Gasgoo Munich- Valeo released its full-year 2025 financial report on February 27, delivering on all its commitments for the year. The supplier posted breakthroughs in profitability and cash flow alongside a surge in orders, laying a solid foundation for its "Elevate 2028" strategic plan.
Sales reached 20.9 billion euros, a modest 0.5% increase from the previous year. Operating profit climbed to 977 million euros — a 4.7% margin that sits within the target range and represents a 0.4-percentage-point improvement over 2024. Net profit, meanwhile, jumped 23% to 200 million euros.
Cash flow performance stood out. Free cash flow before one-off restructuring costs hit 756 million euros — a record high that marks a decisive turnaround in cash generation. Even after deducting those costs and net financial interest, free cash flow aligned with expectations.
Momentum in the order book remained robust. Full-year orders surged 38% to 24.6 billion euros, with growth accelerating to 47% in the second half. The company also secured its first battery energy storage system (BESS) contract worth 225 million dollars, marking a significant breakthrough in its new business expansion.
Image Source: Valeo
On the balance sheet, net debt stood at 4.022 billion euros, representing a leverage ratio of 1.3 times. That figure includes an adverse currency impact of 263 million euros, yet the overall financial position remains solid. Additionally, Valeo plans to propose a dividend of 0.44 euros per share at its shareholders' meeting on May 21, 2026.
Building on its strong 2025 performance, Valeo has outlined its targets for 2026: sales are projected to range between 20 billion and 21 billion euros, with organic growth in original equipment sales expected to remain flat. The company aims to lift its operating margin to 4.7%–5.3% and generate free cash flow — excluding net financial interest — of more than 400 million euros.
Christophe Périllat, Chief Executive Officer of Valeo, said the 2025 results demonstrate that the company has further consolidated its position. The "Elevate 2028" strategic plan, he noted, is being implemented steadily and on track.
Périllat also highlighted that steady order growth validates the strength of Valeo's sales strategy, underpinning its future growth trajectory. The supplier is actively expanding in regional markets poised to drive demand. In 2025, Valeo solidified its technological leadership, particularly in software-defined vehicles and driving assistance systems, with innovations set to hit the market in 2026 alongside new vehicle launches.
