Versigent Q2 Earnings Call Highlights

Strong second-quarter performance: Net sales rose 11% year over year to $2.4 billion, while adjusted EBITDA increased 25% to $272 million and margins expanded to 11.1%. Versigent also secured more than $2.8 billion in awards and launched 39 major programs.

2026 outlook improved: The company raised its reported net sales guidance to $9.4 billion–$9.6 billion while maintaining adjusted EBITDA guidance of $950 million–$1.03 billion and free-cash-flow guidance of $200 million–$300 million.

Capital returns begin: Versigent declared its first quarterly dividend of $0.13 per share and has a previously announced $250 million share-repurchase authorization, supported by expected cumulative free cash flow of about $1 billion from 2026 through 2028.

Versigent NYSE: VGNT reported second-quarter results marked by double-digit sales growth, higher adjusted EBITDA margins and the launch of its first quarterly dividend as the newly independent company navigates softer global vehicle production and elevated program-launch activity. Chief Executive Officer Joe Liotine said the company’s performance reflected its engineering capabilities, operating discipline and ability to support customers’ complex power and data needs. During the quarter, Versigent received more than $2.8 billion in new awards and launched 39 large-scale global programs for 22 new and existing customers. Liotine said those launches achieved more than 99% quality and 99% on-time delivery.

“Versigent delivered a solid quarter,” Liotine said, citing double-digit net sales growth, expanding bookings and execution on large-scale customer programs. He added that the company is pursuing selected adjacent-market opportunities, including commercial vehicles, agriculture, battery energy storage and robotics, though its previously communicated 2028 outlook does not assume a meaningful contribution from these newer opportunities.

Chief Financial Officer Doug Ostermann said second-quarter net sales rose 11% year over year to $2.4 billion. Excluding foreign exchange and commodity movements, adjusted net sales increased about 5%, driven primarily by higher production volumes in North America and Asia-Pacific. Softer volumes in Europe, the Middle East and Africa partly offset those gains. Adjusted EBITDA increased 25% from a year earlier to $272 million. Adjusted EBITDA margin expanded 120 basis points to 11.1%. Net income attributable to Versigent rose 10% to $118 million. Adjusted net income was $138 million, while adjusted diluted earnings per share totaled $1.92. Free cash flow was $107 million, essentially unchanged from the prior-year quarter.

Ostermann said net income growth occurred despite $35 million in incremental interest expense, primarily tied to debt financing completed during the first quarter of 2026. The company’s adjusted effective tax rate was 27% in the second quarter, compared with 16% a year earlier, largely due to unfavorable discrete tax items in 2026 versus favorable items in the prior-year period. Versigent maintained its expectation for a full-year adjusted effective tax rate of approximately 23%.

Sales growth was strongest in Asia-Pacific, where net sales increased 24% to approximately $825 million and adjusted net sales rose roughly 15%. In the Americas, net sales climbed 11% to about $1.1 billion, with adjusted net sales growth of about 6%. EMEA sales declined 6% to approximately $524 million, while adjusted net sales fell 11%, reflecting weak regional production and the end of production on certain programs. The company said China export production remains a meaningful contributor to its Asia-Pacific performance. Ostermann said more ...