Fremont, Michigan, October 22nd / PRNewswire / -- Visteon Corporation (Nasdaq ticker: VC) announced its financial results for the third quarter today. Key points include:

• Sales amounted to 970 million US dollars, with a market growth rate exceeding 10% [1].
• The net profit attributable to Visteon is 5 million US dollars.
• After adjustment, EBITDA is set at $46 million, which includes a special warranty fee of $77 million.
• For the first nine months, the operating cash flow was 81 million US dollars, while the adjusted free cash flow was negative 4 million US dollars.
• Strong balance sheet, with net cash of $136 million at the end of the quarter.
• Launched 21 new products, including the industry's first SmartCore ( TM ) high-performance computing ( HPC ) system in collaboration with Chery.
• New business orders amounted to $900 million, mainly driven by the continuous growth of displayed products.
• Completed a $200 million accelerated stock repurchase plan and paid $9 million in quarterly dividends

Third Quarter Earnings

Visteon announced net sales of $970 million, a 6% increase from $917 million in the same period last year. Despite a 5% decline in customer vehicle production, the company still achieved a market growth rate of 10%, mainly benefiting from the strong implementation of new products and steady customer demand. [1]

The net profit attributable to Visteon was 5 million US dollars, equivalent to a diluted earnings per share of 0.19 US dollars. The gross profit for the third quarter was 47 million US dollars, which included 77 million US dollars in special warranty expenses. After adjustment, EBITDA (a non-GAAP indicator, see definition below) was 46 million US dollars, reflecting the company's continued operational effectiveness in a challenging supply chain environment.

Within the nine months ending September 30, 2026, the cash flow from operating activities amounted to 81 million US dollars, while capital expenditures were 103 million US dollars. The adjusted free cash flow (a non-GAAP indicator, see definition below) resulted in a outflow of 4 million US dollars. At the end of the quarter, the company held 466 million US dollars in cash and had 330 million US dollars in debt. The company's robust balance sheet enables it to continue investing in its business while also returning capital to shareholders, with a net cash position of 136 million US dollars.

Visteon secured $900 million in new business in the third quarter, reflecting its continued momentum in display products and the key growth market of India. Highlights include: receiving two driver display orders for vehicles in the Japanese and Chinese markets from a luxury Japanese OEM brand; providing multi-vehicle model central displays for a high-volume Indian OEM; supplying multi-vehicle model display and infotainment systems for another Indian OEM; and providing central displays for the European commercial vehicle market from a North American OEM. This quarter also saw several strategic orders for the North American OEM market as well as the Asian two-wheeler market.

Visteon launched 21 new products to 14 customers in the third quarter. Of particular note is that the company introduced the industry's first high-performance computing system integrated with AI capabilities for Chery Freelander in the Chinese market. Other highlights include: continuing to launch rapidly growing Audi Panorama projects on Audi A2 and A3; providing cockpit domain controllers for BMW i3 in the European market; supplying digital dashboards for two-wheeled vehicles for India Royal Enfield Interceptor; and providing driver displays for the new Lexus TZ. The release of these new products demonstrates the market demand for the company's next generation of products and lays a foundation for future sales performance.

CEO Sachin Lawande stated: "Our third-quarter performance reflects the company's continued progress towards sustainable sales growth in a challenging supply chain environment, while maintaining strong profitability. Our HPC with Chery marks an important milestone for Visteon, indicating that we continue to serve as a key supplier, supporting the transition towards software-defined and AI-defined vehicles."

Accelerated Stock Repurchase Program

In the third quarter, the company announced and completed a $200 million accelerated stock repurchase (ASR), fulfilling its commitment to return capital to shareholders in a dynamic environment while maintaining flexibility for future growth investments.

Revised Guidelines

Based on the performance from the beginning of the year to date and the outlook for the fourth quarter, Visteon has raised its full-year sales guidance for the fiscal year 2026 to $3.8 billion to $3.85 billion. At the same time, it has lowered the full-year adjusted EBITDA range to $370 million to $410 million, and also reduced the adjusted free cash flow range to $90 million to $130 million. The adjusted EBITDA range reflects a special warranty expense of $77 million incurred this quarter, as well as cost pressures, while the adjusted free cash flow range takes into account the increase in inventory since the beginning of the year.

About Visteon

Visteon (Nasdaq ticker: VC) drives mobility through innovative technological solutions, helping to define the future with software. The company's advanced product portfolio combines digital cockpit innovations, advanced display technologies, AI enhanced software solutions, and integrated electric vehicle architecture solutions. With its expertise in passenger vehicles, commercial transportation, and two-wheeled vehicles, Visteon collaborates with global OEM partners to create safer, cleaner, and more connected mobility experiences. Headquartered in Van Bourne, Michigan, the company operates in 17 countries and has a network of global innovation centers and manufacturing bases. For more information, please visit visteon.com.

Teleconference and presentation

The company will hold a conference call at 9 a.m. Eastern Time today (October 22nd, Thursday) to discuss this quarter's performance and other related matters with the investor community. The conference call will be open to the public via live audio streaming.

The dial-in numbers for participating in the teleconference are as follows:

• United States/Canada: 1-833-461-5787
• Outside the United States/Canada: 1-585-542-9983
• Meeting ID: 257149910

(Please dial in about 10 minutes before the meeting starts.)

Telephone conferences, live audio webcasts, relevant presentation materials, and other supplementary information can be found in the Investors section of the Visteon website.

Use of non-GAAP financial information

Since not all companies use the same calculation methods, the adjusted EBITDA, adjusted net profit, adjusted earnings per share, free cash flow, and adjusted free cash flow used in this press release may not be directly comparable to corresponding indicators of other companies.

Forward-looking Information

This press release contains “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Words such as “will,” “may,” “intend,” “expect,” “believe,” “should,” “estimate,” “plan,” “anticipate,” “intend,” “estimate,” “predict,” and similar expressions are used to identify such forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, and are subject to various factors, risks, and uncertainties that may cause actual results to differ significantly from those expressed in these statements. These factors include, but are not limited to:

• Uncertainty in the United States or abroad regarding trade agreements, tariffs, or other international trade policies, as well as foreign responses to such actions;
• The persistence of geopolitical conflicts and related disruptions to supply chains, as well as their future impacts, including but not limited to conflicts in the Middle East, Russia, and East Asia, and possible sanctions that may be imposed;
• There is a persistent or future severe shortage of key components, or there is a significant and irreversible increase in their prices, including but not limited to semiconductors such as DRAM, especially when these components come from a single or main supplier;
• The company's joint venture partners failed to fulfill their contractual obligations, or were unable to exert influence or pressure in China;
• The automotive industry situation includes: (i) the customer's automobile production volume and production plans; ( ii ) the customer's financial condition and the impact of any reorganization or integration plans that the customer may undertake, including customer shutdowns; as well as ( iii ) potential disruptions to the supply of goods to the company or customers due to financial difficulties, shutdowns, natural disasters, or social unrest;
• The company's ability to meet future capital and liquidity needs, including the capability to access credit and capital markets at the required time, in the required amount, and under acceptable terms; the ability to comply with financial and other contractual obligations stipulated in credit agreements; as well as the ability to maintain acceptable supplier payment terms;
• Whether the company can obtain funds generated by its overseas subsidiaries and joint ventures in a timely and cost-effective manner;
• Whether the company can expand its business within China's domestic market OEM, and the ability of domestic Chinese suppliers to compete with it as they expand into markets outside of China;
• Changes in the overall economic situation, exchange rates, interest rates, foreign laws, regulations, or trade policies, including export controls; as well as the political stability of the foreign countries where the company purchases materials, components, or supplies, and where its products are manufactured, distributed, or sold;
• Disruptions in information technology systems, including but not limited to system failures, cyberattacks, malware (including ransomware), unauthorized physical or electronic access, or other natural or human-induced events or disasters;
• Rising costs of raw materials and energy, as well as the company's ability to offset or recover these costs; increasing costs of warranties, product liability, and recalls, or the results of legal or regulatory proceedings that the company may currently be involved in or may be involved in in the future;
• Changes in laws, regulations, policies, or other activities by governments, institutions, and similar organizations both domestically and internationally may have an impact on Visteon or its suppliers in terms of the manufacturing, licensing, distribution, sales, ownership, or use of their products or assets, such as imposing taxes, increasing costs, prohibiting such activities, or otherwise; as well as
• Other factors listed in the documents submitted by the company to the U.S. Securities and Exchange Commission (including the 10-K annual report for the fiscal year ending December 31, 2025, as well as subsequent documents submitted to SEC).

Please do not rely excessively on these forward-looking statements, as they represent only the views as of the date of this press release, and the company assumes no obligation to update them. The financial results listed in this document are preliminary and unaudited; the final financial results will be included in the company's 10-Q quarterly report for the fiscal quarter ending September 30, 2026. New business and contract renewals do not represent formal customer orders or confirmed commitments, but are based on various assumptions, including product launch timing and duration, vehicle production levels, customer price reductions, and exchange rates, among others.

Visteon Contact Information:

Media: [ email protected ]

Investors: [ email protected ]