The $77M exceptional warranty charge and lowered EBITDA/free cash flow guidance are the key negatives. Monitor the Q4 earnings call for details on the warranty issue, whether it is resolved or recurring, and for any further guidance revisions. The sales growth and new business wins provide some offset but do not reverse the profit deterioration.
Price Chart
Executive Summary
Visteon reported Q3 2026 net sales of $970M (+6% YoY) and net income of $5M ($0.19/diluted share), compared to a net loss of $11M in Q3 2025. However, gross margin collapsed to $47M from $131M a year ago due to $77M in exceptional warranty charges, and adjusted EBITDA fell to $46M from $119M. The company raised its full-year sales guidance to $3.80-$3.85B but lowered adjusted EBITDA guidance to $370-$410M and free cash flow guidance to $90-$130M, reflecting the warranty charges and cost pressures.
Key Facts
- Q3 2026 net sales of $970M, up 6% YoY from $917M
- Net income attributable to Visteon of $5M ($0.19/diluted share) vs. net loss of $11M in Q3 2025
- Gross margin of $47M, down from $131M in Q3 2025, including $77M of exceptional warranty charges
- Adjusted EBITDA of $46M, down 61% from $119M in Q3 2025
- Full-year 2026 sales guidance raised to $3.80-$3.85B; adjusted EBITDA guidance lowered to $370-$410M; adjusted free cash flow guidance lowered to $90-$130M
- Completed $200M accelerated share repurchase program in Q3
- Cash and equivalents of $464M, down from $771M at Dec 31, 2025; net cash of $136M
- Operating cash flow of $81M for nine months vs. $292M in prior-year period
- Capital expenditures of $103M for nine months vs. $88M in prior-year period
Financial Impact
Gross margin fell by $84M YoY due to $77M exceptional warranty charges; adjusted EBITDA declined by $73M YoY; full-year adjusted EBITDA guidance midpoint reduced by ~$20M from prior; full-year free cash flow guidance midpoint reduced by ~$20M from prior
Risk Factors
- Exceptional warranty charges may recur or expand, further pressuring margins
- Cost pressures and inventory build could continue to weigh on free cash flow
- Customer vehicle production declining 5% YoY creates headwinds to revenue growth
- Cash burn from share repurchase ($200M) and capex ($103M) has reduced cash balance significantly
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001111335-26-000054 |
| Document: vc-20261022.htm | 0001111335-26-000054 |
| Document: 0001111335-26-000054-index-headers.html | 0001111335-26-000054 |
| Document: 0001111335-26-000054-index.html | 0001111335-26-000054 |
| Document: 0001111335-26-000054.txt | 0001111335-26-000054 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | 8-K | $76.19 | awaiting T+1 | — | $73.76 (−3.19%) |
Oct 22, 2026 5d ago | 8-K | $81.70 $76.37 | ▲ +6.52% | ▲ +6.00% | $73.76 (+9.72%) |
Oct 22, 2026 5d ago | Press Release | $81.70 $76.37 | ▲ +6.52% | ▲ +6.00% | $73.76 (+9.72%) |
Oct 7, 2026 20d ago | SC 13G/A | $87.09 $86.15 | ▼ −1.08% | ▼ −0.66% | $73.76 (−15.31%) |
Aug 17, 2026 10w ago | Press Release | $107.80 $105.56 | ▼ −2.08% | ▼ −1.40% | $73.76 (−31.58%) |
Jul 23, 2026 13w ago | 8-K | $100.11 $103.75 | ▼ −3.64% | ▼ −3.53% | $73.76 (+26.32%) |
Jun 15, 2026 19w ago | 8-K | $112.14 $110.40 | ▼ −1.55% | ▼ −0.30% | $73.76 (−34.23%) |
Jun 9, 2026 20w ago | Insider Cluster | $117.70 $120.05 | ▲ +2.00% | ▲ +0.30% | $73.76 (−37.33%) |
Jun 9, 2026 20w ago | Insider Cluster | $117.70 $120.05 | ▲ +2.00% | ▲ +0.30% | $73.76 (−37.33%) |
Jun 3, 2026 20w ago | Insider Cluster | $123.15 $121.80 | ▼ −1.10% | ▼ −1.50% | $73.76 (−40.11%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers