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Investing.com -- French automotive supplier Valeo has unveiled its new Elevate 2028 strategic plan, outlining a financial trajectory focused on steadily increasing profit, generating higher cash flow, and returning to sales growth.
The company expects to achieve sales between €22-24 billion by 2028, with an operating margin of 6-7% and free cash flow after interest of at least €500 million. Valeo aims to lower its leverage ratio to less than 1.0x adjusted EBITDA, supporting its ambition to achieve an investment-grade rating by 2028.
For 2025, Valeo confirmed its guidance for sales, adjusted EBITDA, and operating margin despite what it described as a "demanding environment." The company revised its free cash flow before interest guidance upward, now expecting it to come in slightly above €550 million.
Christophe Perillat, Valeo’s CEO, stated that the company’s Move Up plan since 2022 has positioned the group well technologically and laid foundations for financial improvements. He described the Elevate 2028 plan as being powered by "three engines" - steady profit increase that began in 2022, higher cash generation starting in 2025, and a return to growth expected from 2027.
The company is consolidating its position as a global leader in key automotive technologies, focusing on electrified, safer, and software-defined vehicles. Valeo emphasized it is growing across all geographies including China, India, and North America.
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