Visteon Corp Net Income Drops 54% to $31M as Restructuring Costs Bite
Visteon Corporation (NASDAQ: VC), an automotive electronics supplier, reported net income of $31 million for the three months ended March 31, 2026, down 54% from $67 million in the prior-year quarter. The decline came as restructuring expenses and higher operating costs offset modest sales growth.
Visteon Corporation (NASDAQ: VC), an automotive electronics supplier, reported net income of $31 million for the three months ended March 31, 2026, down 54% from $67 million in the prior-year quarter. The decline came as restructuring expenses and higher operating costs offset modest sales growth. Read more earnings reports.
Net sales rose 2% to $954 million from $934 million a year earlier. Cost of sales, however, climbed 6% to $841 million from $796 million, squeezing gross margin to $113 million from $138 million in the first quarter of 2025.
The company recorded $18 million in restructuring charges during the quarter, compared to no such charges in the year-ago period. Selling, general and administrative expenses increased to $54 million from $47 million.
Diluted earnings per share fell to $1.14 from $2.44 in the first quarter of 2025. Basic earnings per share declined to $1.16 from $2.46.
Operating Cash and Capital Allocation
Visteon generated $3 million in net cash from operating activities during the quarter, a sharp drop from $70 million in the prior-year period. The decline reflected higher working capital needs, including a $71 million increase in accounts receivable and a $51 million rise in inventories.
The company spent $36 million on capital expenditures, in line with the $35 million invested a year earlier. Visteon returned $40 million to shareholders through $30 million in share repurchases and a $10 million dividend payment.
Cash and equivalents stood at $680 million as of March 31, 2026, down from $771 million at year-end 2025. Total debt remained relatively stable at $297 million, consisting of $18 million in short-term borrowings and $279 million in long-term debt.
Balance Sheet and Equity Position
Total assets increased modestly to $3.42 billion from $3.39 billion at December 31, 2025. Accounts receivable rose to $675 million from $613 million, while inventories climbed to $316 million from $269 million, reflecting increased business activity.
Stockholders' equity attributable to Visteon declined to $1.56 billion from $1.57 billion at year-end, driven by share repurchases and a $12 million increase in accumulated other comprehensive loss to $252 million. The company had 26.7 million shares outstanding as of March 31, 2026, down from 26.8 million at year-end.
Key Financial Metrics
| Metric ($ millions, except per share) | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Net Sales | $954 | $934 | +2% |
| Gross Margin | $113 | $138 | -18% |
| Net Income | $33 | $69 | -52% |
| Net Income Attributable to Visteon | $31 | $67 | -54% |
| Diluted EPS | $1.14 | $2.44 | -53% |
| Operating Cash Flow | $3 | $70 | -96% |
| Restructuring Charges | $18 | $0 | N/A |
The company's adjusted EBITDA, a non-GAAP measure, fell 19% to $104 million from $129 million in the first quarter of 2025. The decrease reflected higher operating expenses and restructuring costs before adding back interest, taxes, depreciation and amortization.
Depreciation and amortization expenses totaled $29 million, up from $25 million a year earlier. Stock-based compensation rose slightly to $12 million from $11 million.