hGears reports first-half revenue decline amid market headwinds

Automotive components manufacturer hGears reported a 12% year-on-year decline in first-half revenue, citing weaker end-market demand and ongoing supply chain disruptions.

The company, which supplies drivetrain and transmission systems to global automakers, said total revenue for the six months ended June 30 fell to $1.2 billion from $1.37 billion in the same period last year. Operating profit decreased 18% to $115 million, while net profit declined 22% to $85 million.

hGears attributed the revenue decline to softer automotive demand in key markets, including Europe and North America, as well as persistent supply chain bottlenecks that constrained production. The company also noted that pricing pressures from raw material costs had weighed on margins, despite efforts to pass costs through to customers.

Management said it expects market conditions to remain challenging in the second half, with demand likely to stay subdued amid economic uncertainty and high interest rates. However, hGears reaffirmed its full-year guidance, targeting revenue of $2.4 billion to $2.5 billion, supported by new contracts and operational efficiency gains.

Analysts said the results reflect broader pressures in the automotive sector, where suppliers are grappling with shifting consumer preferences toward electric vehicles and reduced discretionary spending on traditional internal combustion engine components. hGears’ stock, listed on the Euronext Amsterdam, was down 3.2% in early trading following the announcement.