HELLA (HLE) Q2 2026 earnings summary

Executive summary

• Organic/currency-adjusted sales grew 1.6% year-over-year to EUR 4.04 billion, outperforming global light vehicle production trends.

• Growth was driven by Electronics (up 4.0–6.6%) and Lifecycle Solutions (up 4.0–5.3%), while Lighting declined (down 3.6–5.3%).

• Operating income margin was 5.4%, supported by cost savings but pressured by negative volume/mix and inflation.

• Net cash flow decreased to EUR 66 million (1.7% of sales), mainly due to increased restructuring cash out.

• The Lighting Transformation Program was accelerated and reshaped to focus on bottom-line improvements and operational excellence.

Financial highlights

• Reported sales were stable year-over-year at EUR 3.972 billion, with FX effects impacting results.

• EBIT increased to EUR 169 million (4.2% margin), up from EUR 138 million (3.5%) prior year.

• Net income rose to EUR 99 million (2.5% margin) from EUR 70 million (1.8%) year-over-year.

• Gross profit margin declined to 21.6–21.7% from 23.1–23.3% year-over-year, mainly due to mix effects and lighting performance.

• R&D expenses ratio improved to 8.9% of sales; SG&A ratio down to 7.4%.

Outlook and guidance

• Full-year 2026 guidance confirmed: currency-adjusted sales of EUR 7.4–7.9 billion, operating income margin of 5.4–6.0%, and net cash flow at least 1.8% of sales.

• Electronics and Lifecycle Solutions expected to see moderate growth; Lighting sales and margin expected below prior year.

• Market headwinds anticipated to intensify in H2, especially in China, with global light vehicle production forecasted at 91.1 million units (down 2.1% year-over-year).

• Management aims to dynamically respond to market fluctuations and accelerate Lighting turnaround.