Earnings call transcript: Forvia Q1 2025 shows growth, stock surges

Forvia reported robust financial performance in Q1 2025, with total sales reaching €6.7 billion, marking a 2.6% year-over-year increase. The company’s stock price surged by 8.12% following the announcement, reflecting positive investor sentiment. According to InvestingPro data, the stock has delivered an impressive 13.3% return over the past week, though it remains significantly below its 52-week high of $18.79. The electronics business significantly contributed to growth, with a double-digit increase and accounting for nearly 40% of business awards in the quarter. InvestingPro analysis indicates the stock is currently undervalued compared to its Fair Value.

Key Takeaways

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• Forvia’s Q1 2025 sales rose 2.6% year-over-year to €6.7 billion.
• The company’s electronics segment experienced double-digit growth.
• Forvia announced the successful refinancing of over €1.2 billion in debt.
• Stock price increased by 8.12% after the earnings call.
• The company confirmed its 2025 full-year guidance.

Company Performance

Forvia demonstrated strong performance in Q1 2025, with sales growth driven by its electronics business and strategic program launches in Europe. The company outperformed the market in Europe by 10% and reported a 2.6% organic sales growth in China. While sales in North America declined by mid-single digits, reflecting broader market challenges, the company maintains a notable market presence with annual revenues of $27.9 billion. InvestingPro analysis highlights Forvia’s attractive dividend yield of 7.85%, making it one of the highest-yielding stocks in the automobile components sector.

Financial Highlights

• Revenue: €6.7 billion, up 2.6% year-over-year.
• Organic growth: 2.1%.
• Successful debt refinancing: Over €1.2 billion raised through €750 million in senior notes at 5.47% and $500 million in U.S. dollar bonds at 8%.

Outlook & Guidance

Forvia confirmed its full-year 2025 guidance, targeting an operating margin of 5.2-6.0% and a net cash flow of at least €655 million. The company aims to reduce its net debt to adjusted EBITDA ratio to below 1.5x by the end of 2026, reflecting a focus on deleveraging and financial stability.

Executive Commentary

CEO Martin Fischer emphasized the company’s strategic focus, stating, "We are not merely focused on managing short-term challenges, we are also building long-term momentum." He highlighted the importance of participation across all units and regions in achieving Forvia’s goals, adding, "All units, all regions participate in the efforts."

Risks and Challenges

Forvia faces several challenges, including:

• A reduced S&P global vehicle production forecast, indicating a potential 1.7% decline in global production.
• Tariff uncertainties that could impact market dynamics.
• The need for continued cost management amid macroeconomic pressures.

Q&A

During the earnings call, analysts inquired about Forvia’s strategies to mitigate tariffs and its confidence in outperforming the Chinese market in the second half of 2025. The company reiterated its commitment to exploring further debt refinancing and optimizing cash utilization to support its growth objectives.

Full transcript - Forvia (FRVIA) Q1 2025:

Conference Operator: Good morning. This is the conference operator. Welcome and thank you for joining the Forvia twenty twenty five First Quarter Sales Results Conference Call and Webcast. As a reminder, all participants are in listen only mode. After the presentation, there will be an opportunity to ask questions.

At this time, I would like to turn the conference over to Mr. Martin Fischer, CEO of Forvia. Please go ahead, sir.

Martin Fischer, CEO, Forvia: Yes. Thank you very much, and good morning, everyone. Thanks for joining us today. I wanted to be with you today to share some opening thoughts and my convictions. Olivier will then present the Q1 sales performance in detail before we will both answer your questions.

Let me start by saying that despite the global environment that remains challenging, for we have delivered a very solid sales performance this past quarter. We have accomplished organic growth of 2.1% and an outperformance of 80 basis points despite a strongly unfavorable geo mix. This demonstrates our robust market positioning and the dedication of our entire team. Looking ahead, we’ll continue to navigate particularly on certain times. So it’s only natural to ask the important questions, where is the industry heading, how resilient is Forevia’s business, what is Forevia putting in place to protect its performance.

In my long standing career in this industry, I have already seen a few cycles and a variety of stores as well. And what I’m truly convinced of is the need to remain pragmatic and agile. We need to focus on what’s within our control and that’s exactly what we are doing these days. Right now, our focus is on three key areas: operational excellence, tariffs and the balance sheet. And these measures that we are taking are designed to safeguard our business and position us for sustainable success moving forward.

So let me first and foremost talk about the operational excellence. I am challenging the organization these days to step up our operational excellence and to conserve all costs across the board that is possible. The attitude is we can always do more. In Q1 specifically, we progressed on our EU Forward initiative, which is designed to enhance the company’s long term competitiveness in the European market. This plan is well on track.

New operations represented approximately 1,100 redundancies that we announced, and it is adding to the approximately 2,900 headcount reductions from 2024. With this, our annualized savings target of €300,000,000 is confirmed by the end of twenty twenty five. This past quarter for VIA again has intensified efficiency efforts at underperforming plants with interiors in North America. As reported before, they have been impacted by several complex production launches in 2024, and I am leading a dedicated task force to turn around this business. Improvements are happening through reinforcing the local leadership through the strict application of the Fortvia accident system and faster scrap reductions.

Second important point, The U. S. Tariffs. The potential implementation of tariffs has been a long standing concern for the industry, but we have taken effective steps to address them. To date, we have already mitigated about 50% of the estimated exposure and we are on track to cover the remaining.

The mitigation measures we take include pass through agreements, the optimization of our supply chain and negotiations with suppliers. And should mini tariffs be enacted in future, we will deploy exactly the same approach with the same objectives. Together with our customers, we will also make sure to optimize our available plant capacity in The U. S. To anticipate the risks of volume pressure and to overcome potential consequences, we are maximizing flexibility in direct production costs.

Also, we are implementing additional fixed cost reductions and we further limit our investments, prioritizing CapEx efficiency. Last but not least, our balance sheet. You have observed in Q1, we have successfully refinanced several of our upcoming maturities, pushing key deadlines out to 2027. This gives us the flexibility and a longer runway to manage obligations. As you know, on top of that, our liquidity is robust, which is a great asset in today’s uncertain environment.

So let me conclude this first section with confirming our guidance. All these efficiency measures that we are implementing and around the clock commitment of our teams enable us to safeguard our performance in the current market challenges, and we will achieve our full year targets. Olivier will come back in the next step on the confirmation of our 2025 guidance in further detail. Olivier, please go ahead.

Olivier, CFO, Forvia: Thank you, Martin. Good morning, ladies and gentlemen. I would like to briefly give you more colors on our Q1 performance, starting with the revenues. In this respect, we had a good start of the year, as Martin said, with total sales of €6,700,000,000 up 2.6% compared to Q1 twenty twenty four, which came out ahead of our initial forecast. Inside this number, the organic growth, I.

E, excluding ForEx and scope, was up 2.1% in the period. This was driven by Seating, which benefited from acceleration of programs launched in 2024, notably in Europe, as well as strong sales development with BYD that recorded a strong production increase in Q1. The Electronics business grew at double digits and surpassed volume productions in all regions. Its momentum is also reflected in the order intake as Electronics accounted for nearly 40% of the business awards we got in Q1. Interiors recorded light growth, being penalized by strong comparables from last year given the level of tooling sales in the context of the high level of production launches that we had a year ago, as you know.

On the other side, Clean Mobility sales were down 7.4% on an organic basis. The decline was contained in North America and in China and was more pronounced in Europe as activity was penalized by the Commercial Vehicle segment as well as the small disposal of Earth Engineering, which was closed in Q2 of twenty twenty four. Sales in Lighting were finalized by the end of production with a major U. S. Carmaker in China and in The U.

S, while sales were up in Europe. And finally, Life Cycle Solutions continued to be impacted by the underinvestment in segments such as Agriculture and Construction. On the foreign exchange level, we had a small tailwind in Q1 related to the beginning of the year appreciation of The U. S. Dollar and the rand.

As you know, this movement of currency has reversed in the past few weeks. So we can expect under today’s exchange rates, in particular for those currencies, that the impact of currencies would be negative for the rest of the year. If I turn now to the perspective in revenues by region on our Q1 sales performance. We recorded organic growth in all regions in Q1, with one exception in North America, where sales were down mid single digits, which is volatile in particular to the level of cooling sales I mentioned, which concern Interior North America and in particular Interior Mexico in the beginning of last year. Europe had a strong start to the year.

All divisions except in Mobility posted growth, resulting in a significant outperformance of more than 10% versus market. Sitting and Electronics were particularly dynamic, benefiting from their strong market positioning and some projects ramp up. Europe was driving the outperformance of 80 basis points that we achieved at group level in Q1, which in fact is quite a good performance considering that the geographical mix that we have was a headwind of more than 400 basis points. In this context, China posted an organic sales growth of 2.6%. This performance was a mix of strong growth with Chinese OEMs, now representing more than half of the group sales in the country, and continued sales decline with international OEMs that, as you know, are losing market share.

Given our customer mix, our sales didn’t match the speed of the market in Q1. But considering the pipeline of a dozen of start up productions, mostly with Chinese OEMs, and the acceleration of already launched programs, in particular with Cheri, we confirm our ambition to outperform the market in 2025, not in fact concentrating on H2. Finally, on the Asia region, I would like to highlight that we have a double digit growth in the rest of Asia, I. E, China I. E, Asia excluding China, which is driven by strong momentum with our Japanese OEM in the electronic field.

Now coming back to the balance sheet and the maturities of our debt that Martin alluded to, you can see on this slide the activities that we had in the period. We have done two refinancing, one in euro bonds and another one in The U. S. Bond market, which improved our debt profile and reflected the market trust in Corvio Signature. Specifically, we issued a total of more than EUR 1,200,000,000.0 of debt in the period, a classic €750,000,000 senior notes due 2013, which is at 5.47 percent, including the pre hedge arrangement that we had, which was significantly oversubscribed and our first issuance in the U.

S. Dollar bond market for USD 500,000,000, due also in 02/1930 with a coupon of 8%, which represents a good diversification of our funding sources for the future and replaced financing that was actually above 8% given what we had before. All those proceeds are used to repay short term maturities and allow to largely clear our 26 maturities. Let me remind that 25 maturities are, of course, already cleared and extend our average maturity to three point four years at the end on a pro form a basis compared to three point one years at the end of twenty twenty four. Our next significant maturities are now due in February 27.

As Martin mentioned, we do confirm our 2025 guidance. Yesterday, S and P released its monthly estimate update. It shows a significant correction of the level of production expected for 2025 as a consequence of The U. S. Tariffs from 89,500,000.0 to 87,900,000.0 vehicles for the year.

It means that the global production, which was previously expected to be overall stable, is now expected to decline by 1.7%. Most of this provision, of course, is attributable to North America production locations. Considering our regional exposure, the expected cuts envisaged by S and P will represent an impact of around a bit above €400,000,000 on our €0.25 the solid start of the year above initial expectations and the large and cautious range we took for our annual ’25 sales guidance, we confirm our sales guidance provided that there is no other major disruptions in our key markets. Let me highlight in this context that the guidance has been given and reiterated at constant exchange rates. As for operating margin and net cash flow, Martin explained all the efficiency measures that are being implemented, not only for mitigations of the tariffs but also for improvement in the performance, in particular, in areas that have been underperforming in the past.

These measures are designed to calibrate and calibrated to save our 25% performance and show improvement compared to last year. We therefore confirm our objectives: an operating margin between 5.26% of sales a net cash flow at least at the level of last year, I. At least €655,000,000 an organic deleveraging of at least 20 basis points to 1.8x or below at the end of this year. Finally, Faovia continues to make progress on the front of disposals and stay fully committed to restore a solid balance sheet and reduce its leverage, I. E, net debt to adjusted EBITDA ratio to below 1.5x by the end of next year.

Yes. Thank you, Olivier.

Martin Fischer, CEO, Forvia: Let me wrap up this Q1 presentation with an update on the three strategic priorities I laid out during our February call. It’s performance, transformation and culture, as you remember. So best in class performance, which will lead to deleveraging our company. We posted a solid Q1 sales performance first of all, and the actions on operational excellence, cost savings and cash generation are already yielding results. Number two is business transformation, meaning we will from now on focus on our core portfolio.

As Olivier said, the disposal processes of assets are ongoing. It is a key priority to lay the foundation for a more profitable future. And at the same time, we are actively building a long term value creation strategy on the core portfolio. This one, we will present during our Capital Markets Day. The dates for that market day will be announced when we present our half year results on July 28.

And finally, invigorating our culture, I am preparing for a simplified structure and operational model with clear P and L responsibilities and streamlined decision making. This one, I intend to present during our H1 results call. So looking beyond quarter one, I want to emphasize that we are not merely focused on managing short term challenges, we are also building long term momentum. Working consequently on these three priorities, performance, transformation and culture, we are laying the groundwork to position Forevia for a sustainable growth. With that, I want to open the floor for your questions.

Conference Operator: The first comes from Christoph Laskawi with Deutsche Bank. Please go ahead.

Christoph Laskawi, Analyst, Deutsche Bank: Good morning. Thank you for taking my question. The first one will be just could you comment, please, on if you saw any preproduction by the OEMs in either Europe or The U. S. Ahead of the tariffs?

And following on that, is the activity level that you see into Q2 basically confirming the run rate that you had in Q1? Or is it slowing down and the volatility is increasing? And then if you could comment on potentially just the cash flow that you would expect for H1, if you can comment already? Or it might be too early considering the working capital moves? And then just one confirmation question.

Based on your guidance, So the tariffs that should come through on May 3, are they fully reflected in the guidance? Or is that not yet? And there will be an update on those still to come.

Martin Fischer, CEO, Forvia: Yes. Good morning, Christoph. Thanks for being with us. Let me take your questions concerning the market, and then I would pass over to Olivier on the financial question. First of all, what do we see right now in terms of production and call offs?

Indeed, looking into the rearview mirror, the OEMs in The U. S. Have done preproduction. So we could see early in the year that they prepared for the potential tariffs coming in then and everybody produced a bit more than was needed at the very point of the markets. We have gone through that.

So then how is it looking into the next months right now? We see very good stable call offs in EDIs. There were a number of singular announcements from OEMs of plant shutdowns. You have heard about that. You have read about that.

Not even all of them for the reason of tariffs. But right now, our call offs present themselves stable. And also some of the conversations with the OEMs show that they are not panicking but are relatively continuous now in building vehicles. So for European OEMs in particular, that can be volumes that have been on order and the OEMs want to execute these orders. And again, there is calm reaction to the tariff installment in The U.

S. Itself. So I’d say for now and for the first half, we see stability. S and P with their guidance confirms that as well, and stable situations in half one and S and P projected the 1,600,000 fewer vehicles into half two majorly. And then I would like to take your question also on the tariffs as of May 3.

This is still an ongoing discussion, right, in the administration and also between the industry and the administration what to prepare for in May. So I was in The States last week and could witness firsthand what are the arguments that are being brought forward to the administration and I sense a certain understanding that the U. S. Administration knows if they want to pull out USMCA exemption and only grant U. S.

Exemptions that it would have a tremendous impact again, right, on the industry. So as of now, we model all enacted tariffs, and we are carefully observing how this may potential tariff is going to develop. Olivier, maybe? Yes.

Olivier, CFO, Forvia: So and to echo what Martin mentioned, our confirmation of guidance is on tariffs unanswered, I. E, announced and implemented. And because we are on the we cannot project what will happen in the coming weeks. Coming back to your question on the cash flow, I expect the seasonality of cash flow, H1, H2, fairly similar to what we had in the last two years. So H1 being lower than H2.

And I would say, if the activity is stable, which is what currently we see on H1, this is it means a normal seasonality between the two semester.

Steven Benignano, Analyst, BNP Paribas: Thank you.

Conference Operator: The next question comes from Steven Benignano with BNP Paribas. Please go ahead.

Steven Benignano, Analyst, BNP Paribas: Yes, good morning. Thanks for taking my question. I have three questions. The first one is about cost savings. So it seems that you’ve accelerated your efficiency program.

Can you please give us more color on what we should expect in terms of additional cost savings this year as compared to what you have initially planned? I’m not sure to have well understood what Martin said about the €300,000,000 of savings. The second question is about China. Is the objective of above 300 bps of outperformance in 2025 still achievable? And how confident are you to mitigate the decline of legacy OEMs in the country with a greater exposure to local OEMs?

And the last question is about the guidance. So you confirm that the guidance despite the lower JVP assumptions. Does it mean that the lower end of the guidance is no more realistic? Or are you still comfortable with the full range of the guidance? Thank you.

Martin Fischer, CEO, Forvia: Yes, Steven. Thanks for your questions. Let me start on the cost savings and the mitigation of the risks that arise from the tariff side. So there’s obviously the various direct tariff mitigation actions, right, where we have to pass renegotiations, where we work with the suppliers and so on. This is not enough.

We want to really prepare for more risk, and that’s why with these additional savings measures, we now tap into the obvious ones. So there’s a strict hiring freeze implemented. We significantly reduced our travel costs. Any external costs, any cash that runs out of the company is under strict scrutiny right now. And last but not least, also market expenses, marketing expenses are going to be reduced.

We have made decisions not to go beyond the Shanghai Auto Show next week where we will be present, but we have made the decision to cancel our IAA Munich presence in fall, and we are also not going to be at CES next January. So you can see we pull all levers there, and we pull all levers all around the world. Yes, the problem arises from The U. S. Majorly, but all units are expected to contribute to these additional cost savings.

How do we read them into the forecast? I mean, it’s really a matter of risks and us and you let us confirm our guidance and we use these additional measures to be always on the safe side to guarantee we make our targets. And then you were asking about China outperformance. Yes, we still believe into half two China outperformance and this is based on the new launches that we have with Chinese local OEMs, Cherry being one prominent of them, where we now have since last year a new joint venture under which we are going to launch numerous products. And this way, our dependency on the Western, on the international OEMs is going to further decline, and this is why we are confident in the half two outperformance in China.

And then I’d also take your third question concerning the guidance and what does that volume drop mean. I’m very good now that we guided in a broader range in February, right? And some question why do you have that broad sales range? It was exactly in anticipation of that uncertainty around the tariffs. So with that, we can now say we remain in our sales band also if those 1,600,000 vehicles go out according to S and P.

Olivier, CFO, Forvia: And just to complement what Martin mentioned, you had a question on the 300,000,000 related to UFORWA. The 300,000,000 means annualized savings based on the headcount that will go out by the end of the year. So in other words, it’s more a 26 value than a 25 value. For 25, we should have your own savings of €120,000,000 1 hundred 50 and €25,000,000 versus €24,000,000 and then a further benefit coming from the headcount progressively coming out this year. So the idea of the €200,000,000 is to give you are we on track on the pace that we have to fix completely the profitability of Europe, which means an improvement of EUR 500,000,000 by 2028.

Steven Benignano, Analyst, BNP Paribas: Thank you so much. So you’ve said 120,000,000 to €150,000,000 of cost savings this year, right?

Olivier, CFO, Forvia: From year forward plus the additional measures that Martin mentioned. So in fact, the total will be higher than this in terms of the Okay.

Steven Benignano, Analyst, BNP Paribas: Very clear. Thank you so much.

Conference Operator: The next question comes from the line of Charles Henry with Abbott. Please go ahead.

Charles Henry, Analyst, Abbott: Hi, good morning. I didn’t see any disclosure of order intake in the release. So if you wouldn’t mind, please, giving us some clues on that.

Martin Fischer, CEO, Forvia: Yes. Good point, Charles. So order intake is on track. We shoot another year for €30,000,000,000 and the Q1 order intake is slightly above what we expected for that quarter one. And it is a good mix, again, across the regions.

Also for China, we have, again, significant order intake. So yes, on track.

Conference Operator: Thank you. The next question comes from the line of Ross MacDonald with Citi. Please go ahead.

Charles Henry, Analyst, Abbott: Yes, good morning. Thank you for taking my questions. I have three questions, please. Firstly, Olivier, thank you for providing that color on the first half free cash flow sequencing. Would you be able to confirm if you expect first half operating margins to be within the guidance range also?

And then secondly, on Europe, obviously, very strong outperformance in Europe. And I see S and P yesterday taking very limited cuts to the European market, I think just 12,000 units for the full year. Could you maybe talk a little bit about what you’re seeing in the European market and maybe give some color on the programs within seating and electronics that are supporting that very strong growth? And then finally, just noting the performance of Lifecycle Solutions and Clean Mobility in the first quarter, given the margin profile of those businesses, could you maybe talk a little bit about expectations moving forward for those businesses? I know some of that’s linked to Commercial Vehicles, so any green shoots in those segments would be of interest?

Yes,

Martin Fischer, CEO, Forvia: Ross. Martin, thanks for pushing this question out. Let me quickly comment on the performance of Lifecycle Solutions and Clean Mobility. We see them well on track with regard to our budgeted targets. So that’s good news, as you stated, because those are certainly good margin contributors.

Olivier, CFO, Forvia: And regarding volume, clean mobility will have a better H2 than H1 year in terms of the year on year comparison from the benefit of the transfer of activity from one customer that transfer is production capability to us and we have so it’s an additional business that will have an impact in the volume of activity of H2, which will ensure, in fact, that the overall the evolution year on year is better in H2 than H1.

Martin Fischer, CEO, Forvia: But maybe you want to

Olivier, CFO, Forvia: continue on the financial one. So you have two other questions. One, on the European units volume, which indeed S and P did not change materially for the year. It’s probably the combination of two factors. One, which is that, yes, there is a flow of exports from the commission in Europe to The U.

S. Market, and this one is expected to be impacted by the tariffs overall. And vice versa, I would say that the facts of this missing of the capital regulation over three years has enabled the carmakers to have a more solid projection of activity. So I think it’s the combination of the two that is leading to a net expected by S and P being flat. Now related to our Q1, indeed, Seating and Electronics are posting a good start of the year.

This is related to several programs coming into play. We expect that to continue, maybe not to the same extent, but yes. Of course, you can have a bit of a short term effect on the level of tooling that this year are normalizing, which can play a little bit, but tooling is not the margin center of activity. When it comes to operating margin, you are asking, if I understand correctly, the question whether H1 would be in the range that we gave for the guidance for the year. So let me first say that the guidance is for the year, 5,200,000,000.0 to €6,000,000,000 that we expect to be within this range, but probably on the low side of this range given the implementation of the cost savings action as well as the difference in volume, including China with the Chinese New Year in Q1, which means that H2 is held more than H1.

Martin Fischer, CEO, Forvia: And let’s really take that as the ambition, right? And that is one of the drivers for me to inspire the organization, to motivate the organization to say, push on these cost measures that I described. Let’s prove that half ’1 can be good. And then half two, we obviously, as Olivier said, always have a bit of a tailwind in terms of even better margins.

Charles Henry, Analyst, Abbott: That’s very clear. Thank you very much. Maybe one more question if I can squeeze that in. Martin, you mentioned in your opening remarks some of the tariff mitigations. One of those was obviously reducing CapEx.

Could you maybe talk around how much open road do you have to trim CapEx over the medium term? What regions you’re making those big CapEx cuts given, obviously, there’s potentially some need to increase CapEx if tariffs do come at the more hawkish end?

Martin Fischer, CEO, Forvia: Yes. No, absolutely. That’s a good point, Ross. I mean, I’ll show you a number first of all. We want to go from an initial €100,000,000 reduction growth from 2024 into 2025 now to €150,000,000 reduction growth.

So that’s a clearly quantified target to the organization. And where we are chasing that is across the board. So when we need new equipment, we are very cautious of what we design into this equipment. We are very aware that we can repurpose existing equipment. And we are also very keen on buying equipment where it’s the cheapest, whereas it’s quality, but the cheapest.

So this is really for new equipment. And then we have our internal marketplace where due to the capacity in Europe that we have opened and we’re running EU forward on the cost side, we look carefully also into that existing equipment. How can we use that? How can we reuse that? How can we repurpose that?

How is new business, for instance, in the defense space going to be able to utilize that CapEx that is existing? So all eyes on CapEx reduction and CapEx reutilization in the short term.

Olivier, CFO, Forvia: And I think potentially, you have also a question about U. S. Capacity utilization. We have some, I would say, possibility of larger use of our capacity in The U. S.

With the existing plants and existing footprint and CapEx we have. So I don’t know if there are other questions. There was one question by email. Should I take it?

Martin Fischer, CEO, Forvia: Sure. That’s correct.

Olivier, CFO, Forvia: So the question is, what is the size of debt refinancing left for 2026? And does it imply that you could still look to come to the bond market? Or would you use existing cash on the balance sheet? So we have EUR $550,000,000 remaining in terms of debt in ’26. And in this context, we will continue we will look at two things.

We will continue to look at the bond market. But as we mentioned at the beginning of the year, we intend to better use the cash that we have to reduce our gross debt. The objective is a utilization of EUR 500,000,000 for the year. And so we are focused on looking at the combination of the two options if it were possible by privileging the cash utilization.

Conference Operator: Ladies and gentlemen, there are no further audio questions at this time. I will now give the floor over to Mr. Martin Fischer for any closing comments. Thank you.

Martin Fischer, CEO, Forvia: Yes. Thanks, everybody, for having joined this morning. In summary, good start into the year from the sales side that we reported on. It’s good to have that in the back. And for the rest, I hope you sense that all efforts are there to deliver on our committed 2025 guidance.

I feel I’m having a very strong organization behind me. The sense of urgency is there. All units, all regions participate in the efforts. So I go with confidence into the next months. And I look forward to updating you again around our AGM and then with the half one call in July.

Thanks again for your attention.

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