Visteon (VC, Financial), a major player in the automotive industry, has announced that it will not reaffirm its full-year 2025 guidance due to increasing uncertainties surrounding tariffs. The shifting landscape has injected a level of unpredictability in industry production volumes and has affected the company's operational costs.
The impact of these evolving dynamics remains unclear, and Visteon has stated that it will revisit its guidance once there is greater clarity in the market. The decision reflects broader challenges faced by automotive companies as they navigate the complexities and potential costs introduced by changing tariff regulations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Visteon Corp (VC, Financial) is $91.92 with a high estimate of $110.00 and a low estimate of $74.00. The average target implies an upside of 23.25% from the current price of $74.58. More detailed estimate data can be found on the Visteon Corp (VC) Forecast page.
Based on the consensus recommendation from 16 brokerage firms, Visteon Corp's (VC, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Visteon Corp (VC, Financial) in one year is $132.80, suggesting a upside of 78.06% from the current price of $74.58. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Visteon Corp (VC) Summary page.
VC Key Business Developments
Release Date: February 18, 2025
- Revenue: $3.87 billion for the full year 2024.
- Adjusted EBITDA: Record $474 million for 2024, with a margin of 12.3%.
- Adjusted Free Cash Flow: Record $300 million for 2024.
- New Business Wins: $6.1 billion in 2024.
- Adjusted EBITDA Margin Improvement: 130 basis points increase compared to last year.
- Q4 Sales: $939 million.
- Q4 Adjusted EBITDA: $117 million, with a margin of 12.5%.
- 2025 Sales Guidance: $3.65 billion to $3.85 billion.
- 2025 Adjusted EBITDA Guidance: $450 million to $480 million, with a margin of 12.4% at the midpoint.
- 2025 Adjusted Free Cash Flow Guidance: $175 million to $205 million.
- 2027 Sales Target: $4.15 billion.
- 2027 Adjusted EBITDA Margin Target: 13.3%.
- 2027 Adjusted Free Cash Flow Target: $230 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Visteon Corp (VC, Financial) delivered strong financial performance in 2024 with robust sales of $3.87 billion, record adjusted EBITDA of $474 million, and record adjusted free cash flow of $300 million.
- The company secured $6.1 billion in new business wins in 2024, driven by strong demand for large displays, SmartCore, and digital cluster products.
- Visteon outperformed the market in the Americas by double digits and in Europe by mid-single digits, driven by digital cluster and electrification product launches.
- The company achieved significant progress in diversifying its customer base, with notable wins from OEMs in Japan, Korea, and India, including Toyota and Maruti Suzuki.
- Visteon introduced innovative products like the high-performance SmartCore HPC and onboard charger and DC-DC converter, expanding its product portfolio into fast-growing market segments.
Negative Points
- Visteon faces headwinds in China, with sales underperformance due to market share shifts towards domestic OEMs and challenges faced by global OEMs.
- The company anticipates a mid-single-digit decline in customer vehicle production in 2025, impacting sales growth.
- Visteon expects electric vehicle sales in the US to remain flat in 2025 due to tariffs and incentive uncertainties, affecting BMS sales.
- The company experienced a lower level of customer quoting activity in 2024, particularly in Europe and North America, impacting new business wins.
- Visteon's sales outlook for 2025 is flat year-over-year, with headwinds from lower customer vehicle production, recoveries, and foreign exchange.
