(BFM Stock Exchange) – The automotive supplier has generated revenues of 10% of expectations and lowered its annual turnover objective due to negative exchange effects.

If Opthobility delighted the market on Thursday with its half -yearly results – the title took 8% – we will say much of it so many Valeo.

The automotive supplier is suffering this Friday, July 25 on the Paris Stock Exchange this Friday, July 25, losing 7.2% around 3:45 p.m., after presenting its accounts from the first half the previous evening. The publication includes “good but also less good”, summarizes Oddo BHF.

Over all the first six months of 2025, Valeo has generated income of 10.66 billion euros in withdrawal of 2% in comparable data over one year and far below the consensus quoted by Bernstein, of 11.8 billion euros. The equipment supplier was penalized by the withdrawal of 4% of sales in comparable data from its “Brain” division, which includes in particular driving and parking aid systems (ADAS) or interactive screens for cars.

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A generation of “still limited” cash

The performance of the division “illustrates the cessation of ADAS projects having margins lower than the average. It is also penalized by reporting in production in North America with a global manufacturer,” said the company. The “Power” division (propulsion systems) has accused a drop in its revenues by 1% in comparable data, and “light” (lighting) fell by 2% on these same bases.

Due to this stronger drop than expected income, the gross operating result is 1.47 billion euros, under the consensus set at 1.54 billion euros, despite a better margin than anticipated by analysts (13.8% against 13%), notes Bernstein.

The cash flow is 252 million euros, above expectations (146 million euros). But Oddo BHF recalculates a real “still limited” free “cash flow of” 100 million euros excluding adjustments “. The broker also notes that debt increased from 370 million euros to the end of June against the end of December. This brings the debt to 4.2 billion euros against 3.9 billion euros expected by the consensus. Even if it should be emphasized that the increase in this liabilities is due to negative exchange effects.

Valeo has also lowered its annual turnover target for 2025, largely due to variations in unfavorable currencies.

The group tables a turnover around 20.5 billion euros against a previous target ranging from 21.5 billion to 22.5 billion euros. Valeo has maintained its other annual prospects, which include a gross operating margin ranging from 13.5% to 14.5%, an operating margin from 4.5% to 5.5% and a free cash flow from 450 million to 550 million euros.

A “still fragile” financial profile

In the positive points, Oddo BHF notes that the orders, up 30% over a year, were robust “which remains commercially encouraging but still represents a financial risk (development costs, etc.)”.

“Valeo has undergone the impact of multiple programs reports as well as difficulties linked to customs duties in the first half of 2025. Its sales underperform compared to the growth of the Chinese market in the first half of 2025, but the positioning of Valeo with Chinese equipment manufacturers has improved, its controls having exceeded its sales”, dissecting its Bernstein side.

“Vehicle production volumes are vital for all automotive equipment manufacturers and, taking into account the uncertainty that reigns around customs duties, production calendars could be subject to fluctuations, which would have a negative impact on all equipment manufacturers. The company must therefore rely more about its internal performance levers”, continues the financial intermediary.

For the time being, Valeo has indicated that the net impacts of American customs duties had been “non -significant” on the semester. Its general manager, Christophe Périllat, quoted by Reuters, however called for the European Union and the United States to take an agreement to release the automotive industry from instability.

“The uncertainties in the second semester remain (…) many, especially from the angle of customs duties, and, if the equipment manufacturer is finally more attractive this year, we prefer for the moment, to remain selective by always favoring the actors that we consider the most qualitative (autoliv, cie and Opthobility)”, slices Oddo BHF. For the broker, Valeo has “a profile still too fragile financial”.