Valeo — Earnings Release 2025

Oct 23, 2025

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PARIS

October 23, 2025

2025 objectives supported by third-quarter sales of close to 5 billion euros, up 3.5% like for like

• • Sales of 4,997 million euros, up 3.5% on a like-for-like basis
• • Original equipment sales up 3.7% on a like-for-like basis, reflecting the sound performance of the POWER and LIGHT divisions
• • By geographic area, Europe outperformed automotive production, while China delivered an improved performance, significantly reducing the gap in performance versus the Chinese market
• • On this basis, the Group confirms its 2025 objectives
  • ◦ Sales: around 20.5 billion euros
  • ◦ EBITDA (as a % of sales): 13.5% to 14.5%
  • ◦ Operating margin (as a % of sales): 4.5% to 5.5%
  • ◦ Free cash flow before one-off restructuring costs: 700 to 800 million euros
  • ◦ Free cash flow after one-off restructuring costs: 450 to 550 million euros

"In a difficult and demanding environment, the Group's third-quarter performance is in line with its full-year objectives. It highlights the complementary nature of our technologies and our geographic positioning. The POWER and LIGHT divisions' performance was driven by the ramp-up of production launches in Europe as well as in China with new players in electrification. As in the first half, the BRAIN division's performance retreated, while order intake in the area of ADAS and SDV remained strong, illustrating the attractiveness of our product portfolio.

Our efforts to reposition ourselves among Chinese automakers are paying off and, in line with our expectations, we are significantly reducing the gap in our performance compared with the Chinese market.

I would like to thank Valeo's teams for their efforts in rigorously managing our activities and implementing cost reduction measures. Their commitment is essential to achieving our roadmap aimed at improving profitability and cash generation."

Christophe Périllat, Valeo's Chief Executive Officer

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Sales of 4,997 million euros in third-quarter 2025, up 3.5% like for like

Sales(in millions of euros)	As a % ofsales	Q3 2025	Q3 2024	Change	FX	Scope	LFL* change
Original equipment	85 %	4,229	4,197	+0.8 %	-2.9 %	— %	+3.7 %
Aftermarket	10 %	503	538	-6.5 %	-2.4 %	-1.3 %	-2.8 %
Miscellaneous	5 %	265	232	+14.4 %	-1.4 %	+1.4 %	+14.4 %
Total	100 %	4,997	4,967	+0.6 %	-2.8 %	-0.1 %	+3.5 %

* Like for like(1)

S&P Global Mobility automotive production estimates are up 4.4% on the third quarter of 2024.

Total sales for third-quarter 2025 came in at 4,997 million euros, up 1% compared with the same period in 2024.

Changes in Group structure had a marginal negative 0.1% impact, due to the sale of PIAA, which produces and distributes aftermarket equipment, in August 2024.

Changes in exchange rates had a negative 2.8% impact, primarily due to the increase in value of the euro against the other major international currencies.

On a like-for-like basis, sales were up 3.5%.

Like-for-like original equipment sales grew by 3.7%, representing a 1 percentage point gap in performance compared with automotive production.

Aftermarket sales declined by 2.8% like for like, due to a high basis of comparison. Underlying business nevertheless remains solid, still fueled by the increasing age of vehicles on the road and the extension of Valeo's value-added product offering.

"Miscellaneous" sales, including tooling and customer contributions to R&D, increased by 14% like for like.

(1) See financial glossary, page 6.

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Third-quarter 2025 sales: outperformance in Europe, significant reduction in underperformance in China

Original equipment sales***(in millions of euros)	As a % ofsales	Q3 2025	Q3 2024	Change	LFL* change	Perf. **
Europe	49 %	2,058	1,916	+7.4 %	+6.3 %	+5 pts
Asia	30 %	1,257	1,349	-6.8 %	-0.3 %	-6 pts
o/w Asia (excluding China)	16 %	681	717	-5.0 %	+2.3 %	+1 pt
o/w China	14 %	576	632	-8.9 %	-3.3 %	-13 pts
North America	19 %	826	844	-2.1 %	+4.1 %	-1 pt
South America	2 %	88	88	— %	+4.1 %	+6 pts
Total	100 %	4,229	4,197	+0.8 %	+3.7 %	-1 pt

* Like for like.

In the third quarter, like-for-like original equipment sales grew by 3.7%, representing a 1 percentage point gap in performance compared with automotive production, taking into account a negative impact of around 1 percentage point due to an unfavorable geographic mix.

In Europe, original equipment sales outperformed automotive production by 5 percentage points, reflecting strong activity in the POWER division*,* notably for low-voltage systems, and in the LIGHT division*,* buoyed by numerous production launches in lighting. Within the BRAIN division, the Interior Experience business continued to show strong momentum.

In Asia, the gap in performance compared with automotive production was 6 percentage points:

• in China, the gap in performance compared with automotive production was reduced significantly to 13 percentage points (from 20 percentage points in the first half), supported by the progress made by the LIGHT division with Chinese automakers and the POWER division's thermal systems activities; the Group is continuing to reposition its customer portfolio (52% of original equipment sales recorded with Chinese automakers in China (excluding joint ventures) since the start of 2025);
• in Asia excluding China, Valeo outperformed automotive production by 1 percentage point thanks to strong momentum for the BRAIN division in ADAS and for the POWER division.

In North America, the gap in performance compared with automotive production was 1 percentage point. This reflects delays to the start of production in the BRAIN and LIGHT divisions, offset by momentum in the POWER division.

In South America, the Group outperformed automotive production by 6 percentage points.

** Based on S&P Global Mobility automotive production estimates released on October 15, 2025.

*** Original equipment sales by destination region. Europe includes Africa. Asia includes the Middle East and Oceania.

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Segment reporting

In the third quarter of 2025, outperformance for POWER and return to growth for LIGHT; growth potential for BRAIN unaltered

Sales by division(in millions of euros)	Q3 2025	Q3 2024	Change in sales	Change in OEsales*	Perf. **
POWER	2,599	2,470	+5.2%	+11.0%	+7 pts
High-voltage electrification	290	189	+53.4%	+66.0%	+62 pts
Other	2,309	2,281	+1.2%	+6.3%	+2 pts
BRAIN	1,106	1,214	-8.9%	-8.2%	-13 pts
ADAS	669	776	-13.8%	-12.6%	-17 pts
Interior Experience	436	438	-0.5%	-0.4%	-5 pts
LIGHT	1,282	1,270	+0.9%	+3.4%	-1 pt
OTHER	10	13	na	na	na
GROUP	4,997	4,967	+0.6%	+3.7%	-1 pt

* I ike for like

The sales performance for the divisions reflects the specific product, geographical and customer mix and the relative weighting of the aftermarket in their activity as a whole.

In the third quarter, the POWER division outperformed automotive production by 7 percentage points, reflecting the resilience of its traditional activities (thermal systems, transmission systems and 48V), particularly in China, where notable progress was made with Chinese automakers. Traditional activities outperformed automotive production by 2 percentage points over the quarter. The POWER division benefited in particular from customer compensation recorded in the high-voltage business, which continues to be affected by project postponements and a decline in activity on certain electric vehicle platforms in Europe.

The BRAIN division posted a gap in performance of 13 percentage points compared with automotive production, penalized by the same factors as in the first half, namely the discontinuation of ADAS projects with below-average margins, and the postponement of production start-ups in North America for a global automaker. Good momentum for order intake in ADAS and SDV illustrates the attractiveness of the division's portfolio of solutions and reaffirms its growth potential.

The LIGHT division recorded a gap in performance of 1 percentage point compared with automotive production. The division posted 3.4% like-for-like growth for the quarter, in line with expectations of a gradual recovery in the second half. The LIGHT division's performance was lifted by numerous production launches in Europe and China, in particular for Chinese automakers.

** Based on S&P Global Mobility automotive production estimates released on October 15, 2025 (Q3 2025 global production growth: +4.4%).

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2025 objectives confirmed

Valeo's 2025 objectives are supported by its third-quarter performance. Fourth-quarter sales are expected to be of the same order of magnitude as third-quarter figures.

	2024	2025 objectives (a)(b)
Sales(in billions of euros)	21.5	~20.5
EBITDA(as a % of sales)	13.3%	13.5% to 14.5%
Operating margin(as a % of sales)	4.3%	4.5% to 5.5%
Free cash flowbefore one-off restructuring costs(in millions of euros)	551	700 to 800
Free cash flowafter one-off restructuring costs(in millions of euros)	481	450 to 550

Cumulative free cash flow of around 1 billion euros for the 2024-2025 period, after taking into account 300 million euros in one-off restructuring costs.

These objectives are based on tariffs and trade restrictions in effect at October 1, 2025. They do not take into account any other disruption that may occur, particularly with regard to export controls concerning the automotive market, which could have an impact on production or retail sales in the main automotive regions.

• (a) Based on S&P Global Mobility estimates published on October 15, 2025.
• (b) With margins and free cash flow generation expected to be higher in second-half 2025 than in the first half.

Upcoming events

Investor Day: November 20, 2025 in Paris 2025 annual results: February 26, 2026

Key events of third-quarter 2025

Business momentum and an attractive product portfolio

July 15 – A leading Chinese new energy vehicle (NEV) manufacturer has selected Valeo's 5-in-1 power electronics module for its electrified powertrains. To reduce development time and meet the increasing pace of customer and market demands, Valeo has deployed a more flexible approach, based on a platform leveraging pre-developed technical bricks. This enabled the entire project to move from concept to mass production readiness in under a year, with production slated to begin in 2026.

July 17 – Valeo has been selected by a major Chinese OEM to equip its new models with a cutting edge panoramic Head-Up Display. With a functional live demonstrator developed in only six months and a start of production for this first customer expected in 2026, Valeo illustrates how the Group adapts to move faster from project to prototype to business.

August 29 – Valeo opened a new production facility in Shanghai, focused on the R&D and production of domain controllers and ADAS. The opening of this new production site further strengthens the Group's local manufacturing capabilities and consolidates its leading position in the field of ADAS on the Chinese market and worldwide.

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September 5 – Valeo and Momenta, a leading autonomous driving company, have signed a strategic partnership agreement to establish a comprehensive, long-term and global partnership to jointly develop advanced mid- to high-level Intelligent Assisted Driving and Autonomous Driving products, systems, and solutions, in China and overseas.

September 8-12 – At IAA MOBILITY 2025 in Munich, Valeo showcased its latest technologies designed to accelerate the development of the next generation of software-defined vehicles and offer more scalability and customization for ADAS, electrified vehicles, smart lighting and interior experience.

September 8 – Qualcomm Technologies, Inc. and Valeo announced the expansion of their long-standing collaboration to accelerate the shift to SDVs by offering automakers worldwide new, scalable and safety-centric ADAS systems.

September 24 – Valeo awarded new contract to supply its innovative Dual Layer HVAC (Heating, Ventilation, and Air Conditioning) system to a leading Chinese automaker. With its latest contract, Valeo has now secured a total of 10 contracts with 5 different customers in China, representing an overall value of several-hundred million euros. The new project has already entered the detail design phase and serial production is expected to begin in 2026.

October 20 – Valeo is awarded two major contracts to supply its new generation Dual Inverter solution to two leading Chinese automakers. Mass production is scheduled to start in 2026, with the solution being deployed on the customers' Plug-in Hybrid Electric Vehicles (PHEVs).

Debt

September 16 – Valeo announces the placement of 500 million euros' worth of new green bonds maturing March 23, 2032. The net proceeds of the transaction will be used for financing projects and investments linked to the portfolio of technologies that contribute to low-carbon mobility, in particular vehicle electrification.

Furthermore, Valeo plans to exercise the Residual Maturity Call Option on the outstanding 600 million euros' worth of 1.625% bonds maturing March 18, 2026, with an expected call date to occur on December 18, 2025.

Financial glossary

Order intake corresponds to business awarded by automakers during the period to Valeo, and to joint ventures and associates based on Valeo's share in net equity, less any cancellations, based on Valeo's best reasonable estimates in terms of volumes, selling prices and project lifespans. Unaudited indicator.

Like for like (or LFL): the currency impact is calculated by multiplying sales for the current period by the exchange rate for the previous period. The Group structure impact is calculated by adjusting sales by elimination (or by addition in the event of a change in consolidation method) to ensure that the prior period is comparable with the current period.

Operating margin corresponds to operating income before other income and expenses before share in net earnings of equity-accounted companies.

EBITDA corresponds to (i) operating margin before depreciation, amortization and impairment losses (included in the operating margin) and the impact of government subsidies and grants on non-current assets, and (ii) net dividends from equity-accounted companies.

Free cash flow corresponds to net cash from operating activities (excluding changes in non-recurring sales of receivables and net payments for the principal portion of lease liabilities) after taking into account acquisitions and disposals of property, plant and equipment and intangible assets.

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Appendices

Year-to-date figures

Sales

YTD sales(in millions of euros)	As a % of sales	YTD 2025	YTD 2024	Change	LFL*change	FX	Scope
Original equipment	84 %	13,133	13,492	-3%	—%	-2%	-1%
Aftermarket	10 %	1,617	1,728	-6%	—%	-3%	-4%
Miscellaneous	6 %	907	864	+5%	+4%	-1%	+2%
Total	100 %	15,657	16,084	-3%	-%	-2%	-1%

* Like for like.

Sales by destination region

Original equipment sales (in millions of euros)	As a % of sales	YTD 2025	YTD 2024	LFL* change	Perf. **
Europe	50 %	6,580	6,517	+2 %	+4 pts
Asia	29 %	3,798	4,036	-2 %	-9 pts
o/w Asia (excluding China)	16 %	2,094	2,138	+2 %	0 pt
o/w China	13 %	1,704	1,898	-7 %	-19 pts
North America	19 %	2,519	2,678	-3 %	-2 pts
South America	2 %	237	261	+9 %	+5 pts
Total	100 %	13,133	13,492	-%	-4 pts

Sales by division

Sales by division(in millions of euros)	YTD 2025	YTD 2024	Change in sales	Change in OE sales*	Perf. **
POWER	8,002	8,162	-2 %	+3 %	-1 pt
High-voltage electrification	738	702	+5 %	+12 %	+8 pts
Other	7,264	7,460	-3 %	+2 %	-2 pts
BRAIN	3,632	3,783	-4 %	-6 %	-10 pts
ADAS	2,244	2,435	-8 %	-10 %	-14 pts
Interior Experience	1,387	1,348	+3 %	+2 %	-2 pts
LIGHT	4,010	4,123	-3 %	— %	-4 pts
OTHER	13	16	na	na	na
GROUP	15,657	16,084	-3 %	– %	-4 pts

* Like for like.

** Based on S&P Global Mobility automotive production estimates released on October 15, 2025.

*** Original equipment sales by destination region. Europe includes Africa. Asia includes the Middle East and Oceania.

* Like for like.

** Based on S&P Global Mobility automotive production estimates released on October 15, 2025 (YTD global production growth: +4%).

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Safe Harbor Statement

Statements contained in this document which, when they are not historical fact, constitute "forward-looking statements". These statements include projections and estimates and their underlying assumptions, statements regarding projects, objectives, intentions and expectations with respect to future financial results, events, operations, services, and product development and potential and future performance. Even though Valeo's Management feels that the forward-looking statements are reasonable as at the date of this document, investors are put on notice that the forward-looking statements are subject to numerous factors, risks and uncertainties that are difficult to predict and generally beyond Valeo's control, which could cause actual results and events to differ materially from those expressed or projected in the forward-looking statements. Such factors include, among others, the Company's ability to generate cost savings or manufacturing efficiencies to offset negotiated or imposed price reductions. The risks and uncertainties to which Valeo is exposed mainly comprise risks related to the automotive equipment industry and to the development and launch of new products and risks due to certain global and regional economic and geopolitical conditions, environmental and industrial risks as well as risks and uncertainties described or identified in the public documents submitted by Valeo to the French financial markets authority (Autorité des marchés financiers – AMF), including those set out in the "Risk Factors" section of the 2024 Universal Registration Document registered with the AMF on March 27, 2025 (under number D.25-0180).

In addition, other risks which are currently unidentified or considered to be non-material by the Group, could have the same adverse impact and investors could lose all or part of their investment. Forward-looking statements are given only as at the date of this document and Valeo does not undertake to update the forward-looking statements to reflect events or circumstances which occur subsequent to the publication of this document. Valeo assumes no responsibility for any analyses issued by analysts and any other information prepared by third parties which may be used in this document. Valeo neither intends to review, nor will it confirm, any estimates issued by analysts.

About Valeo

As a technology company and partner to all automakers and new mobility players, Valeo is innovating to make mobility cleaner, safer and smarter. Valeo enjoys technological and industrial leadership in electrification, driving assistance systems, reinvention of the interior experience and lighting everywhere. These four areas, vital to the transformation of mobility, are the Group's growth drivers.

Valeo in figures: 21.5 billion euros in sales in 2024 | 106,100 employees, 28 countries, 155 plants, 64 research and development centers, 19 distribution platforms at December 31, 2024.

Valeo is listed on the Paris Stock Exchange.

Media Relations Dora Khosrof | +33 7 61 52 82 75 Caroline De Gezelle | +33 7 62 44 17 85 press-contact.mailbox@valeo.com

Investor Relations Marisa Baldo | marisa.baldo@valeo.com Thierry Lacorre | thierry.lacorre@ valeo.com valeo.corporateaccess.mailbox@valeo.com