Valeo SE (VLEEY) Q2 2026 Earnings Call Transcript

Good evening, everyone. Thank you for joining the presentation of our '26 H1 results, which I will present with Edouard de Pirey, Valeo's CFO. Over the next 20 minutes of our presentation, you will see that we have had a good H1, solidly in line with our guidance and with our Elevate '28 trajectory. Indeed, the first 2 engines of our trajectory, profitability and cash, are now confirmed on and running on an upward trend. And the third engine is ready, the return to growth from '27. On top of that, thanks to our cash generation, we have reduced our debt, which is remarkable for the first half of the year. Naturally, I will first walk you through the highlights, then Edouard will share more on our H1 performance. This presentation will be followed by a Q&A session that we will handle with Edouard. So to start on Slide 4, you will see that we are perfectly in line with our guidance with continued improvement in profitability and cash flow. The group sales totaled EUR 10.4 billion, our operating margin stands at 5%, which is 0.5 points higher than H1 last year. It's also 0.3 points higher than the full year '25, as well as from the bottom of our guidance. Free cash flow after net financial interest amounts to EUR 242 million. That's more than double H1 '25, and more