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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.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.
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