Faurecia Reports €269 Million Loss in First Half of Year Due to Stellantis Withdrawal

Faurecia, the automotive parts supplier, announced a net loss of €269 million (approximately $316 million) for the first half of the year. The primary reason for this loss was the withdrawal of Stellantis from its hydrogen energy joint venture, resulting in asset losses of €136 million. Stellantis announced in mid-July this year the termination of its hydrogen fuel cell technology development project, which impacted its joint venture with Faurecia and Michelin, SYMBIO, where over 80% of the business relies on Stellantis. Olivier Durand, Faurecia's Chief Financial Officer, stated during a media conference call, 'Clearly, we need to conduct a comprehensive business assessment, and we are working responsibly to move forward.' He added that the company is exploring various potential solutions for its hydrogen fuel cell business. Despite the net profit turning from a slight gain in the same period last year to a loss, Faurecia reported a 7.8% increase in adjusted EBITDA for the first half of 2025, reaching €1.76 billion. Operating profit increased by 3.1% to €722 million, with an operating margin of 5.4%, up from 5.2% last year. Sales remained roughly stable compared to last year at €13.477 billion, down slightly by 0.4%. Additionally, Faurecia secured €14 billion in new orders during the first half, a decrease from €15 billion in the same period last year, but the company maintained its annual revenue forecast of between €26.3 billion and €27.5 billion. Durand mentioned, 'Due to uncertainties in certain markets, some bids have been delayed, which has also affected us. I expect conditions to improve in the second half.' The France-based auto parts group reported that about 23% of its sales come from the North American market and noted that effective measures such as stringent cost management and cash control helped mitigate the impact of U.S. tariffs on its performance. Regarding the framework trade agreement between the U.S. and the EU, which includes a 15% import tariff on most EU goods, including cars and auto parts previously taxed at 25%, Durand commented, 'If this can reduce market volatility and uncertainty, it would be good for all economic participants.'