Analyst Note| Richard Hilgert |
No-moat-rated Faurecia reduced 2025 objectives in its capital markets day presentation. Management’s “Power25” plan targets 2025 revenue of EUR 30 billion and operating margin above 7% compared with prior 2025 targets of more than EUR 33 billion in revenue and operating margin greater than 8.5%. The firm said that it now assumes global light vehicle production of 88 million, down from its previous assumption of 94 million. In addition, the new 2025 target also assumes about EUR 2 billion of revenue will be divested as part of management’s plan to reduce debt incurred in the Hella acquisition. The company targets about EUR 1.0 billion in debt reduction by the end of 2023. The stock dropped 9% on the news.