Valeo

What Valeo makes

Valeo is a French Tier-1 automotive supplier organized since 2024 into three divisions: POWER, BRAIN, and LIGHT. POWER, the largest at 10.5 billion euros in 2025 sales, covers thermal systems, transmission systems, 48V systems, and high-voltage electrification, the last of which grew 6 percent to 946 million euros after Valeo took full ownership of the former Valeo Siemens eAutomotive business. BRAIN, at 5.0 billion euros, spans driving assistance (cameras, radars, lidar, parking systems, 3.0 billion euros) and Interior Experience products such as displays and telematics (1.9 billion euros). LIGHT, at 5.4 billion euros, covers lighting systems and wiper systems, businesses where Valeo supplies most of the world's major automakers.

Original equipment for OEMs is 83 percent of sales, the aftermarket about 10 percent, and miscellaneous activities the rest. The company is also applying its automotive technology in adjacent markets: it booked its first battery energy storage system contract, worth 225 million dollars, in 2025, secured a first drone-motor contract in the first half of 2026, and has shown data-center cooling products based on its thermal know-how.

Financial performance

Valeo reported 20.9 billion euros in sales for fiscal 2025, down 2.7 percent as reported but up 0.5 percent like for like; 0.8 points of the reported decline came from disposals, including the thermal commercial-vehicles business in June 2024 and the powertrain sensors business in December 2025, rather than lost volume. Operating margin improved to 977 million euros, 4.7 percent of sales, from 4.3 percent in 2024, and net income rose 23 percent to 200 million euros. Free cash flow before one-off restructuring costs reached a record 756 million euros, and net debt stood at 4.0 billion euros, or 1.3 times EBITDA. Order intake rose 38 percent to 24.6 billion euros.

The first half of 2026 continued the trend, per the company's July 2026 release: operating margin reached 5.0 percent of sales, free cash flow was 242 million euros, and net debt fell to 3.8 billion euros, or 1.2 times EBITDA. Valeo confirmed its 2026 objectives of 20 to 21 billion euros in sales, a 4.7 to 5.3 percent operating margin, and more than 400 million euros of free cash flow after net financial interest, under its Elevate 2028 strategic plan. At December 31, 2025 the group employed 100,216 people across 29 countries, with 149 plants, 59 research and development centers, and 19 distribution platforms.

Ownership and history

Valeo was founded in 1923 in the Paris region as Societe Anonyme Francaise du Ferodo, a friction-materials business making brake linings and clutch facings, and took the Valeo name in 1980. Today Valeo SE is listed on Euronext Paris under the ticker FR, with headquarters at 100 rue de Courcelles in the 17th arrondissement of Paris. Christophe Perillat has been Chief Executive Officer since January 2022. The company completed its Move'Up divestment program in December 2025, selling around 500 million euros of non-strategic assets over the period, and now runs its portfolio through the Elevate 2028 plan.

Known customers

Valeo supplies nearly every major automaker as a Tier-1 supplier, and two programs are on the public record with specifics. In March 2026 the company broke ground on a 225 million dollar plant in McAllen, Texas that will build software-defined-vehicle technology supporting General Motors programs, with about 500 jobs planned; the investment reflects the broader nearshoring of electronics production for North American vehicle programs. Valeo has also announced a joint program with Renault Group and Valeo Siemens eAutomotive to develop and manufacture a new-generation automotive electric motor in France. Per the company's investor materials, its order intake of 24.6 billion euros in 2025 was up 38 percent on the prior year, with notable growth in India, where original equipment sales approached 300 million euros.

Recent news

July 2026 — Valeo reported first-half operating margin of 5.0 percent, up 0.5 points, cut net debt by nearly 200 million euros to 3.8 billion euros, booked a first drone-motor contract, and confirmed all 2026 objectives (company press release).

March 2026 — The company broke ground on a 225 million dollar plant in McAllen, Texas for software-defined-vehicle technology supporting General Motors, its most advanced North American electronics site, with roughly 500 jobs planned (company announcement, covered by Forbes and the Texas Tribune).

January 2026 — Valeo confirmed plans to close two Bavarian sites with several hundred jobs affected, part of a European restructuring first outlined in November 2024 that involves around 1,000 job cuts (German and international press reports).

Frequently asked questions

What does Valeo make?

Valeo makes automotive systems across three divisions: POWER (thermal systems, transmissions, 48V and high-voltage electrification), BRAIN (driving assistance sensors and systems, displays, telematics), and LIGHT (lighting and wiper systems). Original equipment for automakers is 83 percent of its 20.9 billion euros in 2025 sales.

Who owns Valeo?

Valeo SE is a publicly listed company on Euronext Paris under the ticker FR, with no controlling parent. It was founded in 1923 as Societe Anonyme Francaise du Ferodo and has traded under the Valeo name since 1980.

What is Valeo's annual revenue?

Valeo reported 20.9 billion euros in sales for fiscal 2025, with an operating margin of 4.7 percent and net income of 200 million euros. For 2026 the company targets sales of 20 to 21 billion euros and an operating margin of 4.7 to 5.3 percent.

Where is Valeo headquartered?

Valeo is headquartered at 100 rue de Courcelles, 75017 Paris, France. At the end of 2025 it operated 149 plants and 59 research and development centers across 29 countries, with 100,216 employees.

Who are Valeo's customers?

Valeo supplies most major automakers worldwide. Documented programs include software-defined-vehicle technology for General Motors from a new plant in McAllen, Texas announced in March 2026, and a joint electric-motor program with Renault Group in France. US customs records show more than 54,000 import shipments across its five US entities.

Last verified September 22, 2026. Is this your company? Request a correction.