Outlook Unchanged but Waiting on the China Inflection

研报英文原文证据摘录

Outlook Unchanged but Waiting on the China Inflection

ensus data is provided by Refinitiv Estimates

e = Morgan Stanley Research estimates

scheduled launches. Despite these headwinds, VC still delivered ~4% growth-over- Quarterly EPS ($)

market and reaffirmed 2026 guidance. Recent launches in Europe and India, 2026e 2026e 2027e 2027e

Quarter 2025 Prior Current Prior Current

together with additional display, SmartCore CDC, and HPC ramps in 2H26, support

Q1 2.40 - 1.65a - -

growth into 2027 and reinforce the CMD growth pillars around software-defined Q2 2.36 2.20 1.91 - -

Q3 2.15 2.38 2.25 - -

vehicles, customer/geographic diversification, and adjacent markets. Additionally, Q4 2.96 2.46 2.61 - -

Visteon added a new Japanese OEM for a digital cluster program that will launch in e = Morgan Stanley Research estimates, a = Actual Company reported data

Japan and US markets.

The key debates remain: (i) China execution, (ii) Memory, and (iii) Ford/GM roll-

offs. (i) In China, management expects a return to low-single-digit growth in 2H26

as the Geely and Chery HPC programs launch and domestic OEM exposure

approaches 60% by year-end. Management also highlighted a new SmartCore HPC

award with another premium brand within the Geely Group, reinforcing confidence

in the product’s long-term growth opportunity. (ii) On memory, 2Q customer

recoveries largely offset inflation, while management largely reiterated the

framework outlined at CMD. Supply is expected to remain challenging through 2027

despite the Micron supply agreement, alternate sourcing, and product redesigns.

(iii) We remain focused on Ford/GM program roll-offs and potential insourcing, with

the Americas the only region expected to decline Y/Y in 2H26. Management Morgan Stanley does and seeks to do business with