Valeo Q1 2025 Sales

Core Insights - Valeo recorded first-quarter sales of 5.3 billion euros, a decrease of 2.1% compared to the same period in 2024, with a like-for-like (LFL) change of -0.8% [6][10][7] - The company confirmed its objectives for 2025, focusing on improving profitability and cash generation despite a challenging environment marked by tariff impacts [9][28][26] Sales Performance - Original equipment sales accounted for 85% of total sales, remaining stable on a like-for-like basis, while aftermarket sales increased by 3% LFL [6][12][9] - The miscellaneous category saw a significant decline of 15% LFL, attributed to a high basis of comparison from the previous year [12][11] - Sales by region showed a mixed performance, with Europe and Africa outperforming automotive production by 10 percentage points, while China underperformed by 20 percentage points [13][17][15] Strategic Initiatives - Valeo is accelerating restructuring plans to reduce administrative and selling costs by approximately 5% and investments by around 15% compared to the first half of 2024 [3][30][29] - The company is actively reviewing its supply chain to mitigate tariff impacts and aims to secure compensation for 100% of the costs associated with tariffs [31][32][28] Product and Innovation Highlights - The company continues to leverage its strong product portfolio, particularly in Advanced Driver Assistance Systems (ADAS), with notable order intake from Volkswagen [4][36][37] - Valeo's innovations in electrification and vehicle autonomy have received industry recognition, contributing to substantial order intake [34][35][36] Financial Outlook - Valeo's 2025 objectives include achieving sales between 21.5 to 22.5 billion euros, with an EBITDA margin target of 13.5% to 14.5% [26][28] - The company anticipates generating cumulative free cash flow of around 1 billion euros for the 2024-2025 period, factoring in restructuring costs [26][29]