Recently, international auto parts supplier Freya Hella released its financial results for the first half of 2025. The report shows that in the first six months of this year, the group's total sales amounted to €4 billion (approximately RMB 32.768 billion); excluding the impact of exchange rates, sales decreased slightly by 0.4%, or 1.3% on a reported basis. Overall, sales were almost flat compared to the same period last year.
In the first half of 2025, Freya Hella achieved an operating profit of €237 million (compared to €248 million in the same period last year), with an operating profit margin of 6.0% (compared to 6.2% last year). Net cash flow improved significantly to €114 million, representing 2.9% of sales (compared to 2.1% last year).
The Electronics division reported sales of €1.7 billion, a 4.0% increase year-over-year. Growth was primarily driven by the radar business, particularly the continued strong sales in the Americas following the launch of its product line last year, and the introduction of new products in Europe. Meanwhile, the division performed well in the Chinese market, particularly in areas such as low-voltage battery management systems and vehicle access systems. The division's operating profit for the first half of the year was €121 million (compared to €127 million last year), with the operating profit margin declining to 7.0% (compared to 7.6% last year).
The lighting division reported sales of €1.9 billion, a 7.3% decrease year-on-year. Freya Hella stated that this was primarily due to the gradual discontinuation of several large-scale projects, impacting business in the Chinese and Americas markets. Furthermore, the weak industry environment in Europe also negatively affected business performance in the second quarter. The division's operating profit was €63 million (compared to €66 million last year), but the operating profit margin slightly increased to 3.4%.
The Lifecycle Solutions Business Group reported sales of €501 million, a 6.6% decrease year-over-year. The division's performance was primarily impacted by reduced investment in the commercial vehicle business amid a weak economic environment, particularly in the agricultural and construction machinery sectors. Meanwhile, repair shops also reduced their investment in new equipment. In contrast, product line expansion in Asia drove stable growth in the independent aftermarket. The division's operating profit fell to €53 million (from €63 million last year), and its operating profit margin decreased to 10.6% (from 11.7% last year).
Looking ahead to 2025, Freia Hella expects full-year sales, adjusted for currency differences, to be between €7.6 billion and €8 billion, with operating profit margins remaining between 5.3% and 6.0%, and net cash flow still projected to be at least €200 million.
Freya Hella stated that its performance in the first half of the year was solid. However, the automotive industry still faces high uncertainty, and the company does not expect a full market recovery in the medium term. As part of its European competitiveness enhancement plan, the company is structurally adjusting its business layout based on market overcapacity, while increasing investment in automation, standardization, and artificial intelligence.
It is worth noting that, in addition to the "European Competitiveness Enhancement Program" launched in February 2024, Freia Hella has also launched a new strategic project, "SIMPLIFY." This project focuses primarily on simplifying business structures and processes, reducing complexity, and cutting costs. Through the "SIMPLIFY" program, the company aims to achieve annual cost savings of approximately €80 million by the end of 2028.
According to available information, Freya Hella focuses on automotive lighting (such as smart headlights and rear combination lights) and electronic solutions (such as advanced control modules and intelligent power distribution modules), and is actively developing energy management and driver assistance systems.
Recently, Freya Hella secured orders exceeding €1 billion in the field of intelligent control electronics and will provide smart headlights for NIO's latest SUV model, the Ledao L90. (Compiled)
