Visteon (VC) Q4 2025 earnings summary

Executive summary

• Achieved $3.77B in net sales for 2025, with record adjusted EBITDA of $492M (13.1% margin) and strong adjusted free cash flow, despite industry headwinds from U.S. EV demand and China market shifts.

• Secured $7.4B in new business wins, especially in displays and SmartCore programs, and expanded into adjacent markets like two-wheelers and commercial vehicles.

• Launched 86 new products across 19 OEMs, with major launches in digital cockpit and display technologies.

• Strategic initiatives included customer diversification, vertical integration, and technology investments in AI and advanced displays.

• Increased quarterly dividend by 36% to $0.375/share and repurchased $57M in shares.

Financial highlights

• 2025 net sales: $3.77B, down 3% year-over-year; adjusted EBITDA: $492M (13.1% margin); adjusted free cash flow: $292M; net cash at year-end: $472M.

• Q4 2025 net sales: $948M; adjusted EBITDA: $110M (11.6% margin); Q4 free cash flow: $77M.

• Adjusted EPS for 2025: $7.75; full-year net income: $201M.

• Capital expenditures: $133M (3.5% of sales); $275M total capital deployed including M&A and shareholder returns.

• Operating cash flow for the year was $410M.

Outlook and guidance

• 2026 sales expected at $3.625B–$3.825B, with low single-digit growth over market; adjusted EBITDA guidance: $455M–$495M (12.8% margin midpoint); adjusted free cash flow: $170M–$210M; CapEx planned at $150M.

• Temporary headwinds in 2026 from lower BMS volumes and discontinued Ford vehicles; second half of 2026 expected to outperform first half due to backloaded launches, especially in China and with Toyota.

• 2027 expected to return to mid- to high-single-digit growth over market as headwinds subside and new launches ramp.