Significant New Business Wins and Strategic Growth Opportunities
Won $2 billion in new business in Q2, bringing year-to-date total to nearly $4 billion, with confidence to exceed $6 billion annual target.
Key wins include a 48-inch OLED display for a German luxury automaker, a 16-inch display for Hyundai in India, a $400 million digital cluster program for Honda's 2-wheeler segment, and a cockpit domain controller for TRATON valued at $350 million.
Growth driven by OEMs extending existing platforms with hybrid and EV models, with a focus on displays and digital clusters as value-added upgrades.
Strategic focus on expanding into commercial vehicle and 2-wheeler markets, which could represent up to 10% of sales by 2030, up from 4%.
Adjusted EBITDA was $134 million, representing a margin of 13.8%, matching the record margin from the previous quarter.
Adjusted free cash flow was $67 million for the quarter, supported by robust EBITDA and working capital inflows.
Capital expenditures were $66 million, about 3.5% of sales, slightly below the original full-year run rate.
Growth versus market was negative 1% in the quarter, with excluding China growth over market at 4%.
Net cash position ended at $361 million, with $671 million in cash on the balance sheet.
Nonrecurring commercial items contributed positively to EBITDA by approximately $25 million in the first half of the year.
Sales decreased by $45 million year-over-year, impacted by lower BMS sales and market dynamics in China, partially offset by growth in cockpit electronics.
Visteon reported net sales of $969 million in Q2 2025, exceeding initial expectations, driven by strong demand for digital cockpit products in North America and Europe.
Strategic Shift Toward B2B and Proprietary Brands Growth
GrowGeneration is actively transforming into a leaner, more profitable, product-driven business with a focus on B2B customers.
Proprietary product sales increased to nearly 32% of total revenue in Q2 2025, up from 21.5% last year, indicating a strategic emphasis on higher-margin private label products.
The company launched its digital B2B platform, GrowGen Pro Portal, which is gaining significant traction among wholesale customers, aiming to migrate more transactions online.
Management highlighted ongoing efforts to close underperforming stores, reducing retail locations to 25 by the end of Q3, to streamline operations and improve profitability.
The focus on proprietary brands and digital transformation reflects a deliberate shift away from traditional retail toward scalable, high-margin B2B channels.
Dafinchi