Valeo CEO Discusses Q1 Earnings and US Auto Tariff Impact

Valeo CEO Christophe Perillat discussed earnings and the impact of US auto tariffs on the company's business in an interview on Bloomberg Television. Valeo designs and manufactures automobile components.

French car parts supplier Valeo, led by CEO Christophe Périllat, recently discussed its financial performance and the impact of US auto tariffs during an interview on Bloomberg Television. Valeo designs and manufactures automobile components, including driving assistance systems.

Financial Performance

In the first half of 2025, Valeo reported an operating margin of 4.5%, a free cash flow of 252 million euros, and sales of 10,660 million euros, down 4.1% compared to the same period in 2024 [3]. The company attributed the sales decline to a 1.2% impact from currency fluctuations and a 1.5% impact from changes in its group structure, including the sale of its Thermal Commercial Vehicles business and PIAA, an aftermarket equipment producer [3].

Impact of US Auto Tariffs

Périllat acknowledged the impact of US auto tariffs on the company's business, stating that while the tariffs have not been material over the first half of 2025, they could have a more significant effect in the future. The company expects sales of around 20.5 billion euros for the year 2025, down from its previous forecast of 21.5-22.5 billion euros, primarily due to an adverse currency impact of 750 million euros [1][2]. Périllat noted that the majority of Valeo's products sold in the US are produced in North America and are not subject to the tariffs, which is expected to mitigate the impact [1][2].

Market Conditions

The CEO also touched on the broader market conditions, highlighting the rapid growth of Chinese automakers and the increasing demand for new-energy vehicles. Valeo has been accelerating its exposure to Chinese customers, with order intake from these automakers accelerating to almost three times its sales in the first half of 2025 [3].

Future Outlook

Périllat emphasized Valeo's commitment to improving its financial performance and creating conditions for future growth. The company is focusing on strict price discipline, cost-cutting measures, and investments in research and development to achieve its objectives. Valeo aims to maintain a lower break-even point and preserve its capacity for innovation, even in a complex and demanding environment [3].

References

[1] Reuters. (July 24, 2025). Valeo cuts 2025 sales outlook, sees 750 million euros impact from weak dollar. Retrieved from https://www.reuters.com/en/valeo-cuts-2025-sales-outlook-sees-750-million-euros-impact-weak-dollar-2025-07-24/

[2] Global Banking and Finance. (July 24, 2025). Valeo Results. Retrieved from https://www.globalbankingandfinance.com/VALEO-RESULTS-d3c168c7-24bb-442c-980f-4d7f50b0f375

[3] Globewire. (July 24, 2025). Valeo Résultats du 1er semestre 2025. Retrieved from https://www.globenewswire.com/news-release/2025/07/24/3121287/0/en/Valeo-R%C3%A9sultats-du-1er-semestre-2025.html