Valeo reports revenue decline in Q3 2026

Valeo, a major automotive supplier, reported a revenue decline for the third quarter of 2026, despite a slowdown in the global automotive market. The company's revenue reached 4.881 billion euros, a 2.3% decrease compared to the same period in 2025, with a 2.6% decline in comparable terms.

First move sales fall sharply

Valeo's core business, known as "first move," accounted for 84% of its total revenue, or 4.08 billion euros, but saw a 3.8% decline in comparable terms. Sales in Europe dropped by 7.1%, and in China, the decline was even steeper at 12.9%, though North America remained stable and Asia outside of China saw a 7.5% increase.

BRAIN division shows strong growth

In contrast, Valeo's BRAIN division, which focuses on future vehicle technologies, reported a significant sales increase of 8.3% compared to 2025. This division outperformed global automotive production by 10 points, driven by growth in screen activities, telematics, and vision systems for a major European automaker.

Other divisions show mixed results

Other divisions had varied outcomes. The POWER division saw a 7.8% decline in sales, while the LIGHT division experienced a smaller drop of 1.2%. Despite these challenges, Valeo remains confident in its 2026 revenue targets, aiming for between 20 and 21 billion euros with a target operating margin between 4.7% and 5.3%.

CEO comments on performance and strategy

Christophe Pérrillat, CEO of Valeo, stated that the company's performance aligns with its annual targets, showing resilience in a difficult market. He highlighted the BRAIN division's success as a positive signal and a first step toward the company's goal of returning to growth in 2027 under the "Elevate 2028" strategic plan.

Share price drops after results release

Following the announcement of its Q3 2026 results, Valeo's share price fell by around 9 to 12%, returning to approximately 11.7 to 11.8 euros, according to available market data.