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FORVIA Adjusts FY 2024 Guidance Amid Market Uncertainties
On September 27, 2024, FORVIA announced revised full-year guidance for 2024, reflecting a conservative outlook amid challenging economic conditions. Sales estimates have been adjusted to between €26.8 billion and €27.2 billion, down from the previous range of €27.5 billion to €28.5 billion. This revision factors in ongoing issues in the European market, high car inventories in North America, and possible labor disruptions at OEMs.
FORVIA's operating margin guidance has also been revised to between 5.0% and 5.3% of sales, indicating slower interior segment recovery. The net cash flow for 2024 has been lowered to ≥ €550 million, and the net debt/Adjusted EBITDA ratio is now expected to be ≤ 2.0x by year-end.
Despite the downbeat short-term outlook, FORVIA is accelerating initiatives to enhance performance in 2025. The company aims to achieve a net debt/Adjusted EBITDA ratio of < 1.5x by the end of 2025, supported by ongoing disposal programs and targeted asset sales.
R. E.
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