Valeo's Bold Vision: Elevating Profits and Growth by 2028
In a highly anticipated move, Valeo has unveiled its ambitious plan, Elevate 2028, setting the stage for a remarkable financial journey. This strategy aims to steadily enhance profitability, boost cash generation, and drive sales growth, positioning Valeo as a global leader in automotive technology.
A Trajectory of Success
Valeo's roadmap to 2028 is an impressive one. The company foresees a consistent profit increase from 2022 onwards, with cash flow rising from 2025 and sales growth returning by 2027. By 2028, Valeo projects sales between €22-24 billion, an operating margin of 6-7%, and a substantial free cash flow after interest of at least €500 million. This increased cash generation is expected to bring the leverage ratio below 1.0x adjusted EBITDA, aligning with Valeo's goal of achieving an investment-grade rating.
Financial Guidance and Growth Strategies
Despite a challenging environment, Valeo confirms its 2025 guidance for sales, adjusted EBITDA, and operating margin. The forecast for free cash flow before interest has been revised upwards, exceeding expectations at over €550 million. Valeo's commitment to technological leadership in electrification, safety, and software-defined cars is evident, with growth across key markets like China, India, and North America.
Capital Markets Day: Unveiling the Plan
On November 20, 2025, Valeo hosted its Capital Markets Day, detailing its financial trajectory to 2028. Building on its established reputation in automotive technology, Valeo is dedicated to sustaining profit growth, enhancing cash flow, and reviving sales growth.
Christophe Perillat, Valeo's CEO, highlighted the success of the Move Up plan initiated in 2022, which positioned Valeo well in the market and laid the groundwork for significant financial improvements. With the Elevate 2028 plan, Valeo aims to build on these achievements and strengthen its financial foundation.
The Three Engines of Valeo's Success
Perillat outlined three key strategies to achieve these goals. The first is a consistent profit increase, which has been ongoing since 2022. The second strategy, to generate higher cash levels, is already in motion, with 2025 marking a pivotal year for Valeo's business model evolution. The third strategy, returning to growth, is expected to take effect in 2027, driven by a strong order book.
Perillat expressed gratitude to Valeo's global teams for their expertise and dedication, attributing their success to the team's courage and agility. He is confident that Valeo will continue to deliver innovation and excellence to its customers.
A Global Leader in Automotive Technology
Building on its strengths as an industrial powerhouse and technological leader, Valeo has transformed itself into a global automotive technology giant. With Elevate 2028, Valeo aims to further solidify its position with strong financial fundamentals and promising growth prospects.
And here's where it gets interesting: With Valeo's ambitious plan, will they achieve their financial goals and solidify their position as a global leader? What are your thoughts on Valeo's strategy? Feel free to share your insights and opinions in the comments below!
