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Sep 30
Visteon Q3 2025 Earnings Report
Visteon reported a decline in net sales but maintained strong operational execution and cash generation in Q3 2025.
Key Takeaways
Visteon Corporation reported third-quarter net sales of $917 million, a 6% year-over-year decline, primarily due to reduced Battery Management Systems sales in the U.S. and a sales decline in China, alongside unplanned downtime at JLR. Despite these challenges, the company achieved a net income of $57 million and adjusted EBITDA of $119 million, demonstrating strong operational execution and cost performance. Visteon also secured $1.8 billion in new business wins and launched 28 new products during the quarter.
Net sales for the third quarter were $917 million, a 6% decrease year-over-year, mainly due to reduced Battery Management Systems sales in the U.S., a sales decline in China, and JLR downtime.
Net income attributable to Visteon was $57 million, or $2.04 per diluted share, while adjusted EBITDA reached $119 million, indicating strong operational performance.
The company secured $1.8 billion in new business wins during the quarter, bringing the year-to-date total to $5.7 billion, driven by advanced display and SmartCore™ cockpit domain controller programs.
Visteon launched 28 new products across ten OEMs, including the AllGo™ App Store on the Suzuki Vitara Brezza and a SmartCore™ cockpit domain controller for the Zeekr 001 electric SUV.
Visteon
Visteon
Forward Guidance
Visteon is maintaining its full-year 2025 guidance for net sales, adjusted EBITDA, and adjusted free cash flow. Adjusted EBITDA and adjusted free cash flow are tracking towards the high end of their respective ranges, while sales are tracking below the midpoint.
Positive Outlook
- Full-year 2025 adjusted EBITDA is tracking towards the high end of the $475 million to $505 million range.
- Full-year 2025 adjusted free cash flow is tracking towards the high end of the $195 million to $225 million range.
- The company's strong balance sheet provides flexibility for growth investments, margin initiatives, and shareholder returns.
- Continued strong operational execution and cost performance are expected to support earnings.
- New business wins and product launches indicate future growth potential.
Challenges Ahead
- Full-year 2025 sales are tracking below the midpoint of the $3.70 billion to $3.85 billion guidance range.
- The guidance does not account for potential impacts from Nexperia supply disruptions on Visteon and the automotive industry.
- Expected sales reduction of Battery Management Systems in the U.S. continues to be a headwind.
- Sales decline in China is an ongoing challenge.
- Unplanned downtime at JLR during September impacted third-quarter sales and could pose future risks.