German automotive supplier HELLA's nine-month operating income falls on cost pressures
German automotive supplier HELLA's nine-month operating income falls on cost pressures
Overview
Germany automotive supplier's fiscal nine-month sales rose 1.0% yr/yr, outpacing vehicle production
Operating income declined 13% to 294 mln euros, due to cost pressures and lower Lighting sales
Company confirmed full-year outlook despite challenging market conditions
Outlook
HELLA confirms 2026 outlook for currency-adjusted sales of €7.4-7.9 bln
Company now expects 2026 sales to be in upper half of forecast range
HELLA expects 2026 operating income margin at lower end of 5.4%-6.0% range
Result Drivers
ELECTRONICS GROWTH - Co said sales in Electronics business rose 5.2% driven by demand for radar sensors, control electronics and energy management components
LIGHTING SALES DECLINE - Co said Lighting sales fell 6.3% due to weaker industry environment, lower customer call-offs and end of large-volume projects
COST PRESSURES - Co said operating income margin declined due to additional cost pressures and price increases for electronic components
Company press release: ID:nEQ73dLGqa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
9M Adjusted Sales |
| EUR 5.93 bln |
|
9M Operating Income |
| EUR 294 mln |
|
9M Operating Margin |
| 5.00% |
|
Analyst Coverage
The current average analyst rating on the shares is "sell" and the breakdown of recommendations is no "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy."
Wall Street's median 12-month price target for HELLA GmbH & Co KGaA is €70.00, about 0% even its October 29 closing price of €70.00
The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 37 three months ago
Reuters Recommended Reads
Oct 30 - Audi cuts 2026 outlook on China weakness, price pressure
Oct 30 - Earnings give European auto stocks respite as China reshapes the industry
Oct 29 - Volkswagen posts deepest loss since Dieselgate on Porsche writedown, China woes
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)