Companies

Visteon Raises 2026 Sales Outlook After Warranty Hit

The Tip Desk · October 24, 2026 · 3 min read

The company lifted full-year sales guidance to $3.80–$3.85 billion after $77 million of exceptional warranty charges cut third-quarter adjusted EBITDA to $46 million.

Visteon Corporation (VC) raised its full-year 2026 sales guidance to $3.80 billion to $3.85 billion after third-quarter growth-over-market accelerated to 10%, even as $77 million of exceptional warranty charges compressed profitability and the company cut its adjusted EBITDA and free-cash-flow outlooks.

Net sales were $970 million, up 6% from $917 million a year earlier. Customer vehicle production declined 5%, the company said, and it attributed the 10% growth-over-market to strong launch execution and robust customer demand. That outperformance widened from 4% in the second quarter and 3% in the first quarter.

Gross margin fell to $47 million from $118 million in the second quarter and $113 million in the first quarter after the warranty charges. Adjusted EBITDA was $46 million, down from $116 million, or a 12.1% margin, in the second quarter and $104 million in the first quarter. Net income attributable to Visteon was $5 million, or $0.19 a share, compared with $49 million, or $1.80 a share, in the second quarter. The company said adjusted EBITDA reflected continued operational execution in a challenging supply chain environment.

For the nine months ended September 30, 2026, cash from operations was $81 million, capital expenditures were $103 million, and adjusted free cash flow was an outflow of $4 million. Cash was $466 million and debt was $330 million, leaving net cash of $136 million at quarter end.

New business wins were $0.9 billion, down from $2.0 billion in the second quarter and $1.0 billion in the first quarter. The company said the awards reflected momentum in displays and in India, including two driver-display awards with a luxury Japanese OEM for vehicles in Japan and China, a center display for a high-volume Indian OEM, a display and infotainment system for another Indian OEM, and a center display for the European commercial-vehicle market with a North American OEM.

Visteon launched 21 new products across 14 customers. The company highlighted the industry-first SmartCore High Performance Compute system with integrated AI capabilities for the Chery Freelander 8 in China, a follow-on Audi Panorama launch on the Audi A2 and A3, a cockpit domain controller for the BMW i3 in Europe, a two-wheeler digital cluster for the Royal Enfield Interceptor in India, and a driver display for the all-new Lexus TZ. President and CEO Sachin Lawande said the Chery HPC launch was a significant milestone and that the quarter showed progress toward sustainable sales growth.

In the third quarter the company announced and completed a $200 million accelerated share repurchase it had entered in the second quarter, and it paid a $9 million quarterly dividend. Net cash of $136 million at quarter end compared with $351 million at the end of the second quarter.

Based on year-to-date performance and its outlook for the fourth quarter, Visteon is raising full-year 2026 sales guidance to $3.80 billion to $3.85 billion, lowering adjusted EBITDA guidance to $370 million to $410 million, and lowering adjusted free cash flow guidance to $90 million to $130 million. The company said the EBITDA range reflects the $77 million of exceptional warranty charges and cost pressures, and that the free-cash-flow range takes into account year-to-date inventory build.

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