Core Insights - Visteon (VC) is currently rated as a Strong Buy (1) while Ferrari (RACE) holds a Buy (2) rating, indicating a stronger improvement in VC's earnings outlook compared to RACE [3] - Value investors utilize various valuation metrics to assess whether a company is undervalued, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Valuation Metrics - Visteon has a forward P/E ratio of 14.06, significantly lower than Ferrari's forward P/E of 42.88, suggesting that VC may be more attractively priced [5] - The PEG ratio for Visteon is 4.72, while Ferrari's PEG ratio is slightly higher at 4.82, indicating that both companies have similar expected EPS growth rates [5] - Visteon's P/B ratio stands at 2.17, in stark contrast to Ferrari's P/B ratio of 26.85, further highlighting VC's relative undervaluation [6] Value Grades - Visteon has received a Value grade of A, while Ferrari has a Value grade of F, indicating that VC is perceived as a superior value option based on its solid earnings outlook and favorable valuation metrics [6]

Company Performance - Visteon (VC) has seen a strong stock performance, with shares up 7.7% over the past month and reaching a new 52-week high of $119.11 [1] - The stock has gained 34% since the beginning of the year, outperforming the Zacks Auto-Tires-Trucks sector, which declined by 8.5%, and the Zacks Automotive - Original Equipment industry, which returned 4.3% [1] Earnings and Forecast - Visteon has a strong record of positive earnings surprises, beating the Zacks Consensus Estimate in each of the last four quarters, with the latest EPS reported at $2.39 against a consensus estimate of $2.04 [2] - For the current fiscal year, Visteon is expected to post earnings of $8.46 per share on revenues of $3.76 billion, reflecting a -22.1% change in EPS and a -2.69% change in revenues [3] - For the next fiscal year, earnings are projected to increase to $9.15 per share on revenues of $3.86 billion, indicating a year-over-year change of 8.21% in EPS and 2.64% in revenues [3] Valuation Metrics - Visteon currently trades at 14.1X current fiscal year EPS estimates, slightly below the peer industry average of 14.7X, and at 8.2X trailing cash flow compared to the peer group's average of 7.7X [7] - The stock has a PEG ratio of 4.72, positioning it favorably among value investors [7] Zacks Rank and Style Scores - Visteon holds a Zacks Rank of 1 (Strong Buy) due to favorable earnings estimate revisions from analysts, making it a recommended choice for investors [8] - The company has a Value Score of A, with Growth and Momentum Scores of C, resulting in a combined VGM Score of A [6] Industry Comparison - OPENLANE, Inc. (KAR) is a notable peer in the industry, also holding a Zacks Rank of 1 (Strong Buy) with a Value Score of B, a Growth Score of D, and a Momentum Score of B [9] - OPENLANE, Inc. is expected to post earnings of $1.08 per share on revenues of $1.82 billion for the current fiscal year, having beaten consensus estimates by 37.50% last quarter [10]

Company Overview - Visteon Corporation is focused on advancing mobility through innovative technology solutions for a software-defined future [2] - The company offers a product portfolio that includes digital cockpit innovations, advanced displays, AI-enhanced software solutions, and integrated EV architecture solutions [2] - Visteon operates globally in 18 countries and has a network of innovation centers and manufacturing facilities [2] Financial Performance - In 2024, Visteon recorded annual sales of approximately $3.87 billion [2] - The company secured $6.1 billion in new business during the same year [2] Upcoming Investor Events - Visteon is scheduled to participate in several investor events in the third quarter of 2025, including: - J.P. Morgan Auto Conference in New York on August 12, 2025 [3] - Raymond James Industrial Showcase (Virtual Event) on August 14, 2025 [3] - Deutsche Bank IAA Cars Conference in Munich, Germany on September 8, 2025 [3] - RBC Capital Markets Global Industrials Conference in New York on September 16, 2025 [3]

Financial Data and Key Metrics Changes - Net sales for Q2 2025 were $969 million, exceeding initial expectations, driven by strong demand for digital cockpit products, particularly in North America and Europe [4][5] - Adjusted EBITDA was $134 million, representing a margin of 13.8%, with adjusted free cash flow of $67 million for the quarter [5][29] - Sales decreased by $45 million compared to the prior year, with customer production volumes slightly negative year over year [30][32] Business Line Data and Key Metrics Changes - Cockpit electronics sales in the Americas were strong, benefiting from new product launches, while battery management system (BMS) sales were lower than anticipated [9][10] - In Europe, sales increased year over year due to new product launches, despite a reduction in vehicle production [11] - In Asia, excluding China, sales grew over market by eight percentage points, with strategic initiatives targeting specific automakers [12][13] Market Data and Key Metrics Changes - In North America, vehicle production schedules remained stable, and Visteon’s sales of cockpit electronics products were strong [9] - In Europe, sales outperformed vehicle production by eight percentage points, driven by the introduction of affordable hybrid and EV models [11] - In China, sales were down year over year due to a market share shift towards domestic OEMs, but sequentially, sales improved compared to Q1 [13] Company Strategy and Development Direction - The company is focused on expanding its product offerings in response to industry trends, particularly in displays and digital clusters [20][21] - Visteon is investing in both organic and inorganic growth, including acquisitions to enhance engineering capabilities and product offerings [24][46] - The company anticipates that adjacent transportation markets, such as commercial vehicles and two-wheelers, will represent a growing portion of sales [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second half of the year, expecting improved sales growth driven by new product launches [27] - The company reinstated and increased guidance for the full year, reflecting strong first-half performance and customer demand visibility [25][39] - Management highlighted the importance of adapting to market changes, particularly in the EV sector, and the need to monitor customer responses to regulatory changes [58][86] Other Important Information - Visteon announced the initiation of a quarterly dividend starting in Q3, reflecting confidence in generating free cash flow [7][47] - The company completed a bolt-on acquisition for $50 million, enhancing its engineering services capabilities [29][38] - The company has a robust M&A pipeline and plans to continue pursuing acquisitions to expand its technology and service offerings [46] Q&A Session Summary Question: Drivers behind Visteon's recent market share gains and long-term growth expectations - Management noted strong bookings driven by displays and clusters, reflecting industry transformation and increased interest in AI-driven infotainment and autonomous driving [53][54] - The company expects to achieve its 2027 targets through ongoing initiatives and growth in commercial vehicles and two-wheelers [56][57] Question: Thoughts on targeted net cash and future leverage - Management confirmed a minimum target of $100 million net cash, with current levels well above this, supporting the initiation of a dividend [59][60] Question: Opportunities for further penetration with Toyota and other Japanese OEMs - Management highlighted successful wins with Toyota and the potential for further business as they continue to execute existing programs [63][64] Question: Drivers of improved EBITDA margin outlook - Management explained that the improved EBITDA guidance incorporates strong H1 performance, nonrecurring items, and operational efficiencies [68][72] Question: Clarification on nonrecurring items - Management clarified that nonrecurring items primarily relate to commercial recoveries from prior periods, with expectations of lower levels in the second half [75][76] Question: BMS and EV demand trajectory - Management discussed the need to expand offerings beyond BMS to include more power electronics, anticipating stabilization in demand for EVs in the long term [84][86]

Financial Data and Key Metrics Changes - Visteon reported net sales of $969 million for Q2 2025, exceeding initial expectations, driven by strong demand for digital cockpit products, particularly in North America and Europe [6][7][30] - Adjusted EBITDA was $134 million, representing a margin of 13.8%, matching the record margin set in the previous quarter [7][30] - Adjusted free cash flow for the quarter was $67 million, supported by robust EBITDA performance and working capital inflow [7][31] Business Line Data and Key Metrics Changes - Sales of cockpit electronics products in the Americas were strong, benefiting from new product launches, while battery management system (BMS) sales were lower than anticipated but showed sequential growth from Q1 [10][11] - In Europe, Visteon experienced year-over-year sales growth driven by new product launches, despite a reduction in vehicle production [12] - In Asia, excluding China, sales grew over market by eight percentage points, with strategic initiatives targeting key automakers [13] Market Data and Key Metrics Changes - In North America, vehicle production schedules remained stable, and Visteon's sales of cockpit electronics outperformed customer vehicle production by four percentage points [10][12] - In Europe, sales outperformed vehicle production by eight percentage points, driven by the introduction of affordable hybrid and EV models [12] - In China, sales were down year-over-year due to a market share shift towards domestic OEMs, but sequentially, sales improved compared to Q1 [14] Company Strategy and Development Direction - Visteon is focused on expanding its product offerings in response to industry trends, particularly in displays and digital clusters, which are becoming increasingly important in the automotive sector [20][22] - The company is investing in both organic and inorganic growth, including recent acquisitions to enhance engineering capabilities and user interface design [26][49] - Visteon aims to balance capital allocation between strengthening execution capabilities and returning capital to shareholders, including the initiation of a quarterly dividend [48][49] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second half of the year, anticipating improved sales driven by new product launches and a favorable outlook for customer vehicle production [29][30] - The company expects growth over market to improve from Q2 levels, despite challenges in BMS sales and market dynamics in China [29] - Management highlighted the importance of adapting to changes in the EV market and consumer preferences, particularly in light of regulatory changes affecting EV demand [87] Other Important Information - Visteon won $2 billion in new business during the quarter, bringing the year-to-date total to just under $4 billion, with confidence in exceeding the $6 billion target for the full year [8][16] - The company launched 21 new products in Q2, showcasing a diverse range of offerings across various vehicle markets [19] - Visteon completed a bolt-on acquisition for $50 million, enhancing its engineering services capabilities [31][39] Q&A Session Summary Question: Drivers behind Visteon's recent market share gains - Management noted that strong bookings were driven by displays and clusters, reflecting a transformation in the industry towards more digital content in vehicles [53][54] Question: Future leverage and net cash targets - Management confirmed a minimum target of $100 million for net cash, with current levels well above this, supporting the initiation of a dividend [60] Question: Opportunities with Toyota and other Japanese OEMs - Management expressed optimism about further penetrating the Toyota account and leveraging success with Toyota to gain additional wins with other Japanese automakers [64][66] Question: Drivers of improved EBITDA margin outlook - Management explained that the improved EBITDA margin guidance incorporates strong H1 performance, nonrecurring items, and operational efficiencies [69][72] Question: BMS sales trajectory and future expectations - Management indicated that BMS sales are expected to stabilize, with a focus on expanding offerings beyond BMS into power electronics [92][88]

Group 1 - Momentum investing contrasts with the traditional strategy of "buy low and sell high," focusing instead on "buying high and selling higher" [1] - Identifying the right entry point for fast-moving stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] - A safer investment approach involves targeting bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score [2] Group 2 - Visteon (VC) is highlighted as a strong candidate for investment, having experienced a price increase of 24.9% over the past four weeks [3] - VC has shown significant long-term momentum, gaining 44.2% over the past 12 weeks, with a beta of 1.21 indicating it moves 21% more than the market [4] - VC holds a Momentum Score of A, suggesting it is an opportune time to invest in the stock [5] Group 3 - An upward trend in earnings estimate revisions has contributed to VC earning a Zacks Rank 2 (Buy), indicating strong momentum among top-ranked stocks [6] - VC is trading at a reasonable valuation, with a Price-to-Sales ratio of 0.80, meaning investors pay 80 cents for each dollar of sales [6] - The stock appears to have significant potential for further price appreciation [7]

Company Performance - Visteon reported quarterly earnings of $2.39 per share, exceeding the Zacks Consensus Estimate of $2.04 per share, but down from $2.54 per share a year ago, representing an earnings surprise of +17.16% [1] - The company posted revenues of $969 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.10%, compared to $1.01 billion in revenues a year ago [2] - Visteon has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates two times over the same period [2] Stock Performance - Visteon shares have increased approximately 28.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.1% [3] - The current consensus EPS estimate for the upcoming quarter is $1.80 on revenues of $915.78 million, and for the current fiscal year, it is $7.78 on revenues of $3.67 billion [7] Industry Outlook - The Automotive - Original Equipment industry, to which Visteon belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Visteon's stock performance [5][6]

Financial Performance - Visteon's Q2 2025 net sales reached $969 million[4], while adjusted EBITDA stood at $134 million[4], representing a 13.8% margin[4] - Adjusted Free Cash Flow (FCF) was $67 million[4], and the company held $361 million in net cash[4] - The company is raising the midpoint of full-year sales guidance to $3775 million from $3750 million[24] - Visteon is initiating a quarterly dividend of $0.275 per share[37] Sales Performance by Region - Sales in the Americas were $328 million[8], with a growth-over-market (GoM) of (4%)[8] - European sales reached $341 million[8], achieving a GoM of 8%[8] - Rest of Asia (RoA) sales amounted to $214 million[8], also with a GoM of 8%[8] - China sales were $84 million[8], impacting Visteon's global GoM by (5%)[13] New Business Wins - Visteon secured $2 billion in new business wins[6] - Year-to-date new business wins totaled $3.9 billion[15], positioning the company to exceed its $6 billion full-year target[16] - Displays accounted for 53% of new business wins in the first half of 2025[15], while clusters represented 12%[15], and electrification & other 29%[15]

```markdown Part I - Financial Information [Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201%20-%20Condensed%20Consolidated%20Financial%20Statements) Visteon's unaudited H1 2025 financials show decreased net sales, increased net income, asset growth, and improved operating cash flow [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Visteon's Q2 2025 net sales decreased, while H1 2025 net sales also declined, but net income for the first half increased Consolidated Statement of Income Highlights (in millions, except EPS) | Metric | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $969 | $1,014 | -4.4% | $1,903 | $1,947 | -2.3% | | **Gross Margin** | $141 | $147 | -4.1% | $279 | $266 | +4.9% | | **Net Income (to Visteon)** | $65 | $71 | -8.5% | $130 | $113 | +15.0% | | **Diluted EPS** | $2.36 | $2.54 | -7.1% | $4.73 | $4.05 | +16.8% | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Visteon's total assets increased to $3.192 billion and total equity grew to $1.498 billion Consolidated Balance Sheet Highlights (in millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Cash and Equivalents** | $668 | $623 | | **Total Current Assets** | $1,723 | $1,596 | | **Total Assets** | $3,192 | $2,862 | | **Total Current Liabilities** | $921 | $916 | | **Total Liabilities** | $1,694 | $1,552 | | **Total Equity** | $1,498 | $1,310 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 net cash from operations improved to $165 million, while investing cash flow increased due to a $50 million acquisition Consolidated Statement of Cash Flows Highlights (in millions) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $165 | $126 | | **Net Cash used by Investing Activities** | ($115) | ($72) | | **Net Cash used by Financing Activities** | ($38) | ($36) | | **Net Increase (Decrease) in Cash** | $45 | ($10) | | **Cash at End of Period** | $671 | $508 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, a $55 million acquisition, new quarterly dividend, share repurchases, and segment revenue - On May 21, 2025, Visteon acquired a user experience electronics engineering consulting company for **$55 million** in cash, plus up to **$9 million** in contingent consideration, to enhance product development and customer experience capabilities[32](index=32&type=chunk) - On July 22, 2025, the Board of Directors initiated a recurring quarterly cash dividend of **$0.275 per share**, payable on September 5, 2025[59](index=59&type=chunk)[82](index=82&type=chunk) - The company has a **$300 million** share repurchase program authorized through December 31, 2026, with **74,334 shares** purchased for approximately **$7 million** during the first six months of 2025[79](index=79&type=chunk) Net Sales by Product Line (H1 2025 vs H1 2024, in millions) | Product Line | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Instrument clusters | $886 | $888 | -0.2% | | Infotainment | $265 | $237 | +11.8% | | Information displays | $248 | $185 | +34.1% | | Cockpit domain controller | $228 | $286 | -20.3% | | Body and electrification electronics | $200 | $261 | -23.4% | | Other | $76 | $90 | -15.6% | [Management's Discussion and Analysis (MD&A)](index=26&type=section&id=Item%202%20-%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A discusses strategic priorities, financial results, and liquidity, highlighting Q2 2025 sales decline and H1 2025 Adjusted EBITDA growth [Executive Summary](index=26&type=section&id=Executive%20Summary) Visteon's strategic priorities include technology innovation, long-term growth, and balanced capital allocation, with customer production expected to decline - Strategic priorities include **Technology Innovation**, **Long-Term Growth**, and **Balanced Capital Allocation**[113](index=113&type=chunk) - Capital allocation focuses on organic initiatives, inorganic opportunities (such as the recent **$50 million** acquisition), and returning capital to shareholders via a **$300 million** share repurchase program and a new **$0.275** quarterly dividend[113](index=113&type=chunk) - Market outlook: S&P forecasts a slight increase in global production for 2025, but Visteon's customer vehicle production is expected to decline by a **mid-single-digit percentage**[117](index=117&type=chunk) [Results of Operations - Q2 2025 vs Q2 2024](index=28&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) Q2 2025 net sales decreased by $45 million to $969 million due to lower volumes and pricing, with Adjusted EBITDA at $134 million Q2 Net Sales and Gross Margin Bridge (in millions) | Description | Net Sales | Gross Margin | | :--- | :--- | :--- | | **Q2 2024** | **$1,014** | **$147** | | Volume, mix, and net new business | ($24) | ($5) | | Currency | $4 | $1 | | Customer pricing | ($35) | ($35) | | Engineering costs, net | — | ($3) | | Cost performance, design changes and other | $10 | $36 | | **Q2 2025** | **$969** | **$141** | Q2 Adjusted EBITDA Reconciliation (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net Income (to Visteon)** | $65 | $71 | | Depreciation and amortization | $27 | $24 | | Non-cash, stock-based compensation | $12 | $11 | | Provision for income taxes | $28 | $25 | | Other adjustments | $4 | $5 | | **Adjusted EBITDA** | **$134** | **$136** | [Results of Operations - H1 2025 vs H1 2024](index=32&type=section&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) H1 2025 net sales decreased by $44 million to $1.903 billion, but gross margin improved and Adjusted EBITDA increased to $263 million H1 Net Sales and Gross Margin Bridge (in millions) | Description | Net Sales | Gross Margin | | :--- | :--- | :--- | | **H1 2024** | **$1,947** | **$266** | | Volume, mix, and net new business | $2 | $1 | | Currency | ($16) | ($6) | | Customer pricing | ($70) | ($70) | | Engineering costs, net | — | $2 | | Cost performance, design changes and other | $40 | $86 | | **H1 2025** | **$1,903** | **$279** | H1 Adjusted EBITDA Reconciliation (in millions) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | **Net Income (to Visteon)** | $130 | $113 | | Depreciation and amortization | $52 | $46 | | Non-cash, stock-based compensation | $23 | $21 | | Provision for income taxes | $56 | $44 | | Other adjustments | $2 | $14 | | **Adjusted EBITDA** | **$263** | **$238** | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Visteon maintains strong liquidity with **$671 million** cash and **$400 million** credit, funding capital expenditures, acquisitions, and shareholder returns - Total cash and cash equivalents were **$671 million** as of June 30, 2025[153](index=153&type=chunk) - The company has **$400 million** available under its revolving credit facility and an additional **$145 million** in affiliate working capital lines[152](index=152&type=chunk) - Operating cash flow for H1 2025 increased to **$165 million** from **$126 million** in H1 2024, driven by higher Adjusted EBITDA and favorable working capital changes[162](index=162&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=38&type=section&id=Item%203%20-%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Visteon manages market risks from currency, interest rates, and commodity prices using derivatives, with a 10% adverse currency change impacting derivatives by **$22 million** - The company manages risks from foreign currency, interest rates, and commodity prices through operational actions and derivative instruments[172](index=172&type=chunk) - A hypothetical **10%** adverse change in foreign currency exchange rates would result in a **$22 million** pre-tax loss in the fair value of derivative instruments, which would generally be offset by gains on the underlying hedged exposures[175](index=175&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204%20-%20Controls%20and%20Procedures) As of June 30, 2025, Visteon's disclosure controls and procedures were effective, with no material changes to internal control - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[179](index=179&type=chunk) - No material changes were made to the company's internal control over financial reporting during the quarter ended June 30, 2025[180](index=180&type=chunk) Part II - Other Information [Legal Proceedings](index=42&type=section&id=Item%201%20-%20Legal%20Proceedings) Legal proceedings information, including litigation and product warranty claims, is incorporated by reference from Note 15 - Information regarding legal proceedings is incorporated by reference from Note 15, "Commitments and Contingencies"[182](index=182&type=chunk) [Risk Factors](index=42&type=section&id=Item%201A%20-%20Risk%20Factors) No new risk factors are disclosed; investors are referred to the 2024 Form 10-K for comprehensive details - The company directs investors to the risk factors disclosed in its 2024 Form 10-K filed on February 18, 2025[183](index=183&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202%20-%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no purchases of its common stock during the second quarter of 2025 - No shares of the company's common stock were repurchased during the second quarter of 2025[184](index=184&type=chunk) [Exhibits](index=42&type=section&id=Item%206%20-%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and interactive data files (XBRL) - The exhibits filed with this report include Rule 13a-14(a) and Section 1350 certifications from the CEO and CFO, as well as XBRL data files[186](index=186&type=chunk)[188](index=188&type=chunk) ```

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Visteon reported solid Q2 2025 results with $969 million sales, improved profitability, and $2.0 billion in new business wins Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Sales (million $) | 969 | 1,014 | | Gross Margin (million $) | 141 | 147 | | Net Income (million $) | 65 | 71 | | Adjusted EBITDA (million $) | 134 | 136 | | Diluted EPS ($) | 2.36 | 2.54 | First Half 2025 Cash Flow & Balance Sheet | Metric (as of June 30, 2025) | Value (million $) | | :--- | :--- | | Operating Cash Flow (H1) | 165 | | Adjusted Free Cash Flow (H1) | 105 | | Cash and Equivalents | 671 | | Total Debt | 310 | | Net Cash Position | 361 | - Operational achievements in Q2 2025 demonstrated strong business momentum - **New Business Wins:** Secured **$2.0 billion** in new business, bringing the year-to-date total to **$3.9 billion**[5](index=5&type=chunk) - A key win was a 48-inch pillar-to-pillar display with a German luxury OEM[5](index=5&type=chunk) - **Product Launches:** Launched **21 new products** across eight OEMs, including a 25-inch panoramic display for the Audi Q3 and SmartCore™ programs for Volvo and Polestar[6](index=6&type=chunk) - **Acquisition:** Completed a bolt-on acquisition of a technology services company to enhance user experience and HMI capabilities[7](index=7&type=chunk) [Capital Allocation Strategy](index=2&type=section&id=Capital%20Allocation%20Strategy) Visteon's capital allocation strategy focuses on business investment, share repurchases, and a new quarterly dividend - **Inorganic Investment:** Completed a bolt-on acquisition of an engineering services company for **$50 million**, the third acquisition in the last 12 months totaling **$105 million**[8](index=8&type=chunk) - **Share Repurchases:** Intends to restart opportunistic share repurchase activity, having already returned **$176 million** to shareholders since the beginning of 2023[9](index=9&type=chunk) - **Dividend Initiation:** The Board of Directors initiated a quarterly cash dividend of **$0.275 per share**, payable on September 5, 2025[10](index=10&type=chunk) [Full-Year 2025 Financial Outlook](index=2&type=section&id=Full-Year%202025%20Financial%20Outlook) Visteon raised its full-year 2025 guidance, projecting higher sales, adjusted EBITDA, and adjusted free cash flow Updated Full-Year 2025 Guidance | Metric | New Guidance | Previous Guidance | | :--- | :--- | :--- | | Sales (billion $) | 3.70 - 3.85 | 3.65 - 3.85 | | Adjusted EBITDA (million $) | 475 - 505 | 450 - 480 | | Adjusted Free Cash Flow (million $) | 195 - 225 | 175 - 205 | - The guidance assumes that tariffs remain at current levels and that USMCA-compliant parts crossing the US-Mexico border will remain exempt from tariffs[11](index=11&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents Visteon's consolidated financial statements, including income, balance sheet, and cash flow data [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Q2 2025 net sales were $969 million, with H1 2025 net income attributable to Visteon increasing to $130 million Income Statement Highlights (in millions) | Account | Q2 2025 (million $) | Q2 2024 (million $) | H1 2025 (million $) | H1 2024 (million $) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | 969 | 1,014 | 1,903 | 1,947 | | Gross Margin | 141 | 147 | 279 | 266 | | Income Before Taxes | 97 | 100 | 192 | 163 | | Net Income (to Visteon) | 65 | 71 | 130 | 113 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Visteon reported total assets of $3,192 million, with strong liquidity and growing equity Balance Sheet Highlights (in millions) | Account | June 30, 2025 (million $) | Dec 31, 2024 (million $) | | :--- | :--- | :--- | | Cash and equivalents | 668 | 623 | | Total current assets | 1,723 | 1,596 | | Total assets | 3,192 | 2,862 | | Long-term debt, net | 292 | 301 | | Total Visteon stockholders' equity | 1,422 | 1,229 | | Total liabilities and equity | 3,192 | 2,862 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 operating cash flow increased to $165 million, with $115 million used in investing activities, including acquisitions Cash Flow Summary - Six Months Ended June 30 (in millions) | Activity | 2025 (million $) | 2024 (million $) | | :--- | :--- | :--- | | Net cash from operating activities | 165 | 126 | | Net cash used by investing activities | (115) | (72) | | Net cash used by financing activities | (38) | (36) | | Net increase (decrease) in cash | 45 | (10) | [Reconciliation of Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides reconciliations of non-GAAP financial measures, including Adjusted EBITDA, Free Cash Flow, and Adjusted EPS [Adjusted EBITDA Reconciliation](index=8&type=section&id=Adjusted%20EBITDA%20Reconciliation) Q2 2025 Adjusted EBITDA was $134 million, while H1 2025 Adjusted EBITDA increased to $263 million Adjusted EBITDA Reconciliation - Q2 (in millions) | Line Item | Q2 2025 (million $) | Q2 2024 (million $) | | :--- | :--- | :--- | | Net income attributable to Visteon | 65 | 71 | | Adjustments (D&A, Taxes, etc.) | 69 | 65 | | **Adjusted EBITDA** | **134** | **136** | [Free Cash Flow and Adjusted Free Cash Flow Reconciliation](index=9&type=section&id=Free%20Cash%20Flow%20and%20Adjusted%20Free%20Cash%20Flow%20Reconciliation) H1 2025 adjusted free cash flow significantly increased to $105 million, calculated from operating cash flow and adjustments Adjusted Free Cash Flow Reconciliation - H1 (in millions) | Line Item | H1 2025 (million $) | H1 2024 (million $) | | :--- | :--- | :--- | | Cash provided from operating activities | 165 | 126 | | Capital expenditures | (66) | (68) | | Free cash flow | 99 | 58 | | Restructuring related payments | 6 | 4 | | **Adjusted free cash flow** | **105** | **62** | [Adjusted Net Income and Adjusted Earnings Per Share Reconciliation](index=11&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20Earnings%20Per%20Share%20Reconciliation) Q2 2025 adjusted net income was $66 million, or $2.39 per diluted share, with minimal adjustments from GAAP figures Adjusted Net Income & EPS Reconciliation - Q2 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income (GAAP, million $) | 65 | 71 | | Adjustments (net of tax, million $) | 1 | 0 | | **Adjusted Net Income (million $)** | **66** | **71** | | Diluted EPS (GAAP, $) | 2.36 | 2.54 | | **Adjusted EPS ($)** | **2.39** | **2.54** | [Forward-Looking Statements and Risk Factors](index=3&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section outlines forward-looking statement disclaimers and key risk factors, including trade policies, geopolitical conflicts, and supply chain issues - Key risk factors identified by the company include: - Uncertainties in U.S. trade policies and tariffs[19](index=19&type=chunk) - Geopolitical conflicts and related supply chain disruptions[19](index=19&type=chunk) - Shortages of critical components like semiconductors[21](index=21&type=chunk) - Conditions within the automotive industry, including production volumes and customer financial health[21](index=21&type=chunk) - Ability to satisfy future capital and liquidity requirements[21](index=21&type=chunk)