Valeo Q3 2026 sales slip 2.6% to 4.9 billion euros as BRAIN Division returns to growth
Valeo's third-quarter sales fell 2.6% like for like to 4.9 billion euros, but the supplier kept its full-year 2026 guidance and flagged an 8.2% rebound at its BRAIN Division.
- 4.9 billion euros
- 4.1 billion euros
- 8.2%
- 20 to 21 billion euros
What Happened
Valeo reported third-quarter 2026 sales of 4.9 billion euros, down 2.6% on a like-for-like basis, a quarter the company described as in line with its annual objectives. Original equipment sales came to 4.1 billion euros, down 3.8% like for like in a market that was down 1.6% overall. North America and Asia excluding China continued to outperform. The BRAIN Division returned to growth, with sales up 8.2% on a like-for-like basis.
4.9 billion euros
Down 2.6% on a like-for-like basis, a quarter Valeo says is in line with its annual objectives.
- -2.6%
- -3.8%
- -1.6%
- Sales: 20 to 21 billion euros
- Operating margin (as a % of sales): 4.7% to 5.3%
- Free cash flow (after net financial interest) of more than 400 million euros
Alongside the confirmed full-year targets, Valeo said it is targeting second-half operating margin as a percentage of sales and free cash flow equivalent to those of the first half. The group presented the BRAIN Division rebound as the first concrete milestone toward its return to growth in 2027, which it calls the third engine of its "Elevate 2028" strategic plan.
“Our performance in the third quarter is in line with our objectives for the full year, demonstrating Valeo's resilience in a demanding market environment where challenges have intensified over recent months. In this context, the rebound in activity in the BRAIN Division provides a positive signal. It sets the first concrete milestone toward the Group's return to growth in 2027, the third engine of our "Elevate 2028" strategic plan. We are entering the final quarter with the same absolute rigor in operational execution and cost management. Our teams are fully mobilized to tackle the headwinds and deliver on all our objectives for the full year.”
Why this matters
Valeo is a major parts supplier to carmakers, so its quarterly sales and confirmed full-year targets are a read on how demand and cost pressure are playing out for the industry. The group said original equipment sales fell 3.8% against a market down 1.6%, with North America and Asia excluding China outperforming.
Terms in This Story
- Like-for-like basis
- A comparison that strips out the effect of currency movements and changes in the scope of a business, so the growth figure reflects underlying activity.
- Original equipment sales
- Sales of parts and systems supplied directly to carmakers for fitment on new vehicles, as opposed to the spare-parts aftermarket.
- Operating margin
- Operating profit expressed as a percentage of sales, showing how much a company earns from its core business before interest and taxes.
- Free cash flow
- The cash a company generates after funding its operations and investments; Valeo specifies its figure after net financial interest.
Summarised from the linked release; details can be imperfect — always verify against the original source.