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German automotive supplier HELLA's nine-month operating income falls on cost pressures

By Reuters News


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

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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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