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.“

TrendForce 2025 Global Automotive LED Market- Lighting and Display Product Trend
Release Date:
1. PDF (196 Pages)- 30 June 2025
2. EXCEL- 30 June 2025 and 31 December 2025
Languages: Traditional Chinese / English