Visteon(VC) - 2025 Q2 - Quarterly Results

Financial & Operational Highlights 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] - A key win was a 48-inch pillar-to-pillar display with a German luxury OEM[5] - 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] - Acquisition: Completed a bolt-on acquisition of a technology services company to enhance user experience and HMI capabilities[7] Capital Allocation Strategy 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] - Share Repurchases: Intends to restart opportunistic share repurchase activity, having already returned $176 million to shareholders since the beginning of 2023[9] - Dividend Initiation: The Board of Directors initiated a quarterly cash dividend of $0.275 per share, payable on September 5, 2025[10] Full-Year 2025 Financial Outlook 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] Consolidated Financial Statements This section presents Visteon's consolidated financial statements, including income, balance sheet, and cash flow data Consolidated Statements of Comprehensive Income (Loss) 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 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 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 This section provides reconciliations of non-GAAP financial measures, including Adjusted EBITDA, Free Cash Flow, and Adjusted EPS Adjusted EBITDA Reconciliation 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 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 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 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] - Geopolitical conflicts and related supply chain disruptions[19] - Shortages of critical components like semiconductors[21] - Conditions within the automotive industry, including production volumes and customer financial health[21] - Ability to satisfy future capital and liquidity requirements[21]