10-Q · May 5, 2026
Versigent PLC reported a 9% growth in net sales to $2.212 billion for Q1 2026, compared to $2.024 billion in Q1 2025. However, net income attributable to Versigent decreased to $78 million from $95 million in the prior…
Earnings analysis · 10-Q
VGNT earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Versigent delivered a strong Q2, with revenue up 11% year over year to $2.444 billion, gross margin up 120 bps to 13.1%, operating income up $68 million to $199 million, and diluted EPS of $1.64. Volume growth in North…
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Versigent delivered a strong Q2, with revenue up 11% year over year to $2.444 billion, gross margin up 120 bps to 13.1%, operating income up $68 million to $199 million, and diluted EPS of $1.64. Volume growth in North America and Asia Pacific and operational savings outweighed European volume weakness, unfavorable pricing and commodity-cost pressure. Cash generation was positive, but the post-spin capital structure adds meaningful interest expense: Q2 interest expense rose to $36 million and net debt was $1.670 billion. The filing contains no explicit quantitative guidance, while management expects ongoing separation and restructuring costs through 2026.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Reported figures
- Earnings per share
- $1.64
What stood out
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Revenue grew 11% to $2.444 billion
Q2 net sales rose $238 million, or 11%, year over year to $2.444 billion. Management attributed growth to $120 million of volume, $96 million of commodity pass-through and $40 million of foreign exchange, partly offset by $18 million of pricing.
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Margins and EPS improved materially
Gross margin expanded 120 bps to 13.1% from 11.9%, while operating income increased $68 million to $199 million; operating margin was 8.1% versus 5.9% a year earlier. Diluted EPS was $1.64.
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Adjusted EBITDA margin rose 120 bps
Adjusted EBITDA increased $54 million to $272 million and margin expanded to 11.1% from 9.9%. The filing cites favorable volume and operational cost reductions as the principal drivers.
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Cash generation remained positive
First-half operating cash flow was $194 million versus $190 million, and capital expenditures were $117 million. This implies $77 million of free cash flow, despite $48 million of separation costs during the six-month period.
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Liquidity supports capital returns
Liquidity totaled $1.404 billion at June 30, comprising $554 million of cash and $850 million of undrawn revolver availability. The company also declared a $0.13-per-share quarterly dividend payable September 18, 2026.
What to watch
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Spin-off financing raises interest burden
Interest expense increased to $36 million in Q2 from $1 million a year earlier, following issuance of $800 million of 6.125% notes due 2031 and $800 million of 6.375% notes due 2034. Net debt was $1.670 billion at June 30, 2026.
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Separation costs remain a 2026 drag
Separation costs rose to $22 million in Q2 from $2 million and to $48 million for the first half from $7 million. Management expects additional separation expenses during 2026.
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Commodity pass-through dilutes profitability
Commodity impacts added $96 million to Q2 sales but reduced gross profit by $9 million; for the first half, commodity impacts reduced gross profit by $40 million. Management also cites continued inflation, tariff uncertainty and pricing step-down pressure.
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OEM volatility pressures working capital
Inventory levels remained elevated as of June 30, 2026 because of OEM production volatility and cancellations. The company reported $156 million of first-half cash use from changes in operating assets and liabilities, net of restructuring and pension contributions.
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No formal risk-factor update; restructuring continues
There were no material changes to risk factors previously disclosed in the March 6, 2026 information statement. However, management expects additional restructuring beyond the $46 million recorded in the first half, including a European site downsizing/closure program of approximately $33 million.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management states that existing liquidity and operating cash flow are expected to fund operations, restructuring, capital expenditures, debt obligations and separation activities; quantitative full-year outlook was deferred to the earnings release/call.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.