Auto supplier Valeo reaffirmed its 2026 outlook after first-half margin, free cash flow and debt metrics improved despite weaker automotive production and continued market uncertainty.
Valeo reaffirmed all of its 2026 objectives after first-half 2026 results showed stronger profitability, improved cash generation and lower net debt despite a weaker automotive market. H1 sales were 10,378 million euros, down 2.6% as reported but up 0.7% like for like, while operating margin rose to 514 million euros, or 5.0% of sales, from 4.5% a year earlier. Free cash flow increased to 242 million euros from 100 million euros, and net financial debt fell by 194 million euros from December 31, 2025 to 3,828 million euros, reducing the leverage ratio to 1.2x from 1.3x. Valeo maintained its 2026 targets for sales of 20 billion euros to 21 billion euros, operating margin of 4.7% to 5.3% of sales, and free cash flow after net financial interest of more than 400 million euros, while saying second-half operating margin and free cash flow should be at least equivalent to first-half levels assuming stable market conditions, macroeconomic projections and supply chain.