Valeo, SA (EU) ( (VLEEY) ) has released its Q2 earnings. Here is a breakdown of the information Valeo, SA (EU) presented to its investors.
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Valeo, SA, a prominent player in the automotive technology sector, specializes in providing innovative solutions for cleaner, safer, and smarter mobility, with a strong focus on electrification, driving assistance systems, and lighting technology.
In the first half of 2025, Valeo reported a steady improvement in profitability with an operating margin of 4.5% and free cash flow of 252 million euros. Despite a slight decline in sales, the company maintained its profitability and cash generation objectives, showcasing resilience in a challenging market environment.
Key financial highlights include a 4.1% decrease in sales to 10,660 million euros, a gross margin increase to 19.6%, and an EBITDA margin rise to 13.8%. The company achieved a significant 30% increase in order intake, reaching 11.8 billion euros, driven by strong demand from Chinese automakers. Cost-cutting measures and strategic repositioning towards high-margin contracts contributed to improved financial performance.
Despite facing challenges such as adverse currency effects and a changing customer mix, Valeo’s divisions showed progress, particularly in the POWER and BRAIN divisions. The company continues to focus on innovation and efficiency, as evidenced by its recognition as a supplier of the year by General Motors and Volkswagen.
Looking ahead, Valeo remains committed to its growth roadmap, aiming to enhance financial performance through disciplined price management and strategic investments in innovation. The management confirmed its margin and free cash flow objectives for 2025, while adjusting sales targets to account for currency fluctuations.