Valeo: 1H26 results: execution improves, but re-rating needs more

Research evidence excerpt

Valeo: 1H26 results: execution improves, but re-rating needs more

iQprofile SM Valeo

Key Income Statement Data (Dec) 2024A 2025A 2026E 2027E 2028E Company Sector

(EUR Millions) Auto Parts

Sales 21,492 20,903 20,362 20,893 21,850

EBITDA Adjusted 2,863 3,082 3,113 3,258 3,441

Depreciation & Amortization (1,989) (2,088) (2,057) (2,089) (2,119) Company Description EBIT Adjusted 919 977 1,056 1,169 1,321

Net Interest & Other Income (285) (329) (271) (292) (304) Valeo is the 10th largest global automotive supplier

Tax Expense / Benefit (99.0) (205) (304) (303) (307) (excluding tyres). Valeo's strategy focuses on innovative

Net Income (Adjusted) 162 200 283 396 553 products (CO2 emission reduction) and expansion in Asia

Average Fully Diluted Shares Outstanding 245 246 244 244 244 and emerging countries. Valeo aims to sustainably outgrow

Key Cash Flow Statement Data the wider market by focusing on the key growth trends

Net Income (Reported) 162 200 283 396 553 around electrification and visibility (camera).

Depreciation & Amortization 1,989 2,088 2,057 2,089 2,119

Change in Working Capital 492 (301) 100 (2.24) 87.8

Deferred Taxation Charge 0 0 0 0 0 Investment Rationale Other CFO 44.0 302 287 308 319

Cash Flow from Operations 2,687 2,289 2,727 2,791 3,079 Valeo's strategic reset improves execution credibility and

Capital Expenditure (2,224) (1,761) (1,838) (1,885) (1,966) supports gradual margin recovery, but this is reflected in

(Acquisition) / Disposal of Investments 211 32.0 0 0 0 the valuation. With no clear earnings inflection before '27

Other CFI 61.0 160 0 0 0 and 2026 set to remain a transition year exposed to cyclical

Cash Flow from Investing (1,952) (1,569) (1,838) (1,885) (1,966)

risks, upside is limited. While long‑term optionality from