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Dec 31, 2023

Visteon Q4 2023 Earnings Report

Visteon reported Q4 2023 financial results, featuring net sales of $990 million and net income of $366 million, including a $313 million non-cash U.S. tax benefit.

Key Takeaways

Visteon's Q4 2023 results showed a decrease in net sales to $990 million compared to the previous year, primarily due to lower recoveries from improved semiconductor supply. Net income was $366 million, which included a significant non-cash tax benefit. Adjusted EBITDA increased to $117 million, reflecting strong operating performance and cost discipline.

Net sales reached $990 million.

Net income was $366 million, including a $313 million non-cash U.S. tax benefit.

Adjusted EBITDA totaled $117 million.

Base sales grew 1% from the prior year, driven by product launches, offset by OEM production disruptions.

Total Revenue
$990M
Previous year: $1.06B
-7.0%
EPS
$1.91
Previous year: $1.32
+44.7%
Adjusted EBITDA
$117M
Previous year: $103M
+13.6%
Adjusted EBITDA Margin
11.8%
Previous year: 9.7%
+21.6%
Gross Profit
$130M
Previous year: $114M
+14.0%
Cash and Equivalents
$515M
Previous year: $520M
-1.0%
Free Cash Flow
$55M
Total Assets
$2.73B
Previous year: $2.45B
+11.3%

Visteon

Visteon

Forward Guidance

Visteon's full-year 2024 guidance anticipates sales in the range of $4.0 billion to $4.2 billion, adjusted EBITDA in the range of $470 million to $500 million, and adjusted free cash flow in the range of $155 million to $185 million.

Positive Outlook

  • Sales in the range of $4.0 billion to $4.2 billion
  • Adjusted EBITDA in the range of $470 million to $500 million
  • Adjusted free cash flow in the range of $155 million to $185 million
  • Continued growth in 2024
  • Focus on execution, cost control, and cash flow generation

Challenges Ahead

  • Continued and future impacts related to the conflict between Russia and the Ukraine including supply chain disruptions, reduction in customer demand, and the imposition of sanctions on Russia
  • Significant or prolonged shortage of critical components from suppliers, including but not limited to semiconductors, and particularly those who are sole or primary sources
  • Failure of the Company’s joint venture partners to comply with contractual obligations or to exert undue influence in China
  • Conditions within the automotive industry, including automotive vehicle production volumes and schedules of customers, the financial condition of customers and the effects of any restructuring or reorganization plans that may be undertaken by customers, including work stoppages at customers, and possible disruptions in the supply of commodities to us or our customers due to financial distress, work stoppages, natural disasters or civil unrest
  • Ability to avoid or continue to operate during a strike, or partial work stoppage or slow down at any of our principal customers