VISTEON CORP

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, attractive inorganic growth opportunities, and returning capital to shareholders. Since 2023, the Company has returned nearly $300 million to shareholders through a combination of share repurchases and cash dividends. In June 2026, the Company reinforced its commitment to shareholder returns by authorizing a new $800 million share repurchase program extending through 2029.

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, attractive inorganic growth opportunities, and returning capital to shareholders. In June 2026, the Company reinforced its commitment to shareholder returns by authorizing a new $800 million share repurchase program extending through 2029. Since 2023, the Company has returned approximately $500 million to shareholders through a combination of share repurchases and cash dividends through the third quarter of 2026.

Previous wording

The pie charts below highlight the net sales breakdown for Visteon for the three and six months ended June 30, 2026.

Current wording

The pie charts below highlight the net sales breakdown for Visteon for the three and nine months ended September 30, 2026.

Previous wording

Global light‑vehicle production was flat in the second quarter of 2026 compared to 2025, based on July 2026 Mobility Global, Inc. data, with production volumes for the Company’s key customers declining by approximately 5%. In the Americas, industry production increased by approximately 1%, while production volumes at the Company’s major customers declined by an estimated 4%. Retail demand remained relatively resilient, with U.S. seasonally adjusted retail sales remaining above 16 million units. This reflected continued consumer demand for internal‑combustion and hybrid vehicles, partially offset by a decline in electric‑vehicle (“EV”) purchases following the expiration of federal EV tax credits. In Europe, industry production decreased approximately 1% compared to the prior year, while production volumes at the Company’s largest European customers declined by approximately 3%. In China, production volumes declined by approximately 3%, with production at the Company’s key customers declining by approximately 13%.

Current wording

Global light‑vehicle production decreased by approximately 2% in the third quarter of 2026 compared to 2025, based on October 2026 Mobility Global, Inc. data, with production volumes for the Company’s key customers declining by approximately 5%. In the Americas, industry production decreased by approximately 3%, with production volumes at the Company’s major customers declining by approximately 4%. Retail demand remained relatively resilient, with U.S. seasonally adjusted retail sales averaging above 16 million units. This reflected continued consumer demand for internal‑combustion and hybrid vehicles, partially offset by a decline in electric‑vehicle (“EV”) purchases following the expiration of federal EV tax credits. In Europe, industry production increased approximately 1% compared to the prior year, while production volumes at the Company’s largest European customers increased by approximately 3%. In China, production volumes declined by approximately 6%, with production at the Company’s key customers declining by approximately 17%.

Previous wording

Looking ahead, Mobility Global, Inc. expects global light-vehicle production to decrease by 2% compared to 2025, with production volumes for the Company’s key customers anticipated to decline by approximately 4%. The ongoing conflict in the Middle East may further decrease production, though the magnitude of the decrease is uncertain. Memory chip market conditions are creating cost pressures and have the potential to affect industry production volumes, as memory supplier capacity is increasingly allocated to support growth in data center infrastructure. The impact of tariffs on the automotive industry remains uncertain, with the potential to increase production costs and weigh on future vehicle volumes; however, the effects have been minimal to date.

Current wording

Looking ahead, Mobility Global, Inc. expects global light-vehicle production to decrease by approximately 2% in 2026 compared to 2025, with production volumes for the Company’s key customers anticipated to decline by approximately 4%. The ongoing conflict in the Middle East may further decrease production, though the magnitude of the decrease is uncertain. Memory chip market conditions are creating cost pressures and have the potential to affect industry production volumes, as memory supplier capacity is increasingly allocated to support growth in data center infrastructure. The impact of tariffs on the automotive industry remains uncertain, with the potential to increase production costs and weigh on future vehicle volumes; however, the effects have been minimal to date.

Previous wording

Net sales for the six months ended June 30, 2026 totaled $1,914, representing an increase of $11 million compared with the same period of 2025. Volumes and net new business decreased net sales by $40 million. Customer pricing decreased net sales by $6 million as a result of annual price reductions, partially offset by higher customer recoveries. Favorable currency increased net sales by $28 million, primarily attributable to the euro and Brazilian real, partially offset by the Indian rupee. Other cost performance, design changes and other increased net sales by $29 million primarily due to one-time items and sales from the recently acquired engineering services companies and other commercial items.

Current wording

Net sales for the three months ended September 30, 2026 totaled $970 million, representing an increase of $53 million compared with the same period of 2025. Volumes and net new business increased net sales by $57 million. Customer pricing increased net sales by $5 million as a result of higher customer recoveries due to elevated semiconductor cost and partially offset by annual price reductions. Unfavorable currency decreased net sales by $3 million, primarily attributable to the Indian rupee, Japanese yen, and euro, partially offset by the Chinese renminbi and Brazilian real. Other cost performance, design changes and other net sales decreased by $6 million, primarily due to the non-recurrence of one-time items, partially offset by sales from the recently acquired engineering services companies.

Previous wording

Cost of sales increased by $59 million for the six months ended June 30, 2026 compared with the same period in 2025. Volume, mix and net new business decreased cost of sales by $29 million. Net engineering costs, excluding currency, increased cost of sales by $14 million. Foreign currency increased cost of sales by $39 million, primarily attributable to the euro, Chinese renminbi, and Brazilian real. Cost performance, design changes and other increased cost of sales by $35 million primarily due to higher semiconductor and warranty costs, partially offset by ongoing cost discipline.

Current wording

Cost of sales increased by $137 million for the three months ended September 30, 2026 compared with the same period in 2025. Volume, mix and net new business increased cost of sales by $48 million. Net engineering costs, excluding currency, decreased cost of sales by $2 million due to the timing of project costs. Foreign currency increased cost of sales by $2 million, primarily attributable to the Chinese renminbi, Mexican peso, and Brazilian real partially offset by the Indian rupee and Japanese yen. Cost performance, design changes and other increased cost of sales by $89 million, primarily reflecting $77 million associated with two distinct warranty charges as well as material cost inflation, partially offset by operational efficiencies.

Previous wording

Gross engineering costs relate to forward model program development, advanced engineering activities and services. Net engineering costs were $62 million and $52 million for the three months ended June 30, 2026 and 2025, respectively. The increase is primarily due to recent engineering services acquisitions and timing of project spend, partially offset by lower personnel costs.

Current wording

Gross engineering costs relate to forward model program development, advanced engineering activities and services. Net engineering costs were $55 million and $58 million for the three months ended September 30, 2026 and 2025, respectively. The decrease is primarily due to timing of project spend and favorable foreign currency, primarily the Indian rupee, partially offset by lower recoveries.

Previous wording

Selling, general, and administrative expenses were $46 million and $48 million, during the three months ended June 30, 2026 and 2025, respectively. The decrease in expenses during the second quarter is primarily related to lower bad debt expense.

Current wording

Selling, general, and administrative expenses were $46 million and $53 million, during the three months ended September 30, 2026 and 2025, respectively. The decrease in expenses during the third quarter is primarily related to lower incentive compensation expense.

Previous wording

Equity in net income of non-consolidated affiliates was income of $2 million during the three months ended June 30, 2026 and 2025.

Current wording

Equity in net income of non-consolidated affiliates was income of $4 million and $1 million during the three months ended September 30, 2026 and 2025, respectively.

Previous wording

Other income, net was a loss of $2 million and a gain of $1 million for the three months ended June 30, 2026 and 2025, respectively. During the three months ended June 30, 2026, the loss was primarily due to acquisition and debt amendment costs, partially offset by pension financing benefits.

Current wording

Other income, net was $3 million and $2 million for the three months ended September 30, 2026 and 2025, respectively, and consisted primarily of net pension financing benefits.

Previous wording

Adjusted EBITDA 1 was $116 million for the three months ended June 30, 2026 representing a decrease of $18 million compared with the same period of 2025. Lower volumes decreased Adjusted EBITDA 1 by $4 million. Foreign currency decreased Adjusted EBITDA 1 by $8 million, primarily attributable to the Mexican peso, Japanese yen, and Indian rupee, partially offset by the Brazilian real. Net engineering costs, excluding currency, decreased Adjusted EBITDA 1 by $12 million. Customer pricing decreased Adjusted EBITDA by $1 million as a result of annual price reductions and customer recoveries. Cost performance and commercial discipline increased Adjusted EBITDA 1 by $7 million.

Current wording

Adjusted EBITDA 1 was $46 million for the three months ended September 30, 2026 representing a decrease of $73 million compared with the same period of 2025. Higher volumes increased Adjusted EBITDA 1 by $9 million. Foreign currency decreased Adjusted EBITDA 1 by $5 million, primarily attributable to the Indian rupee, Mexican peso, and Japanese yen, partially offset by the Brazilian real. Net engineering costs, excluding currency, increased Adjusted EBITDA 1 by $3 million. Customer pricing increased Adjusted EBITDA by $5 million as a result of customer recoveries partially offset by annual price reductions. Two distinct warranty related charges of approximately $77 million, material cost inflation, and the non-recurrence of one-time items, partially offset by operational efficiencies, decreased Adjusted EBITDA 1 by $85 million.

Previous wording

The Company's provision for income taxes of $22 million for the three months ended June 30, 2025 represents an increase of $9 million compared with $13 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 withholdings taxes due primarily to unfavorable exchange movements.

Current wording

The Company's provision for income taxes of $90 million for the three months ended September 30, 2025 represents an increase of $80 million compared with $10 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.

Previous wording

Net sales for the three months ended June 30, 2026 totaled $960 million, representing a decrease of $9 million compared with the same period of 2025. Volumes and net new business decreased net sales by $17 million. Customer pricing decreased net sales by $1 million as a result of annual price reductions and partially offset by higher customer recoveries due to elevated semiconductor cost. Favorable currency increased net sales by $4 million, primarily attributable to the euro, Brazilian real, and Chinese renminbi, partially offset by the Indian rupee and the Japanese yen. Other cost performance, design changes and other net sales increased by $5 million, primarily due to sales from the recently acquired engineering services companies and other commercial items.

Current wording

Net sales for the nine months ended September 30, 2026 totaled $2,884 million, representing an increase of $64 million compared with the same period of 2025. Volumes and net new business increased net sales by $17 million. Customer pricing decreased net sales by $1 million as a result of annual price reductions, partially offset by higher customer recoveries. Favorable currency increased net sales by $25 million, primarily attributable to the euro, Brazilian real, and Chinese renminbi, partially offset by the Indian rupee and Japanese yen. Other cost performance, design changes and other increased net sales by $23 million primarily due to sales from the recently acquired engineering services companies and other commercial items.

Previous wording

Cost of sales increased by $14 million for the three months ended June 30, 2026 compared with the same period in 2025. Volume, mix and net new business decreased cost of sales by $13 million. Net engineering costs, excluding currency, increased cost of sales by $12 million. Foreign currency increased cost of sales by $11 million, primarily attributable to the euro, Chinese renminbi, and Brazilian real, partially offset by the Indian rupee. Cost performance, design changes and other increased cost of sales by $4 million primarily due to higher semiconductor and manufacturing costs, partially offset by ongoing cost discipline.

Current wording

Cost of sales increased by $196 million for the nine months ended September 30, 2026 compared with the same period in 2025. Volume, mix and net new business increased cost of sales by $19 million. Net engineering costs, excluding currency, increased cost of sales by $12 million. Foreign currency increased cost of sales by $41 million, primarily attributable to the euro, Chinese renminbi, and Brazilian real, partially offset by the Indian rupee. Cost performance, design changes and other increased cost of sales by $124 million, primarily reflecting $77 million associated with two distinct warranty charges as well as material cost inflation, partially offset by operational efficiencies.

Previous wording

Gross engineering costs relate to forward model program development, advanced engineering activities and services. Net engineering costs were $119 million and $104 million for the six months ended June 30, 2026 and 2025, respectively. The increase is primarily due to recent engineering services acquisitions and timing of project spend, partially offset by higher recoveries.

Current wording

Gross engineering costs relate to forward model program development, advanced engineering activities and services. Net engineering costs were $174 million and $162 million for the nine months ended September 30, 2026 and 2025, respectively. The increase is primarily due to recent engineering services acquisitions and timing of project spend, partially offset by higher recoveries.

Previous wording

Selling, general, and administrative expenses were $100 million and $95 million, during the six months ended June 30, 2026 and 2025, respectively. The year-over-year increase was primarily driven by unfavorable foreign currency impacts.

Current wording

Selling, general, and administrative expenses were $146 million and $148 million, during the nine months ended September 30, 2026 and 2025, respectively. The year-over-year decrease was primarily driven by unfavorable foreign currency impacts and decreased incentive compensation expense.

Previous wording

During the six months ended June 30, 2026 and 2025, the Company recorded $17 million and $1 million of net restructuring expense, respectively, primarily related to employee severance. The increase is primarily related to a restructuring program approved during the first quarter of 2026.

Current wording

During the nine months ended September 30, 2026 and 2025, the Company recorded $17 million and $4 million of net restructuring expense, respectively, primarily related to employee severance. The increase is primarily related to a restructuring program approved during the first quarter of 2026.

Previous wording

Equity in net income of non-consolidated affiliates was income of $4 million during the six months ended June 30, 2026 and 2025.

Current wording

Equity in net income of non-consolidated affiliates was income of $8 million and $5 million during the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

Other income, net was $2 million for the six months ended June 30, 2026 and 2025. Other income, net for the six months ended June 30, 2026 consisted primarily of net pension financing benefits, partially offset by acquisition costs and debt amendment fees. Other income, net for the six months ended June 30, 2025 consisted primarily of net pension financing benefits, partially offset by acquisition costs.

Current wording

Other income, net was $5 million and $4 million for the nine months ended September 30, 2026 and 2025, respectively. Other income, net for the nine months ended September 30, 2026 consisted primarily of net pension financing benefits, partially offset by acquisition costs and debt amendment fees. Other income, net for the nine months ended September 30, 2025 consisted primarily of net pension financing benefits, partially offset by acquisition costs.

Previous wording

The Company's provision for income taxes was $42 million for the six months ended June 30, 2026, compared with $48 million for the same period in 2025. The decrease was primarily driven by lower pretax income and a favorable discrete tax benefit of $2 million related to additional research and development credits recognized in Portugal. These favorable items were partially offset by discrete tax expense of $7 million, consisting primarily of a $4 million expense related to the resolution of a tax audit in Tunisia and a $3 million expense associated with the settlement of a bilateral advance pricing arrangement between the United States and India.

Current wording

The Company's provision for income taxes was $43 million for the nine months ended September 30, 2026, compared with $138 million for the same period in 2025. The decrease in income tax expense was primarily attributable to the non-recurrence of a $60 million U.S. valuation allowance expense recorded in the third quarter of 2025 following an update to the Company’s tax attribute utilization model to reflect newly enacted U.S. tax legislation, lower pretax income, and $2 million of favorable discrete tax benefits, primarily related to adjustments associated with tax return filings. These favorable impacts were partially offset by $7 million of discrete tax expense, consisting primarily of $4 million related to the resolution of a tax audit in Tunisia and $3 million associated with the settlement of a bilateral advance pricing arrangement between the United States and India.

Previous wording

Adjusted EBITDA 1 was $220 million for the six months ended June 30, 2026 representing a decrease of $43 million compared with the same period of 2025. Lower volumes decreased Adjusted EBITDA 1 by $11 million. Customer pricing decreased Adjusted EBITDA 1 by $6 million as a result of annual price reductions, partially offset by customer recoveries. Foreign currency decreased Adjusted EBITDA 1 by $14 million, primarily attributable to the Indian rupee, Japanese yen, and Mexican peso, partially offset by the Brazilian real. Net engineering costs, excluding currency, decreased Adjusted EBITDA 1 by $14 million. Cost performance, commercial discipline as well as the impact of one-time items, partially offset by higher semiconductor cost, increased Adjusted EBITDA 1 by $2 million.

Current wording

Adjusted EBITDA 1 was $266 million for the nine months ended September 30, 2026 representing a decrease of $116 million compared with the same period of 2025. Lower volumes decreased Adjusted EBITDA 1 by $2 million. Customer pricing decreased Adjusted EBITDA 1 by $1 million as a result of annual price reductions, partially offset by customer recoveries. Foreign currency decreased Adjusted EBITDA 1 by $19 million, primarily attributable to the Indian rupee, Japanese yen, and Mexican peso, partially offset by the Brazilian real. Net engineering costs, excluding currency, decreased Adjusted EBITDA 1 by $11 million. Two distinct warranty related charges of approximately $77 million, material cost inflation, partially offset by operational efficiencies, decreased Adjusted EBITDA 1 by $83 million.

Previous wording

The Company's provision for income taxes of $48 million for the six months ended June 30, 2025 represents an increase of $22 million compared with $26 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.

Current wording

The Company's provision for income taxes of $138 million for the nine months ended September 30, 2025 represents an increase of $102 million compared with $36 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

Access to additional capital through the debt or equity markets is influenced by the Company's credit ratings. As of June 30, 2026, the Company’s corporate credit ratings were BB+ by Standard & Poor’s and Ba1 by Moody'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 $189 million and the Company had $400 million of available credit under the revolving credit facility, as of June 30, 2026.

Current wording

Access to additional capital through the debt or equity markets is influenced by the Company's credit ratings. As of September 30, 2026, the Company’s corporate credit ratings were BB+ by Standard & Poor’s and Ba1 by Moody'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 $182 million.

Previous wording

As of June 30, 2026, the Company had total cash and cash equivalents of $650 million, including $2 million of restricted cash and $94 million of cash attributable to the Company's joint venture partners should the Company elect to issue cash dividends.

Current wording

As of September 30, 2026, the Company had total cash and cash equivalents of $466 million, including $2 million of restricted cash and $90 million of cash attributable to the Company's joint venture partners should the Company elect to issue cash dividends.

Previous wording

Cash balances totaling $532 million were located in jurisdictions outside of the United States, of which approximately $210 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 $437 million were located in jurisdictions outside of the United States, of which approximately $120 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 and six months ended June 30, 2026, the Company paid $10 million and $20 million, respectively, in quarterly cash dividends.

Current wording

During the three and nine months ended September 30, 2026, the Company paid $9 million and $29 million, respectively, in quarterly cash dividends.

Previous wording

On March 2, 2023 the Company's board of directors authorized a share repurchase program of $300 million of common stock through December 31, 2026. During the three and six months ended June 30, 2026, the Company purchased a total of $6 million and $36 million, respectively, under this program.

Current wording

On March 2, 2023, the Company's board of directors authorized a share repurchase program of $300 million of common stock through December 31, 2026.

Previous wording

On June 25, 2026, the Company's board of directors authorized an additional share repurchase program of $800 million of common stock through December 31, 2029. No shares were repurchased under this program during the quarter ended June 30, 2026.

Current wording

On June 25, 2026, the Company's board of directors authorized an additional share repurchase program of $800 million of common stock through December 31, 2029.

Previous wording

During the six months ended June 30, 2026, cash contributions to the Company's defined benefit plans were less than $1 million related to its US plan and $3 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 the remainder of 2026 will be less than $1 million and $3 million, respectively.

Current wording

During the nine months ended September 30, 2026, cash contributions to the Company's defined benefit plans were less than $1 million related to its U.S. plan and $4 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 the remainder of 2026 will be less than $1 million and $2 million, respectively.

Previous wording

During the six months ended June 30, 2026, the Company paid $15 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 2026 will approximate $20 million.

Current wording

During the nine months ended September 30, 2026, the Company paid $18 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 2026 will approximate $20 million.

Previous wording

Cash provided by operating activities decreased to $43 million for the six months ended June 30, 2026, from $165 million in the prior‑year period. The decrease was primarily attributable to lower net income and higher net working capital outflows of $76 million driven by higher accounts receivable and inventory, partially offset by increased accounts payable.

Current wording

Cash provided by operating activities decreased to $81 million for the nine months ended September 30, 2026, from $292 million in the prior‑year period. The decrease was primarily attributable to higher net working capital outflows of $135 million driven by higher accounts receivable and inventory, partially offset by increased accounts payable.

Previous wording

Net cash used by investing activities during the six months ended June 30, 2026 totaled $93 million, representing $22 million of decreased usage as compared to the same period in 2025. The decrease primarily reflects the smaller size of the acquisition completed in 2026 relative to the prior-year acquisition.

Current wording

Net cash used by investing activities during the nine months ended September 30, 2026 totaled $134 million, representing $2 million of decreased usage as compared to the same period in 2025. The decrease primarily reflects the smaller size of the acquisition completed in 2026 relative to the prior-year acquisition, offset by higher capital expenditure outlays.

Previous wording

Cash used by financing activities during the six months ended June 30, 2026 was $77 million, representing a $39 million increase as compared to the same period in 2025. This increase is primarily attributable to a cash dividend paid to shareholders of $20 million and higher share repurchases as compared to 2025 of $29 million.

Current wording

Cash used by financing activities during the nine months ended September 30, 2026 was $261 million, representing a $209 million increase as compared to the same period in 2025. This increase is primarily attributable to higher share repurchases as compared to 2025 of $229 million and higher cash dividends paid to shareholders of $21 million, partially offset by borrowings on the revolving credit facility.