Visteon Corporation (NASDAQ:VC) outperformed expectations with its second-quarter results, unveiled Thursday, and introduced its inaugural quarterly dividend while also raising its full-year guidance.
Shares of the automotive digital cockpit technology specialist rose 1.91% in pre-market trading following the announcement.
Adjusted earnings for the quarter came in at $2.39 per share, comfortably above analysts’ forecast of $2.06. Revenue reached $969 million, exceeding the consensus estimate of $958.39 million, though it marked a 4.4% decline compared to the $1.014 billion posted in the same quarter a year earlier.
“Our second quarter represents another quarter of proof points supporting our long-term growth strategy,” said President and CEO Sachin Lawande. “We launched 21 new products across eight OEMs, secured $2.0 billion in new business, and expanded into adjacent markets.”
Visteon attributed the year-over-year revenue dip primarily to lower Battery Management System volumes and weaker market conditions in China. Nevertheless, the company delivered adjusted EBITDA of $134 million for the quarter.
Through the first half of 2025, Visteon generated $165 million in operating cash flow and $105 million in adjusted free cash flow, underscoring its financial discipline amid a challenging environment.
In a milestone for investors, the company’s Board of Directors approved its first-ever quarterly dividend of $0.275 per share, set to be paid on September 5 to shareholders of record as of August 18. Visteon also intends to restart its share repurchase program after temporarily pausing it during Q2 due to tariff-related uncertainty.
In light of its performance and future visibility, Visteon raised its full-year 2025 outlook. The company now anticipates revenue between $3.70 billion and $3.85 billion (previously $3.65-$3.85 billion), adjusted EBITDA of $475 to $505 million (up from $450-$480 million), and adjusted free cash flow of $195 to $225 million (previously $175-$205 million).
The company closed the quarter with $671 million in cash and $310 million in debt, ending the period with a solid net cash position of $361 million.
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