VISTEON CORP
For the period ended Jun 30, 2025. Filed Jul 24, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 24, 2025
VC$75.68-2.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-24.
0001111335-25-000059
Item 2. - Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-24.
0001111335-25-000137
Item 2. - Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 99 previous paragraphs and 126 current paragraphs.
74 unchanged; 25 reworded; 16 added; 0 removed; 0 previous and 11 current paragraphs rearranged.
Tables are not compared: 4 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
Six Months Ended June 30, 2025
Current report
Gross engineering costs relate to forward model program development and advanced engineering activities and exclude contractually reimbursable engineering costs. Net engineering costs were $52 million and $50 million for the three months ended June 30, 2025 and 2024, respectively, and includes engineering costs related to recent acquisitions. This increase is primarily due to recent engineering services acquisitions, partially offset by lower personnel costs and timing of engineering recoveries.
Current report
During the three months ended June 30, 2025 and 2024 the Company recorded $1 million of restructuring expense.
Current report
The Company's provision for income taxes of $28 million for the three months ended June 30, 2025 represents an increase of $3 million compared with $25 million in the same period of 2024. The increase in tax expense reflects a higher forecasted effective tax rate, primarily driven by shifts in the geographic mix of earnings, jurisdictional tax rate differences, and increased withholding taxes due primarily to unfavorable exchange movements.
Current report
Adjusted EBITDA was $134 million for the three months ended June 30, 2025, representing a decrease of $2 million when compared to $136 million for the same period of 2024. The negative impact to EBITDA from lower sales volumes was offset by the favorable impact of one-time items in the quarter. Net engineering costs, excluding currency, decreased Adjusted EBITDA by $3 million.
Current report
Results of Operations - Six Months Ended June 30, 2025 and 2024
Current report
Selling, General and Administrative Expenses
Current report
Restructuring, net
Current report
Interest, Net
Current report
Interest, net, for the six months ended June 30, 2025 increased by $3 million as compared to the same period of 2024 due to higher interest rates on increased cash balances.
Current report
Other Income (Expense), Net
Current report
Other income, net was $2 million and $5 million for the six month period ending June 30, 2025 and 2024, respectively. The decrease was primarily due to lower net pension financing benefits and an increase in business acquisition costs.
Current report
Income Taxes
Current report
Adjusted EBITDA
Current report
On July 22, 2025, the Company’s Board of Directors initiated a quarterly dividend subject to quarterly Board approval 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. This action reflects the Company’s ongoing commitment to returning value to shareholders and is part of management’s broader capital allocation strategy.
Current report
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.
Reworded paragraphs (25)
Previous wording
•Balanced Capital Allocation with a Strong Balance Sheet - The Company continues to maintain a strong balance sheet to withstand near-term industry volatility and support a balanced capital allocation framework. The Company is primarily focused on allocating capital to high-returning organic initiatives that increase internal capabilities, pursuing attractive inorganic opportunities, and returning capital to shareholders. In March 2023, the Company announced a $300 million share repurchase program maturing at the end of 2026. The Company has repurchased $176 million of Company common stock under this program. During the year ended December 31, 2024, Visteon spent a net cash outlay of $54 million on inorganic growth, to acquire an advanced design and R&D services firm and a software firm.
Current wording
•Balanced Capital Allocation with a Strong Balance Sheet - The Company continues to maintain a strong balance sheet to withstand near-term industry volatility and support a balanced capital allocation framework. The Company is primarily focused on allocating capital to high-returning organic initiatives that increase internal capabilities, pursuing attractive inorganic opportunities, and returning capital to shareholders. In March 2023, the Company announced a $300 million share repurchase program maturing at the end of 2026. The Company has repurchased $176 million of Company common stock under this program. On July 22, 2025, the company declared a $0.275 quarterly cash dividend. During the six months ended June 30, 2025, Visteon spent a net cash outlay of $50 million on inorganic growth, to acquire a user experience electronics engineering consulting and consumer research company.
Previous wording
The pie charts below highlight the net sales breakdown for Visteon for the three months ended March 31, 2025.
Current wording
The pie charts below highlight the net sales breakdown for Visteon for the three and six months ended June 30, 2025.
Previous wording
According to S&P’s April global vehicle production update, global light vehicle production increased modestly in the first quarter of 2025, with Visteon’s customer production declining by a mid-single-digit percentage. In North America, retail vehicle sales spiked in March as consumers rushed to purchase vehicles ahead of tariffs. Dealer inventory levels were reduced to accommodate the increase in demand while production was minimally impacted. Production levels in Europe also decreased due to ongoing economic uncertainty. In China, production levels modestly increased while domestic OEMs continued to gain market share compared to prior year. The shift to electrification remains a central trend across all major markets.
Current wording
According to S&P’s July global vehicle production update, global light vehicle production increased modestly in the second quarter of 2025 compared to prior year, while production volumes for Visteon's customers declined slightly. In North America, retail sales remained above 15 million units as OEMs introduced promotional pricing campaigns and the consumer remained resilient, while production levels still declined on a year-over-year basis. Production levels in Europe decreased due to ongoing economic headwinds. In China, production levels increased by a high-single-digit percentage while domestic OEMs continued to gain market share compared to prior year. The shift to electrification varies by region with adoption rates in Europe and China increasing while adoption in the US was slightly down.
Previous wording
Looking ahead, S&P's latest forecast assumes that global production will decline for the full year 2025, more than originally anticipated due to the impact of tariffs on the automotive industry. Visteon’s customer vehicle production is anticipated to decline by a high-single-digit percentage. The recently announced tariffs are expected to increase production costs and weigh on future vehicle volumes, creating additional uncertainty for vehicle production volumes.
Current wording
Looking ahead, S&P's latest forecast assumes that global production will increase slightly for the full year 2025 compared to prior year. Visteon’s customer vehicle production is anticipated to decline by a mid-single-digit percentage. The impact of recently implemented tariffs on the automotive industry remains uncertain with the potential to increase production costs and weigh on future vehicle volumes.
Previous wording
The industry continues to face ongoing risks related to tariffs, vehicle affordability, economic uncertainty, potential geopolitical challenges, and customer market share changes. The magnitude of the impact on the financial statements, results of operations, and cash flows will be dependent on tariff dynamics, plant production schedules, supply chain impacts, global economic impacts, and electric vehicle adoption.
Current wording
The industry continues to face ongoing risks related to tariffs, vehicle affordability, economic uncertainty, potential geopolitical challenges, and customer market share changes. While there was a not a meaningful impact to Visteon’s operations during the second quarter of 2025 related to tariffs, the impact on future quarters' financial statements, results of operations, and cash flows will be dependent on tariff dynamics, plant production schedules, supply chain impacts, and electric vehicle adoption.
Previous wording
Net sales for the three months ended March 31, 2025 totaled $934 million, representing an increase of $1 million compared with the same period of 2024. Volumes and net new business increased net sales by $26 million due to continued market outperformance as a result of recent product launches and sales volumes in the Americas and Europe, partially offset by lower sales in China due to market dynamics. Customer pricing decreased net sales by $35 million as a result of annual price reductions and lower customer recoveries due to improving supply chain dynamics. Unfavorable currency decreased net sales by $20 million, primarily attributable to the Brazilian real and the euro. Other cost performance, design changes and other increased net sales by $30 million primarily due to design changes and other one-time commercial items.
Current wording
Net sales for the three months ended June 30, 2025 totaled $969 million, representing a decrease of $45 million compared with the same period of 2024. Volumes and net new business decreased net sales by $24 million primarily due to lower customer production volumes, partially offset by recent product launches. Customer pricing decreased net sales by $35 million as a result of annual price reductions and lower customer recoveries due to improving supply chain dynamics. Favorable currency increased net sales by $4 million, primarily attributable to the euro, Japanese yen, and Thai baht, offset by the Brazilian real. Other cost performance, design changes and other increased net sales by $10 million, primarily due to design changes, one-time commercial items, and sales from the recently acquired engineering services companies.
Previous wording
Cost of sales decreased by $18 million for the three months ended March 31, 2025 compared with the same period in 2024. Volume, mix and net new business increased cost of sales by $20 million. Net engineering costs, excluding currency, decreased cost of sales by $5 million. Foreign currency decreased cost of sales by $13 million, primarily attributable to the Brazilian real and the euro. Cost performance, design changes and other decreased cost of sales by $20 million primarily due to manufacturing efficiencies.
Current wording
Cost of sales decreased by $39 million for the three months ended June 30, 2025 compared with the same period in 2024. Volume, mix and net new business decreased cost of sales by $19 million. Net engineering costs, excluding currency, increased cost of sales by $3 million. Foreign currency increased cost of sales by $3 million, primarily attributable to the Japanese yen, Thai baht, and Mexican peso, offset by the Brazilian real. Cost performance, design changes and other decreased cost of sales by $26 million primarily due to manufacturing and operational efficiencies.
Previous wording
Selling, general, and administrative expenses were $47 million and $52 million, during the three months ended March 31, 2025 and 2024, respectively. Expenses decreased during the three months ended March 31, 2025 as compared to same period prior year due to lower bad debt and employee expenses.
Current wording
Selling, general, and administrative expenses were $48 million and $49 million, during the three months ended June 30, 2025 and 2024, respectively. Expenses decreased during the three months ended June 30, 2025 as compared to same period prior year due to lower bad debt expense, partially offset by employee expenses.
Previous wording
Interest, net, for the three months ended March 31, 2025 increased by $1 million as compared to the same period of 2024 due to lower interest expense at affiliates.
Current wording
Interest income for the three months ended June 30, 2025 increased by $2 million as compared to the same period of 2024 due to higher interest rates on increased cash balances.
Previous wording
Other income, net was $1 million for the three month period ending March 31, 2025 and was primarily due to net pension financing benefits partially offset by costs related to business acquisitions.
Current wording
Other income, net was $1 million and $3 million for the three month period ending June 30, 2025 and 2024, respectively. The decrease was primarily due to lower net pension financing benefits and an increase in business acquisition costs.
Previous wording
Gross engineering costs relate to forward model program development and advanced engineering activities and exclude contractually reimbursable engineering costs. Net engineering costs of $52 million for the three months ended March 31, 2025, including the impacts of currency, were $8 million lower than the same period of 2024. This decrease is primarily related to improved engineering efficiencies and favorable timing of recoveries during 2025 compared to the prior period.
Current wording
Gross engineering costs relate to forward model program development and advanced engineering activities and exclude contractually reimbursable engineering costs. Net engineering costs of $104 million for the six months ended June 30, 2025, including the impacts of currency, were $6 million lower than the same period of 2024. This decrease is primarily related to the favorable timing of recoveries and lower personnel costs, partially offset by engineering expenses related to recent acquisitions.
Previous wording
During the three months ended March 31, 2025 the Company recorded no restructuring expense. During the three months ended March 31, 2024, the Company recorded $2 million of net restructuring expense. These expenses are primarily related to employee severance.
Current wording
During the six months ended June 30, 2025 and 2024 the Company recorded $1 million and $3 million of net restructuring expense, respectively. These expenses are primarily related to employee severance.
Previous wording
Equity in net income of non-consolidated affiliates was income of $2 million and a loss of $4 million for the three months ended March 31, 2025 and 2024, respectively. The increased income is due to increased net operating profits at affiliates.
Current wording
Equity in net income of non-consolidated affiliates was income of $4 million and a loss of $4 million for the six months ended June 30, 2025 and 2024, respectively. The increased income is due to increased net operating profits at affiliates.
Previous wording
The Company's provision for income taxes of $28 million for the three months ended March 31, 2025 represents an increase of $9 million compared with $19 million in the same period of 2024. The increase in tax expense is primarily attributable to the overall increase in net income, including changes in the mix of earnings and differing tax rates between jurisdictions.
Current wording
The Company's provision for income taxes of $56 million for the six months ended June 30, 2025 represents an increase of $12 million compared with $44 million in the same period of 2024. The increase in tax expense is primarily attributable to higher pretax income, as well as changes in the geographic mix of earnings and differing tax rates between jurisdictions. Additionally, the increase reflects higher withholding taxes, largely attributable to unfavorable foreign exchange movements.
Previous wording
Adjusted EBITDA was $129 million for the three months ended March 31, 2025, representing an increase of $27 million when compared to $102 million for the same period of 2024. Favorable volumes and mix, and the ongoing benefits of cost and commercial discipline increased Adjusted EBITDA by $28 million. Foreign currency decreased Adjusted EBITDA by $6 million, primarily attributable to the Brazilian real and the euro, partially offset by the Mexican peso. Net engineering costs, excluding currency, increased Adjusted EBITDA by $5 million primarily due to engineering efficiencies and the favorable timing of recoveries.
Current wording
Adjusted EBITDA was $263 million for the six months ended June 30, 2025, representing an increase of $25 million when compared to $238 million for the same period of 2024. Favorable impact of one-time items, cost performance and commercial discipline increased Adjusted EBITDA by $28 million. Foreign currency decreased Adjusted EBITDA by $5 million, primarily attributable to the Brazilian real and Indian rupee. Net engineering costs, excluding currency, increased Adjusted EBITDA by $2 million.
Previous wording
Access to additional capital through the debt or equity markets is influenced by the Company's credit ratings. As of March 31, 2025, the Company’s corporate credit rating is BB by Standard & Poor’s. See Note 9, "Debt" for a comprehensive discussion of the Company's debt facilities. Incremental funding requirements of the Company's consolidated foreign entities are primarily accommodated by intercompany cash pooling structures. Affiliate working capital lines, which may be utilized by the Company's local subsidiaries and consolidated joint ventures, had availability of $149 million and the Company had $400 million of available credit under the revolving credit facility, as of March 31, 2025.
Current wording
Access to additional capital through the debt or equity markets is influenced by the Company's credit ratings. As of June 30, 2025, the Company’s corporate credit rating is BB by Standard & Poor’s. See Note 9, "Debt" for a comprehensive discussion of the Company's debt facilities. Incremental funding requirements of the Company's consolidated foreign entities are primarily accommodated by intercompany cash pooling structures. Affiliate working capital lines, which may be utilized by the Company's local subsidiaries and consolidated joint ventures, had availability of $145 million and the Company had $400 million of available credit under the revolving credit facility, as of June 30, 2025.
Previous wording
As of March 31, 2025, the Company had total cash and cash equivalents of $658 million, including $3 million of restricted cash and $92 million of cash attributable to the Company's joint venture partners should the Company elect to issue cash dividends.
Current wording
As of June 30, 2025, the Company had total cash and cash equivalents of $671 million, including $3 million of restricted cash and $82 million of cash attributable to the Company's joint venture partners should the Company elect to issue cash dividends.
Previous wording
Cash balances totaling $569 million were located in jurisdictions outside of the United States, of which approximately $215 million is considered permanently reinvested for funding ongoing operations outside of the U.S. If such permanently reinvested funds were repatriated to the U.S., no U.S. federal taxes would be imposed on the distribution of such foreign earnings due to U.S. tax reform enacted in December 2017. However, the Company would be required to accrue additional tax expense primarily related to foreign withholding taxes.
Current wording
Cash balances totaling $518 million were located in jurisdictions outside of the United States, of which approximately $115 million is considered permanently reinvested for funding ongoing operations outside of the U.S. If such permanently reinvested funds were repatriated to the U.S., no U.S. federal taxes would be imposed on the distribution of such foreign earnings due to U.S. tax reform enacted in December 2017. However, the Company would be required to accrue additional tax expense primarily related to foreign withholding taxes.
Previous wording
During the three months ended March 31, 2025, cash contributions to the Company's defined benefit plans were $1 million related to its non-U.S. plans. The Company estimates that total cash contributions related to its U.S. and non-U.S. defined benefit pension plans during 2025 will be $4 million and $5 million, respectively.
Current wording
During the six months ended June 30, 2025, cash contributions to the Company's defined benefit plans were $13 million related to its plans. The Company estimates that total cash contributions related to its defined benefit pension plans to be paid during the remainder of 2025 will be $7 million.
Previous wording
During the three months ended March 31, 2025, the Company paid $3 million related to restructuring activities. Additional discussion regarding the Company's restructuring activities is included in Note 4, "Restructuring." The Company estimates that total cash restructuring payments through 2025 will approximate $19 million.
Current wording
During the six months ended June 30, 2025, the Company paid $6 million related to restructuring activities. Additional discussion regarding the Company's restructuring activities is included in Note 4, "Restructuring." The Company estimates that total cash restructuring payments through 2025 will approximate $20 million.
Previous wording
The Company has committed to make a $20 million investment in multiple entities principally focused on the automotive sector pursuant to limited partnership agreements. As a limited partner in each entity, the Company will periodically make capital contributions toward this total commitment amount. As of March 31, 2025, the Company has contributed a total of approximately $13 million toward the aggregate investment commitments. These limited partnerships are classified as equity method investments.
Current wording
The Company has committed to make a $20 million investment in multiple entities principally focused on the automotive sector pursuant to limited partnership agreements. As a limited partner in each entity, the Company will periodically make capital contributions toward this total commitment amount. As of June 30, 2025, the Company has contributed a total of approximately $14 million toward the aggregate investment commitments. These limited partnerships are classified as equity method investments.
Previous wording
The Company may be required to make significant cash outlays related to its unrecognized tax benefits, including interest and penalties. As of March 31, 2025, the Company had unrecognized tax benefits, including interest and penalties, that would be expected to result in a cash outlay of $16 million. Given the number of years, jurisdictions and positions subject to examination, the Company is unable to estimate the period of cash settlement, if any, with the respective taxing authorities.
Current wording
The Company may be required to make significant cash outlays related to its unrecognized tax benefits, including interest and penalties. As of June 30, 2025, the Company had unrecognized tax benefits, including interest and penalties, that would be expected to result in a cash outlay of $18 million. Given the number of years, jurisdictions and positions subject to examination, the Company is unable to estimate the period of cash settlement, if any, with the respective taxing authorities.
Previous wording
The Company generated $70 million and $69 million of cash inflows from operating activities during each of the three months ended March 31, 2025 and 2024, respectively. The increase is primarily attributable to higher Adjusted EBITDA offset by the timing of certain non-income based tax payments and higher employee related payments.
Current wording
The Company generated $165 million and $126 million of cash inflows from operating activities during each of the six months ended June 30, 2025 and 2024, respectively. The increase is primarily attributable to higher Adjusted EBITDA and higher cash generated from working capital, partially offset by increased annual employee incentive payments and cash taxes.
Previous wording
Net cash used by investing activities during the three months ended March 31, 2025 totaled $33 million, representing $4 million of decreased usage as compared to the same period in 2024. This decrease in cash used by investing activities is primarily due to decreased capital expenditures of $2 million.
Current wording
Net cash used by investing activities during the six months ended June 30, 2025 totaled $115 million, representing $43 million of increased usage as compared to the same period in 2024. This increase in cash used by investing activities is primarily due to the acquisition, net of cash acquired, of a user experience electronics engineering consulting and consumer research company of $50 million.
Previous wording
Cash used by financing activities during the three months ended March 31, 2025 was $18 million, representing a $13 million decrease as compared to the same period in 2024. This decrease is primarily attributable to lower share repurchases as compared to 2024 of $13 million.
Current wording
Cash used by financing activities during the six months ended June 30, 2025 was $38 million, representing a $2 million increase as compared to the same period in 2024. This increase is primarily attributable to increased dividends to non-controlling interests of $18 million offset by lower share repurchases as compared to 2024 of $13 million.
Rearranged current paragraphs (11)
Current report — wording carried from elsewhere
Equity in net income of non-consolidated affiliates was income of $2 million and zero for the three months ended June 30, 2025 and 2024, respectively. The increased income is due to increased net operating profits at affiliates.
Current report — wording carried from elsewhere
Adjusted EBITDA is presented as a supplemental measure of the Company's financial performance that management believes is useful to investors because the excluded items may vary significantly in timing or amounts and/or may obscure trends useful in evaluating and comparing the Company's operating activities across reporting periods. Not all companies use identical calculations and, accordingly, the Company's presentation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Adjusted EBITDA is not a recognized term under U.S. generally accepted accounting principles ("GAAP") and does not purport to be a substitute for net income as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. Adjusted EBITDA has limitations as an analytical tool and is not intended to be a measure of cash flow available for management's discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments, and debt service requirements. The Company uses Adjusted EBITDA as a factor in incentive compensation decisions and to evaluate the effectiveness of the Company's business strategies. In addition, the Company's credit agreements use measures similar to Adjusted EBITDA to measure compliance with certain covenants.
Current report — wording carried from elsewhere
The Company's consolidated results of operations for the six months ended June 30, 2025 and 2024 were as follows:
Current report — wording carried from elsewhere
Net Sales, Cost of Sales and Gross Margin
Current report — wording carried from elsewhere
Net sales for the six months ended June 30, 2025 totaled $1,903 million, representing a decrease of $44 million compared with the same period of 2024. Customer pricing decreased net sales by $70 million as a result of annual price reductions and lower customer recoveries due to improving supply chain dynamics. Unfavorable currency decreased net sales by $16 million, primarily attributable to the Brazilian real and Indian rupee, offset by the Thai baht. Other cost performance, design changes and other increased net sales by $40 million primarily due to design changes, one-time commercial items, and sales from the recently acquired engineering services companies.
Current report — wording carried from elsewhere
Cost of sales decreased by $57 million for the six months ended June 30, 2025 compared with the same period in 2024. Net engineering costs, excluding currency, increased cost of sales by $2 million. Foreign currency decreased cost of sales by $10 million, primarily attributable to the Brazilian real and the euro. Cost performance, design changes and other decreased cost of sales by $46 million primarily due to manufacturing and operational efficiencies.
Current report — wording carried from elsewhere
A summary of net engineering costs is shown below:
Current report — wording carried from elsewhere
Selling, general, and administrative expenses were $95 million and $101 million, during the six months ended June 30, 2025 and 2024, respectively. Expenses decreased during the six months ended June 30, 2025 as compared to same period prior year due to lower bad debt expense and employee expenses.
Current report — wording carried from elsewhere
Equity in Net Income of Non-Consolidated Affiliates
Current report — wording carried from elsewhere
The Company defines Adjusted EBITDA as net income attributable to the Company adjusted to eliminate the impact of depreciation and amortization, non-cash stock-based compensation expense, provision for income taxes, net interest expense, net income attributable to non-controlling interests, restructuring and impairment expense, equity in net income of non-consolidated affiliates, and other gains and losses not reflective of the Company's ongoing operations.
Current report — wording carried from elsewhere
The reconciliation of net income (loss) attributable to Visteon to Adjusted EBITDA for the six months ended June 30, 2025 and 2024, is as follows: