OPmobility

OPmobility reported economic revenues of EUR 5.8 billion, up 0.4% in a market that declined 1%, with consolidated sales up 0.2% like-for-like. Operating margin was EUR 251 million, equal to 4.8% of sales, and net income, group share, was EUR 102 million, up EUR 12 million versus last semester. Free cash flow reached EUR 167 million, broadly in line with EUR 165 million a year ago, and net debt decreased to EUR 1.3 billion, down EUR 90 million from year-end. Segment sales were EUR 2.6 billion for Exterior & Lighting (-2.9% like-for-like), EUR 1.9 billion for Modules (+2.4%), and Powertrain grew by close to 5%. Looking ahead, management said full-year free cash flow should exceed last year’s EUR 297 million, H2 should be broadly in line with H1 on seasonality, and the company expects no major change in customer volumes for the second half.

Félicie Burelle emphasized resilience in a very difficult market and said the company is focusing on what it can control: local-for-local manufacturing, cost mitigation, and structural competitiveness. She repeatedly framed competitiveness as the key to growth, pointing to multiyear initiatives in R&D efficiency, robotics, digitalization, and plant performance. She also highlighted that North America and Asia are the main growth engines, Lighting is recovering, and the company is pushing battery packs and a broader regional/customer mix.

Olivier Dabi said the semester was “extremely solid,” with operating margin of EUR 251 million, net income group share of EUR 102 million, and free cash flow of EUR 167 million, alongside net debt of EUR 1.3 billion and leverage of 1.4x EBITDA. He noted adjusted EBITDA of EUR 488 million, CapEx of EUR 256 million, and an effective interest rate of 4.3%; he also said the effective tax rate was 35.5%. He explained that H2 should see lower factoring, improved gross cash flow, and continued working-capital movements, while free cash flow is expected to exceed last year’s EUR 297 million. Liquidity remained strong at EUR 2.5 billion, including EUR 600 million of cash and EUR 1.9 billion of undrawn credit lines.

Analysts focused on Lighting breakeven, the swing in eliminations/other operating lines, Modules margin, factoring, European launch delays, GM weakness, raw-material inflation/hedging, China demand, and possible restructuring. Management said Lighting is still in recovery with more launches in H2, but declined to confirm breakeven; other eliminations should be broadly breakeven in H2. Delayed European programs are postponements, not cancellations, with some expected in Q4; GM weakness was tied mainly to slower electrification and strategy changes, and China is expected to stay negative for the year. On cash flow, factoring should return closer to last year’s level, and management said energy is hedged but raw materials are handled mainly through contractual pass-through and supplier/customer discussions.