EarningsQ2 2026 Earnings Report
DE:VSA Q2 2026 EPS Results
Actual EPS€0.13
Consensus EPS€0.15
Beat/MissMissed by -€0.02
One Year Ago EPS€0.22
DE:VSA Q2 2026 Revenue Results
Actual Revenue€10.57B
Expected Revenue€5.44B
Beat/MissBeat by +€5.13B
YoY Revenue Growth+3.98%
Earnings Announcement Details
QuarterQ2 2026
Date07/22/2026
TimeDuring Market Hours
Conference CallWednesday, July 22, 2026
DE:VSA Upcoming Earnings
Valeo SA (EU)'s next earnings date is estimated for March 4, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:VSA Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a predominantly positive operational and financial momentum: profitability and cash generation engines are running, evidenced by higher operating margin (5.0%), strong free cash flow (EUR 242m), net debt reduction and robust order intake (EUR 12.1bn). Division-level improvements, especially the POWER turnaround and high gross margin (20.7%), support the narrative. However, notable risks remain—China sales contraction, high effective tax rate (48%), an R&D impairment (EUR 85m), market volatility and supply/cost pressures—which temper near-term visibility. On balance, the positives (margin gains, cash, deleveraging, large orders and beyond-automotive pipeline) outweigh the negatives.Company Guidance
Group Sales and Top-Line Stability
Group sales of EUR 10.4 billion in H1 '26, up 0.7% like-for-like, largely in line with guidance and with the group's Elevate '28 trajectory.
Improved Operating Margin
Group operating margin reached 5.0% in H1 '26, up 50 basis points year-on-year and 30 basis points above full year '25, reflecting pricing discipline, productivity and lower breakeven.
Strong Free Cash Flow and Debt Reduction
Free cash flow after net financial interest of EUR 242 million (more than double H1 '25 and >50% of minimum full-year guidance), enabling net debt reduction of ~EUR 194-200 million vs end-2025 and ~EUR 350 million vs one year ago.
Order Intake Momentum
Order intake of EUR 12.1 billion in H1 (1.4x OEM sales), consistent with Elevate '28, with balanced mix across POWER and BRAIN (~>1/3 each) and LIGHT (~25%).
Regional and Program Milestones
Key achievements: new plant groundbreaking in McAllen, Texas for GM central compute (one of Valeo's largest orders), major new contracts in China and India (e‑axle line for Mahindra), and expectation of India sales of EUR 700 million in 2028 (3x 2024).
Division-Level Profitability Improvements
POWER operating margin surged to 4.8% (+130 bps YoY); BRAIN margin at 5.6% (sequential improvement despite YoY decline); LIGHT margin improved to 4.7% (+20 bps YoY).
Gross Margin Peak and Cost Control
Gross margin reached 20.7% of sales (matching 2017 peak and above 19% ambition), SG&A down 3% vs H1 '25, and net R&D spending ~11% of sales with gross R&D spending down 3%.
Lower CapEx Intensity and Robust Liquidity
Tangible CapEx down 12% to 3.6% of sales in H1, with CapEx intensity expected below long-term 4.5%-5% objective; liquidity of EUR 3.0 billion cash plus EUR 1.6 billion undrawn credit lines; EUR 600 million bond proceeds provide refinancing flexibility.
Beyond-Automotive Opportunity Pipeline
Identified and progressing adjacencies—data centers (liquid cooling, power electronics), drones (new electric motor order), battery energy storage, defense and humanoids—with no major incremental investments expected as they leverage existing technologies.
DE:VSA Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed