Forvia reports half-year loss as Stellantis termination hits hydrogen venture

By Mathias de Rozario

July 28 (Reuters) - Car parts supplier Forvia FRVIA.PA reported a half-year loss of 269 million euros ($316 million) on Monday, led by a 136 million euro hit on assets related to a hydrogen joint venture after Stellantis STLAM.MI discontinued its hydrogen programme.

Stellantis announced the termination of the hydrogen fuel cell technology development programme in mid-July, impacting its SYMBIO joint venture with Forvia and Michelin MICP.PA that relies on the carmaker for more than 80% of its business.

"It's clear that there's a major review to be carried out, that we're trying to work responsibly," Forvia's Chief Financial Officer Olivier Durand said in a call with journalists, adding the companies were looking at possible options for the business.

While the net result swung to a loss after last year's small profit, Forvia reported a 7.8% rise in its earnings before interest, taxes, depreciation and amortization (EBITDA) to 1.76 billion euros in the first half of 2025.

The France-based group made around 23% of its sales in North America and said U.S. tariffs had no material impact on the results thanks to effective counter measures, including strict cost and cash discipline.

The U.S. struck a framework trade agreement with the European Union on Sunday, imposing a 15% import tariff on most EU goods, including cars and car parts that were previously subject to 25% duties.

"If it reduces volatility and uncertainty, it's better for all economic players," Durand said.

Forvia booked new orders worth 14 billion euros in the first half, down from 15 billion a year ago, but confirmed its full-year guidance for sales of 26.3 billion to 27.5 billion euros.

"A number of tenders were postponed because of uncertainties over certain markets, and we were affected. I expect an improvement in the second half of the year," Durand said.

($1 = 0.8515 euros)