Visteon (VC) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, February 19, 2026 astatine 10:00 AM CST 50 min read

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Thursday, Feb. 19, 2026 astatine 9 a.m. ET

• President and Chief Executive Officer — Sachin S. Lawande

• Executive Vice President and Chief Financial Officer — Jerome J. Rouquet

Sachin S. Lawande: Thank you, Chris, and bully morning, everyone. Overall, we delivered a beardown show successful 2025, respective manufacture challenges. Net income for the twelvemonth were $3,768 million, coming successful mostly arsenic we expected astatine the opening of the year. From a merchandise perspective, displays volition basal retired with income increasing astir 20% twelvemonth implicit year, reflecting beardown lawsuit request for larger and precocious displays arsenic good arsenic our execution capabilities. Growth implicit marketplace was muted successful 2025 due to the fact that of 2 good understood factors we person discussed passim the year. First, artillery absorption systems continued to beryllium a headwind arsenic EV request successful the US was softer than primitively anticipated.

And second, successful China, our results were impacted by ongoing displacement successful marketplace dynamics, including the continued nonaccomplishment of stock by planetary OEMs. These 2 factors negatively impacted GOM by astir 7 percent points. From a profitability standpoint, 2025 was a grounds year, Adjusted EBITDA reached $492,000,000 oregon 13.1% of sales, representing the highest level successful the company's history. We besides generated precise beardown adjusted escaped currency travel reflecting disciplined execution and continued absorption connected outgo and superior efficiency. New concern enactment was different item of the year. We delivered a grounds $7,400,000,000 of caller concern wins, surpassing our anterior peak. Finally, a beardown equilibrium expanse and currency procreation proceed to supply important flexibility.

During the year, we deployed much than $120,000,000 towards M&A and shareholder returns portion maintaining a beardown nett currency position. Turning to leafage three.

Chris Doyle: We

Sachin S. Lawande: Before I spell deeper into our 2025 results, I privation to instrumentality a measurement backmost and concisely update you connected the strategical enactment underway to physique Visteon Corporation’s adjacent signifier of growth. While the bulk of the benefits volition travel later, immoderate of these initiatives are expected to amusement results successful 2026. We are diversifying our lawsuit basal by expanding our beingness with specification automakers, person historically been underrepresented astatine Visteon. In 2025, we secured different $500,000,000 of caller concern with Toyota.

Building connected the momentum from anterior year, and launched caller products with Toyota, Mahindra, Tata, and Maruti Suzuki We expect gross from these OEMs to statesman increasing successful 2026 and to ramp steadily implicit the adjacent respective years making them an important operator of our aboriginal growth. At the aforesaid time, bundle defined vehicles are present extending into different parts of the broader mobility ecosystem peculiarly commercialized vehicles and 2 wheelers. While we person served these adjacent markets successful the past, the changes driven by this trends are making them importantly much charismatic maturation opportunities portion besides helping america diversify our exposure. In 2025, astir 15% of our caller concern wins came from 2 wheeler and commercialized conveyance manufacturers.