Visteon (VC) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales reached $954 million, up 2% year-over-year, outperforming expectations despite a 3% industry production decline and lower customer vehicle production.

• Adjusted EBITDA was $104 million (10.9% margin), reflecting solid operational performance but down from $129 million (13.8%) in Q1 2025 due to higher costs and supply chain challenges.

• Net income attributable to shareholders was $31 million, or $1.14 per diluted share, down from $67 million in Q1 2025.

• Secured $1 billion in new business wins, including 20 product launches across 11 OEMs, with strategic wins in China, India, and commercial vehicles.

• Returned $40 million to shareholders via share repurchases and dividends; net cash position of $385 million maintained.

Financial highlights

• Net sales increased by $20 million year-over-year to $954 million, with growth over market at 3%.

• Gross margin was $113 million (11.8% of sales), down from $138 million (14.8%) in Q1 2025.

• Adjusted EBITDA margin was 10.9%, with Q1 expected to be the low point for EBITDA, and improvement anticipated through the year.

• Adjusted free cash flow was negative $23 million, reflecting seasonality, higher inventory, and incentive compensation payout.

• Net income attributable to shareholders was $31 million; adjusted EPS was $1.65.

Outlook and guidance

• Full-year 2026 sales guidance reaffirmed at $3.625–$3.825 billion, representing low single-digit growth over market.

• Adjusted EBITDA expected in the range of $455–$495 million (approx. 12.8% margin midpoint), with margins improving as the year progresses.

• Adjusted free cash flow guidance maintained at $170–$210 million, trending toward the lower end due to higher inventory levels.

• Guidance incorporates S&P's revised lower global light vehicle production forecast, with most impact in H2; strong H1 expected to offset softer H2.

• Guidance assumes no impact from memory supply constraints on customer production volumes.