, North America and the rest of Asia, while China posted an organic decline of 17.2%. The group has also obtained all regulatory approvals to sell Interiors, a transaction that is expected to reduce its net debt by more than €1.0 bn.
Sales of €5,079 M and outperformance of 100 basis points
Consolidated revenue came to €5,079 M, compared with €5,029 M a year earlier. The reported increase of 1.0% stems from a favorable currency effect of 1.6%, which offset the organic decline of 0.6%.
Over the first nine months, sales reached €15,588 M, compared with €16,015 M, a decrease of 2.7% as reported and 1.5% organically, with a negative currency effect of 1.2%. Over this period, global production declined by 0.7%.
By business segment, Electronics grew 7.0% organically in the third quarter to €841 M, and Clarion rose 22.0% to €430 M. Seating, the largest contributor with €1,796 M, declined 4.4%, a decrease that the group says is half that of the first half.
Lighting fell 7.8%, a trend the group presents as consistent with the expected trajectory of stabilization of activity in 2027. Clean Mobility declined 3.0%, with activity up in North America and clearly down in China.
Europe up 4.1%, China down 17.2%
In Europe, the group's largest region with €2,290 M in sales for the quarter, activity grew 4.1% organically. This represents an outperformance of 390 basis points relative to local production, driven by Seating and the double-digit growth of Electronics.
In North America, organic growth stands at 0.4%, an outperformance of 510 basis points, mainly thanks to Clean Mobility and Clarion. The rest of Asia grew 13.6% organically, to €413 M, supported by Clarion.
China accounted for €945 M in sales, compared with €1,058 M a year earlier, an organic decline of 17.2%. According to the group, this decline reflects the persistent weakness of production by international automakers in the country.
In parallel, Forvia reports progress with Chinese automakers, notably thanks to the rebound in BYD's production and growth with Chery. On October 22, 2026, the group had announced the extension outside China of its partnership with Great Wall Motor.
Interiors disposal expected in the fourth quarter, objectives confirmed
The sale of Interiors to Apollo, subject to a definitive agreement signed on April 26, 2026, has obtained all required regulatory approvals, including those of competition authorities. Its completion is expected in the fourth quarter of 2026.
The entire proceeds from the sale will be used for debt reduction: net debt is expected to fall by more than €1.0 bn and gross debt by more than €1.4 bn. According to the group, the transaction should cover the bulk of debt maturities in 2027.
Faced with inflation in raw materials, energy, memory chips and printed circuit boards, Forvia says it relies on contractual indexation and the recovery of cost increases from customers. The group is also pursuing its EU-FORWARD and SIMPLIFY fixed cost reduction programs.
Forvia has confirmed its 2026 objectives: revenue between €20 bn and €21 bn at constant exchange rates, an operating margin of 6.0% to 6.5%, net cash flow of at least 3.0% of sales, and a net debt to adjusted EBITDA ratio of 1.5 times at December 31.
Before the publication, the consensus of twelve analysts for annual revenue stood at €20.69 bn, within this range. These targets are based on global production of 91.6 million light vehicles in 2026, with S&P Global Mobility anticipating a 4.2% decline in the fourth quarter.
