Ryan Ghazaeri: Good morning. I am Ryan Ghazaeri, vice president of investor relations and corporate strategy. Welcome to our earnings call for the second quarter of 26. Before we begin this morning's call, I would like to remind you that today's presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 2000. These statements are not guarantees of future performance, and are subject to various risks, uncertainties, and assumptions that could cause actual results to differ materially from those expressed. Please refer to the page titled forward-looking statements in our earnings material for more detail. Presentation materials for today's call were posted this morning on the investors section of Visteon's website. Joining us today are Sachin S. Lawande, president and chief executive officer and Jerome J. Rouquet, senior vice president and chief financial officer. We have scheduled the call for 1 hour, and we will open the lines for questions after Sachin and Jerome's prepared remarks. Please limit your participation to 1 question and 1 follow-up. Thank you again for joining us. Now I will turn over the call to Sachin.

Sachin S. Lawande: Thank you, Ryan, and good morning, everyone. Visteon delivered another quarter of solid execution despite a challenging industry production environment. Customer vehicle production declined approximately 5% during the quarter yet our sales remained essentially flat year over year resulting in approximately 4 percentage points of market outperformance. Performance was driven by the continued ramp of recent launches, particularly in Europe and India, underscoring the benefits of our diversified customer base expanding product portfolio. Adjusted EBITDA was $116 million representing a 12.1% margin while adjusted free cash flow remained positive. Our balance sheet continues to be healthy ending the quarter with $650 million in cash providing flexibility to invest in growth while returning capital to shareholders. Beyond the financial results, we continue to execute on the strategic priorities we outlined at Investor Day. We launched 24 new products across 11 automakers, and secured $2 billion of new business awards bringing first half bookings to $3 billion and keeping us on track for our full year $6 billion target. We also expanded our smart core high performance compute business with another premium brand under the Geely Group, further strengthening our position in AI enabled cockpit computing and reinforcing our confidence in the long term growth opportunity for that product offering. Finally, this morning, we announced a $200 million accelerated share repurchase program representing the next step in executing the capital allocation framework we outlined at our Investor Day in June. Let me now turn to our second quarter sales performance on Page 3. This slide shows our regional sales performance in what remained a challenging production environment. Customer vehicle production declined in every major region during the quarter, yet our diversified customer base, recent product launches, and disciplined execution enabled us to outperform underlying market trends. Starting with The Americas, sales reflected the headwinds we have discussed previously, lower customer production, reduced BMS volumes with GM, and Ford vehicle discontinuations. Those headwinds were partially offset by the continued ramp of Nissan multi display systems and Volkswagen infotainment programs allowing us to perform broadly in line with the underlying customer vehicle production. Europe was our strongest performing region, sales increased despite weaker customer production, driven by excellent launch execution. Our panoramic display program with Audi multi display systems with Renault, and our new Mercedes display launches all contributed to strong regional momentum and meaningful market outperformance. In Rest of Asia, underlying demand remained strong. Growth in India more than offset currency headwinds, and the roll off of a Mazda program in Japan. SmartCore programs with Mahindra, along with infotainment launches with Tata, and continued 2 wheeler growth supported another quarter of solid execution. Finally, in China, our sales reflected continued weakness in the value segment of the market following the changes in government policies and incentives, and the ongoing loss of market share of international OEMs. However, the premium domestic OEM segment remained considerably more resilient. that is an important distinction because our strategy is increasingly aligned with those premium domestic manufacturers. During the quarter, cockpit domain controller programs with customers such as [Inaudible] continued to build momentum And with our high performance compute launches starting later this year, we believe we are well positioned in the fastest growing portion of the Chinese market. Overall, the quarter demonstrated that while customer production remained under pressure, our regional execution, diversified customer portfolio, and ongoing launch cadence enabled us to deliver a resilient sales performance and position the business well for the balance of the year. Turning to Page 4. This quarter was another demonstration of Visteon's ability to execute at scale. We successfully launched 24 new products across 11 automakers, keeping us on pace for another year of high launch activity providing a strong foundation for second half growth. More than half were display products, reflecting the industry's continued migration toward larger, higher content digital cockpits, an area where Visteon has established clear technology leadership. The Mercedes Benz s class super screen highlighted on the right is an excellent example. System integrates 2 large displays under a single cover lens creating a seamless premium cockpit experience. It also incorporates advanced features such as switchable active privacy for the passenger display illustrating the increasing software and engineering content in modern display systems. Importantly, our momentum with Mercedes extends beyond this flagship vehicle. During the quarter, we also launched display systems on other high volume Mercedes platforms expanding our premium display technology across the OEM's portfolio. We continue to broaden our customer and geographic in the quarter, We launched a dual display system for Nissan's flagship mini the Elgrand, a center display for Renault Austral, digital clusters with Hyundai in India, and multiple additional display programs supporting our growth across Europe and Asia. The quarter also highlighted the progress we are making beyond passenger vehicles. We launched the digital cockpit platform on Royal Enfield's first electric motorcycle the Flying Flea, as well as a connected digital cluster with Hero Motorcycles. These programs demonstrate how we are leveraging our proven cockpit technologies into adjacent mobility markets, where digitalization is accelerating and our existing platforms provide solutions at an attractive cost structure. Overall, these launches reinforce several important trends. First, our portfolio continues to migrate toward higher value and software defined cockpit technologies. Second, we are successfully expanding across premium and mainstream vehicles. And in the adjacent mobility segments. And finally, our ability to execute a high volume of complex launches around the globe continues to be an important competitive advantage and supports confidence in our long term growth outlook. Turning to Page 5. New business wins totaled $2 billion during the quarter, bringing our first half bookings to $3 billion and keeping us on track for our $6 billion full year target. Approximately 45% of our wins in the second quarter came from North America, where we added 2 customers in the commercial vehicle segment in addition to winning business with our traditional passenger car customers. Asia represented about 30% of bookings, with Europe contributing the remaining 25%, resulting in a well balanced geographic mix. Importantly, the quality of our bookings continue to improve. Approximately 60% of first half wins came from our strategic software defined vehicle portfolio including SmartCore cockpit domain controllers, high performance compute platforms, and advanced display systems. In addition, we secured approximately $340 million of new business in commercial vehicles and 2 wheelers demonstrating continued progress in expanding beyond traditional passenger vehicles. Let me highlight a few of the strategic new business wins in the second quarter. First, we secured another SmartCore high performance compute program with another premium brand under the Geely Group. This expands our HPC footprint within the group, adds another premium vehicle brand to our customer base, and further strengthens our leadership position in AI enabled cockpit computing an area where we continue to see significant long term growth opportunities. Second, we made important progress in commercial vehicles. We added 2 new commercial vehicle customers in North America, including our first integrated cockpit win with a specialty vehicle manufacturer that includes digital cluster, center display, and surround view system. We also secured the surround view system business with a leading global commercial vehicle manufacturer, for the North American brands. These wins extend our commercial vehicle strategy beyond Europe and demonstrate that our cockpit platform is increasingly relevant across multiple mobility segments. Third, we have won multiple display programs with an OEM in North America across multiple future vehicle platforms. These awards support our transition towards software defined cockpit products with this customer and strengthens our position for future business with this important OEM. Finally, we added a Japanese OEM to our customer portfolio with our first win for a digital cluster program that will launch on multiple vehicles for Japan and US markets. Beyond the immediate revenue opportunity, this represents another important step in broadening our customer base in Japan a market where we have consistently demonstrated our ability to expand relationships over time. Overall, our first half bookings reinforced the strategy we presented at Investor Day. They are increasingly concentrated in higher value software defined cockpit products, expanding into adjacent mobility markets, and continuing to diversify both our customer base and geographic exposure. Turning to Page 6. Let me turn to our outlook for the balance of the year. The first half demonstrated that our strategy is translating into execution. We delivered $1.9 billion of sales, $3 billion of new business wins, and 44 product launches creating a solid foundation for both our full year outlook and our longer term growth objectives. Looking ahead, we expect Visteon sales to grow in the second half compared to prior year, supported by the ramp of recently launched programs and a strong second half launch schedule. This is despite customer vehicle production being forecasted to be down by about 5% in the same period. Our sales are expected to grow in all regions except in the Americas. The launch of new cluster programs with Toyota in North America will be partially offsetting the headwinds from lower customer production lower BMS volumes and the roll off of a legacy cluster program with GM. In Europe, we expect another period of strong execution with mid teens sales growth despite lower customer vehicle production. Our recently launched display programs with Mercedes, Audi, and Renault are doing very well, and we will also start production of our SmartCore cockpit domain controller with a premium German OEM. In the rest of Asia, we also expect mid teens growth. with the ramp-up of a SmartCore program with Mahindra, display launches with Toyota, and ramp up of programs with Hyundai and Tata. And in China, although customer production is forecasted to decline, we expect to return to low single digit sales growth as our first SmartCore HPC programs launch with Geely and Cherry. Overall, we expect mid to high single digit outperformance in the second half While weaker customer production will continue to temper industry growth, our launch cadence is expected to more than offset those headwinds supporting sales growth this year while building the foundation for stronger growth in 2027. Turning to Page 7. Let me conclude by summarizing what we have accomplished this quarter. First, we continue to outperform the market. Despite weaker customer production across all major regions, our recent product launches enabled us to deliver approximately 4 percentage points of market outperformance. Second, we continued to strengthen the business for the future. We secured $2 billion of new business awards, the majority aligned to software defined vehicle technologies and adjacent growth markets, while maintaining a robust launch cadence that supports both our second half outlook and our longer term growth objectives. Third, we remained disciplined operationally and financially. We continued to make progress recovering higher memory costs, secured the supply needed to support upcoming launches, and generated positive free cash flow. And finally, this morning's announcement of our $200 million accelerated share repurchase program represents the next step in the capital allocation framework we outlined at Investor Day. Overall, this quarter provided another important proof point that the strategy we outlined at Investor Day is supported by our operational execution. We remain confident in our outlook for the second half of 26 and in the long term growth opportunities ahead. With that, let me turn the call over to Jerome, who will review our financial results in more detail.

Jerome J. Rouquet: Thank you, Sachin, and good morning, everyone. We delivered financial results in the second quarter that demonstrate our resiliency in what remains a dynamic operating environment. Our performance reinforces that we continue to make progress on the commercial and cost actions we outlined earlier this year. For the quarter, sales were $960 million down 1% from the prior year, while outperforming our customer weighted production with growth over market of 4%. This was driven by strong launch execution on customer programs most notably in Europe and in India. Additionally, we progressed well with our semiconductor cost recoveries in Q2, and we secured agreements with many customers allowing us to offset the increase in memory cost incurred in the second quarter. Adjusted EBITDA was $116 million representing a margin of 12.1%, an improvement of more than 1 point from the first quarter reflecting the progress we have made with our customer recoveries and efficiency improvements. Adjusted free cash flow was $20 million positive for the quarter despite an increase in inventory, as we continue to build resilience in our supply chain and the timing of cash settlements of previously accrued tax expenses. In June, we completed the acquisition of an engineering service company for $20 million further enhancing our functional safety and safety system architecture capabilities. We also returned $16 million to shareholders in the form of dividends and share repurchases. We ended the quarter with $650 million of cash, and net cash of $351 million allows us to deploy a significant amount to shareholders in the second half of the year. Turning to Page 10. Sales for the quarter were $916 million, a decrease of 9 million year-over-year or 1%, primarily driven by decline in customer production volumes and the non recurrence of favorable 1-time commercial items in the second quarter of 25. These headwinds were largely offset by a solid growth over market of 4%, when excluding pricing, customer recoveries, and currency. The additional memory cost recoveries we secured with our customers in Q2 were sufficient to offset our normal pricing reductions. Currency impact in the quarter was largely neutral on the sell side. EBITDA was $116 million or 12.1% for the quarter, our best EBITDA margin since Q3 of 25. This was driven primarily by the recoveries we secured in the quarter combined with strong cost discipline. On a year over year basis, EBITDA declined $18 million As a reminder, and as we noted in our Q2 25 earnings call, Q2 25 EBITDA was exceptional and benefited from $10 million of several non recurring items mostly commercial in nature. Besides these $10 million, we also had $8 million of negative year over year currency impact, mostly driven by the devaluation of the Indian rupee and the Japanese yen as well as the appreciation of the Mexican peso. These 2 factors explain in simple terms the year over year decline in EBITDA. At a more granular level, year over year engineering increased as we continue to invest in the next generation of software-defined vehicle products. Mostly for the European, Indian, and Chinese markets. The engineering services acquisitions we have made last year as well as the acquisition I mentioned earlier, also increased our engineering cost run rate. These additional costs were mostly offset by operational efficiencies. Finally, as cost recovery is a critical component of 2026 results, I would like to provide some more details on this topic. With regards to recovery agreements with our customers, we made meaningful progress in the quarter. Consistent with the assumptions embedded in our guidance. And highlighted in Q1. We were able to recover most of the memory cost inflation incurred in Q2 with retracted agreements compensating for the lack of deals with some customers. We continue to meet with our customers and expect to close the agreements that remain open in the second half of the year. Overall, our performance in the quarter was strong when adjusting for currency, was in line with our expectations and represents the sequential improvements that we were anticipating going into the year driven by recoveries product costing actions, vertical integration and engineering productivity. Turning to Page 11. Adjusted free cash flow was $20 million in the quarter, and negative $3 million for the first half. The first half reflects several key dynamics. First, adjusted EBITDA in the first half was primarily impacted by the timing of semiconductor cost recovery negotiations which are expected to be fully closed in the second half of the year. On the trade working capital front, this line item has been a use of cash for the first half of the year. This has been a deliberate decision driven primarily by specific actions, increasing inventory levels, to support higher minimum safety stock levels and to allow us to build a better supply chain resilience. Cash taxes were higher in the second quarter, due to a 1-time tax settlement in India related to prior years. Consistent with prior years and as we expected, the first half of the year generally has more cash outflows for items like the annual compensation, which is paid in Q1. While these items limited cash generation for the first half, we believe we will be able to generate cash to the levels we are guiding to for the full year. And finally, capital expenditures were in line with our expectations as we continued to support new program launches capacity expansion in India, and the modernization of our IT infrastructure. During the second quarter, we completed the refinancing of our $300 million term loan facility and $400 million revolving credit facility. Extending the maturity to 2031 and giving us a flexible capital structure to execute our capital allocation plan. We ended the quarter with $650 million of cash and $351 million of net cash after capital allocation. As we highlighted at our Investor Day, our current cash levels position us well to deploy capital in a disciplined and balanced manner. Turning to Page 12. Consistent with our Investor Day messaging, we are reaffirming our full year guidance across all key financial metrics. For sales, we continue to expect between $3.625 billion and $3.825 billion and are trending towards the high end of the range at $3.8 billion Our sales reflect our year to date performance continued progress on customer recoveries, as well as a strong second half launch cadence. Partially offset by softer customer production. Our launch cadence includes digital cluster and display launches with our top growing OEMs, as well as large SmartCore CDC and high performance compute program launches in China. With regards to adjusted EBITDA, we continue to expect between $455 million and $495 million and are trending towards the midpoint of the range of approximately $475 million. As mentioned during our Investor Day in June, cost pressures initially seen in memory are now extending to other purchase components. Making it difficult to fully offset inflation in 2026 despite our teams taking further actions to recover and offset these additional costs. In spite of these headwinds, we expect margins to improve throughout the rest of the year driven by more customer recoveries and the ramp up of our cost initiatives across product costing, vertical integration, and engineering productivity. Finally, with regards to adjusted free cash flow, we continue to expect between $170 million to $210 million while trending towards the low end of the range of 170 million and having a good line of sight to the second half cash generation. EBITDA in h 2 will support higher cash flow for the remainder of the year as recoveries and cost actions carry margins toward the full year guide. We also expect working capital to improve with some consumption of the first half inventory build while receiving cash on recovery agreements we secured late in the second quarter. Another significant piece of the second half performance is related to first half items that will not reoccur such as our annual incentive compensation payout, the India tax settlement, and other seasonal cash outflows. Overall, we plan to maintain more elevated inventory levels through the balance of the year a deliberate choice to protect our customers' launches and production schedules given the current semiconductor and memory environment. Nevertheless, the underlying cash generation capability of the business remains strong and we have good visibility to a robust cash inflow in the second half. Turning to Page 13. I would like to close with our capital allocation announcement this morning. With the support of our Board of Directors, we have entered into a $200 million accelerated share repurchase agreement, which we expect to complete by early Q4 of this year. The program will exhaust the remaining capacity of our 2023 authorization and will utilize a meaningful portion of the 2020 new $800 million authorization we announced at Investor Day. At our Investor Day, we targeted to return approximately $1 billion of cash to shareholders between 2026 and 2029. We also highlighted that we need $150 million of net cash to run the business. Our net cash position at the end of June was approximately $350 million and therefore supports the near term deployment of $200 million The ASR is the first step in delivering on our $1 billion target. It allows us to retire a significant number of shares immediately It demonstrates a clear pace of execution as we repurchase $800 million over the plan period and it provides what we believe is a compelling use of our capital at current valuation levels. We have intentionally matched the completion window of the ASR with our second half cash generation, giving us flexibility to execute capital returns in excess of the accelerated program in Q4 while maintaining the minimum net cash framework we outlined at Investor Day. Importantly, even after funding the announced program, we maintain a healthy balance sheet and flexibility to invest organically in the business going forward, as well as to pursue disciplined bolt on M and A as we did this quarter with our 14. In summary, the second quarter reflects a resilient underlying performance in a challenging production environment. Continued progress on recoveries and cost improvements, and an important step in delivering on the capital return framework we outlined at our Investor Day. We remain confident in our full year outlook and in the long term opportunity ahead as we execute on the plan that we outlined in June. Thank you for your time today, I would like now to open the call for your questions.

Operator: At this time, if you would like to ask an audio question, please press * then the number 1 on your telephone keypad. Again, that is * and the number 1. We will pause just a moment to compile the q and a roster. Your first question comes from the line of Tom Narion of RBC Capital Markets. Tom? Go ahead.

Tom: Oh, hi. This hi. This is Tom Aceto on for Tom. Thanks for taking the question. Guess, first, at your Investor Day, you guys flagged that Ford and GM were sort of moving to insource their CDCs. Given that some of given that several of your key Chinese OEM wins on CVCs are with these large sort of tech savvy players, like Geely and Cherry. Guess, how do you think about the in sourcing risk from the Chinese OEMs over time? And think that risk could be higher or lower in China relative to some of the Western OEMs? And then I have a follow-up.

Sachin S. Lawande: Yep. Thank you. Yes. Let me take this question and answer it a little more broadly because I suspect that many would have similar question today. So first I would say is both Ford and GM are very important customers for this, you know, and we continue to engage with them on new business opportunities. You look at our first half new business wins, about 20% of those wins came from these 2 OEMs. Mostly poured in this period for displays. As I mentioned on Investor Day, our portfolio will change from traditional products to more STV products. Starting with the space and eventually hopefully, CDCs and HPCs. Now coming to your question about insourcing and what do we see and how we think about it. The first thing to note is that the pace of change of technologies in the industry is just been accelerating. And it continues to accelerate. So as OEMs are even dealing with the challenges of launching CDCs, they have to deal with HPC and AI and all these technologies that are coming at the industry at a very rapid pace. And this challenge is even greater for larger OEMs that have multiple vehicle segments and regions to support. So if you think about how large Chinese OEMs are dealing with this, They are actively collaborating with strategic suppliers for specific types of products and technologies. that is 1 of the reasons why we have been successful in China with CDC and now with HPC. And so coming back to Ford and GM, with the work that we have been doing on this advanced technologies with HPC and AI, and launching and gaining that experience in China ahead of everybody else, we expect to find areas to collaborate with these OEMs future programs, especially around these technologies. And I should also mention that sales plan that we presented at Investor Day was based on a very thorough evaluation process that we did not and we did not include any unsubstantiated sales just based on hope, if you will. But that does not mean that we do not have a pipeline of opportunities to pursue and hopefully outperform sales plan. And we have plan of sight to multiple such opportunities with these 2 customers that we are actively pursuing. So this gives you a sense of how we think about this. it is really not that we have a limited set of opportunities in this environment where technologies are coming at the industry at a very rapid pace, and we have the opportunity to really lead what we are really good at, which is this advanced electronics and software, which today is represented by HPCs and AI.

Tom: Gotcha. Very helpful. I guess as a follow-up, you guys you guys demonstrate some pretty resilient growth over market through the first half even given the tough production environment. I guess given that, is there a specific like, gating factor preventing you from being a little more even more aggressive on buybacks today? Especially considering where the stock is trading. I guess, in addition to leaving some room for M&A, is there, like, a minimum cash for maybe even a net cash target that we should be thinking about? Thanks.

Jerome J. Rouquet: Yeah. Yeah. it is Jerome. I will. I will take that question. You are absolutely right. We have indicated during Investor Day that our net cash target was $150 million and we finished the quarter with $350 million of net cash on the balance sheet. So therefore, having $200 million that we could deploy essentially right away. And we indicated, again, during investor day that we would deploy this pretty quickly. that is really the rationale for the ASR that we have announced today, $200 million that will allow us to retire shares pretty quickly And it is, it is the first step really, deploying a large amount of capital towards shareholders. We have committed to return close to $1 billion over the period of 2026 to 2029, in the form of dividend, but mostly share repurchases. And that is what we are executing towards. So it is really following up on our plan on our plan as we laid it out during investor day.

Operator: Your next question comes from the line of Rajat Gupta of JPMorgan. Take it away.

Analyst: Brett. Thanks for taking the question. I wanted to double click a little bit on the recent Micron agreement. Curious if you are able to provide any more details on what it gets you, you know, any early read on pricing? Is this more of like a price agreement, more of like a supply agreement just to lock that in for the next couple of years? Any more details you can give us around that would be helpful. I have a quick follow-up.

Sachin S. Lawande: Yes. Thank you. So the first thing I would say is with the recent memory technology changes, that have happened the kind of memories that we use in auto, have been in tight supply all this year. And it is expected to only get more challenging in terms of supply next year. And auto is a long cycle industry, and besides price, we need long term product availability and, more importantly, controlled transitions when older memory technologies are being retired. So what this agreement does, the 1 that we have signed with Micron, is that it gives us a better assurance on supply with better long term visibility. Into availability of memory It also gives us better price predictability. With better, you know, commercial terms if of, know, if you were not to for example, have this agreement. And then very importantly, this insights that we have on the planning that enables us to then reduce risk of this long cycle automotive programs. These 3 things. Right? So supply assurance, pricing predictability, and better planning. This is essentially what we get from this agreement that we have signed. Now having said that, I wanna be very clear that even with the agreement in place, we anticipate 2027 to be quite challenging in terms of getting sufficient supply to meet our demand as we see the demand where we sit today. We have been working with multiple alternate suppliers to bring them on board and to close any gap And we will know more as we progress further in the second half of this year. We are also redesigning some of the products so that we have more flexibility in using memory parts from different suppliers. The combination of this supply agreement that we have with Micron, additional memory alternate suppliers that we are bringing on board and the redesigns. I think we are doing pretty much everything we can to give us flexibility. First, to tide through 2027, which we expect to be the more challenging year. And then, hopefully, things should start to get slightly better in 2028 and beyond as more capacity comes online to provide the industry with memory. Got it. that is very helpful color. And then I wanted to follow-up on the smart core wins and just like the overall smart core opportunity, you know, starting in China. Can you give us an update on, like, how the margins are coming through, as you start ramping up, you know, the production here and the shipment? Yeah. Any early read on that relative to like corporate average? Thanks. Exactly. So and in any complex programs, like SmartCore or SmartCore HPC that attracts a lot of engineering just because of the heavier content. The launch margins are going to be a little lower than the steady state higher volume margins. 2027 oh, sorry. 2026, first, is gonna be our launch year, the second half. Also extending into, I would say, the first half of 2027. And the real volume shipments would begin in 2028 and onwards. So we expect margins to gradually track the higher volumes and improve into 2028 and beyond. And we expect them to be very similar to our average margin. So I would not want you to think of them as necessarily being a drag, for certain, on our margins. And we expect to as the volumes increase, to continue to improve from there.

Operator: Your next question comes from the line of Emmanuel Rosner. Of Wolfe Research. Emmanuel, take it away.

Emmanuel Rosner: Brett. Thank you very much. I was hoping to follow-up with you, Sachin, on the topic of the insourcing. It feels like for the longest time, it always felt like, you know, an worry that, you know, this may happen, but OEMs were never really able to pull it off for various reasons, but there were a lot of, you know, execution problems. Now it seems like it is sort of, like, happening, and I am just curious to hear from your perspective what are sort of, like, the changes that have happened that enable OEMs to do it? What are the challenges they are facing? And then any server that gating factors, why would it be in, like, 1 specific product line and not in another 1? Look, how do you see this evolve, you know, more holistically?

Sachin S. Lawande: Yeah. Hi. Hi, Emmanuel. I would not say that is the right characterization that it is happening. You know, we as you have been tracking this industry long enough, you have seen such intent from various OEMs throughout the last several years. And what has turned out to be the case more often than not is that the OEMs have changed plans after progressing a little bit further in their activities. So what we are seeing here, to be clear, is that we are not seeing anything different than what we have seen in the past. And we fully expect it to play out similarly as it has played out with other OEMs previously. But that is just our expectation. Right? You will have to ask these OEMs eventually to get more insights, but the experience that we have and the past examples that we have in front of us just tells us that it is extremely difficult to launch CDCs and HPCs doing all of those things in house especially for larger OEMs. And that does not change for anything or anybody, and that is been you know, how it has been. So we think that we can be a good collaborative partner and support all OEMs in the transitions to these technologies. They have been doing this successfully for several years, and we expect it to be the case as well with the customers we have here. Thank you.

Emmanuel Rosner: And then just following up on inflation in DRAM and electronics. When we do our own math around some of the commentary you provided and the implied margin headwinds, it suggests that cost you will be absorbing, you know, maybe, I do not know, $8 to $10 million in 2026. Maybe, like, $20 million in 2027. And I am not sure if those numbers are. You know, directionally the right ballpark. But just curious if you can expand what is driving this. Because I think in your prepared remarks, you were saying, expanding to other electronics, so it is gonna be hard to recover on 2026. But it looks that you also have a larger unrecovered headwind assumed in 2027.

Jerome J. Rouquet: Yeah. Good morning, Emmanuel. Let me take that 1. I think we need to step back a little bit and understand how things have progressed since the beginning of the year. And there are kind of 2 big buckets that we are dealing with. The memory cost increases, and then, which were kind of known at the beginning of the year which have stayed reasonably stable with seen some increases, beyond what we had originally guided to. that is the first bucket. And then there is a second bucket, which came in later in the year which I am going to talk about. So let's talk about the first bucket first. Memory cost increases, We are progressing exactly on plan. The impact that we are seeing is approximately 2.5% of our sales, similar to what we indicated during investor day. We have been, slow in Q1 in recovering as we had anticipated. And we did a good job in Q2 catching up with many customers and securing a lot of deals on memory recoveries. That allowed us, in fact, to be neutral from a recovery minus cost standpoint in the in the quarter. We are anticipating that the few customers where we do not have yet an agreement will be closed will be settled in Q3 and possibly in Q4 as well. But overall, we will be on target as far as memory is concerned for the full year. Beyond that, as I said, we are seeing and we have seen that starting at the beginning of the second quarter, we have seen some other inflation cost, and we are tackling this as we speak. We intend to, go back to our customers to, try to get some recoveries. As you can understand, we have had a first wave. it is now a second wave. it is always difficult to go back, but we will do that. And at the same time, we are also discussing with our suppliers to try to find some offset. So we are tackling both aspects for these other, cost increases that we are seeing since the beginning of the second quarter.

Operator: Your next question comes from the line of Joe Spak of UBS. Joe, you have the floor.

Joseph Robert Spak: Thank you. I actually want to pick up right there because, you know, we have been doing similar math on the memory covering. It looks like you are basically assuming--I do not know, so it is coming close to 90% recovery But I guess I am--here, what I am confused by is understand what is going on now where, like, you had to pay the price, and now you need to go back to the customers. But I am confused as to sort of why that does not change in the future with the SCAs because then you know the price. Right? So why cannot that just be the price you charge and get closer to a 100%? Maybe it has something to do with what percent of the business the Micron deal covers, which I think Sachin, you sort of alluded to that there is still more work to do. But also you know, then you saw some of the automakers also enter into this agreement. So like, does not that help as well?

Sachin S. Lawande: Look, I am just maybe you could sort of just--it does. On the panel. Yeah. Yeah. Let me clarify that. So the agreement certainly helped because it takes away this whole notion about us trying to come to them for price increases. This is now public knowledge. Our customers know this. As well. But, as you just rightly pointed out, the agreement are just with Micron, and Micron is not the full extent of the memory supply. To the industry or to us. Right? Other memories that we also have to deal with. Right? So there is DRAM, there is flash, there are different types of memories within each category that we have to work with. But in general, though, we fully intend to go out to our customers and recover 100% of the cost increases next year. Let's just be very clear about that. Right? Now what Jerome has been talking about are non memory related semiconductors. Again, I think there is some confusion there. Right? So memory, separate topic. there is there is other semiconductors. That are also seeing some cost in and price increases. This discussion was more about those. it is smaller in scope, it is widespread. And we also have alternative options, by the way, This is not the same situation as memory. Hopefully, that is clear.

Joseph Robert Spak: Yeah. So maybe just to be clear on that, I think, like, at the Analyst Day, said something about, like, a 100 basis point impact. That was not just memory; that was all electronic related inflation.

Sachin S. Lawande: It was everything, but it is mostly in 2027. We expect the bulk of it to come from memory. Cost increases.

Joseph Robert Spak: Okay. But these additional electronics, like, that is embedded in that 100-basis point. That is correct.

Jerome J. Rouquet: Yes. Correct. Absolutely. Yes.

Joseph Robert Spak: Okay.

Jerome J. Rouquet: But as Sachin said, you have, what we know is coming from Micron, and then you have other more dynamic memory suppliers as well with different Yeah.

Sachin S. Lawande: Put it another way. Micron is able to supply us everything we need, it is a different discussion, but we are expecting it not to be the case.

Operator: Your next question comes from the line of Itay Michaeli. Itay? Of TD Cowen. You have the floor.

Itay Michaeli: Brett. So I will ask 1 more on just memory cost recovery. Just over time, I know it is uncertain kind of where memory prices will go, but do you expect you will eventually kind of recover all of it, just sort of a lag effect that inflation continues to intensify, you just kind of have to absorb it temporarily. And related to that, to what extent are just some of the new customer wins you have had, which is great, perhaps also contributing to sort of a bit of a lag on recoveries as maybe you do not chase recoveries as aggressively as some of your other customers perhaps?

Sachin S. Lawande: Yeah. So I will answer the question you have first. So the new wins that we have, we are already including the higher cost of memory in those business engagements. So it is really more a question about the existing programs that we have. And in terms of, what happens in the future, so the way we are looking at it is for 2027, it is really a matter of securing supply. So right now, in total, the industry is not gonna get as much memory as it needs just from the traditional suppliers. So we have to go out and secure that supply. Would be a cost to that supply, and we fully expect to be able to recover that Now there is a cost to also on our side engineer the products that I mentioned earlier be able to support all the various different types of memories, qualify them, etcetera. Portion of that cost, we may have to absorb. That is part of what Jerome has in his discussion. Now as we go forward, this increased supply is going to give us more optionality and more competitive pressures to help drive the memory cost down and hopefully also improve our margins in the process.

Itay Michaeli: Brett. that is helpful. Thanks, Sachin. And then just a quick follow-up. Switching gears. Just wanted a bit more color, if you can, on the new Japanese OEM customer win, I think for digital clusters that you talked about. Kind of curious how this opportunity came about, maybe kind of what the future can hold? And how much of this opportunity is embedded in sort of the out year financial forecast? Brett. Brett. Thanks, Josh.

Sachin S. Lawande: This is actually a very important part of what we wanted to communicate now. Unfortunately, as you know, most customers do not like us to share our details and the name until the product is launched, so I will stay away from that. But I will say that this is an OEM that it is not part of the global top 12. But the volume is very meaningful and it can be a very good contributor to our revenues in Japan and North America. And we have never been a supplier to this OEM and are growing I would say, reputation in Japan is really what created this opportunity And we see a significant you know, future opportunity to expand, but on the specific program itself, is for a digital cluster that are, I believe, 3 vehicles in the initial award with more to follow. And I think this is going to be a very good customer for us for many years. That helps us in both regions, North America and in Japan.

Operator: Apologies. Can we take the next question, please? Yes. Next question comes from the line of Dan Levy of Barclays. Dan, you have the floor.

Dan Levy: Brett. Thank you. Wanted to double click on some of the China dynamics You underperformed in the quarter. The revenue was down. But I see on your slide here, you are talking about getting back to growth in the second half in China, you know, some of the premium domestic content, then you have the HPC launches. Maybe you can just double click on the visibility of that flip to grow. Yeah. And, you know, just what was happening in the second quarter that does not happen in the second half?

Sachin S. Lawande: Yeah. Yeah. Let me address that. So as I am sure you are aware, the domestic market in China is going through what appears to be a structural change, and overall demand is down, driven by the changes recent changes in government policies as well as incentives. And most of the drop is impacting ICE vehicles. And even EVs that are not considered as smart cars are impacted and are not doing it as well as EVs that are considered as smart cars. So the demand for smart car EVs, what we refer to, and the industry is now starting to call as the premium tech segment in China, that portion of the market is doing up. And that shift is fundamentally helping domestic OEMs that have this portfolio of vehicles and hurting most international OEMs. So our sales in Q2 were up with those domestic OEMs that have this portfolio and it was hurt by the lower volumes with international OEMs. Now this dynamic changes as we go into the second half with the launches that we have talked about HPC, we see a sequential growth from first half to second half, and then this growth should continue into next year. But overall, if you look at our performance, I would say that we performed more or less in line with domestic market performance.

Jerome J. Rouquet: And maybe to add onto that, by the end of the year, we will be close to a 60% index with domestic OE in China. So we are as we are launching these, high profile, products, it will rebalance our positioning towards more Chinese domestic OEs.

Dan Levy: K. Brett. Thank you. Second question, I wanted to double click. I think this was mentioned earlier that as you are ramping on some of the Chinese customers with HPC. And I think what we have seen in the past is that you know, there is not the same visibility or security on programs for some of the Western players with the Chinese, where there could be more rapid mix shifts or the Chinese OEMs can displace. We have seen this with other suppliers. So what is the confidence that as HPC ramps that, you know, you have that visibility of being a supplier And maybe you can also just address you know, this as far as the export volumes go, how critical this is from an export perspective.

Sachin S. Lawande: Yeah. that is a good question. And I think there is really a 2 or 3 dimensions to how to think about it. I mentioned that the Chinese OEMs are kind of evolving their strategy to work more collaboratively and closely with a set of strategic suppliers for the long term. Especially on products that require ongoing software maintenance and the regional diversification. So when you think about HPC's with AI, we have to think of the AI technology as being regulated and specific to the regions. So these vehicles that the Chinese OEMs are launching in China with the AI technology that is appropriate for that region, is not suitable at all to be sold into Europe without significant amount of change. And in many cases, this regulations already in place, like in The US or emerging in Europe, which will fundamentally prohibit any AI IP that originates in China. So this requires these OEMs to have a set of capable suppliers that have this ability to support them in different regions with different AI software technologies. I think this point is somehow not easily understood, so I wanna make sure that it is very clear to everybody. This changes the dynamic in terms of the relationship very fundamentally. it is not just you give me a box and I will replace it with someone else's box tomorrow. It requires an ongoing engagement between 2 parties. And therefore, we have to think of it as a more longer term relationship. Obviously, we need to do our part and execute They are not gonna accept our lack of performance just like in any situation. So it is in my mind, it is up to us to continue to execute and deliver the, you know, the value that they expect from us I do not see this as the same type of business model as before. So the other thing, you know, to keep in mind is those set of suppliers that have these capabilities is fundamentally going to be a smaller set. Because you have to have a strong CDC capability, a proven experience there, and then be able to build AI on top of it. it is very hard to jump straight into an HPC without having gone through the CDC path. that is gonna be also another factor that will maybe have you know, it turn out somewhat differently than in the past.

Operator: Your next question comes from the line of Winnie Dong. Of Deutsche Bank.

Winnie Dong: Hi. Thanks so much for taking my questions. I just wanted to clarify the new HPC when announced in a quarter that is incremental to what was announced at the Investor Day. And then was wondering if you can also talk about the customer pipeline there in terms of interest from either domestic customers or those that have overseas ambitions, and I have a follow-up. Thanks.

Sachin S. Lawande: Yeah. Yeah. So the HPC win that we announced is incremental to what we had assumed for HPC sales. Right? So in 2027, what we had talked about in Investor Day, this was not part of it. But we will have to talk about our overall 2027 sales later this year as we incorporate all of the other input into it. But as far as HPCs are concerned, that is an incremental And to the second part of the question that you talked about, so we have, as I have I have mentioned before, 3 OEMs, and within that, lots of discussions about expanding our footprint within those OEMs also actively engaged with others in China And you can imagine who those companies would be companies or OEMs that have export markets today that they are serving. Or similar technologies And the discussions are, I would say, very active. there is a lot of energy we have spent right now in coming up with you know, solutions and next-generation of AI capabilities with all of the evolution that is happening in AI models. Which I am sure you are aware of as well.

Winnie Dong: Brett. Thank you. And then if we go back to the Investor Day deck, on the revenue ramp down from GM and Ford Just wanted to understand to what extent is it sort of like a base case scenario, or more of a worst case scenario? Do you have any conservatism built in it? And then if we were to think about the opportunities for supplying other components such as displays, is there any way to quantify those opportunities, and therefore, they can serve as offsets to those declines.

Sachin S. Lawande: Yeah. So as I have mentioned, I will I will I will make sure to reiterate, We certainly took a very thorough approach and did not include anything that we thought was not a clear line of sight in terms of the business with these 2 OEMs. So you can say that in that sense, is a conservative view of our outlook and we wanted to make sure that we are very transparent about what we are seeing. And at the same time, it is really important to stress this point that it does not mean that we are not seeing opportunities with them. We are continuing to have many active discussions with the Afford and GM A lot of that right now is centered around in this year in particular, more displays. And we are just starting to engage with them on electronics. As they think about the next several years of vehicles' needs for cockpit electronics, or CDCs and with HPCs And we have a extremely, I would say, unique vantage point to bring value to them in terms of helping them understand what the market situation is, what our experience has been in China, and the various options available to the industry and the deeper insights into what goes into really what makes a good or perhaps not as good as advertised solutions for SOCs that they should be picking. So we are having those discussions currently. We expect that on the cockpit electronics front, from a timing viewpoint, these are probably not something that we will be talking about in terms of decisions this year. Probably next year. So we have a busy couple of quarters ahead in terms of engagements with them to further this on this discussions along. And we will be in a better position to share with you how we think about opportunities in the future. But just to leave you with that, that we certainly look at this as a sort of the baseline from which we hope to build you know, further upon The timing, obviously, we will have to come back to you with that as we know more. You know, unlike in China and India where we have been able to turn very quickly from award to revenue, In fact, you know, this has been 1 of the things with this $3 billion of new wins that we have had in the first half. We have had this set of bids contribute revenue as early as 2027 in a meaningful way, that is not how it typically works with OEMs in Europe and in The US. So timing impact of everything that I have said previously in terms of our discussions with them. We will know more as we, you know, go further here.

Ryan Ghazaeri: Okay. Thank you, Sachin. Thank you, Jerome. This concludes our earnings call for the second quarter of 26. Thank you for participating in today's call and your ongoing interest in Visteon. This concludes Visteon's second quarter 26 results earnings call. You may now disconnect. Okay. Thank you, Sachin. Thank you, Jerome. Concludes our earnings call