Versigent plc: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 5 May 2026: press release. Guidance figures: 2 new, 5 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose 9% to $2,212 million: Revenue was $2,212 million against $2,024 million a year earlier, an increase of 9% as reported. Source
• Adjusted EBITDA margin 9.2% against 9.8%: Adjusted EBITDA was $203 million against $198 million. Management cited disciplined operating execution and higher volumes, offset by commodity cost and foreign exchange headwinds. Source
• Free cash flow was $(30) million: Free cash flow was $(30) million against $3 million. The company reported that it includes $26 million of separation costs. Source
• Dividend policy adopted in April: The board approved a policy to return part of future earnings, with the initial dividend to be declared at a future date. Dividends are payable only when declared. Source
• Repurchase program of up to $250 million: The board approved a repurchase program for up to $250 million of shares, to be bought from time to time on the open market. Source
• Separated from Aptiv on April 1: Versigent operated as Aptiv’s Electrical Distribution Systems segment for all of the first quarter. Aptiv shareholders received all its shares on April 1, 2026. Source
• Full-year 2026 guidance reaffirmed: Management reaffirmed its full-year 2026 guidance across revenue, net income, Adjusted EBITDA, operating cash flow and free cash flow. Source

“Our First Quarter 2026 results underscore our commitment to execute consistently, design the right solutions for our customers and create long-term value for our stakeholders around the globe”

Joe Liotine, Chief Executive Officer, Versigent

Guidance

What changed from last quarter

• New: Versigent became a standalone public company after Aptiv distributed all of its shares to Aptiv shareholders on April 1, 2026. Source
• New: The board approved a dividend policy in April 2026, with the initial dividend to be declared at a future date. Source
• New: The board approved a share repurchase program for up to $250 million, with no expiration date. Source
• Guidance kept: Management reaffirmed its full-year 2026 financial guidance in this release. Source

Results and growth drivers

• Revenue rose 9% to $2,212 million: Revenue was $2,212 million against $2,024 million a year earlier, an increase of 9% as reported. Source
• About 3% growth before currency and commodities: Excluding currency exchange and commodity pass-through, revenue rose about 3%. The reconciliation shows 6 points from currency and commodities against the 9% reported. Source
• Volumes higher in North America and Asia Pacific: Management attributed growth to higher volumes in North America and Asia Pacific, despite lower global automotive production. Source
• Net income attributable fell to $78 million: Net income attributable to Versigent was $78 million against $95 million. Operating income was $74 million against $123 million. Source

Costs, margins and tax

• Adjusted EBITDA margin 9.2% against 9.8%: Adjusted EBITDA was $203 million against $198 million. Management cited disciplined operating execution and higher volumes, offset by commodity cost and foreign exchange headwinds. Source
• Restructuring and separation costs rose: Restructuring expense was $46 million against $16 million, and separation costs were $26 million against $5 million, both excluded from Adjusted EBITDA. Source
• Tax moved to a $9 million benefit: Income tax was a $9 million benefit against $29 million of expense. Management attributed the change primarily to discrete tax benefits recognized in the quarter. Source

“We continue to operate as a highly-engineered, cash-generative business anchored by our disciplined capital allocation strategy prioritizing the right investments in our business”

Doug Ostermann, Chief Financial Officer, Versigent

Cash flow and capital spending

• Free cash flow was $(30) million: Free cash flow was $(30) million against $3 million. The company reported that it includes $26 million of separation costs. Source
• Restructuring and separation drove the decline: Management attributed the decrease mainly to higher restructuring costs, one-time separation costs and capital expenditures in the quarter. Source
• Operating cash flow eased to $36 million: Operating cash flow was $36 million against $40 million. Management cited earnings partly offset by working capital investment. Source
• Capital expenditures rose to $66 million: Capital expenditures were $66 million against $37 million in the prior-year quarter. Source

Financing and debt

• Senior notes proceeds and Parent distribution: Senior notes and credit agreement proceeds of $2,063 million, net of issuance costs, were recorded alongside a $1,900 million cash distribution paid to Parent. Source
• Interest expense rose to $5 million: Interest expense was $5 million against $2 million, which the company linked to the notes and credit agreement issued for the separation. Source
• Receivables and cash at quarter end: Accounts receivable rose to $1,829 million from $1,567 million at December 31, 2025, while cash and cash equivalents were $282 million. Source

“Versigent launched from a position of strength as a scaled, profitable, and fundamentally resilient business.”

Joe Liotine, Chief Executive Officer, Versigent

Capital returns and dividend policy

• Dividend policy adopted in April: The board approved a policy to return part of future earnings, with the initial dividend to be declared at a future date. Dividends are payable only when declared. Source
• Repurchase program of up to $250 million: The board approved a repurchase program for up to $250 million of shares, to be bought from time to time on the open market. Source
• Program open-ended and board-amendable: The program has no expiration date and may be amended, suspended or terminated by the board at any time. Timing and amounts are at management’s discretion. Source

Separation from Aptiv

• Separated from Aptiv on April 1: Versigent operated as Aptiv’s Electrical Distribution Systems segment for all of the first quarter. Aptiv shareholders received all its shares on April 1, 2026. Source
• Prior periods shown on carve-out basis: Figures before April 1, 2026 come from Aptiv’s accounting records and are shown as if Versigent had been standalone for all periods presented. Source
• Net transfers to Parent of $130 million: Net transfers to Parent were $130 million in the quarter, against $39 million received from Parent in the prior-year quarter. Source

Full-year 2026 guidance

• Full-year 2026 guidance reaffirmed: Management reaffirmed its full-year 2026 guidance across revenue, net income, Adjusted EBITDA, operating cash flow and free cash flow. Source
• Revenue range with about 2% growth: Revenue guidance is $9,100 million to $9,400 million, with about 2% adjusted revenue growth. Source
• Operating cash flow range given: Management gave cash flow from operations of $440 million to $540 million for 2026. Source
• Tariffs assumed only as currently imposed: Guidance reflects tariffs currently imposed by the U.S. government but not potential additional tariffs, trade barriers or retaliatory actions. Source
• Midpoint restructuring and special items estimated: At the guidance midpoint, the company estimates restructuring of $115 million and separation costs and other special items of $80 million. Source

Products, customers and footprint

• Powers one in six passenger vehicles: The company says it powers one in six passenger vehicles in production, with systems trusted across automotive, commercial vehicles, agriculture and energy storage. Source
• Engineering and manufacturing on four continents: The company reports engineering and manufacturing centers on four continents and operations in more than 25 countries. Source
• Workforce of 138,000 employees: The company reports 138,000 employees and says they combine global scale with regional responsiveness. Source

Coming up, as management said on 5 May 2026

• Initial dividend to be declared: The initial dividend is expected to be declared at a future date, and dividends are payable only when declared by the board. Source
• Open-market share purchases planned: The company intends to buy shares from time to time on the open market, with timing and amount at management’s discretion. Source

Risks management discussed

• Operational: Commodity cost and foreign exchange headwinds were noted against Adjusted EBITDA margin in the quarter. Source
• Financial: Working capital investment partly offset earnings in operating cash flow during the quarter. Source
• Operational: Higher restructuring costs, one-time separation costs and capital expenditures reduced free cash flow. Source
• Financial: Interest expense increased following the senior notes and credit agreement issued in connection with the Spin-Off. Source
• Regulatory: Guidance reflects currently imposed tariffs but excludes potential additional tariffs, trade barriers or retaliatory actions. Source

Earlier plans management reported on

• Not stated: Management reaffirmed the full-year 2026 guidance set out in the release. Source
• Not stated: Management said it remains committed to a capital allocation framework covering growth, the balance sheet and cash returns. Source

Other quarters

• Q2 FY2026 earnings call
• Q2 FY2025 results
• Q1 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.