Full Year 2025 Valeo SE Earnings Call Transcript

Feb 26, 2026 / 05:30 PM GMT

Release Date Price: $7.51 (-2.18%)

Transcript

Key Points

Positve

Valeo SA (VLEEF) achieved a historic record in free cash flow from operations before restructuring costs and interest, reflecting a transformation in its business model.
The company recorded a solid order intake in 2025, particularly in China, with significant contracts in electrification and domain controllers.
Valeo SA (VLEEF) improved its operating margin to 4.7% in 2025, up 0.4% from the previous year, driven by better pricing and operational efficiency.
The company reduced its industrial CapEx by 30% in 2025, contributing to improved cash generation.
Valeo SA (VLEEF) is regaining momentum in China, with a strong order intake from Chinese OEMs, representing 2.8 times its sales in the region.

Negative

The company faced a demanding environment in 2025, marked by volatility in volumes, program postponements, and an unfavorable customer and geographic mix.
Valeo SA (VLEEF) experienced headwinds such as trade tariffs, foreign exchange variations, and shortages of civil components.
The operating margin for the 'Brain' division decreased by 40 basis points due to project delays and market challenges.
The company anticipates no growth in 2026, with a return to growth expected only in 2027.
Valeo SA (VLEEF) faced a negative impact on net debt due to adverse currency effects, with net financial debt standing at €4.0 billion at the end of 2025.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

VLOF.PA - Valeo SE
Full Year 2025 Valeo SE Earnings Call
Feb 26, 2026 / 05:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good evening to all and thank you for joining the presentation of our 25 annual results which I will do together with Eduardo Pierre Vello, CFO.

As you will see, our results in 25 are solid. Our guidance for 26 is in line with our plan, and we are confident about the successful execution of our EEATE 28 strategy plan.

I would like to highlight 3 important points.

Our profitability.

It continues to improve. The first engine of our plan is on.

We set a historic record for value in terms of free cash flow from our operations before restructuring costs and before interest. This reflects the transformation of our business model to generate more cash structurally. The second engine of our plan is on.

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