Visteon Corporation today reported second quarter financial results. Highlights include:
- Sales of $969 million
- Net income of $65 million
- Adjusted EBITDA of $134 million
- Operating cash flow of $165 million and adjusted free cash flow of $105 million for the first six months
- Healthy balance sheet with net cash of $361 million at quarter end
- New business wins of $2.0 billion and 21 new product launches
- Closed bolt-on acquisition of technology services company
- Initiated quarterly dividend
Second Quarter Results
Visteon delivered solid results in the second quarter reflecting the continued strength of its digital cockpit portfolio and disciplined operational execution. Sales for the quarter totaled $969 million, compared to $1,014 million in the prior year. The year-over-year decline was primarily driven by lower Battery Management System volumes and softness in China, partially offset by the ramp-up of recent program launches. Despite the lower revenue, the Company’s solid operational performance generated increased profitability and cash.
Gross margin in the second quarter was $141 million. Net income attributable to Visteon was $65 million or $2.36 per diluted share. Adjusted EBITDA, a non-GAAP measure defined below, was $134 million supported by continued operational discipline, favorable nonrecurring items, and cost efficiencies across the business. These results reflect Visteon’s ability to deliver consistent earnings performance while navigating a dynamic macroeconomic and industry environment.
For the six months ended June 30, 2025, the Company generated $165 million in operating cash flow and $105 million in adjusted free cash flow, a non-GAAP measure defined below. Capital expenditures during the first half were $66 million. Visteon ended the second quarter with $671 million in cash and $310 million in debt, resulting in a net cash position of $361 million. The Company’s strong balance sheet provides the flexibility to support ongoing investments in growth and return capital to shareholders.
New business momentum remained strong in the quarter, with $2.0 billion in new wins, bringing the year-to-date total to $3.9 billion. These wins were led by advanced display programs, including a 48-inch pillar-to-pillar display award with a German luxury OEM. Other notable awards included a key digital cluster program with a leading two-wheeler manufacturer and a cockpit domain controller program with a major commercial vehicle OEM.
Visteon also launched 21 new products during the quarter across eight OEMs, including four commercial vehicle and two-wheeler programs. Key launches included a 25-inch panoramic display on the Audi Q3 platform in Europe and SmartCore™ domain controller programs on the Volvo EX30 crossover EV, the Polestar 5, and for Volvo’s construction vehicle segment.
“Our second quarter represents another quarter of proof points supporting our long-term growth strategy. We launched 21 new products across eight OEMs, secured $2.0 billion in new business, and expanded into adjacent markets,” said President and CEO Sachin Lawande. “These results underscore the growing importance of the cockpit experience and the strength of our technology portfolio.”
Capital allocation
The Company continues to execute on its balanced capital allocation strategy, which balances maintaining a strong balance sheet, investing in the business through organic and inorganic investments, and returning capital to shareholders. In the quarter, the Company invested in the business with $31 million in capital expenditures and completed a bolt-on acquisition of an engineering services company, focused on user experience and HMI, for $50 million, net of cash acquired. This acquisition represents the third acquisition closed in the last 12 months for a total investment in acquisitions of $105 million.
After pausing share repurchases in the second quarter due to the uncertainty created by tariffs, the Company plans to resume capital returns to shareholders. Since the beginning of 2023, the Company has returned $176 million of cash to shareholders in the form of share repurchases and intends to restart share repurchase activity in an opportunistic manner. In addition, on July 22, 2025, the Company’s Board of Directors initiated a quarterly dividend of $0.275 per share on its common stock. The dividend is payable on September 5, 2025, to shareholders of record as of the close of business on August 18, 2025. The declaration and payment of future dividends are subject to the sole discretion of the Board of Directors and will depend on a number of factors, including general and economic conditions, the Company’s financial condition and operating results, the Company’s available cash and current and anticipated cash needs, capital requirements, banking regulations, contractual, legal, tax and regulatory restrictions, and such other factors as the Board of Directors may deem relevant.
The Company’s approach to capital allocation strikes a balance between investing in the long-term growth of the business while enhancing returns to investors. Resuming capital returns to shareholders, including the introduction of a cash dividend, highlights the Company’s confidence in future cash flow generation.
Financial outlook
Based on our year-to-date performance and outlook for the second half of the year, Visteon is updating its full-year 2025 guidance. The Company now expects:
- Sales of $3.70 billion to $3.85 billion (up from $3.65 billion to $3.85 billion)
- Adjusted EBITDA of $475 million to $505 million (up from $450 million to $480 million)
- Adjusted free cash flow of $195 million to $225 million (up from $175 million to $205 million)
Our guidance assumes tariffs remain at current levels, with USMCA-compliant parts crossing the US – Mexico border remaining fully exempt from tariffs.
SOURCE: Visteon
