Financial Results | 22 Jul, 2026
| 5 min
Press release – H1 2026 Results
Profitability and cash generation up in the first half of the year
Net debt down
Valeo confirms its 2026 objectives
Sales of 10.4 billion euros, up 0.7% on a like-for-like basis
BRAIN and LIGHT Divisions outperformed global automotive production; original equipment sales of 8.5 billion euros, down by 0.6% like for like in a market that was down 1.0%
Operating margin of 514 million euros, or 5.0% of sales, up 8% on the same period in 2025, confirming the Group’s improved profitability which has been ongoing since 2022
Free cash flow of 242 million euros (100 million euros in H1 2025), confirming the Group’s improved structural ability to generate cash and deleverage
Net financial debt reduced by nearly 200 million euros to 3,828 million euros (4,022 million at December 31, 2025), representing a leverage ratio of 1.2x (1.3x at December 31, 2025)
Sales momentum in line with the Elevate 2028 plan, with order intake totaling 12.1 billion euros. Promising progress in adjacent markets to the automotive sector, with a first contract secured to manufacture drone motors
Valeo reaffirms all of its 2026 objectives
- Sales: 20 to 21 billion euros
- Operating margin (as a % of sales): 4.7% to 5.3%
- Free cash flow (after net financial interest) of more than 400 million euros
- Assuming stable market conditions, macroeconomic projections and supply chain, Valeo targets second-half operating margin (as a % of sales) and free cash flow at least equivalent to those of the first half
“The results for the first half of 2026 demonstrate that Valeo continues to move forward with rigor and consistency. Execution of the Elevate 2028 plan is well underway: our profitability continues to progress, we confirm the structural improvement in our ability to generate cash at a level that enables us to reduce our debt as early as the first half, and we are actively preparing our return to growth in 2027.
These strong results reflect the commitment and agility of our teams in staying resolutely on course against an uncertain geopolitical and macroeconomic backdrop and in continuing to manage our costs with the utmost discipline.
In parallel, our commercial momentum remains strong, supported by order intake in line with the trajectory of the Elevate 2028 plan. In addition, we are continuing to capitalize on opportunities in sectors beyond the automotive industry where our technologies can be applied without incurring additional development costs. Our early inroads in these areas are encouraging.
Bolstered by this operational strength and the quality of our order book, we confirm all of our 2026 objectives and remain firmly on track to deliver on our strategic roadmap.“
Christophe Périllat, Valeo’s Chief Executive Officer
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