BUZZ-Car parts suppliers Forvia, Valeo see no market improvements in 2025, shares plummet

Shares in French car part suppliers Forvia FRVIA.PA and Valeo VLOF.PA plummet about 21% and 12% respectively as they see no market improvements in 2025

Forvia and Valeo expect roughly flat y/y 2025 sales

Oddo BHF analtyst Michael Foundoukidis underlines Forvia's guidance which shows a drop in North America and Europe, and also implies a 5% cut to EBIT

He adds Forvia's FY results are likely to fuel financial health concerns as it has limited deleveraging and FCF is only driven by capex reduction

J.P.Morgan notes around 10% of Valeo 2022/2023 order intake worth 7.3 billion euros ($7.6 billion) was cancelled

The two suppliers also expresses uncertainty regarding the total impact of tariffs to be implemented by the U.S.

Shares in Forvia are on track for their worst day ever

Those in Valeo track their worst day since mid-March 12, 2020

($1 = 0.9614 euros)