Valeo (FR) Q3 2025 TU earnings summary

Executive summary

• Q3 2025 sales reached €5.0bn, up 3.5% like-for-like, driven by strong POWER and LIGHT division performance, supporting full-year guidance and 2025 profit and cash generation objectives.

• Europe outperformed automotive production, while China significantly reduced its performance gap versus the market, with strong order intake momentum.

• The BRAIN division saw a retreat, but order intake in ADAS and SDV remained robust.

• Disciplined price management, lower break-even point, and reduced R&D and investment expenditures contributed to improved financial trajectory.

Financial highlights

• Q3 2025 total sales: €5.0bn (+1% year-over-year, +3.5% lfl); OEM sales: €4,229m (+3.7% lfl); Aftermarket: €503m (-2.8% lfl); Miscellaneous: €265m (+14.4% lfl).

• YTD total sales: €15.7bn; OEM: €13.1bn; Aftermarket: €1.6bn; Miscellaneous: €907m.

• Currency effects negatively impacted sales by 2.8%.

• Reported Q3 growth impacted by negative exchange rates and scope effects.

Outlook and guidance

• 2025 guidance confirmed: FY 2025 sales expected at ~€20.5bn, EBITDA margin 13.5%-14.5%, operating margin 4.5%-5.5%.

• Free cash flow before one-off restructuring costs targeted at €700-800m; after restructuring, €450-550m.

• Cumulative free cash flow of around €1bn over 2024-2025 after €300m in one-off restructuring costs.

• Q4 sales expected to be similar to Q3; H2 margins and cash generation anticipated to exceed H1.