Valeo’s sales in Q3 amounted to €4,997m, up 3.5 per cent like for like, reflecting the sound performance of the Power and Light divisions. Europe outperformed automotive production, while Valeo in China delivered an improved performance reducing the gap versus the Chinese market, with good new order intake.
Light Division sales in Q3 amounted to €1,282m, up 0.9 per cent over 2024 with solid performances in Europe and China, while North America was impacted by delays in SOP.
The group are working to improve profit and cash generation by disciplined price management, lowering breakeven point, and reducing investment and R&D costs.
Valeo confirmed their 2025 objectives with sales of around €20.5bn (versus €21.5bn in 2024), EBITDA between 13.5 and 14.5 per cent (13.5 in 2024), and operating margin between 4.5 and 5.5 per cent (4.3 in 2024). Free cashflow would be between €700m and €800m before restructuring costs, and between €450m and €550m after them.
CEO Christophe Périllat said, “In a difficult and demanding environment, the group’s third-quarter performance is in line with full-year objectives. The Power and Light divisions’ performance was driven by the ramp-up of production launches in Europe as well as in China with new players in electrification. As in the first half, the Brain division’s performance retreated, while order intake in the area of ADAS and SDV remained strong, illustrating the attractiveness of our product portfolio. Our efforts to reposition ourselves among Chinese automakers are paying off and, in line with our expectations, we are significantly reducing the gap in our performance compared with the Chinese market”.
