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:

Key Details

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.)