Breaking Down Forvia SE Financial Health: Key Insights for Investors

Born in 2022 from the merger of Faurecia and HELLA, Forvia SE has swiftly climbed to become the world's 7th-largest automotive technology supplier, targeting approximately €30 billion in sales by 2025 while uniting over 150,000 employees across 40 countries to pioneer technology for mobility experiences that matter-driving safety, sustainability and automated-driving advances under a mission that ties profitable growth (Power25) to carbon neutrality ambitions by 2025, a values-led culture forged through co-design workshops that champions vision, accountability, teamwork, agility, respect and open-mindedness and reflects a long-standing commitment to ethical business as a member of the United Nations Global Compact since 2004.

Forvia SE (FRVIA.PA) - Intro

• Global rank: world's 7th-largest automotive technology supplier.
• Projected sales: approximately €30 billion by 2025.
• Workforce: over 150,000 employees worldwide.
• Geographic footprint: operations in 40 countries.
• Environmental target: on track for carbon neutrality by 2025.
• Ethics & governance: United Nations Global Compact member since 2004.

Mission

Vision

Core Values

• Safety-first engineering - prioritizing occupant and road safety across products.
• Sustainability - aggressive decarbonization and materials circularity targets.
• Innovation - rapid integration of automated driving, electrification and connected services.
• Collaboration - cross-border teams and OEM partnerships to accelerate deployment.
• Integrity - adherence to global ethical standards, reflected by long-standing UN Global Compact membership.

Strategic Focus Areas

• Vehicle safety systems - advanced occupant safety and ADAS platforms.
• Sustainable mobility - lightweight materials, emissions reduction and circularity programs.
• Automated driving & software - sensors, compute and software stacks for Level 2-4 capabilities.
• Electrification enablement - thermal management, battery components and powertrain integration.
• Global scale & local delivery - leveraging 40-country footprint to serve OEMs efficiently.

Forvia SE (FRVIA.PA) Overview

• Innovation & customer focus: develop advanced systems (software, sensors, seating, interiors, emission control) to enhance user experiences and vehicle value.
• Sustainability: reconcile decarbonization and circularity goals with growth in mobility solutions for OEMs and new mobility players.
• Stakeholder value: generate value for employees, customers, shareholders and suppliers via profitable growth and improved cash conversion.
• Profitability & cash generation: deliver on the Power25 medium-term plan to expand margins, increase free cash flow and strengthen the balance sheet.

• Accelerate electrification- and software-related content per vehicle to capture higher-value systems and recurring revenue.
• Drive industrial efficiency and procurement scale to improve margins while maintaining investment in technology.
• Enhance sustainability metrics (CO2 intensity, energy consumption, materials circularity) across the supply chain.
• Strengthen cash flow conversion to fund capex for new technologies and return capital to shareholders.

• Product transformation: scaling ADAS, software, domain controllers and electrification components to increase per-vehicle content and recurring software revenue.
• Sustainability targets: reduce CO2 emissions across operations and products; increase use of recycled materials and circularity programs.
• Operational excellence: procurement synergies, factory footprint optimization and integration gains from previous mergers to boost margins.
• Capital allocation: invest to lead in mobility tech while prioritizing cash generation and deleveraging to support shareholder returns.

Forvia SE (FRVIA.PA) - Mission Statement

• Enable freedom of movement through safer, more accessible vehicle systems.
• Design and deliver sustainable mobility solutions that reduce environmental impact across the lifecycle.
• Drive innovation that enhances everyday mobility experiences for drivers, passengers and communities.

• Human-centricity: products focused on safety, comfort and user experience - from instrument clusters and seats to ADAS and acoustics.
• Environmental stewardship: lifecycle CO2 reduction, material circularity and energy-efficient manufacturing.
• Technology leadership: investing in software, electrification components and sensing/actuation to enable next-generation mobility.

Forvia SE (FRVIA.PA) - Vision Statement

• 'We drive with vision' - inspiring and leading teams toward safe, affordable, and sustainable mobility for all.
• 'We build on accountability' - taking full ownership of responsibilities with transparency and a commitment to delivering results.
• 'We cultivate teamwork' - leveraging strengths and diversity, engaging in constructive dialogue, and involving the entire ecosystem to build a sustainable future.
• 'We embrace agility' - demonstrating situational awareness and a willingness to learn to perform successfully in a fast-changing environment.
• 'We act with respect' - building long-term relationships with stakeholders and treating them fairly, fostering a trustful and caring environment.
• 'We believe in open-mindedness' - constantly seeking innovation, listening to new business perspectives, and building an inclusive culture.

• We drive with vision - KPI: % revenue from zero-emission & ADAS products; R&D pipeline milestones (target: double electronics/software revenue share by 2027).
• We build on accountability - KPI: on-time delivery rate, cost-to-serve improvements, published governance and transparency metrics.
• We cultivate teamwork - KPI: employee engagement scores, cross-business project count, supplier collaboration metrics.
• We embrace agility - KPI: product development cycle time reduction, number of software-defined vehicle platforms delivered.
• We act with respect - KPI: supplier payment terms, safety incident rates, diversity & inclusion ratios.
• We believe in open-mindedness - KPI: patents filed, startup partnerships, share of revenue from new business models.

• Targeted synergy capture from the Faurecia-HELLA integration to fund accelerated R&D without diluting core margins.
• Balanced capital allocation: operating cash flow to sustain CapEx for electrification and electronics while returning capital through disciplined buybacks/dividend policy when feasible.
• Robust liquidity: diversified debt maturities and covenant management to support multi-year transition programs.

• Product: Scaling cockpit electronics and software platforms to increase content per vehicle and margin profile ('We drive with vision', 'We believe in open-mindedness').
• Operations: Consolidation of procurement and manufacturing footprints to improve delivery and cost (accountability & teamwork).
• Sustainability: Investments in low-carbon manufacturing and circularity initiatives to meet emissions targets and stakeholder expectations (respect & accountability).