Valeo third-quarter revenue falls 2.6% like for like

Valeo reported third-quarter 2026 revenue of €4.881 billion, against €4.997 billion a year earlier. That is a 2.3% decline on the reported basis and a 2.6% decrease at constant scope and exchange rates, the automotive supplier said in its 22 October release. Foreign exchange added 1.0 percentage point, while changes in consolidation scope reduced sales by 0.7 point. The figures describe different comparisons, so the reported and like-for-like rates should not be conflated.

Original-equipment sales, which supply vehicle manufacturers, were €4.080 billion, down 3.5% as reported and 3.8% like for like. Against estimated global vehicle production down 1.6%, Valeo calculated a 2.2-point outperformance gap, including a favourable 0.8-point geographic mix. A difficult comparison base in POWER also affected the result: its 2025 figures included customer compensation.

By destination, original-equipment revenue fell 7.1% like for like in Europe, which the release defines as including Africa, and 12.9% in China. It was flat in North America and rose 7.5% in Asia excluding China; that regional grouping includes the Middle East and Oceania. Those rates compare Valeo’s business with its own prior-year sales, not with the production change in each market. The company attributed North American resilience to POWER and growth in Asia excluding China to POWER and LIGHT.

Results differed across Valeo’s three divisions. POWER recorded €2.396 billion in sales, down 7.8% as reported and 9.6% like for like. BRAIN, covering driver-assistance, software and electronics activities, rose 8.3% as reported and 8.2% like for like to €1.198 billion. Valeo linked BRAIN’s growth to displays and telematics and increasing production of vision systems for a major European automaker. LIGHT revenue was €1.267 billion, down 1.2% reported and 3.2% at constant scope and currencies.

Aftermarket revenue increased 3.0% like for like to €516 million, while “divers,” mainly customer contributions toward research and development costs and prototypes, rose 6.6% to €285 million. Taken together, the figures show a mix of pressure in original-equipment demand and growth in some aftermarket and technology activities. Valeo called BRAIN’s rebound an initial step toward group growth in 2027.

The company maintained its 2026 guidance: revenue of €20 billion to €21 billion, operating margin of 4.7% to 5.3% of revenue and free cash flow above €400 million after net financial interest. Valeo also expects second-half operating margin and free cash flow to be equivalent to first-half levels, and anticipates sequential growth in the fourth quarter in line with normal seasonality. These are management targets, not reported outcomes.

Valeo’s forecast assumes no further material changes to tariffs or trade restrictions beyond those in force on 22 October, and no significant shift in market conditions, macroeconomic projections or major supply-chain disruption. The company also notes that it is benchmarking against S&P Global Mobility’s 15 October estimates for vehicle production. Those assumptions matter because production levels, customer demand, currency moves and the comparison base influence the supplier’s sales and its constant-scope growth calculations.

The release gives a mixed picture for the quarter: overall sales contracted, but BRAIN and the replacement market grew on a comparable basis, while regional outcomes diverged. Valeo said the quarter was consistent with its annual objectives and reiterated its targets. The next scheduled update in the release is annual 2026 results on 25 February 2027. The quarterly sales figures are company-reported revenue; the operating margin and cash-flow ranges remain forward-looking guidance.