Trailing global vehicle production by two points, Valeo shows how European weakness still outweighs automotive gains elsewhere
Valeo’s third-quarter sales fell 2.6% like for like to €4.9bn (US$5.5bn), yet the automotive supplier confirmed its 2026 targets as its Brain division returned to growth. Original equipment revenue dropped 3.8%, trailing a 1.6% fall in global vehicle production estimated by S&P Global Mobility.
Brain grew original equipment sales 8.2%, beating production by 10 points on strength in displays and telematics and a vision-system ramp-up for a major European automaker. Power fell 9.6%, hit by customer compensation that flattered the same quarter last year, and Light slipped 3.2%.
Regionally, Asia outside China rose 7.5% and North America held steady, five points ahead of its market. Europe declined 7.1% and China 12.9%, though Chinese automakers now account for 56% of Valeo’s original equipment sales in the country this year, against 52% a year earlier.
That shift towards local customers matters in a Chinese market Valeo describes as declining and volatile. Aftermarket sales rose 3.0%, cushioning weaker original equipment demand.
Valeo kept guidance for sales of €20bn to €21bn (US$22.4bn to US$23.5bn), an operating margin of 4.7% to 5.3% and free cash flow above €400m (US$448m). Chief Executive Christophe Périllat called the Brain rebound a first milestone towards a return to growth in 2027 under the Elevate 2028 plan.
Source: Valeo
