Strong Operating and Financial Performance
Visteon reported net sales of $969 million, exceeding initial expectations, driven by strong demand for digital cockpit products in North America and Europe. Adjusted EBITDA was $134 million, with a margin of 13.8%. Adjusted free cash flow was $67 million. The company also won $2 billion in new business this quarter.
Successful Product Launches
Visteon launched 21 new products in the quarter, including a 25-inch panoramic display with Audi, and digital clusters with Royal Enfield and Volvo. The company also secured a $400 million program with Honda for the 2-wheeler market.
New Business Wins and Strategic Initiatives
The company won $2 billion in new business in Q2, bringing the year-to-date total to just under $4 billion. Key wins include a 48-inch pillar-to-pillar OLED display with a leading German luxury automaker and a 5-inch digital cluster with Honda.
Initiation of Quarterly Dividend
Visteon announced the initiation of a quarterly dividend starting in Q3, reflecting confidence in generating free cash flow and commitment to returning capital to shareholders.
Positive Outlook and Guidance Reinstatement
Due to strong first-half performance, Visteon reinstated and increased guidance for the full year, with expectations of outperforming the market in the second half.