Key Takeaways Adient's fiscal Q3 EPS rose to 45 cents but fell short of the 47 cents consensus estimate.Quarterly sales grew 0.7% Y/Y to $3.74B, topping the $3.56B consensus forecast.FY25 revenue expectation lifted to $14.4B, with EBITDA forecast raised to $875M.Adient (ADNT) reported adjusted earnings per share (EPS) of 45 cents for the third quarter of fiscal 2025. Earnings rose from 32 cents recorded in the year-ago period but lagged the Zacks Consensus Estimate of 47 cents.The company generated net sale ...

Core Insights - Adient reported revenue of $3.74 billion for the quarter ended June 2025, reflecting a year-over-year increase of 0.7% and a surprise of +5.08% over the Zacks Consensus Estimate of $3.56 billion [1] - The company's EPS for the quarter was $0.45, compared to $0.32 in the same quarter last year, although it fell short of the consensus estimate of $0.47, resulting in an EPS surprise of -4.26% [1] Company Performance Metrics - Adient's stock has returned -0.2% over the past month, while the Zacks S&P 500 composite has increased by +0.5%, indicating underperformance relative to the broader market [3] - The company holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3] Light Vehicle Production Insights - Global light vehicle production reached 22.6 million, exceeding the two-analyst average estimate of 21.97 million [4] - North American light vehicle production was 4 million, surpassing the average estimate of 3.81 million [4] - Light vehicle production in Asia (excluding China) was 5.9 million, above the average estimate of 5.6 million [4] - EMEA light vehicle production was reported at 4.4 million, slightly above the average estimate of 4.35 million [4] - In China, light vehicle production was 7.6 million, exceeding the average estimate of 7.47 million [4] - South American light vehicle production was 0.7 million, slightly below the average estimate of 0.75 million [4] Net Sales Performance - Net sales in the Americas were $1.76 billion, exceeding the average estimate of $1.59 billion, with a year-over-year change of +1.3% [4] - Net sales from eliminations were reported at -$8 million, significantly better than the average estimate of -$25.92 million, representing a year-over-year change of -61.9% [4] - Net sales in Asia were $721 million, slightly below the average estimate of $739.34 million, with a year-over-year change of +1.3% [4] - EMEA net sales were $1.27 billion, above the average estimate of $1.22 billion, but showed a year-over-year decline of -1.6% [4]

PART I - FINANCIAL INFORMATION [Unaudited Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) The company's Q3 net income improved to $36 million, but the nine-month net loss widened to $299 million due to a significant goodwill impairment charge Consolidated Statements of Income (Loss) Highlights | Indicator (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $3,741 | $3,716 | $10,847 | $11,126 | | **Gross profit** | $237 | $207 | $714 | $683 | | **Earnings before interest and income taxes** | $118 | $94 | $(5) | $213 | | **Net income (loss) attributable to Adient** | $36 | $(11) | $(299) | $(61) | | **Diluted EPS** | $0.43 | $(0.12) | $(3.56) | $(0.67) | Consolidated Statements of Financial Position Highlights | Indicator (in millions) | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Total current assets** | $4,022 | $4,086 | | **Total assets** | $8,836 | $9,351 | | **Total current liabilities** | $3,598 | $3,678 | | **Long-term debt** | $2,385 | $2,396 | | **Total liabilities** | $6,676 | $6,817 | | **Total shareholders' equity** | $2,074 | $2,443 | Consolidated Statements of Cash Flows Highlights (Nine Months Ended June 30) | Indicator (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | **Cash provided by operating activities** | $236 | $280 | | **Cash used by investing activities** | $(127) | $(183) | | **Cash used by financing activities** | $(212) | $(313) | | **Decrease in cash and cash equivalents** | $(85) | $(220) | | **Cash and cash equivalents at end of period** | $860 | $890 | - A triggering event in Q2 fiscal 2025 led to a **$333 million non-cash goodwill impairment charge** for the EMEA reporting unit, leaving no remaining goodwill in that segment[35](index=35&type=chunk)[36](index=36&type=chunk) - In February 2025, the company issued **$795 million of 7.50% senior unsecured notes** due 2033 to redeem its 4.875% notes due 2026[50](index=50&type=chunk) - Adient repurchased **4,014,410 ordinary shares for $75 million** during the first nine months of fiscal 2025, with **$185 million remaining** under the repurchase authorization[75](index=75&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Macroeconomic pressures and slower EV adoption impacted performance, leading to a goodwill impairment, while restructuring efforts continue amid sufficient liquidity [Factors Affecting Adient's Operating Environment](index=33&type=section&id=Factors%20Affecting%20Adient's%20Operating%20Environment) The company's operating environment is challenged by weakening consumer demand, tariffs, and market pressures, which prompted a significant goodwill impairment charge - The company faces uncertainties from weakening consumer demand, tariffs, market share loss for foreign OEMs in Asia, and overcapacity in EMEA due to slower EV adoption rates[117](index=117&type=chunk) - As a result of these macroeconomic factors, Adient recorded a **$333 million non-cash goodwill impairment** in its EMEA segment as of March 31, 2025[118](index=118&type=chunk) [Consolidated Results of Operations](index=34&type=section&id=Consolidated%20Results%20of%20Operations) Q3 net sales rose 1% to $3.74 billion, while the nine-month net loss widened to $299 million, primarily due to a goodwill impairment charge Net Sales Performance | Period | Net Sales (in millions) | Change YoY | | :--- | :--- | :--- | | **Q3 2025** | $3,741 | +1% | | **Nine Months 2025** | $10,847 | -3% | - Q3 2025 net sales increase was driven by favorable foreign currencies (**$84M**) and pricing (**$10M**), partially offset by lower volumes (**$54M**)[125](index=125&type=chunk) - Gross profit margin improved from **5.6% to 6.3%** in Q3 YoY and from **6.1% to 6.6%** for the nine-month period YoY, driven by favorable pricing and operating performance[127](index=127&type=chunk) - The nine-month net loss of **$299 million** was primarily driven by a **$333 million goodwill impairment charge** in EMEA and a **$10 million impairment** on an investment[132](index=132&type=chunk)[143](index=143&type=chunk) [Segment Analysis](index=39&type=section&id=Segment%20Analysis) Segment performance varied, with Americas and Asia showing Adjusted EBITDA growth, while the EMEA segment experienced a decline Adjusted EBITDA by Segment (Q3 2025 vs Q3 2024) | Segment | Q3 2025 Adj. EBITDA (in millions) | Q3 2024 Adj. EBITDA (in millions) | Change YoY | | :--- | :--- | :--- | :--- | | **Americas** | $112 | $99 | +13% | | **EMEA** | $21 | $25 | -16% | | **Asia** | $113 | $101 | +12% | - **Americas:** Adjusted EBITDA increased by **$13 million** in Q3 due to favorable pricing adjustments (**$22M**) and improved operating performance (**$6M**)[160](index=160&type=chunk) - **EMEA:** Adjusted EBITDA decreased by **$4 million** in Q3 due to higher administrative expenses (**$11M**) and lower production volumes (**$5M**), partially offset by favorable pricing (**$14M**)[164](index=164&type=chunk) - **Asia:** Adjusted EBITDA increased by **$12 million** in Q3 due to favorable operating performance (**$10M**) and positive currency effects (**$6M**)[168](index=168&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity through operating cash flow and its credit facility while continuing share repurchases and restructuring efforts Cash Flow Summary (Nine Months Ended June 30) | Cash Flow (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | **Operating Activities** | $236 | $280 | | **Investing Activities** | $(127) | $(183) | | **Financing Activities** | $(212) | $(313) | - As of June 30, 2025, Adient had **$872 million of availability** under its ABL Credit Facility, with no amounts drawn down[172](index=172&type=chunk) - The company initiated the "2025 Plan" for restructuring, with expected annual operating cost savings of approximately **$53 million** upon completion[181](index=181&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There were no material changes to the company's market risk exposures since the last annual report - Adient reported **no material adverse changes** in its market risk exposures since its last annual report[197](index=197&type=chunk) [Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the period[198](index=198&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[199](index=199&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing legal proceedings are not expected to have a material adverse effect on the company's financial condition - The company is involved in various legal proceedings but does not expect them to have a **material adverse effect** on its financial condition or results[201](index=201&type=chunk) [Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) Updated risks include impacts from U.S. trade policy, auto industry conditions evidenced by a goodwill impairment, and potential limitations on tax attribute usage - An updated risk factor highlights the adverse effect of U.S. trade policy and tariffs, noting that Adient had incurred **$13 million of incremental tariff expense**, net of recoveries[204](index=204&type=chunk) - The risk related to the global automotive industry's condition was updated to reflect the **$333 million non-cash goodwill impairment** in the EMEA reporting unit[207](index=207&type=chunk) - A new risk factor was added regarding the potential limitation on using net operating loss carryforwards if the company undergoes an **"ownership change"** under U.S. tax law[208](index=208&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased approximately $50 million of its shares in June 2025, with $185 million remaining under its repurchase authorization Share Repurchase Activity (Q3 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Total Cost (approx. in millions) | | :--- | :--- | :--- | :--- | | **April 2025** | — | $— | $0 | | **May 2025** | — | $— | $0 | | **June 2025** | 2,787,081 | $17.94 | $50 | | **Total** | **2,787,081** | **$17.94** | **$50** | - As of June 30, 2025, the remaining authorized amount for share repurchases under the program was **$185 million**[211](index=211&type=chunk) [Defaults Upon Senior Securities](index=50&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - None[212](index=212&type=chunk) [Mine Safety Disclosures](index=50&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Adient's business - Not applicable[213](index=213&type=chunk) [Other Information](index=50&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter - No directors or executive officers adopted or terminated any Rule 10b5-1 trading arrangements during the quarter[214](index=214&type=chunk) [Exhibits](index=51&type=section&id=Item%206.%20Exhibits) This section indexes the exhibits filed with the report, including required CEO/CFO certifications and interactive data files - The report includes CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act, as well as Inline XBRL documents[217](index=217&type=chunk)

Adient (ADNT) Q3 2025 Earnings Call August 06, 2025 08:30 AM ET Speaker0Welcome to today's conference call. At this time, all participants are in a listen only mode. Today's conference is being recorded. If you have any objections, you may disconnect at this time. I will now turn today's meeting over to Mike Heifler.Thank you. You may begin.Speaker1Thank you, Denise. Good morning, everyone, and thank you for joining us. The press release and presentation slides for our call today have been posted to the Inv ...

Financial Performance - Consolidated net sales increased by approximately 1% year-over-year to ~$3.7 billion in Q3 FY25[11] - Adjusted EBITDA increased by $24 million year-over-year to $226 million in Q3 FY25, with a margin increase of 60 bps[11, 12] - Free cash flow was $115 million in Q3 FY25[11] - The company returned $50 million to shareholders through share repurchases in Q3, bringing the year-to-date total to $75 million, representing approximately 4% of shares outstanding[11, 12] - Adient is raising its FY25 revenue and EBITDA guidance[12] Regional Performance - Americas sales outperformed the market by 300 bps due to favorable volume/mix and full run-rate of key programs[32] - EMEA sales underperformed the broader market mainly due to customer mix and intentional portfolio actions[32] - Asia sales growth outpaced the broader market by 700 bps, driven by customer launches reaching full production volumes[32] Debt and Capital Structure - Cash balance was $860 million as of June 30, 2025[11] - Gross debt was approximately $2.4 billion and net debt was approximately $1.5 billion[11] - Net leverage ratio on a trailing twelve-month basis is 1.7x, within the targeted range of 1.5x-2.0x[44] Outlook - Consolidated revenue is expected to be approximately $14.4 billion[46] - Adjusted EBITDA is expected to be approximately $875 million[46] - Capital expenditures are expected to be approximately $150 million-$170 million[46]

PRESS RELEASE Aug. 6, 2025 Exhibit 99.1 4DIENT Q3 FY2025 FINANCIAL RESULTS OVERVIEW Adient announces strong third quarter financial results In addition to the strong financial results, the company also secured numerous business wins, further solidifying its supplier of choice status | | REVENUE | EBIT | NET INCOME | EbS | | --- | --- | --- | --- | --- | | | | | attributable to Adient | DILUTED | | AS REPORTED | $3,741M | $118M | $36M | $0.43 | | vs. Q3 24 | 1% | 26 % | NM | NM | | | | | ADJ. NET INCOME | AD ...

Core Viewpoint - Adient, a global leader in automotive seating, reported its third quarter 2025 financial results, highlighting improvements in earnings and guidance for the fiscal year [1][6]. Financial Performance - Q3 GAAP net income was $36 million, with diluted EPS of $0.43; adjusted EPS was $0.45 [6]. - Adjusted EBITDA for Q3 was $226 million, reflecting a year-over-year improvement of $24 million; adjusted EBITDA margins increased from 5.4% to 6.0% year-over-year [6]. - As of June 30, 2025, gross debt and net debt were approximately $2.4 billion and $1.5 billion, respectively, with cash and cash equivalents totaling $860 million [6]. Share Repurchase and Guidance - The company repurchased $50 million of its shares in the quarter, reducing shares outstanding by approximately 2.8 million; year-to-date share repurchases reached $75 million, representing about 4% of shares outstanding at the beginning of the fiscal year [6]. - Based on strong year-to-date performance and expected solid results for Q4, Adient raised its FY25 guidance for revenue and adjusted EBITDA to approximately $14.4 billion and $875 million, respectively [6]. Company Overview - Adient operates with around 70,000 employees across 29 countries and manages over 200 manufacturing and assembly plants globally, producing automotive seating for all major OEMs [4].

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Core Viewpoint - Adient (ADNT) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [3]. - Institutional investors often rely on earnings estimates to determine the fair value of a company's shares, leading to buying or selling actions that affect stock prices [3]. Business Improvement Indicators - The upgrade in Zacks rating for Adient suggests an improvement in the company's underlying business, which should lead to an increase in stock price as investors respond positively [4]. Importance of Earnings Estimate Revisions - Tracking earnings estimate revisions is crucial for making informed investment decisions, and the Zacks Rank system effectively utilizes this data [5]. - The Zacks Rank system classifies stocks based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. Specifics on Adient's Earnings Estimates - Adient is projected to earn $1.87 per share for the fiscal year ending September 2025, with no year-over-year change expected [7]. - Over the past three months, the Zacks Consensus Estimate for Adient has increased by 8.5%, indicating a positive trend in earnings estimates [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across its universe of over 4,000 stocks, with only the top 5% receiving a "Strong Buy" rating [8]. - Adient's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9].

Investors interested in Automotive - Original Equipment stocks are likely familiar with Adient (ADNT) and Mobileye Global (MBLY) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Sty ...