Valeo, SA (EU) ( (VLEEY) ) has released its Q4 earnings. Here is a breakdown of the information Valeo, SA (EU) presented to its investors.
Valeo, SA (EU) is a prominent player in the automotive sector, known for its innovative technologies and solutions in vehicle electrification, autonomous driving, and connected car systems. The company operates globally, providing original equipment and aftermarket products.
In its 2024 earnings report, Valeo announced it had achieved its profitability and cash generation goals, despite a slight decline in sales. The company reported sales of 21.5 billion euros, with an EBITDA margin increase to 13.3%, and a free cash flow of 481 million euros after restructuring costs.
Key financial highlights include a 0.5% decrease in sales on a like-for-like basis, an 8% rise in EBITDA to 2,863 million euros, and a 9.7% increase in operating margin to 919 million euros. Valeo also reduced its net debt by 215 million euros, achieving a leverage ratio of 1.3x EBITDA. The company plans to propose a dividend of €0.42 per share.
Looking ahead to 2025, Valeo aims to enhance its financial performance further, targeting sales between 21.5 and 22.5 billion euros, an EBITDA margin increase to between 13.5% and 14.5%, and free cash flow generation of 700 to 800 million euros before restructuring costs. The company remains focused on leveraging its technological advancements and cost management strategies.
Valeo’s management is optimistic about the future, emphasizing the company’s strategic positioning and commitment to sustainable growth. The conclusion of its Move Up strategic plan in 2025 is expected to usher in a new phase of profitable growth, supported by strong customer trust and increased order profitability.