HELLA (HLE) investor relations material

Executive summary

• Currency-adjusted sales were stable at €2,001 million (+0.2% YoY), but reported sales declined 2.9% to €1,939 million due to negative FX impacts.

• Electronics and Lifecycle Solutions segments grew, while Lighting experienced a significant sales decline.

• Cost reduction measures, especially in R&D and SG&A, supported profitability and improved net income and cash flow.

• Net cash flow improved year-over-year to -€49 million, aided by strict CapEx governance and lower restructuring costs.

• The outlook for 2026 is confirmed despite a challenging market environment, declining global light vehicle production, and geopolitical risks.

Financial highlights

• Reported sales: €1,939 million, down 2.9% year-over-year; organic growth at +0.2%.

• Operating income (OI) margin at 5% for Q1, mainly impacted by Lighting; EBIT increased 21.3% to €60 million.

• Net income increased to €32 million (1.7% margin), up 33.8% year-over-year.

• Net cash flow improved to -€49 million from -€61 million in Q1 2025; net cash flow/sales ratio at -2.5%.

• CapEx reduced to €82 million from €135 million year-over-year; tangible CapEx down 39% YoY.

Outlook and guidance

• 2026 sales guidance confirmed at €7.4–7.9 billion (currency and portfolio adjusted).

• OI margin expected between 5.4% and 6% of sales; net cash flow at least 1.8% of sales.

• Guidance based on S&P Global Mobility forecast of 91.4 million light vehicles produced globally, down 1.8% year-over-year.

• No significant improvement expected in Lighting segment for 2026; new program ramp-ups to benefit future years.