Visteon (VC) investor relations material

Executive summary

• Q3 sales were $970m, up 6% YoY and 10% over market despite customer-weighted vehicle production declining 5%.

• Adjusted EBITDA was $46m, including $77m of warranty charges; excluding the charges, it was $123m versus $119m in Q3 2025.

• Secured $0.9bn in new business and launched 21 products across 14 customers; FY sales guidance increased while adjusted EBITDA and free cash flow ranges decreased.

Financial highlights

• Q3 net sales rose $53m to $970m from $917m; volume, mix and new business added $57m, pricing added $5m and currency reduced sales by $3m.

• Q3 gross margin was $47m versus $131m; adjusted gross margin was $53m, or 5.5% of sales, versus $136m, or 14.8%.

• Q3 net income attributable to Visteon was $5m versus a loss of $11m; diluted EPS was $0.19 versus a loss of $0.40.

• 9M sales were $2.884bn versus $2.820bn; net income was $85m versus $127m, and adjusted EBITDA was $266m versus $382m.

• 9M operating cash flow was $81m versus $292m, primarily reflecting $135m of higher working-capital outflows; adjusted free cash flow was negative $4m.

Outlook and guidance

• FY2026 sales guidance increased by $25m to $3.80bn–$3.85bn; mid-single-digit growth over market is expected as launches offset lower customer production.

• FY2026 adjusted EBITDA guidance decreased to $370m–$410m, including $77m of warranty charges; midpoint margin impact is ~200 bps.

• FY2026 adjusted free cash flow guidance decreased to $90m–$130m, reflecting inventory build and timing of inflation-recovery collections; full-year capex remains ~ $150m.

• Q4 sales planning is close to $940m; customer production is expected down ~6%, with mid-single-digit growth over market and improving margins anticipated.

• For 2027, incremental memory and component costs are expected to resemble 2022 levels; the objective is to preserve adjusted EBITDA dollars through recoveries and other actions.