Valeo sees steady sales but better margin in 2026
26/02/2026 17:45
By Mathias de Rozario
Oct 20 (Reuters) - French car part supplier Valeo VLOF.PA said on Wednesday it expects its 2026 sales to be around last year's level, in line with market expectations, but with a better profit margin.
In 2025 the group's sales have been hit by continued weakness in the automotive market coupled with the implementation of tariffs by the U.S. and an adverse currency impact.
Company expects sales to be between 20-21 billion euros ($23.58-24.76 billion) in 2026 from 20.9 billion euros reported in 2025 and in line with the 20.55 billion euros expected on average in a company-compiled consensus.
Sales recorded a negative currency impact of 2.4% in 2025 but with little impact on its operating margin, CEO Christophe Périllat said in a call with journalists.
Valeo sees an improved operating margin of between 4.7% and 5.3% of sales in 2026 from 4.7% in 2025 and with free cash flow above 400 million euros from 371 million euros in 2025.
The group is fully on track to meet its mid-term 2028 targets, which were targeting to steadily increase profit from 2022 onwards, generate higher cash from 2025 onwards, and return to sales growth from 2027 onwards.
The U.S. Supreme Court striking down Trump's global tariffs has no significant impact on Valeo, Périllat said.
($1 = 0.8482 euros)
(Reporting by Mathias de Rozario in Gdansk; Editing by Matt Scuffham)
((mathias.derozario@thomsonreuters.com;))