Valeo SE

FR

Equity

ISIN FR0013176526 / Valor 32745150

Euronext - Euronext Paris (2025-11-21)

EUR 10.51+1.01%

Valeo SE
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About company

Valeo SE, originally founded as SAFF in 1923 by Eugène Buisson, has evolved into a global leader in the automotive market, with a presence in over 15 countries through numerous subsidiaries. The company's core business focuses on providing a wide range of electrical equipment for vehicles, including spark plugs, alternators, starters, ignition, lighting, and wiper systems. Over the years, Valeo has expanded its product offerings and innovation capacity to cater to the evolving needs of the automotive industry, with a particular emphasis on developing technologies for cleaner, safer, and smarter mobility solutions. Additionally, Valeo has diversified its equipment supplies to include a variety of vehicles beyond traditional cars, such as electric micromobility options and autonomous shuttles, positioning itself as a key player in the global mobility sector.

Summarized from source with an LLMView SourceSector: Consumer Cyclicals

Sales Performance

Valeo SE reported sales of €21,492 million in Q1 2024, reflecting a slight decrease of 0.5% on a like-for-like basis. This marginal decline was managed effectively through strategic cost management and operational efficiencies.

EBITDA Margin Growth

The company's EBITDA increased by 8% to €2,863 million, representing a margin of 13.3% of sales. This improvement of 1.3 percentage points year-on-year surpassed the company's guidance, highlighting enhanced operational performance.

Operating Margin Improvement

Operating margin rose by 9.7% to €919 million, accounting for 4.3% of sales. This 0.5 percentage point increase year-on-year was in line with the company's forecasts, demonstrating steady financial health.

Free Cash Flow Achievement

Valeo SE generated a free cash flow of €551 million before one-off restructuring costs, exceeding guidance by €51 million. After accounting for these costs, free cash flow stood at €481 million, still above expectations.

Debt Reduction and Leverage

Net debt decreased to €3,813 million, down by €215 million, while the leverage ratio improved to 1.3x EBITDA. This reduction in debt underscores the company's commitment to strengthening its financial position.

Dividend Proposal

A dividend of €0.42 per share has been proposed and will be presented at the next Shareholders’ Meeting, reflecting Valeo SE’s ongoing dedication to returning value to its shareholders.

2025 Financial Objectives

Looking ahead to 2025, Valeo SE aims for sales between €21.5 billion and €22.5 billion, an increase in EBITDA margin to 13.5%-14.5%, and an operating margin between 4.5%-5.5%. Additionally, the company targets a free cash flow of €700-800 million before one-off restructuring costs, reinforcing its strategy for sustained financial growth.

Summarized from source with an LLMView Source

Key figures

31.1%1Y

-41.9%3Y

-66.1%5Y

Performance

46.3%1Y

42.5%3Y

43.5%5Y

Volatility