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Visteon (VC)
NASDAQ:VC
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Visteon
(NASDAQ:VC)
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Rating:72Outperform
Price Target:
$104.00
▲(11.94% Upside)
VC scores well on fundamentals (strong deleveraging, solid profitability and cash generation) and looks attractively valued (low P/E). The score is held back by weak technical positioning (price below key moving averages and sub-neutral RSI) and near-term guidance headwinds (notably Americas BMS volume declines and higher memory costs), despite constructive longer-term wins and liquidity.
Positive Factors
Balance Sheet Strength
Visteon's materially lower debt and conservative debt-to-equity (~0.30) give durable financial flexibility. A strengthened balance sheet supports continued capital returns, opportunistic M&A, and resilience through auto-cycle volatility while reducing interest burden and refinancing risk.
Large New Business Wins / Backlog
A $7.4B win pipeline concentrated in displays and SmartCore provides multi-year revenue visibility and embeds Visteon in software-defined cockpit transitions. Large OEM wins diversify programs and geographies, underpinning durable growth as vehicle electronics content increases.
Improved Profitability
Record adjusted EBITDA and mid-teens normalized margins show structural margin improvement from product mix and execution. Higher profitability enhances free cash flow generation capacity, funds reinvestment and shareholder returns, and supports credit metrics sustainably.
Negative Factors
China Market Weakness
Sustained China underperformance risks long-term growth given the market's size for automotive electronics. Persistent share loss or OEM shifts in China can depress revenue and leverage intensity of fixed-cost programs, lengthening recovery timelines versus other regions.
BMS/EV Demand Exposure
A near-50% drop in Americas BMS volumes highlights concentration and sensitivity to EV demand and policy shifts. Significant program volume swings create durable revenue volatility and can leave excess capacity and margin pressure until new programs or markets absorb the shortfall.
Memory Cost and Pricing Pressure
Industry-wide memory cost rises and pricing/recovery headwinds compress margins if cost pass-through is delayed. Timing mismatches between input cost cycles and customer recoveries can erode free cash flow conversion and margin sustainability across several quarters.
Visteon (VC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.90B
Dividend Yield0.57%
Average Volume (3M)587.52K
Price to Earnings (P/E)9.5
Beta (1Y)0.61
Revenue Growth-4.03%
EPS Growth-39.51%
CountryUS
Employees10,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)2.96
Shares Outstanding27,285,921
10 Day Avg. Volume750,781
30 Day Avg. Volume587,520
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)1.65
Price to Sales (P/S)0.69
P/FCF Ratio9.34
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit4.33
Enterprise Value/Ebitda5.43
Forecast
1Y Price Target
$121.89Price Target Upside31.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)9.59
Revenue Forecast (FY)$3.87B
Visteon Business Overview & Revenue Model
Company DescriptionVisteon Corporation, an automotive technology company, engineers, designs, and manufactures automotive electronics and connected car solutions for vehicle manufacturers worldwide. The company provides instrument clusters, including analog gauge clusters to 2-D and 3-D display-based devices; information displays that integrate a range of user interface technologies and graphics management capabilities, such as 3-D, active privacy, TrueColor enhancement, cameras, optics, haptic feedback, and light effects; and Phoenix, a display audio and embedded infotainment platform, as well as onboard artificial intelligence-based voice assistant with natural language understanding. It also offers wired and wireless battery management systems; telematics control unit to enable secure connected car services, software updates, and data; and head-up displays. In addition, the company provides SmartCore, an automotive-grade, integrated domain controller; DriveCore, a platform for addressing multiple levels of vehicle automation; and body domain modules, which integrate various functions, such as central gateway, body controls, comfort, and vehicle access solutions into one device. Visteon Corporation was incorporated in 2000 and is headquartered in Van Buren, Michigan.
How the Company Makes MoneyVisteon generates revenue primarily through the sale of its automotive electronics products to original equipment manufacturers (OEMs) and tier one suppliers. Key revenue streams include the design, manufacturing, and supply of cockpit electronics and related software solutions. The company benefits from long-term contracts with major automakers, ensuring a steady flow of income. Additionally, Visteon's partnerships with technology firms and collaborations on electric and autonomous vehicle projects contribute to its earnings by expanding its product offerings and market reach. The increasing demand for connected vehicle technologies and smart cockpit systems further enhances Visteon's revenue potential.
Visteon Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presents a constructive long-term position driven by record profitability, strong free cash flow, and a record $7.4B of new business wins that position Visteon for future growth (notably in displays, SmartCore and high-performance compute). Near-term headwinds are evident — including a 3% decline in 2025 revenue, China market share pressures, significant BMS volume declines in the U.S., pricing and recovery pressures, and a ~2% of sales memory cost increase in 2026. Management expects these are largely transient (H2-weighted 2026 and recovery in 2027) and continues to invest in vertical integration, AI and strategic M&A. Given the strong cash generation, margin expansion and sizable backlog/new wins that offset the temporary top-line pressures, the overall tone is positive with cautious near-term conservatism.Q4-2025 Updates
Positive Updates
Record Profitability
Adjusted EBITDA reached $492,000,000 (13.1% of sales) in 2025 — the highest level in company history, with normalized margins in the mid-12% range excluding one-time items.
Record New Business Wins
Secured $7,400,000,000 of new business wins in 2025, a 20% increase versus 2024, with displays and SmartCore accounting for ~75% of wins and displays representing nearly 50% of wins.
Strong Cash Generation and Balance Sheet
Generated $292,000,000 of adjusted free cash flow in 2025 with EBITDA-to-adjusted FCF conversion near 60%; ended the quarter with net cash of $472,000,000 and expect >$1,000,000,000 of deployable cash in 2026.
Top-line Product Growth in Displays
Display product sales grew approximately 20% year-over-year in 2025, driven by customer demand for larger/advanced displays and significant OLED wins with luxury OEMs.
Strategic Customer and Product Wins
Won ~$500,000,000 of new business with Toyota in 2025 and the largest digital two-wheeler program (~$400,000,000 lifetime) with Honda; secured high-performance compute wins with Cherry and Geely and multiple SmartCore/display launches.
Operational Execution and Launch Activity
Launched products on 86 vehicle models across 19 manufacturers in 2025; ~1/3 of launches were large displays and SmartCore programs, and launches were geographically balanced (Europe, Americas, Asia).
Capital Discipline and Credit Rating Upgrade
CapEx was $133,000,000 (3.5% of sales) in 2025; deployed ~ $275,000,000 of total capital including M&A and returns; S&P upgraded Visteon to BA1 reflecting improved margins and cash generation.
Negative Updates
Revenue Decline in 2025
Full-year net sales were $3,768,000,000, down $98,000,000 or -3% year-over-year; customer production declined ~1% and pricing was a ~4% headwind for the year.
China Underperformance
Sales in China declined year-over-year and were a material headwind to growth; shifts in market dynamics and continued share loss by global OEMs contributed to the underperformance and weighed on gross operating margin.
Battery Management System (BMS) Headwind
BMS/battery management was a major drag — U.S. EV demand softness and the expiration of the EV tax credit reduced BMS volumes and created about an 8% full-year headwind to Americas sales; management expects Americas BMS volume to decline nearly 50% year-over-year in 2026.
Pricing and Recoveries Pressure
Pricing was a ~4% headwind in 2025 (including standard annual -2% reductions) and lower customer recoveries from prior semiconductor inflation reduced recoveries versus prior years; favorable one-time items of ~$30,000,000 in 2025 largely non-recurring (only ~$10,000,000 expected to repeat).
Memory Cost and Supply Tightness
Memory chip supply is tight industry-wide; company expects a memory cost increase representing roughly 2% of sales in 2026 and anticipates potential timing mismatches in recovering these costs from customers.
Near-Term Revenue Weighting and Q1 Weakness
Management expects 2026 to be back-half weighted with Q1 as the weakest quarter due to depressed BMS volumes, program discontinuations (Ford), and launch cadence concentrated in H2.
Program Discontinuations and Commercial Risks
Discontinuation of several Ford models that contained Visteon content represents an incremental ~2% headwind in 2026 guidance (no offset assumed yet); guidance also factors in FX/pricing/commercial items as a modest ~2% headwind.
Company Guidance
The company guided 2026 sales of $3.625–$3.825 billion, with adjusted EBITDA of $455–$495 million (midpoint margin ~12.8%) and adjusted free cash flow of $170–$210 million (≈40% conversion at the midpoint); CapEx is expected at ≈$150 million (~4% of sales) and they expect to have more than $1.0 billion of cash available to deploy. Guidance assumes a nearly 50% YoY decline in Americas BMS volumes, a ~2% of sales increase in memory costs (with most recoverable but potential timing mismatch), and a ~2% net headwind from pricing/FX/other; 2025 included just under $30 million of one‑time benefits of which ~$10 million will repeat (a ~$20 million YoY headwind). They expect Q1 to be the weakest quarter (EBITDA pressured by low volumes and higher memory costs), a modest ~30 bps normalized margin improvement in 2026, a slight working‑capital use as inventories rise, an $18 million debt amortization, a year‑end net cash position of $472 million, an increased quarterly dividend of $0.375/share (~$40 million annually), and continued opportunistic share repurchases (at least to offset dilution) with $75 million remaining under authorization.Visteon Financial Statement Overview
Summary
Overall fundamentals are solid: profitability improved meaningfully with strong TTM operating/net margins and a sharp step-up in net income, the balance sheet delevered substantially (debt down sharply with conservative debt-to-equity ~0.30) and ROE remains strong (~22.7%). Offsetting factors include margin softness versus the 2023 peak and negative TTM free-cash-flow growth (-10.4%), highlighting cyclicality/volatility.Income Statement
Revenue has been resilient overall, with strong growth in TTM (Trailing-Twelve-Months) (+23.9%) after a modest decline in 2024. Profitability has improved meaningfully versus 2021–2022, with solid TTM operating and net margins (about 9.4% and 8.2%, respectively) and a sharp step-up in net income versus 2024. Offsetting this, margins are still below the 2023 peak (notably gross and net margin), and results have shown some volatility across the cycle (including losses in 2020).72
Positive
Balance Sheet
The balance sheet has strengthened materially: total debt fell to $127M in TTM (Trailing-Twelve-Months) from $426M in 2024 and $527M in 2020, while equity increased to $1.57B. Leverage is now conservative (debt-to-equity ~0.30 in TTM), a major improvement from 2020–2022 levels. Returns on equity remain strong in TTM (~22.7%), though the pace of improvement could be constrained if profitability normalizes from recent highs.84
Very Positive
Cash Flow
Cash generation is solid in TTM (Trailing-Twelve-Months), with operating cash flow of $410M and free cash flow of $379M, supporting flexibility. Free cash flow conversion versus net income is healthy (about 0.85x in TTM), improving from prior years. The main weak spot is trajectory: free cash flow growth is negative in TTM (-10.4%) after improving in 2022–2024, indicating some near-term volatility.70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.77B | 3.87B | 3.95B | 3.76B | 2.77B |
| Gross Profit | 532.00M | 531.00M | 697.00M | 572.00M | 453.00M |
| EBITDA | 439.00M | 409.00M | 365.00M | 295.00M | 199.00M |
| Net Income | 201.00M | 274.00M | 486.00M | 124.00M | 41.00M |
Balance Sheet | |||||
| Total Assets | 3.39B | 2.86B | 2.73B | 2.45B | 2.23B |
| Cash, Cash Equivalents and Short-Term Investments | 771.00M | 623.00M | 515.00M | 520.00M | 452.00M |
| Total Debt | 540.00M | 426.00M | 445.00M | 477.00M | 498.00M |
| Total Liabilities | 1.74B | 1.55B | 1.60B | 1.68B | 1.62B |
| Stockholders Equity | 1.57B | 1.23B | 1.04B | 675.00M | 516.00M |
Cash Flow | |||||
| Free Cash Flow | 277.00M | 290.00M | 142.00M | 86.00M | -12.00M |
| Operating Cash Flow | 410.00M | 427.00M | 267.00M | 167.00M | 58.00M |
| Investing Cash Flow | -181.00M | -189.00M | -123.00M | -68.00M | -63.00M |
| Financing Cash Flow | -116.00M | -100.00M | -156.00M | -9.00M | -29.00M |
Visteon Technical Analysis
Negative
92.91
Price Trends
98.28
Negative
103.30
Negative
104.43
Negative
Market Momentum
0.43
Positive
42.39
Neutral
39.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VC, the sentiment is Negative. The current price of 92.91 is below the 20-day moving average (MA) of 97.31, below the 50-day MA of 98.28, and below the 200-day MA of 104.43, indicating a bearish trend. The MACD of 0.43 indicates Positive momentum. The RSI at 42.39 is Neutral, neither overbought nor oversold. The STOCH value of 39.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VC.
Visteon Risk Analysis
Visteon disclosed 21 risk factors in its most recent earnings report. Visteon reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Visteon Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.90B | 9.53 | 14.37% | 0.57% | -4.03% | -39.51% | |
72 Outperform | $6.94B | 16.80 | 9.21% | 2.63% | -1.90% | -13.86% | |
71 Outperform | $9.51B | 13.09 | 30.32% | 2.60% | 0.84% | 26.17% | |
62 Neutral | $12.78B | 48.22 | 5.05% | 1.24% | 0.08% | -83.69% | |
62 Neutral | $17.83B | 63.89 | 3.25% | ― | 2.16% | -85.91% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
48 Neutral | $2.54B | -1.47 | -43.08% | ― | -3.87% | -482.29% |
* Consumer Cyclical Sector Average
VC
Visteon
92.91
5.23
5.97%
ALV
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123.07
27.62
28.94%
BWA
BorgWarner
58.92
29.62
101.09%
APTV
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79.57
12.78
19.13%
GT
GoodYear Tire
8.94
-0.85
-8.68%
LEA
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134.75
40.72
43.31%
Visteon Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Visteon Posts Strong 2025 Results, Boosts Dividend, Guides 2026
Positive
Feb 19, 2026
On Feb. 19, 2026, Visteon reported fourth-quarter and full-year 2025 results showing net sales of $948 million for the quarter and $3.77 billion for the year, record full-year adjusted EBITDA of $492 million, and strong cash generation, despite lower net income tied largely to tax valuation changes and pension-related charges. The company launched 86 products, won a record $7.4 billion of new business in its core digital cockpit franchises, expanded into commercial and two-wheeler markets, repurchased $57 million of stock, raised its quarterly dividend by 36% for Q1 2026, and issued 2026 guidance that points to steady sales and profitability while it scales next-generation cockpit platforms.
Visteon’s 2025 performance underscored its competitive strength in displays, clusters and SmartCore infotainment, with 7% quarterly market outperformance and roughly 2% growth over market for the year despite headwinds in battery management systems and China. Record program wins across regions and segments, including major launches with Mahindra, Zeekr, Toyota, Tata, Ford and Mazda, support the company’s push into adjacent markets and reinforce its positioning as a key beneficiary of the auto industry’s shift toward software-defined, digitally rich cockpits.
The most recent analyst rating on (VC) stock is a Hold with a $110.00 price target. To see the full list of analyst forecasts on Visteon stock, see the VC Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.