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Valeo (FR) investor relations material

Valeo Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary26 Feb, 2026

Executive summary

  • Achieved all 2025 financial objectives, including record free cash flow before restructuring and interest, improved profitability, and strong order intake of €24.6 billion, with significant progress and contract wins in China and a major Battery Energy Storage System contract.

  • Operating margin improved to 4.7% of sales, up from 4.3% in 2024, and net income rose 23% to €200 million.

  • Free cash flow before one-off restructuring costs reached a record €756 million; after restructuring and net financial interest, free cash flow was €371 million, up 50% year-over-year.

  • Strategic progress in China, with 63% of order intake and 54% of OEM sales from Chinese OEMs, and expansion into Beyond Automotive.

  • Operational excellence, strict pricing discipline, and cost controls enabled resilience against headwinds such as tariffs, forex, and component shortages.

Financial highlights

  • Total sales reached €20.9 billion in 2025, up 0.5% like-for-like, exceeding guidance by €400 million.

  • Gross margin rose to 20.2%, the highest since 2017, up 1.2 pts year-over-year.

  • Adjusted EBITDA margin increased to 14.7% of sales.

  • Net attributable income was €200 million (1.0% of sales), up 23% year-over-year.

  • Dividend proposed at €0.44 per share for 2025.

Outlook and guidance

  • 2026 guidance: sales between €20–21 billion, with operating margin targeted at 4.7%–5.3% and free cash flow above €400 million.

  • Guidance assumes no major changes in tariffs, trade restrictions, or macroeconomic environment.

  • Numerous production launches planned for 2026; return to growth expected in 2027, with China leading recovery in H2 2026.

  • Elevate 2028 targets: sales of €22–24 billion, operating margin of 6–7%, free cash flow >€500 million, leverage ratio <1.0x.

Explain 2025 WCR increase despite inventory drop
Valeo's strategy for China market underperformance
Detail R&D expenditure trends and IFRS impact
China 2025 OEM sales vs. 2027 outperformance
R&D reduction vs. BRAIN division investment needs
Sustainable FCF drivers beyond 2025
How do multi-model orders impact 2027 growth?
DRAM cost inflation impact on 2026 margins?
Beyond Auto: BESS contract implications for future?
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Frequently asked questions

Valeo SE designs and manufactures automotive components and systems, including powertrain technologies, advanced driver assistance systems (ADAS), thermal systems, and lighting. The company serves automakers and the aftermarket with solutions supporting electrification and vehicle automation. The company is headquartered in Paris, France, and its shares are listed on the EPA.

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