Valeo Se · EURONEXT:FR
Valeo — FY2025 Earnings Presentation
57 slides from Valeo's earnings presentation, Feb 26, 2026
Slide 1: Full-Year 2025 Results
Full-Year 2025 Results February 26, 2026 Christophe Périllat Edouard de Pirey Chief Executive Officer Chief Financial Officer
Slide 2: Contents
Contents 01 02 03 04 2025 2025 Backup highlights results Conclusion slides FULL-YEAR 2025 RESULTS | FEBRUARY 26, 2026 2
Slide 3: Full-Year 2025 highlights
01 Full-Year 2025 highlights Christophe Périllat Chief Executive Officer 3
Slide 4: 2025: Delivering profit and cash in a demanding environment
01 | 2025 highlights 2025: Delivering profit and cash in a demanding environment A strong base to kick off the Elevate 2028 plan Overcoming market headwinds Taking appropriate actions Applying strict price discipline Volume volatility Profitability of new orders, fair compensation for tariffs / volume
Slide 5: Delivering 2025 objectives
01 | 2025 highlights Delivering 2025 objectives Achieving record free cash flow from operations 2024 2025 Guidance 2025 Actual Sales €21.5bn ~€20.5bn €20.9bn Adj. EBITDA 13.3% [ 13.5% - 14.5% ] 14.7% Operating Margin 4.3% [ 4.5% - 5.5% ] 4.7% Free cash flow before one-off restructuring costs €551m [ €
Slide 6: Continued profitability improvement in 2025
01 | 2025 highlights PROFIT 01 Continued profitability improvement in 2025 Steadily increasing since 2022 Operating margin as % of sales RIGHT PRICING OUR TECHNOLOGY 4.7% 4.3% 3.8% IMPROVING OUR GROSS MARGIN +1.2 pts vs 2024 2.4% +2.3 pts vs 2023 1.7% REDUCING OUR BREAKEVEN POINT SG&A 5% vs 2024 down
Slide 7: Business model transformed structurally to generate more cash
01 | 2025 highlights CASH 02 Business model transformed structurally to generate more cash Driven by increased profit and tight investment spending control Free Cash Flow after net financial interest (in €m) HIGHER PROFIT 371 Adjusted EBITDA AT 14.7% OF SALES 247 170 CAPEX REDUCED 102 BY 30% OR €348m
Slide 8: Solid order intake in 2025
01 | 2025 highlights GROWTH 03 Solid order intake in 2025 Fueling future sales growth Order intake (in €bn) 24.6 LIGHT 25% Cumulative POWER 2022-2025 12.8 Order Intake ratio 38% 11.8 1.5x OEM Sales Average ~€26bn/year BRAIN H1 2025 H2 2025 2025 37% FULL-YEAR 2025 RESULTS | FEBRUARY 26, 2026 8
Slide 9: Solid momentum in China
01 | 2025 highlights GROWTH 03 Solid momentum in China FULL-YEAR 2025 PERFORMANCE MAJOR STRATEGIC CONTRACT WINS ORDER INTAKE RATIO (VS. OEM SALES) WITH CHINESE OEMS Innovative Dual Layer HVAC System For multiple Chinese automakers. Production start in 2026 2.8x 5-in-1 Power Electronics Module For el
Slide 10: On track on our ESG roadmap
01 | 2025 highlights On track on our ESG roadmap “A” rating by CDP for both climate change and water security CARBON FOOTPRINT SOCIAL SOCIETAL CO2 emissions* (scopes 1, 2, 3) Training effort “One site, One cause” initiative 39.4 MtCO2 eq (2025 objective achieved) 36 hours for managers, professionals
Slide 11: 2026 outlook: firmly on track with the first step of Elevate 2028
01 | 2025 highlights 2026 outlook: firmly on track with the first step of Elevate 2028 Improving further profitability and cash generation in an uncertain environment 2025 2026 GUIDANCE* SALES SALES Flat organic growth in OEM sales €20.9bn [€20bn - €21bn] FX and scope impacts vs 2025: -€0.4bn OPERATING
Slide 12: Full-Year 2025 results
02 Full-Year 2025 results Edouard de Pirey Chief Financial Officer 12
Slide 13: Total sales at €20.9bn
02 | 2025 results Total sales at €20.9bn Total sales OEM Aftermarket Miscellaneous* €20,903m €17,301m €2,135m €1,467m +0.5% lfl growth -0.6% lfl growth +0.9% lfl growth +15.0% lfl growth Reported growth: -2.7% Reported growth: -3.6% Reported growth: -5.6% Reported growth: +14.6% Exchange rate: -2.4% Exc
Slide 14: OEM sales performance by region
02 | 2025 results OEM sales World Performance by region 50% 19% 15% 14% 2% Perf. -5pts incl. negative geo. mix impact of 3pts Europe North Asia China South (including Africa) America (excluding China) America +4% +1% OEM Sales lfl +1% OEM Sales lfl -1% OEM Sales lfl +1% OEM Sales lfl -7% OEM Sales lfl +7
Slide 15: POWER
02 | 2025 results POWER Successful cost structure transformation, rebounding China momentum OEM sales SALES -2pts performance SALES POWER €10,512m lfl growth -3%* +2% OEM sales BUSINESS €10,845m €10,512m HIGHLIGHTS Robust performance in thermal systems in Europe throughout the year, 4.2% significant i
Slide 16: BRAIN
02 | 2025 results BRAIN Solid order book providing a strong foundation for future growth OEM sales SALES -10pts performance SALES BRAIN €4,957m lfl growth -2%* -6% OEM sales BUSINESS €5,053m €4,957m HIGHLIGHTS End of several projects for ADAS and delayed start of production in North 5.8% America 5.4%
Slide 17: LIGHT
02 | 2025 results LIGHT Successful product launches in Europe and China OEM sales SALES -4pts performance SALES LIGHT €5,405m lfl growth -3%* 0% OEM sales BUSINESS €5,554m €5,405m HIGHLIGHTS New product launches with higher content per vehicle 5.5% Good performance in Europe thanks to product launche
Slide 18: Continued improvement in profitability
02 | 2025 results Continued improvement in profitability Gross margin Operating margin up 40 bps Highest level since 2017 at 20.2% Consistent with target level sustainably above 19% of sales €m 2025 2024 R&D discipline Total sales 20,903 21,492 Gross R&D down €193m Gross margin 4,229 4,081 R&D capita
Slide 19: Net income of €200m or 1.0% of sales
02 | 2025 results Net income of €200m or 1.0% of sales Other income & expenses 2025 2024 Restructuring costs totaling €156m €m incl. €110m of one-off restructuring Operating margin excl. JV & associates 977 919 costs related to the €400m cost As a % of sales 4.7% 4.3% reduction plan (vs €305m and €2
Slide 20: Cost reduction program
02 | 2025 results Cost reduction program Savings confirmed: €300m annual run rate as of 2026 Restructuring costs Restructuring costs P&L Cash outflows One-off self-help measures One-off self-help measures Restructuring costs Restructuring costs €(260)m €(167)m ~€(150)m €(110)m ~€(20)m €(70)m ~€(100)m
Slide 21: FCF after financial interest at €371m
02 | 2025 results FCF after financial interest at €371m Tight spending control €m 2025 2024 Capitalized R&D down 11% or 50 bps to 4.4% Adj. EBITDA 3,082 2,863 As a % of sales 14.7% 13.3% Capex (PP&E) down 30% to 3.8% of sales. Tight control to continue Intangible CAPEX (971) (1,086) in 2026 of which
Slide 22: Net debt down €0.2bn in H2 2025
02 | 2025 results Net debt down €0.2bn in H2 2025 Net debt increase vs 2024 due to unfavorable FX impact of ~€260m Cash & Cash equivalents Leverage ratio at 1.3x Undrawn €2.5bn Net debt in €bn credit lines €1.6bn €4.2bn €4.0bn €3.8bn Dec. 31, 2025 Dec. 31, 2025 Action plan aiming at reducing the FX
Slide 23: Dividend proposed at €0.44 for 2025
02 | 2025 results Dividend proposed at €0.44 for 2025 €0.44 €0.42 €0.40 €0.38 €0.35 2021 2022 2023 2024 2025 Dividend of €0.44 per share to be proposed at the next Shareholders’ Meeting on May, 21 2026 FULL-YEAR 2025 RESULTS | FEBRUARY 26, 2026 23
Slide 24: Conclusion
03 Conclusion Christophe Périllat Chief Executive Officer 24
Slide 25: 2026 outlook: firmly on track with the first step of Elevate 2028
03 | Conclusion 2026 outlook: firmly on track with the first step of Elevate 2028 Improving further profitability and cash generation in an uncertain environment 2025 2026 GUIDANCE* SALES SALES Flat organic growth in OEM sales €20.9bn [€20bn - €21bn] FX and scope impacts vs 2025: -€0.4bn OPERATING MARG
Slide 26: Powered by three engines: a global leader fit for success
03 | Conclusion POWERED BY THREE ENGINES REACHING INVESTMENT GRADE KPIs IN 2028 A GLOBAL LEADER FIT FOR SUCCESS 1 2 3 PROFIT CASH GROWTH FROM 2022 FROM 2025 FROM 2027 FULL-YEAR 2025 RESULTS | FEBRUARY 26, 2026 26
Slide 27: Thank you / Q&A
Thank you Q&A 27
Slide 28: Backup slides
Backup slides 28
Slide 29: On track for Elevate 2028
04 | Backup slides On track for Elevate 2028 2028 FREE CASH FLOW 2028 SALES >€500m €[22 - 24]bn AFTER NET FINANCIAL INTEREST (NEW DEFINITION) 2028 LEVERAGE 2028 OPERATING RATIO MARGIN <1.0x adj. EBITDA [6% - 7%] FINANCIAL KPIs ALIGNED WITH INVESTMENT GRADE RATING BASED ON FOLLOWING ASSUMPTIONS FOR 2
Slide 30: ESG Highlights
ESG Highlights 30
Slide 31: Key ESG KPIs
04 | Backup slides Key ESG KPIs 2019 2025 base year Dec. 31, 2025 Emissions from operating activities – Scopes 1 & 2 in MtCO2eq. 1.1 0.4 Emissions from purchased goods and services – Upstream Scope 3 in MtCO2eq. 9.5 8.0 E Emissions from the use of Valeo products – Downstream Scope 3 Emissions reduct
Slide 32: Sustainability is in our DNA
04 | Backup slides Sustainability is in our DNA An ESG leader recognized by rating agencies Valeo is included in major ESG indices 72 /100 17.3 B- Prime CAC Transition Climat low risk Global ESG Leaders Climate A AA 61 /100 Change A Water FULL-YEAR 2025 RESULTS | FEBRUARY 26, 2026 32
Slide 33: Backup slides Q4
Q4 Backup slides 33
Slide 34: Q4 sales by type
04 | Backup slides Q4 sales by type Total sales OEM Aftermarket Miscellaneous* €5,246m €4,168m €518m €560m +1.6% lfl growth -1.9% lfl growth +2.6% lfl growth +37.4% lfl growth Reported growth: -3.0% Reported growth: -6.5% Reported growth: -3.0% Reported growth: +34.6% Exchange rate: -4.5% Exchange rate:
Slide 35: Q4 OEM sales
Q4 OEM sales Performance by region World 49% 18% 16% 15% 2% Perf. -4pts incl. negative geo. mix impact of 1pt Europe North Asia China South (including Africa) America (excluding China) America +2% +1% -2% OEM Sales lfl -2% OEM Sales lfl +5% OEM Sales lfl -4% OEM Sales lfl -8% OEM Sales lfl +1% Production
Slide 36: Q4 sales by Division
04 | Backup slides Q4 sales by Division Sales by Division Change Change in (in millions of euros) Q4 25 Q4 24 in sales OEM sales* Perf.** POWER 2,510 2,683 -6% 0% -2pts High-voltage 194 194 -% -2% -4pts Other 2,316 2,489 -7% +1% -1pt BRAIN 1,325 1,270 +4% -6% -8pts ADAS 783 790 -1% -13% -15pts Inter
Slide 37: Backup slides H2
H2 Backup slides 37
Slide 38: H2 sales by type
04 | Backup slides H2 sales by type Total sales OEM Aftermarket Miscellaneous* €10,243m €8,397m €1,021m €825m +2.5% lfl growth +0.9% lfl growth -0.1% lfl growth +29.0% lfl growth Reported growth: -1.3% Reported growth: -3.0% Reported growth: -4.8% Reported growth: +27.3% Exchange rate: -3.7% Exchange ra
Slide 39: H2 OEM sales
H2 OEM sales Performance by region World 49% 19% 15% 15% 2% Perf. -3pts incl. negative geo. mix impact of 1pt Europe North Asia China South (including Africa) America (excluding China) America +4% +3% +1% OEM Sales lfl +2% OEM Sales lfl +5% OEM Sales lfl -1% OEM Sales lfl -6% OEM Sales lfl +3% S&P Global
Slide 40: H2 sales by Division
04 | Backup slides H2 sales by Division Sales by Division Change Change in (in millions of euros) H2 25 H2 24 in sales OEM sales* Perf.** POWER 5,109 5,153 -1% +6% +2pts High-voltage 484 383 +26% +32% +28pts Other 4,625 4,770 -3% +3% -1pt BRAIN 2,431 2,484 -2% -7% -11pts ADAS 1,452 1,566 -7% -13% -1
Slide 41: H2 income statement
04 | Backup slides H2 income statement (€m) H2 25 H2 24 ▲ Sales 10,243 10,375 -1% Gross margin 2,136 2,026 +5% As a % of sales 20.9% 19.5% +1.4pts R&D expenses (1,159) (1,048) +11% As a % of sales (11.3%) (10.1%) -1.2pts SG&A (476) (504) -6% As a % of sales (4,6%) (4.9%) +0.3 pts Operating margin 50
Slide 42: H2 Operating margin by Division
04 | Backup slides H2 Operating margin by Division Operating margin by Division (in millions of euros and in % of sales) H2 25 H2 24 Change 251 180 +39% POWER 4.9% 3.5% +1.4pts 113 143 -21% BRAIN 4.6% 5.8% -1.1pts 147 155 -5% LIGHT 5.5% 5.7% -0.2pts OTHER (10) (4) N/A 501 474 +6% GROUP TOTAL 4.9% 4.
Slide 43: H2 2025 Segment information
04 | Backup slides H2 25 Segment information BRAIN POWER LIGHT Other Total H2 2025 (€m) Sales: 2,431 5,109 2,677 26 10,243 Segment (Excluding Group) 2,420 5,051 2,674 98 10,243 Intersegment (Group) 11 58 3 (72) - Raw materials consumed (1,210) (2,943) (1,412) (12) (5,577) Research & Development expe
Slide 44: H2 2024 Segment information
04 | Backup slides H2 24 Segment information BRAIN POWER LIGHT Other Total H2 2024 (€m) Sales: 2,484 5,153 2,701 37 10,375 Segment (Excluding Group) 2,472 5,088 2,695 120 10,375 Intersegment (Group) 12 66 6 (84) - Raw materials consumed (1,379) (2,901) (1,451) (6) (5,736) Research & Development expe
Slide 45: H2 Free Cash Flow
04 | Backup slides H2 Free Cash Flow €m H2 25 H2 24 Adjusted EBITDA 1,610 1,480 As a % of sales 15.7% 14.3% Tangible CAPEX (property, plant & equipment) (361) (538) Intangible CAPEX (485) (494) of which capitalized R&D (462) (480) Leases (77) (71) Change in working capital (224) 259 of which decreas
Slide 46: H2 R&D expenditure
04 | Backup slides H2 R&D expenditure H2 2025 H2 2024 Change Sales (in €m) 10,243 10,660 -1% (in €m) 462 480 -4% Capitalized development expenditure (as a % of sales) 4.5% 4.6% -0.1pts (in €m) (472) (389) +21% Amortization and impairment of capitalized development expenditure* (as a % of sales) (4.6
Slide 47: Backup slides FY
FY Backup slides 47
Slide 48: 2025 sales by Division
04 | Backup slides 2025 sales by Division Sales by Division Change Change in (in millions of euros) 2025 2024 in sales OEM sales* Perf.** POWER 10,512 10,845 -3% +2% -2pts High-voltage 946 896 +6% +9% +5pts Other 9,566 9,949 -4% +2% -2pts BRAIN 4,957 5,053 -2% -6% -10pts ADAS 3,027 3,225 -7% -11% -1
Slide 49: FY 2025 Segment information
04 | Backup slides FY 25 Segment information BRAIN POWER LIGHT Other Total Full-Year 2025 (€m) Sales: 4,957 10,512 5,405 29 20,903 Segment (Excluding Group) 4,931 10,389 5,398 185 20,903 Intersegment (Group) 26 123 7 (156) - Raw materials consumed (2,562) (6,109) (2,857) 2 (11,526) Research & Develo
Slide 50: FY 2024 Segment information
04 | Backup slides FY 24 Segment information BRAIN POWER LIGHT Other Total Full-Year 2024 (€m) Sales: 5,053 10,845 5,554 40 21,492 Segment (Excluding Group) 5,021 10,702 5,546 223 21,492 Intersegment (Group) 32 143 8 (183) - Raw materials consumed (2,851) (6,207) (2,990) 9 (12,038) Research & Develo
Slide 51: FY R&D expenditure
04 | Backup slides FY R&D expenditure 2025 2024 Change Sales (in €m) 20,903 21,492 -3% (in €m) 930 1,045 -11% Capitalized development expenditure (as a % of sales) 4.5% 4.9% -0.4pts (in €m) (857) (691) +24% Amortization and impairment of capitalized development expenditure* (as a % of sales) (4.1)%
Slide 52: Long term debt profile
04 | Backup slides Long term debt profile Average maturity: 3.4 years Undrawn €1.6BN credit As of Dec. 31, 2025 facilities Average maturity: 2.6 years Cash & €2.5BN cash As of Dec. 31, 2025 equivalents Sustainability-linked senior bond (EMTN) EIB loan Maturity Amount Coupon Maturity Amount Coupon May
Slide 53: 2025, a new step in improving financial performance
04 | Backup slides 2025, a new step in improving financial performance FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 incl. VSeA incl. VSeA Actual Actual Actual Guidance** Sales [€20bn - €18.0bn €20.4bn €22.0bn €21.5bn €20.9bn (in €bn) €21bn] Operating margin* 1.7% 2.4% 3.8% 4.3% 4.7% [4.7%-5.3%] (a
Slide 54: Share information
04 | Backup slides Share information Share ADR Data Data Ticker/trading symbol VLEEY Bloomberg Ticker FR FP CUSIP Number 919134304 Reuters Ticker VLOF.PA Exchange OTC ISIN Number FR0013176526 Ratio (ADR: ord) 1:2 Shares outstanding as of Dec. 31, 245,607,625 Depositary Bank J.P. Morgan 2025 Contact
Slide 55: Glossary
04 | Backup slides Glossary Order intake corresponds to business awarded by automakers during the Free Cash Flow (New Definition) corresponds to net cash from operating period to Valeo, and to joint ventures and associates based on Valeo’s share in activities (excluding changes in non-recurring sales
Slide 56: Safe harbour statement
04 | Backup slides Safe harbour statement Statements contained in this document which, when they are not historical fact, constitute “forward-looking statements”. These statements include projections and estimates and their underlying assumptions, statements regarding projects, objectives, intention
Slide 57: Full Year 2023 Results | February 29, 2024
FULL YEAR 2023 RESULTS | FEBRUARY 29, 2024 57