Valeo Improves Profitability and Reduces Debt in H1 2026
In the first half of 2026, Valeo reported revenues of 10.38 billion euros, a decrease of 2.6% in reported figures but an increase of 0.7% on a like-for-like basis. The operating margin improved to 5.0% of revenue, while free cash flow reached 242 million euros and net debt was reduced to 3.83 billion euros. The group confirms all its 2026 targets and is preparing for a return to stronger growth in 2027.
Profitability and Cash Flow Improve Despite Decline in Reported Revenue
Valeo achieved a revenue of 10.38 billion euros in the first half of 2026, down 2.6% in reported figures but up 0.7% on a like-for-like basis. The operating margin reached 514 million euros, representing 5.0% of revenue, compared to 4.5% a year earlier. Operating income (IFRS) amounted to 428 million euros, up 16%, while net income attributable to the group was 105 million euros, compared to 104 million a year earlier. Free cash flow more than doubled to 242 million euros, compared to 100 million a year earlier, allowing net debt to be reduced to 3.83 billion euros, from 4.02 billion at the end of 2025.
2026 Targets Confirmed
Valeo confirms for 2026 a revenue target between 20 and 21 billion euros, an operating margin between 4.7% and 5.3%, and a free cash flow of more than 400 million euros. Profitability improvement is based particularly on commercial discipline, cost base optimization, enhanced research and development efficiency, and more profitable product launches. Order intake reached 12.1 billion euros and remains, according to the group, in line with the trajectory of the Elevate 2028 plan.
Commercial Diversification and Preparation for Growth Return
Valeo continues its development in sectors adjacent to the automotive industry, where some of its technologies can be deployed without additional development costs. The group has reported initial commercial advances, notably with a first contract in drone engines. It also anticipates a return to growth in China from the second half of 2026, driven by local manufacturers. Christophe Périllat, Chief Executive Officer, emphasizes that Valeo is actively preparing for a return to growth in 2027 while continuing to execute the Elevate 2028 plan.
