Versigent — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for Q3 2026 reached $2,450 million, a 7.2% year-over-year increase compared to $2,286 million in Q3 2025.
• Adjusted Net Sales Growth was approximately 1% year-over-year, excluding commodity and foreign currency impacts.
• Net income attributable to Versigent was $102 million, down from $109 million in the prior-year quarter.
• Diluted EPS was $1.41, while Adjusted Diluted EPS was $1.91.
• Adjusted EBITDA increased 10.9% year-over-year to $275 million, with an Adjusted EBITDA margin of 11.2% (up 40 basis points year-over-year).
• Net cash provided by operating activities was $225 million, up slightly year-over-year.
• Free Cash Flow was $170 million, down from $179 million in Q3 2025, primarily due to higher capital expenditures ($55 million vs. $44 million).
• Net income margin was 4.2%, down 60 basis points year-over-year.
• Interest expense was $36 million in Q3 2026 compared to de minimis in Q3 2025, driven by senior notes and credit facility issued in Q1 2026.
• Income tax expense was $35 million, down from $54 million in the prior-year period.

Guidance and Future Outlook:

• Raised full-year 2026 net sales guidance midpoint and tightened the range to $9,500–$9,600 million (previously $9,400–$9,600 million).
• Tightened full-year 2026 Adjusted EBITDA guidance range to $970–$1,010 million (previously $950–$1,030 million).
• Raised full-year 2026 Free Cash Flow guidance midpoint and upper end, tightening the range to $275–$325 million (previously $200–$300 million).
• Guidance adjustments reflect higher commodity pass-throughs and current macroeconomic outlook.

Business Segments and Product Lines:

• Successfully executed a high volume of complex launches across multiple manufacturing facilities during the quarter.
• Secured $2.1 billion of bookings.
• Continued investing in adjacent markets' commercial and go-to-market capabilities.
• Versigent powers one in six passenger vehicles in production today with high-performance signal, power, and data distribution systems.

Market and Competitive Landscape:

• Operated amid lower global automotive production and a volatile macroeconomic environment.
• Achieved continued growth over market despite production headwinds.
• Performance driven by favorable net pricing and foreign currency impacts, partially offset by higher commodity costs.

Risks and Challenges:

• Higher capital expenditures associated with increased launch activity in the second half of 2026 reduced Free Cash Flow.
• Higher interest expense resulting from Q1 2026 debt financing.
• Free Cash Flow included $11 million of separation-related costs in Q3 2026 compared to $7 million in the prior-year quarter.

Management Commentary and Tone:

• CEO Joseph Liotine stated that strong performance reflects the resilience of the business model and disciplined execution.
• CFO Doug Ostermann highlighted earnings and cash-generating power, noting double-digit Adjusted EBITDA growth and margin expansion.
• Management expressed confidence in reinforcing competitive position and supporting long-term growth and value creation.

Other Key Points:

• Board of Directors declared a quarterly cash dividend of $0.13 per share, payable on December 17, 2026, to shareholders of record on December 4, 2026.
• Total assets increased to $5,527 million as of September 30, 2026, from $4,485 million as of December 31, 2025.
• Long-term debt increased to $2,066 million as of September 30, 2026, from $3 million as of December 31, 2025.
• Cash and cash equivalents increased to $638 million as of September 30, 2026, from $276 million as of December 31, 2025.
• Nine-month 2026 net sales were $7,106 million compared to $6,516 million in the prior-year period.
• Nine-month 2026 Adjusted EBITDA was $750 million compared to $664 million in the prior-year period.
• Nine-month 2026 Free Cash Flow was $247 million compared to $290 million in the prior-year period.