Valeo (FR) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales reached €5.1 billion, up 1.3% like-for-like, with all divisions outperforming a global automotive production decline of 3.4%, in line with full-year objectives and guidance reiterated.

• OEM sales outperformed the market by 3 percentage points, with all divisions contributing.

• Strategic progress and investments in North America, India, and China, including new product launches and manufacturing expansions.

• China performance driven by new product launches and increased electronic content per vehicle, with growth expected in H2 2026.

• 2026 guidance confirmed, citing operational agility amid supply chain and geopolitical headwinds.

Financial highlights

• Group sales reached €5,120 million, up 1.3% like-for-like; OEM sales at €4,244 million, down 0.6% like-for-like, outperforming a 3.4% market decline.

• Aftermarket sales grew 1.9% like-for-like, driven by North America and Asia.

• Miscellaneous sales rose 36.5% like-for-like, mainly from tooling and R&D contributions.

• Reported growth impacted by negative exchange rates and scope changes.

• North America and Asia (excluding China) posted solid growth; China returned to outperformance in the LIGHT Division.

Outlook and guidance

• 2026 targets reaffirmed: sales of €20–21 billion, operating margin of 4.7%–5.3%, and free cash flow above €400 million.

• Guidance based on S&P Global Mobility estimates and assumes no major macro or supply chain disruptions.

• Anticipates return to growth in China in H2 2026 and broader growth in 2027, supported by a strong order book.