Valeo (FR) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 sales reached €5.3bn, down 0.8% like-for-like, with OEM activity stable and strong aftermarket growth.

• Challenging environment with lower volumes, unfavorable mix, and tariffs, mitigated by cost adjustments and restructuring.

• 2025 guidance confirmed, targeting improved profitability and cash generation.

• Strong commercial momentum in ADAS, with new orders from Volkswagen and industry awards.

Financial highlights

• Total Q1 2025 sales: €5,313m, down 2.1% reported and 0.8% like-for-like; OEM: €4,500m; Aftermarket: €574m.

• Aftermarket like-for-like sales up 3% despite high comparison base; scope impact from divestitures.

• Miscellaneous sales (tooling, R&D) fell 15% like-for-like due to a high prior-year base.

• Regional production: China up 11%, Europe down 7%, North America down 5%, impacting geographic mix.

Outlook and guidance

• FY 2025 sales guidance: €21.5bn–€22.5bn; EBITDA margin: 13.5%–14.5%; operating margin: 4.5%–5.5%.

• Free cash flow before one-off restructuring: €700m–€800m; after: €450m–€550m.

• Cumulative free cash flow for 2024–2025 expected at ~€1bn after €300m in restructuring costs.

• H2 2025 margins and cash generation expected to be higher than H1.