2024 Results

In 2024, Valeo achieved its profitability and cash generation objectives, recording:

• Sales of 21,492 million euros, down 0.5% on a like-for-like basis
• EBITDA margin up 8% to 2,863 million euros, representing 13.3% of sales (up 1.3 percentage points year on year), above guidance
• Operating margin up 9.7% to 919 million euros, representing 4.3% of sales (up 0.5 percentage points year on year), in line with guidance
• Free cash flow of 551 million euros before one-off restructuring costs, 51 million euros above guidance
• Free cash flow of 481 million euros after one-off restructuring costs, above guidance
• Net debt at 3,813 million euros, down 215 million euros, and leverage ratio at 1.3x EBITDA
• Dividend of €0.42 per share to be proposed at the next Shareholders’ Meeting

For 2025, in a still uncertain environment, Valeo is aiming for another year of improved financial performance, with the following objectives:

• Sales of between 21.5 billion euros and 22.5 billion euros
• An increase in EBITDA margin to between 13.5% and 14.5%
• An increase in operating margin to between 4.5% and 5.5%
• Free cash flow of between 700 and 800 million euros before one-off restructuring costs
• Free cash flow of between 450 to 550 million euros after one-off restructuring costs, corresponding to cash generation of around 1 billion euros for the period 2024-2025, after the payment of 300 million euros in one-off restructuring costs over the two years

“In 2024, Valeo continued its recovery, achieved its profitability and free cash flow generation objectives, and reduced its debt in a difficult market environment.

Our attractive technologies, more efficient R&D and lower break-even point, achieved thanks to our efforts to reorganize, adapt and streamline our operations, have enabled us to structurally improve our gross margin, EBITDA, operating margin and cash generation.

I would like to thank Valeo’s teams for their remarkable commitment. Driven by their firm belief in the potential of our products and our business model, they demonstrated courage, responsibility and agility throughout the year.

2024 was also the year that saw the implementation of the CSRD. Our first sustainability report is part of a broader process of continuous improvement and transparency, and reflects how we have integrated sustainability into all aspects of our strategy and operations.

In 2025, we will continue to build on our recovery, and are aiming for a further improvement in our financial performance. Our goal is to deliver an original equipment sales outperformance versus automotive production, and to increase our operating margin and free cash flow generation. For the period 2024-2025, this would be equivalent to free cash flow generation of around one billion euros, which remains the Group’s priority.

Our Move Up strategic plan will come to an end in 2025. We have reduced our costs and structurally improved our profitability and cash generation. Our customers have demonstrated their trust and growing interest in our technologies. Since 2022, the profitability of our order intake has increased sharply. We will outline a new phase of profitable, cash-generating growth at our Investor Day to be held on November 20.“

Christophe Périllat, Valeo’s Chief Executive Officer

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