Versigent (VGNT) Q1 2026 earnings summary

Executive summary

• Completed spin-off from Aptiv and public launch on April 1, 2026, establishing independent industry leadership and focusing on global LV and HV electrical architectures for automotive and adjacent markets.

• Achieved strong Q1 2026 performance with 9% year-over-year revenue growth to $2,212M and 3% adjusted revenue growth, despite lower global automotive production.

• Launched 24 new programs globally, secured $2.6B in bookings, and expanded into adjacent markets such as energy storage.

• Strategy centers on technology innovation, cost optimization, market expansion, and leveraging engineering expertise for sustained growth.

• Strategic priorities include market leadership, disciplined capital allocation, and consistent financial results.

Financial highlights

• Q1 2026 revenue: $2,212M (+9% YoY); adjusted EBITDA: $203M (+3% YoY); adjusted EBITDA margin: 9.2%.

• Net income attributable to the company was $78M, down from $95M year-over-year, impacted by higher restructuring and separation costs.

• Free cash flow was an outflow of $30M, impacted by $66M CapEx and $26M separation costs; operating cash flow was $36M.

• Ended quarter with $282M cash and $1.1B liquidity, including an undrawn $850M revolver.

• Gross margin was 11.0%, compared to 12.3% in the prior year.

Outlook and guidance

• Reaffirmed 2026 guidance: revenue of $9,100–$9,400M (2% adjusted growth), adjusted EBITDA of $950–$1,030M (10.7% margin midpoint), and free cash flow of $200–$300M (includes ~$70M separation costs).

• U.S. GAAP net income projected at $315–$375M for 2026.

• Cumulative free cash flow generation of ~$1B expected from 2026 to 2028.

• Expect margin progression as commodity headwinds subside and volumes increase in Q2–Q4.

• Adjusted effective tax rate expected at ~23% for 2026.