Earnings call transcript: Valeo confirms 2026 outlook as Q3 sales slip

Valeo reported a 2.6% like-for-like decline in third-quarter sales, reaching EUR 4.9 billion, but maintained its full-year 2026 outlook unchanged. The BRAIN division, which focuses on smart driving and autonomous vehicles, returned to growth with an 8% like-for-like increase in sales to EUR 1.2 billion. This improvement helped offset weaker performance in the POWER division, which fell 10% like-for-like to EUR 2.4 billion, and the LIGHT division, which declined 3% like-for-like.

Despite challenges in the automotive market, aftermarket sales rose 3% like-for-like, while miscellaneous sales increased 6.6%. Valeo attributed the positive results in BRAIN to its validation of the company's 2028 plan and the success of orders with Nissan, BMW, Renault, and General Motors. The company also highlighted new business opportunities in defense and data-center cooling technology as potential growth drivers. Valeo's shares dropped 1.69% to $7.33, trading in the middle of its 52-week range.