Third Quarter 2026
Filed Oct 22, 2026Third-quarter sales rose 6% to $970 million, but $77 million of exceptional warranty charges reduced gross margin to $47 million and net income attributable to Visteon to $5 million; full-year sales guidance was raised while adjusted EBITDA and adjusted free cash flow guidance were lowered.
Sales outgrew customer vehicle production and new business wins remained positive, but exceptional warranty charges, cost pressures, lower gross margin, sharply lower adjusted EBITDA and negative nine-month adjusted free cash flow led to reduced profitability and cash-flow guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30GAAP | $970M | – | 6% |
| Growth-over-Market, three months ended September 30other | 10% | – | – |
| Customer vehicle production, three months ended September 30other | declining by 5% | – | – |
| Gross margin, three months ended September 30GAAP | $47M | – | – |
| Selling, general and administrative expenses, three months ended September 30GAAP | −$46M | – | – |
| Restructuring, net, three months ended September 30GAAP | — | – | – |
| Income before income taxes, three months ended September 30GAAP | $7M | – | – |
| Net income, three months ended September 30GAAP | $6M | – | – |
| Net income attributable to Visteon Corporation, three months ended September 30GAAP | $5M | – | – |
| Basic earnings per share attributable to Visteon Corporation, three months ended September 30GAAP | $0.20 | – | – |
| Diluted earnings per share attributable to Visteon Corporation, three months ended September 30GAAP | $0.19 | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | $46M | – | – |
| Adjusted net income, three months ended September 30non-GAAP | $5M | – | – |
| Adjusted earnings per share, three months ended September 30non-GAAP | $0.19 | – | – |
| Net sales, nine months ended September 30GAAP | $2.88B | – | – |
| Gross margin, nine months ended September 30GAAP | $278M | – | – |
| Selling, general and administrative expenses, nine months ended September 30GAAP | −$146M | – | – |
| Restructuring, net, nine months ended September 30GAAP | −$17M | – | – |
| Income before income taxes, nine months ended September 30GAAP | $132M | – | – |
| Net income, nine months ended September 30GAAP | $89M | – | – |
| Net income attributable to Visteon Corporation, nine months ended September 30GAAP | $85M | – | – |
| Basic earnings per share attributable to Visteon Corporation, nine months ended September 30GAAP | $3.24 | – | – |
| Diluted earnings per share attributable to Visteon Corporation, nine months ended September 30GAAP | $3.17 | – | – |
| Adjusted EBITDA, nine months ended September 30non-GAAP | $266M | – | – |
| Adjusted net income, nine months ended September 30non-GAAP | $102M | – | – |
| Adjusted earnings per share, nine months ended September 30non-GAAP | $3.81 | – | – |
| Cash provided from operating activities, three months ended September 30GAAP | $38M | – | – |
| Capital expenditures, including intangibles, three months ended September 30GAAP | −$42M | – | – |
| Free cash flow, three months ended September 30non-GAAP | −$4M | – | – |
| Adjusted free cash flow, three months ended September 30non-GAAP | −$1M | – | – |
| Cash provided from operating activities, nine months ended September 30GAAP | $81M | – | – |
| Capital expenditures, including intangibles, nine months ended September 30GAAP | −$103M | – | – |
| Free cash flow, nine months ended September 30non-GAAP | −$22M | – | – |
| Adjusted free cash flow, nine months ended September 30non-GAAP | −$4M | – | – |
Full Year 2026 outlook
- Revenue$3.80 – $3.85 billion
- NoteAdjusted EBITDA: $370 – $410 million
- NoteAdjusted free cash flow: $90 – $130 million
Capital returns
- Completed a $200 million accelerated share repurchase program in the third quarter.
- Paid $9 million quarterly dividend.
- Repurchase of common stock was $(200) million for the three months ended September 30 and $(236) million for the nine months ended September 30.
- Dividend to shareholders was $(9) million for the three months ended September 30 and $(29) million for the nine months ended September 30.
What drove it
- Sales increased 6% year-over-year despite customer vehicle production declining by 5%, producing 10% Growth-over-Market.
- The Company attributed sales performance to strong launch execution and robust customer demand.
- Visteon launched 21 new products across 14 customers during the third quarter, including its High-Performance Compute system with integrated AI capabilities for the Chery Freelander 8 in China.
- New business wins totaled $0.9 billion, driven by continued momentum in display products and India.
- Management cited continued operational execution in a challenging supply chain environment.
Concerns
- Gross margin included $77 million of exceptional warranty charges.
- The full-year adjusted EBITDA range reflects exceptional warranty charges and cost pressures.
- The adjusted free cash flow range takes into account year-to-date inventory build.
- Nine-month inventories increased to $359 million from $269 million at December 31, 2025.
- Third-quarter adjusted EBITDA was $46 million compared with $119 million in the prior-year period.
- Nine-month adjusted free cash flow was an outflow of $4 million compared with $215 million in the prior-year period.
What to watch
- Fourth-quarter execution against full-year sales guidance of $3.80 – $3.85 billion.
- The effect of exceptional warranty charges and cost pressures on adjusted EBITDA within the $370 – $410 million full-year range.
- Inventory management and conversion to adjusted free cash flow within the $90 – $130 million full-year range.
- Sales contribution from the 21 third-quarter product launches and new business wins of $0.9 billion.
- Continued demand in displays, India, China and software and AI-defined vehicle programs.
Balance sheet and cash flow
- Cash and equivalents were $464 million at September 30, 2026, compared with $771 million at December 31, 2025.
- Restricted cash was $2 million at September 30, 2026, compared with $2 million at December 31, 2025.
- Cash, equivalents, and restricted cash were $466 million at September 30, 2026.
- Short-term debt was $23 million and long-term debt, net was $307 million at September 30, 2026.
- The Company reported debt of $330 million and a net cash position of $136 million at quarter end.
- Inventories, net were $359 million at September 30, 2026, compared with $269 million at December 31, 2025.
- Accounts receivable, net were $696 million at September 30, 2026, compared with $613 million at December 31, 2025.
- Net cash used by financing activities was $(184) million for the three months ended September 30 and $(261) million for the nine months ended September 30.
Analysis
Third-quarter net sales were $970 million, compared with $917 million in the prior-year period, as Visteon reported 10% Growth-over-Market despite customer vehicle production declining by 5%. Management attributed the result to launch execution and customer demand. The company launched 21 products across 14 customers and secured $0.9 billion in new business, with stated momentum in displays and India.
Profitability was materially affected by $77 million of exceptional warranty charges. Gross margin was $47 million versus $131 million in the prior-year quarter, while net income attributable to Visteon Corporation was $5 million versus a loss of $(11) million. Adjusted EBITDA was $46 million, down from $119 million in the prior-year period. The release also cited cost pressures and a challenging supply chain environment.
Cash conversion weakened. Cash provided from operating activities was $38 million in the quarter and $81 million for the nine months, compared with $127 million and $292 million, respectively, in the prior-year periods. Nine-month capital expenditures, including intangibles, were $(103) million, resulting in free cash flow of $(22) million and adjusted free cash flow of $(4) million. Management said its revised adjusted free cash flow outlook incorporates year-to-date inventory build; inventories were $359 million at September 30, 2026, compared with $269 million at December 31, 2025.
The balance sheet showed cash and equivalents of $464 million, restricted cash of $2 million, and debt of $330 million, which the company described as net cash of $136 million. Visteon completed a $200 million accelerated share repurchase and paid a $9 million quarterly dividend. These actions contributed to cash usage while the company continued investment in launches and product development.
For full-year 2026, Visteon raised sales guidance to $3.80 – $3.85 billion but lowered adjusted EBITDA guidance to $370 – $410 million and adjusted free cash flow guidance to $90 – $130 million. The guide explicitly incorporates the exceptional warranty charges, cost pressures and inventory build. The principal reported tension is therefore continued sales and program momentum against sharply reduced quarterly profitability and lower cash generation.
Management, verbatim
Our third quarter results highlight continued progress toward sustainable sales growth while delivering strong profitability in a challenging supply chain environment.
Sachin Lawande, President and CEO
Our HPC launch with Chery was a significant milestone for Visteon, demonstrating our ongoing position as a key supplier to support the transition to software and AI-defined vehicles.
Sachin Lawande, President and CEO
Not in the filing
stated, not guessed- Prior outlook was not provided; comparison of actual results with prior guidance is unavailable.
- GAAP operating income was not reported.
- Gross margin percentage was not reported.
- No reportable operating segments or segment revenue were provided.
- Quarter-over-quarter comparisons were not reported for the disclosed metrics.
- Full-year guidance for gross margin, operating expenses and tax rate was not provided.
- A GAAP effective tax rate was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.