Valeo - Résultats du 1er semestre 2025
CP résultats S1 2025 Wiztrust
PARISJuly 24, 2025
In first-half 2025, Valeo continued to improve its profitability, with an operating margin of 4.5% and free cash flow of 252 million euros, in line with its 2025 profitability and cash generation objectives
In first-half 2025, Valeo's results are in line with the trajectory it set out, with improved profitability and cash generation thanks to the rigorous management of its activities. In particular, this involves strict price management, measures to reduce its costs and investments and a repositioning toward new contracts with better margins:
Sales of 10,660 million euros, down 1.4% on a like-for-like basis
Gross margin at 19.6% of sales (up 1.1 percentage points on first-half 2024)
EBITDA margin at 13.8% of sales (up 1.4 percentage points on first-half 2024)
Operating margin at 4.5% of sales (up 0.5 percentage points on first-half 2024)
Free cash flow before one-off restructuring costs of 332 million euros
Free cash flow after one-off restructuring costs of 252 million euros, despite a negative contribution of working capital of 77 million euros
Net debt at 4,183 million euros, mainly due to an adverse currency effect of 260 million euros, and leverage ratio at 1.4x EBITDA
Order intake of 11.8 billion euros, up 30%
2025 objectives: margin and free cash flow objectives confirmed, sales objective adjusted to around 20.5 billion euros, mainly to account for an adverse currency effect of 750 million euros
"Our first-half 2025 results demonstrate our capacity to take a new step in improving our profitability and cash generation.
Our gross margin, EBITDA, operating margin and cash generation are up sharply. All our Divisions reported progress.
Our strong discipline in price management, both in terms of the profitability of new orders and the management of current production, continues to support our profitability. In particular, the net impact of tariffs in the United States was not material over the period.
Cost-cutting measures also made a decisive contribution to improving our financial performance. Administrative costs were down by 5%, investments by 23%, and gross R&D expenditure by 11%. I would like to thank our teams for their efforts in these areas and the quality of our first-half results.
These solid results were achieved in an environment where the strong growth of Chinese automakers is rapidly changing the global mix. We very quickly took steps to accelerate our exposure to these customers. In the first half of the year, we recorded major wins, with order intake from Chinese automakers accelerating to almost three times our sales.
In today's complex and demanding environment, we are continuing to prepare for the future and preserve our capacity for innovation. During the period, our customers demonstrated their trust in us: General Motors and Volkswagen named Valeo a supplier of the year, acknowledging the work put in by Valeo's teams to achieve the highest level of operating performance. Order intake rose 30% to 11.8 billion euros in the first half, in line with our strong price discipline.
Our roadmap is clear, create the conditions for future growth, and improve our financial performance today through a lower break-even point and strict price discipline."
Christophe Périllat, Valeo's Chief Executive Officer
Key figures
The financial statements for first-half 2025 were authorized for issue by the Board of Directors on July 24, 2025.
H1 2025
H1 2024
Change
Order intake
(in €bn)
11.8
9.1
+30%
Income statement
Sales
(in €m)
10,660
11,117
-4%
Gross margin
(in €m)
2,094
2,055
+2%
(as a % of sales)
19.6%
18.5%
R&D expenditure
(in €m)
(1,115)
(1,079)
+3%
(as a % of sales)
(10.5%)
(9.7%)
Administrative and selling expenses
(in €m)
(503)
(531)
-5%
(as a % of sales)
(4.7%)
(4.8%)
Operating margin*
(in €m)
476
445
+7%
(as a % of sales)
4.5%
4.0%
Other income and expenses
(in €m)
(86)
(50)
na
Cost of debt
(in €m)
(117)
(123)
-5%
Net attributable income
(in €m)
104
141
-26%
(as a % of sales)
1.0%
1.3%
Basic earnings per share
(in €)
0.43
0.58
na
Statement of cash flows
H1 2025
H1 2024
Change
EBITDA*
(in €m)
1,472
1,383
+6%
(as a % of sales)
13.8%
12.4%
Investments in property, plant and equipment
(in €m)
(429)
(600)
-29%
Investments in intangible assets
(in €m)
(486)
(592)
-18%
of which capitalized development expenditure
(in €m)
(468)
(565)
-17%
Change in working capital
(in €m)
(77)
233
na
of which changes in inventory
(in €m)
162
290
na
Free cash flow* before one-off restructuring costs
(in €m)
332
146
+127%
One-off restructuring costs
(in €m)
(80)
(25)
na
Free cash flow* after one-off restructuring costs
(in €m)
252
121
+108%
Financial structure
June 30, 2025
Dec. 31, 2024
Change
Net debt*
(in €m)
4,183
3,813
+370
Leverage ratio (net debt to EBITDA)
N/A
1.4
1.3
na
* See financial glossary, page 13.
Sales of 10,660 million euros in first-half 2025
Sales(in millions of euros)
As a % of sales
H1 2025
H1 2024
Change
FX
Scope
LFL* change
Original equipment
84%
8,904
9,295
-4.2%
-1.0%
-1.2%
-2.0%
Aftermarket
10%
1,114
1,190
-6.4%
-2.7%
-5.6%
+1.9%
Miscellaneous
6%
642
632
+1.6%
-0.4%
+1.0%
+1.0%
Total
100%
10,660
11,117
-4.1%
-1.2%
-1.5%
-1.4%
* Like for like(1)
Automotive production, which increased 3.1% compared with the same period in 2024, varied depending on the region:
production rose by 11.9% in China, supported by government measures relating to new-energy vehicles, and by exports;
in Europe and North America, production was down by 3.2% and 4.1% respectively, in an environment marked by the introduction of new tariffs.
Total sales came in at 10,660 million euros, down 4.1% compared with first-half 2024.
Changes in exchange rates had a negative 1.2% impact, primarily due to the increase in value of the euro against the other major international currencies, particularly in the second quarter.
Changes in Group structure had a negative 1.5% impact, due to the sales of the Thermal Commercial Vehicles business on June 30, 2024, and of PIAA, which produces and distributes aftermarket equipment, in August 2024.
On a like-for-like basis, sales fell by 1.4%.
Original equipment sales were down by 2.0% on a like-for-like basis. They were impacted by a negative 3.2 percentage point geographic mix effect, by the rapid change in the customer mix, with Chinese automakers representing an increasing share, and by difficulties faced by certain customers in electrification in North America and on certain platforms in Europe. They were also impacted by the discontinuation of ADAS projects with below-average margins. However, sales were buoyed by good momentum in the POWER Division's thermal systems and transmission systems activities, and the BRAIN Division's Interior Experience business in displays and telematics.
Aftermarket sales rose by 1.9% on a like-for-like basis compared with the prior-year period, fueled by the increased number and age of vehicles on the road, and a more attractive offering of value-added products in areas such as electrification and remanufacturing.
"Miscellaneous" sales, which are essentially made up of tooling and customer contributions to R&D, increased by 1.0% on a like-for-like basis.
Original equipment sales down 2.0% like for like in first-half 2025
Original equipment sales***(in millions of euros)
As a % of sales
H1 2025
H1 2024
Change
LFL* change
Perf. **
Europe & Africa
51%
4,522
4,601
-2%
-1%
+2 pts
Asia, Middle East & Oceania
29%
2,541
2,687
-5%
-3%
-11 pts
o/w Asia (excluding China)
16%
1,413
1,421
-1%
+3%
0 pts
o/w China
13%
1,128
1,266
-11%
-8%
-20 pts
North America
19%
1,692
1,834
-8%
-6%
-2 pts
South America
2%
149
173
-14%
+12%
+4 pts
Total
100%
8,904
9,295
-4%
-2%
-5 pts
* Like for like. ** Based on S&P Global Mobility automotive production estimates released on July 16, 2025 (H1 25 global production growth: +3%).*** Original equipment sales by destination region.
In first-half 2025, original equipment sales fell by 2.0% like for like, underperforming automotive production by 5 percentage points. This performance includes a negative 3.2 percentage point impact due to an unfavorable geographic mix.
In Europe and Africa, Valeo outperformed automotive production by 2 percentage points, despite the slowdown on certain electric vehicle platforms, the unfavorable base effect linked to customer compensation received in the second quarter of 2024, and the discontinuation of ADAS projects with below-average margins. All Divisions recorded growth in original equipment sales that outpaced global automotive production. Business in the region is being driven by the sound performance of the thermal systems business (POWER Division), the Interior Experience business (BRAIN Division) with production start-ups and ramp-ups in displays and telematics, and numerous production launches in lighting (LIGHT Division) for European automakers.
In North America, the Group underperformed automotive production by 2 percentage points, reflecting the postponement of a number of production start-ups in the BRAIN and LIGHT Divisions at a global automaker and at North American electric vehicle manufacturers. However, sales were lifted by strong momentum in the transmission systems business (POWER Division).
In China, the Group underperformed automotive production by 20 percentage points, illustrating the acceleration in market share gains by Chinese automakers. In this environment, the Group is continuing to reposition its customer portfolio (around 50% of original equipment sales and around 65% of order intake was recorded with automakers in China, excluding JVs, in the first half of 2025). The BRAIN Division's business was hit by the discontinuation of ADAS projects with below-average margins. It is worth noting the good performance of (i) the high-voltage electrification systems and thermal systems businesses (POWER Division) with local automakers, and (ii) the Interior Experience business (BRAIN Division) with production start-ups and ramp-ups in displays and telematics, as well as numerous production launches with new players in electrification in China (LIGHT Division).
In Asia excluding China, Valeo performed in line with the market.
In South America, the Group outperformed automotive production by 4 percentage points.
Segment reporting
Sales by Division
Sales by Division(in millions of euros)
H1 2025
H1 2024
Change in sales
