Visteon (VC) Q4 2025 earnings summary

Executive summary

• Achieved $3.77B in 2025 net sales, with record adjusted EBITDA of $492M (13.1% margin), $7.4B in new business wins, and strong growth in displays and SmartCore, despite BMS and China headwinds.

• Expanded customer base and product launches, including 86 new products across 19 OEMs, with significant launches in China, India, and Europe.

• Strategic initiatives included diversification into commercial vehicles and two-wheelers, and increased vertical integration in manufacturing.

• Increased quarterly dividend by 36% to $0.375 per share for Q1 2026 and repurchased $57M in shares.

• S&P upgraded credit rating to BA1, citing margin expansion, strong cash flow, and conservative financial policy.

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 net income: $74M ($2.67 EPS).

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

• Capital expenditures: $133M (3.5% of sales); returned $72M to shareholders via repurchases and dividends.

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

Outlook and guidance

• 2026 sales guidance: $3.625B–$3.825B, with adjusted EBITDA of $455M–$495M (12.8% margin midpoint), and adjusted free cash flow of $170M–$210M.

• CapEx planned at $150M (4% of sales), including a new facility in India.

• 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 programs ramp.

• Temporary headwinds in 2026 from lower BMS volumes and discontinued Ford vehicles.