Valeo Reports Sales of €4,881 Million in Q3, Down 2.3%

Key Facts

Valeo reported sales of €4,881 million in the third quarter of 2026, down 2.3% on a reported basis and 2.6% on a like-for-like basis, compared with €4,997 million in the same period of 2025. In its sales statement, the company said global automotive production fell 1.6% year on year during the quarter, based on estimates from S&P Global Mobility. Valeo’s reported sales decline was deeper than the contraction in global production, while the like-for-like comparison reflects sales movements excluding the effects of foreign exchange rates and changes in the group’s scope. Currency movements added 1.0% to reported sales, while changes in the group’s structure reduced sales by 0.7%. The company linked the negative scope effect to the sale of its transmission systems sensors business in November 2025.

Pressure was concentrated in the original equipment business, which recorded sales of €4,080 million, down 3.8% on a like-for-like basis. Valeo attributed part of the business’s weakness to an unfavorable comparison base, as it had recorded customer compensation in the POWER division in the third quarter of 2025. By contrast, aftermarket sales rose to €516 million, up 3.0% on a like-for-like basis. Miscellaneous sales also increased to €285 million, up 6.6% on the same basis. These differences indicate that the contraction was concentrated in sales linked to new vehicle equipment, while the other businesses grew during the quarter.

China stood out as one source of pressure on original equipment sales, with Valeo sales there at €534 million, compared with €576 million a year earlier. These sales fell 12.9% on a like-for-like basis, while the reported decline was 7.3%. The company described China in its quarterly statement as a declining and highly volatile market. At the same time, Chinese automakers’ share of Valeo’s original equipment sales in China rose to 56% since the start of 2026, compared with 53% in the first half and 52% in the corresponding period of 2025. The shift in customer mix coincided with a decline in the company’s overall sales in the Chinese market.

At the division level, BRAIN returned to growth, with sales of €1,198 million, up 8.2% on a like-for-like basis and outperforming the market by 10 percentage points. Valeo said the performance benefited from continued momentum in display and telematics activities, as well as increased production of vision systems for a major European automaker. By contrast, POWER sales fell 7.8% on a reported basis, while its original equipment sales declined 9.6% on a like-for-like basis. LIGHT sales fell 1.2% on a reported basis, while its original equipment sales declined 3.2% on the same basis. The divergence between divisions shows that BRAIN’s growth did not offset the declines in the other two businesses during the quarter.

The third-quarter figures follow Valeo’s first-half 2026 sales of €10.4 billion, up 0.7% on a like-for-like basis. Operating margin in that period was €514 million, or 5.0% of sales. Free cash flow also rose to €242 million, compared with €100 million in the first half of 2025. The company did not state a growth rate for free cash flow in its first-half results statement. This prior performance provides context for the third-quarter results, which reflected a year-on-year sales decline after limited growth in the first half.

Valeo reaffirmed its 2026 targets, which include sales of between €20 billion and €21 billion, an operating margin of between 4.7% and 5.3% of sales, and free cash flow of more than €400 million after net financial interest. The company also targets operating margin and free cash flow in the second half to match their respective first-half levels. Valeo expects sales to rise sequentially in the fourth quarter in line with typical seasonal patterns. In analyst estimates published by the company, the average forecast for third-quarter sales was €4,928 million, based on estimates from 12 analysts; a Reuters report cited consensus at €4.93 billion, compared with reported sales of €4.88 billion. The company is scheduled to report its 2026 annual results on 25 February 2027, followed by its first-quarter 2027 results on 28 April.