PRESS
RELEASE
NANTERRE, France
February 24, 2026
FORVIA 2026 Capital Markets Day
IGNITE: Drive what matters, unlock what’s next
- Two key phases: Focus & Strengthen from 2025-2028, then Lead & Grow.
- New portfolio framework with complementary Growth and Value clusters.
- Disciplined capital allocation aligned with strategic priorities.
- Strong 2028 outlook built on robust foundations:
- Sales of €21-22 billion at constant exchange rates and including potential divestitures.
- Operating margin of at least 7.0% of sales.
- Net Cash Flow at c. 3.5% of sales.
- Leverage ratio at 1.2x.
- After 2028, FORVIA is positioned to drive the next phase with:
- Accelerated growth underpinned by technology and leadership.
- A solid financial structure enabling sustainable growth.
FORVIA today hosts its Capital Markets Day and presents IGNITE, its new strategic roadmap. IGNITE is designed to sharpen the Group’s profile, reduce complexity and enable financial flexibility through disciplined deleveraging, creating the conditions for accelerated growth and sustained net cash flow generation over the medium term.
At the heart of IGNITE lies a new portfolio framework, with:
- a Growth cluster (Electronics and Seating) doubling down on leadership positions to accelerate growth and profitability,
- a Value cluster (Clarion, Clean Mobility, Lifecycle Solutions and Lighting) managed with a clear focus on performance and value optimization.
Martin Fischer, Chief Executive Officer of FORVIA, commented: “IGNITE marks the start of a new strategic chapter for FORVIA, setting a clear direction for the Group’s transformation in a rapidly changing automotive environment. This roadmap sharpens our focus, affirms our leadership and aligns our portfolio around the technologies that will shape the future of mobility – enabling FORVIA to drive what matters to unlock what’s next.
IGNITE builds on the priorities guiding our actions – best-in-class performance, business transformation and an invigorating culture – already reflected in our 2025 performance and recent portfolio changes, including the planned divestiture of our Interiors business.
IGNITE brings discipline and momentum through a clearer portfolio framework, improved capital allocation and operational excellence. It reflects our confidence in Electronics and Seating, underpinned by strong technology, innovation and global scale advantages, as well as our commitment to value-creation across the rest of the portfolio. This approach will enhance profitability, drive sustainable cash generation and support continued deleveraging, reinforcing FORVIA’s resilience and strategic flexibility.
Drawing on the expertise of our increasingly empowered and accountable teams, IGNITE supports FORVIA’s ambition to expand its global reach and leadership in key markets and technologies. It is by playing to our strengths, accelerating innovation and executing with discipline that we will deliver long-term value.”
IGNITE: a two-phase transformation roadmap
The first phase, Focus & Strengthen (2025 to 2028), will reinforce FORVIA’s operational and financial foundations, through portfolio simplification and disciplined execution. This will drive higher profitability and continued deleveraging through cash generation.
This phase is already underway, supported by significant cost-reduction programs (EU-FORWARD and SIMPLIFY) and investment discipline (capped below 7% of sales) The progress achieved in 2025 on profitability, cash generation and deleveraging, combined with the planned Interiors divestiture, provides early and tangible evidence that this strategy is delivering.
After 2028, FORVIA will enter the Lead & Grow phase. Building on stronger foundations, a more focused portfolio and a reinforced balance sheet, the Group will consolidate its market and technology leadership positions to accelerate profitable growth and deliver sustainable, long-term value-creation.
A new portfolio structure driving leadership and performance
By realigning FORVIA’s portfolio to capture its full business potential, IGNITE will:
- sharpen focus on key growth drivers by concentrating FORVIA’s resources on the strongest opportunities to lead
- reinforce capital allocation discipline by clarifying the role of each business in balancing growth, cash generation and strategic flexibility
Growth and Value: two distinct and complementary clusters
FORVIA’s portfolio will be organized around two clusters, with differentiated roles in the Group’s value-creation model. The new structure will support our ambition to accelerate profitable long-term growth through reinforced leadership in key technologies, faster innovation and expansion of our customer portfolio and global reach, backed by disciplined investment.
The Growth cluster is centered on Electronics and Seating, where FORVIA combines strong exposure to fast-developing markets with a clear right-to-win.
- With €3.1 billion in 2025 sales, FORVIA’s Electronics portfolio is closely aligned with structural trends driving the broader automotive transformation, in areas such as software-defined vehicles, electrification and enhanced in-cabin user experiences. With strong competitive advantages derived from its technology and market leadership, as well as trusting OEM relationships, the Electronics business is targeting €3.8–€4.2 billion in sales by 2028 with an operating margin of at least 8.0% (versus c. 7.5% in 2025). After 2028, the business is expected to achieve an annual organic growth rate of at least 12%, thanks to FORVIA’s leadership in dynamic technology segments.
- Seating, the second pillar of FORVIA’s Growth cluster had sales of €8.2 billion in 2025, underpinned by strong global leadership positions and significant scale. FORVIA is leveraging innovation to drive higher content per vehicle, supported by advances in comfort, wellness, safety and sustainability, while expanding in high-potential markets such as India and in commercial vehicle segments. Seating is expected to achieve
€8.7–€9.1 billion in sales by 2028 with an operating margin at least 6.5% (versus 5.5% in 2025). Sales growth is set to accelerate to approximately 4% annually beyond 2028.
The Value cluster brings together Clean Mobility, Lifecycle Solutions, Clarion and Lighting. While each business plays a distinct role, the overall focus is on driving performance, generating cash and providing strategic flexibility.
- Clean Mobility and Lifecycle Solutions are focused on cash generation, supported by sustainable double-digit margins.
- Clarion and Lighting offer operational upside by unlocking margin potential, rationalizing costs and maintaining disciplined investment levels.
Reflecting its relatively low organic growth and including potential divestments, Value cluster sales are expected to adjust to €8.4-€8.8 billion in 2028 (versus €10 billion in 2025), with the operating margin expanding to at least 7.0% over the same period (versus 5.9% in 2025).
Best-in-class performance as a core execution engine
Best-in-class performance is a central pillar of IGNITE and a critical enabler of both phases of the plan. The Group’s approach builds on the FORVIA Excellence System — our industrial backbone and global lean performance system. It underpins execution discipline and profitability across operations, reinforced by a strong track record in safety, customer satisfaction and sustainability. This is complemented by the SIMPLIFY and EU-FORWARD initiatives, which are already delivering tangible benefits.
Through IGNITE, FORVIA is scaling its end-to-end performance agenda across the full value chain, from R&D and engineering to industrial operations, supply chain and productivity. The priorities for this agenda include strengthening operating resilience, optimizing investment structure, improving cost management and maximizing competitive advantage using digital and AI capabilities.
Culture and organization: enabling speed, accountability and execution
IGNITE is underpinned by an invigorated culture and organization. The Group is evolving its organization to become simpler and faster. FORVIA is implementing a new operating model based on regional divisions which have closer proximity to customers and end markets, along with greater responsibility for capital allocation, operational priorities and execution.
In parallel, FORVIA is reinforcing its leadership culture, with a strong focus on accountability, empowerment and collaboration. Clear leadership principles are being embedded across the organization to support faster decision-making, stronger ownership and collective performance.
Detailed Financial Trajectory
| From 2025… proforma* | …to 2028 | After 2028 | |
| Sales in €bn | 21.3 | 21.0-22.0 at constant exchange rates** ≥ 2% organic CAGR | |
| o/w Growth Cluster | 11.3 | 12.6-13.2 | Electronics CAGR ≥12% Seating CAGR ≥4% |
| o/w Value Cluster | 10.0 | 8.4-8.8 Including potential divestitures | |
| Operating Margin in % of Sales | 6.0% | ≥7.0% | |
| o/w Growth Cluster | 6.1% | ≥7.0% | Continued progress |
| o/w Value Cluster | 5.9% | ≥7.0% | Recurring performance |
| Net Cash Flow in % of Sales | 3.9%*** | ~3.5% | |
| Leverage Ratio Net Debt/EBITDA | 1.7x (before IFRS 5) | 1.2x | Solid financial structure enabling sustainable growth |
* 2025 accounts were restated for the divestment of Interiors in application of IFRS5
** 2025 average exchange rates: EUR/USD = 1.13, EUR/CNY = 8.11
***excluding change in factoring
The financial trajectory is based on a production volume of 94.9 million vehicles (S&P Mobility, February 2026) and assumes that no further major disruptions materially affect production or retail sales in any of the main automotive regions.
FORVIA remains committed to long-term capital returns to shareholders. The dividend and share buybacks, conditional upon the Board decision, will take into account the Group results and its financial position, including the leverage target.
IGNITE, deliver what matters to unlock what’s next
Together, these priorities position FORVIA for disciplined and profitable growth from a position of strength. By refocusing the portfolio, unlocking value through technology and leadership, and placing people and performance at the heart of the transformation, FORVIA is building a more resilient and agile Group. This transformation is driven by technological leadership, trusted partnerships and the empowerment of every Forvian — creating sustainable value over the long term.
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A webcasted conference call will be held today from 09:30am to 1:00pm (CET) to present the FY 2025 results and the Capital Markets Day.
If you wish to follow the presentation using the webcast, please access the following link:
FORVIA 2025 Full Year Results & Capital Markets Day
A replay will be available as soon as possible.
You may also follow the presentation via conference call:
- France: +33 (0) 1 7037 7166
- United Kingdom: +44 (0) 33 0551 0200
- Germany: +49 (0) 30 3001 90612
- United States: +1 786 697 3501
| Press | Analysts |
| Christophe MALBRANQUE Group Influence Director +33 (0)6 21 96 23 53 christophe.malbranque@forvia.com | Adeline MICKELER Group Vice President Investor Relations +33 (0) 6 61 30 90 90 adeline.mickeler@forvia.com |
| Audrey ÉPÈCHE Head of Media Relations +33 (0) 6 15 98 23 53 audrey.epeche@forvia.com | Sébastien LEROY Group Deputy Investor Relations Director +33 (0) 6 26 89 33 69 sebastien.leroy@forvia.com |
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