Visteon Q2 sales beat estimates, raises 2025 guidance

Overview

• Visteon Q2 sales of $969 mln beat analyst expectations, per LSEG data

• Net income for Q2 was $65 mln, reflecting operational discipline and cost efficiencies

• Company initiated a quarterly dividend and raised full-year 2025 guidance

Outlook

• Visteon raises full-year 2025 revenue guidance to $3.70 bln-$3.85 bln

• Company expects full-year 2025 adjusted EBITDA of $475 mln-$490 mln

• Visteon plans to resume capital returns to shareholders

Result Drivers

• DIGITAL COCKPIT STRENGTH - Visteon's digital cockpit portfolio contributed to solid Q2 results despite lower sales

• CHINA SOFTNESS - Sales decline attributed to reduced Battery Management System volumes and market softness in China

• NEW BUSINESS WINS - $2.0 bln in new business wins, including advanced display programs, supported growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Visteon Corp is $117.50, about 2.8% above its July 23 closing price of $114.18

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nPn99f1YTa