Visteon Corporation Q1 FY2026 earnings call

Visteon delivered solid start to the year with sales ahead of expectations. New business wins over $1 billion led by cockpit domain controllers. Q1 had 20 launches across 11 automakers. Returned $40 million to shareholders. Regionally, Americas had strong cockpit electronics demand, Europe benefited from vehicle program ramp-ups, rest of Asia India was strong, China had vehicle production issues but benefited from high value segments. Secured new business wins in key markets like China with SAIC, India with SmartCore Cockpit Domain Controller, etc. China's premium tech segment growth with Visteon's AI technology leadership.

Visteon's net sales in the first quarter were $954 million, up 2% year-over-year. Adjusted EBITDA was $104 million. New business wins were just over $1 billion, led by cockpit domain controllers and digital clusters. By region: Americas - strong demand for cockpit electronics due to new product launches but offset by Ford vehicle discontinuations and lower BMS volumes; Europe - benefited from strong ramp-ups on several vehicle programs; Rest of Asia - India was strong with ramp-ups of smart core system and digital cluster; China - vehicle production down in Q1 but benefited from higher value segments and new programs.

Reaffirming full-year sales guidance of $3.625 to $3.825 billion, adjusted EBITDA of $455 million to $495 million, and adjusted free cash flow of $170 million to $210 million. Strong start of the year helps offset softer second half market setup.

S&P lowered global light vehicle production forecast for customers by ~1.5 percentage points, mainly due to Middle East conflict with potential further downside. Memory remains constrained with strong demand from AI and data centers limiting automotive availability, structural supply-demand imbalance driving pricing pressure and tightness in supply persisting through 2027.

Q: Good morning. Hoping to start with a question on the demand and production environment...

A: Jerome answered on sales, Q1 being stronger, Q2 setup, and full-year guidance.

Q: Just on memory. The company's guidance had assumed recovery...

A: Sachin and Jerome discussed memory supply situation, recovery progress, and expectations.

Q: Just to follow up on this issue...

A: Jerome talked about leakage and recovery neutral in second half.

Q: Just curious, as we start looking into next year...

A: Sachin and Jerome discussed memory supply for next year, customer discussions, and launch ramp up.

Q: My first one is on the new business wind...

A: Sachin talked about new business win seasonality and growth drivers.

Q: Thanks for taking my question. My first one is on the new business wind...

A: Sachin talked about new business win seasonality and growth drivers.

Q: Thanks for taking the questions. Why don't I just first double click on the growth dynamics...

A: Dan Levy's questions on China growth dynamics and memory transition answered.

Q: Good morning. Thanks for taking the questions. First question, Sachin...

A: Luke Junk's questions on HPC early mover advantage and launch cadence answered.

Q: I think taking the question, just two quick follow-ups...

A: Tom Narayan's questions on M&A priority and guidance maintenance answered