Company Operations and Workforce - Adient operates approximately 200 manufacturing, assembly, or sequencing facilities across 29 countries, employing over 65,000 people[12][14]. - Adient's global workforce consists of approximately 65,000 employees, with 41% identifying as female and 54% of U.S. employees as ethnic minorities[51]. - 99% of Adient's salaried workforce completed the annual Ethics Policy certification in fiscal year 2025[49]. - 98% of Adient's facilities are third-party audited and certified for health and safety management systems[52]. Technology and Innovation - Adient's investment in technology includes automation and artificial intelligence to reduce labor costs and improve accuracy[17]. - The company has developed a comprehensive energy management toolkit to help reduce energy use and related emissions[47]. - Adient is likely to pursue new product development and technological advancements, as indicated by the diverse backgrounds of its executives in manufacturing and operations[61]. Market Position and Strategy - The company focuses on long-term relationships with leading global OEMs, enhancing its ability to grow alongside them[13][18]. - Adient aims to expand its market share in seating and seating components, leveraging its strong relationships with global OEM customers[26]. - Adient's strong market position in China includes 37 manufacturing locations in 22 cities, supported by partnerships with major auto groups[24]. - The competitive landscape includes traditional seating suppliers and component specialists, with Adient's vertical integration providing a competitive edge[35]. Sustainability and Environmental Goals - Adient aims to reduce its scope 1 and 2 greenhouse gas emissions by 75% by 2030, using 2019 as the base year[45]. - The company aspires to achieve carbon neutrality at its manufacturing sites for scope 1 and 2 emissions by 2040[45]. - Adient has set a goal to source 100% of the electricity consumed at its manufacturing sites from renewable sources by 2035[46]. - Adient is working to reduce scope 3 emissions by 35% by 2030, with 2019 as the base year[48]. - The Pure Ergonomics seat developed by Adient achieves a 5% reduction in weight and contains 46% recycled content compared to conventional models[48]. Operational Efficiency and Management - The company focuses on operational efficiencies through standardized manufacturing processes, optimizing inventory, and reducing costs[15]. - Adient's Core Product Portfolio strategy aims to sustain market success by leveraging modular and scalable systems[21]. - Adient's health and safety management system is certified to the ISO 45001 standard, with 100% of facilities internally audited for compliance[52]. - The company has implemented a five-year global water management strategy to reduce water consumption and enhance operational resilience[47]. Leadership and Governance - Adient's leadership team includes experienced executives with backgrounds in operations, finance, and legal, enhancing the company's strategic direction[61][62][67]. - The company's commitment to continuous improvement and best practices is reflected in its executive roles, which may enhance operational efficiency[61]. - Adient's strategic focus on legal and human resources management suggests an emphasis on compliance and workforce development[67]. - The leadership team has a combined experience in major automotive companies, which may provide competitive advantages in market positioning and operational excellence[62][65].

Core Insights - Adient (ADNT) reported adjusted earnings per share (EPS) of 52 cents for Q4 fiscal 2025, down from 68 cents in the previous year and below the Zacks Consensus Estimate of 55 cents [1][9] - The company generated net sales of $3.69 billion, a 3.5% year-over-year increase, surpassing the Zacks Consensus Estimate of $3.63 billion [1][9] Segment Performance - The Americas segment recorded revenues of $1.79 billion, a 3.9% increase year-over-year, exceeding the Zacks Consensus Estimate of $1.76 billion. Adjusted EBITDA for this segment was $111 million, down from $116 million in the prior year, missing the consensus estimate [3] - The EMEA segment achieved revenues of $1.15 billion, up 3.9% year-over-year, and also exceeded the Zacks Consensus Estimate of $1.1 billion. Adjusted EBITDA rose to $31 million from $28 million in the previous year, surpassing the consensus estimate [4] - The Asia segment reported revenues of $783 million, an increase from $765 million in the same quarter last year, beating the Zacks Consensus Estimate of $771 million. Adjusted EBITDA fell to $106 million from $112 million in the prior year, missing the consensus estimate [5] Financial Position - As of September 30, 2025, Adient had cash and cash equivalents of $958 million, up from $945 million a year earlier. Long-term debt stood at $2.39 billion, with capital expenditures totaling $79 million compared to $72 million in the prior-year quarter [6] Guidance for FY26 - Adient anticipates fiscal 2026 revenues of $14.4 billion, a decrease from $14.54 billion in fiscal 2025. Adjusted EBITDA is projected to be $845 million, down from $881 million in fiscal 2025, with equity income expected to be $70 million and free cash flow anticipated at $90 million [7][9] Zacks Rank - Adient currently holds a Zacks Rank 3 (Hold) [8]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Insights - Adient reported $3.69 billion in revenue for the quarter ended September 2025, a year-over-year increase of 3.5% [1] - The EPS for the same period was $0.52, down from $0.68 a year ago, indicating a decline [1] - Revenue exceeded the Zacks Consensus Estimate of $3.63 billion by 1.55%, while EPS fell short of the consensus estimate of $0.55 by 5.45% [1] Revenue Breakdown - Net Sales in the Americas reached $1.79 billion, surpassing the average estimate of $1.76 billion, reflecting a year-over-year increase of 3.9% [4] - Net Sales in Asia amounted to $783 million, exceeding the average estimate of $771.25 million, with a year-over-year change of 2.4% [4] - Net Sales in EMEA were reported at $1.15 billion, above the average estimate of $1.1 billion, showing a year-over-year increase of 3.8% [4] - Net Sales for Eliminations were reported at -$26 million, compared to the average estimate of -$19.94 million, representing a year-over-year change of 4% [4] Stock Performance - Adient's shares have returned -1.2% over the past month, contrasting with the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported Q4 sales of $3.7 billion, a 4% increase compared to fiscal year 2024, with adjusted EBITDA of $226 million and an adjusted EBITDA margin of 6.1% [21][22] - Full year sales totaled approximately $14.5 billion, down 1% year over year, while adjusted EBITDA remained flat at $881 million [23][24] - Free cash flow for the year was $204 million, exceeding the high end of guidance, with $125 million returned to shareholders through share buybacks [4][5][31] Business Line Data and Key Metrics Changes - The Americas saw a margin expansion of 40 basis points for the full year, driven by lower launch costs and commercial actions despite a $17 million net tariff impact [28] - EMEA results were negatively impacted by a $36 million headwind from volume mix due to lower customer production volumes, although positive business performance of $17 million was noted [29] - In Asia, business performance contributed a $34 million tailwind, offsetting a $33 million volume mix headwind due to lower sales in China [29] Market Data and Key Metrics Changes - Sales in China trailed the market due to production declines from traditional premium OEM customers, while the rest of Asia outperformed due to prior customer launches ramping to full production [25] - The company expects to achieve double-digit growth over market in China and mid-single-digit growth in North America by 2027 [13][70] Company Strategy and Development Direction - The company is focusing on automation and AI integration to enhance operational efficiency and drive long-term growth [9][14] - A new strategic partnership in China aims to deepen engagement with leading OEMs and strengthen competitive positioning [13] - The company is committed to driving sustainable value through innovation and operational excellence, with a focus on winning new business and improving customer collaboration [12][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from customer volume reductions and dynamic tariff policies but emphasized strong business execution and cash generation [4][5] - The outlook for fiscal year 2026 includes anticipated revenue declines in North America and Europe, partially offset by growth in China [34][39] - Management remains optimistic about future growth, particularly in China, and is focused on mitigating risks associated with tariffs and geopolitical factors [18][39] Other Important Information - The company has a strong liquidity position with $1.8 billion in total liquidity, including $958 million in cash and $814 million in undrawn credit [32][33] - The company plans to continue share repurchases and manage capital allocation prudently, with $135 million remaining in the share repurchase authorization [43] Q&A Session Summary Question: Can you provide insights on the 1% forecast underperformance versus S&P? - Management indicated that the underperformance is primarily due to F-150 downtime and the wind down of unprofitable business in Europe, which together account for the 1% drag [46][48] Question: What factors contribute to the high decremental volume mix? - The high decremental is attributed to unexpected F-150 downtime and Nexperia chip shortages, which have significantly impacted production and margins [51][52] Question: Can you elaborate on the $85 million investment for future growth? - The investment is essential for driving growth, with a focus on automation and AI, expected to yield significant savings over time [61][62] Question: What is the line of sight for growth over market in 2027? - Management expressed confidence in growth driven by customer launches in China and improved execution from Japanese OEMs in North America [70][71] Question: What are the expectations for revenue margins in Q1 2026? - Management anticipates a potential decline in EBITDA of $15 million to $20 million year on year due to production disruptions [84][86]

Core Viewpoint - Adient reported quarterly earnings of $0.52 per share, missing the Zacks Consensus Estimate of $0.55 per share, and down from $0.68 per share a year ago, indicating a -5.45% earnings surprise [1] Financial Performance - Adient's revenues for the quarter ended September 2025 were $3.69 billion, surpassing the Zacks Consensus Estimate by 1.55%, and up from $3.56 billion year-over-year [2] - Over the last four quarters, the company has exceeded consensus revenue estimates four times [2] Stock Performance - Adient shares have increased approximately 39.2% since the beginning of the year, outperforming the S&P 500's gain of 15.1% [3] Future Outlook - The company's earnings outlook will be crucial for determining the sustainability of its stock price movement, with current consensus EPS estimates at $0.40 for the coming quarter and $2.25 for the current fiscal year [4][7] - The Zacks Rank for Adient is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Automotive - Original Equipment industry, to which Adient belongs, is currently in the top 41% of Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

FY25 Fourth Quarter Earnings Call November 5, 2025 Adient – PUBLIC Important Information Adient has made statements in this document that are forward-looking and, therefore, are subject to risks and uncertainties. All statements in this document other than statements of historical fact are statements that are, or could be, deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In this document, statements regarding Adient's expectations for its deleve ...

Core Viewpoint - Adient reported its fourth quarter 2025 financial results, highlighting a mixed performance with a net income of $18 million and an adjusted EBITDA of $226 million, while also indicating challenges ahead due to lower customer production volumes and increased growth investments [6]. Financial Performance - Q4 GAAP net income was $18 million, with diluted EPS of $0.22; adjusted EPS for Q4 was $0.52 [6]. - Adjusted EBITDA for Q4 was $226 million, resulting in an adjusted EBITDA margin of 6.1% [6]. - For the full fiscal year 2025, Adient generated $204 million in free cash flow and returned $125 million to shareholders through share repurchases, representing approximately 7% of shares outstanding at the beginning of the fiscal year [6]. Debt and Cash Position - As of September 30, 2025, Adient's gross debt and net debt were approximately $2.4 billion and $1.4 billion, respectively, with cash and cash equivalents totaling $958 million [6]. Future Outlook - Looking ahead to fiscal year 2026, Adient expects improved business performance to be offset by lower customer production volumes and increased growth investments [6].

Financial Performance - Adient reported Q4 2025 revenue of $3,688M, a 4% increase compared to Q4 2024, with adjusted EBITDA of $226M and an adjusted EBITDA margin of 6.1%[1][8] - For the full year FY25, Adient's revenue was $14,535M, a 1% decrease from FY24, with adjusted net income of $570M and adjusted EPS of $1.93, reflecting a 5% increase year-over-year[1][2] - Net sales for Q4 2025 were $3,688 million, a 3.5% increase from $3,562 million in Q4 2024[22] - Gross profit for Q4 2025 was $247 million, slightly up from $245 million in Q4 2024, resulting in a gross margin of 6.7%[22] - Net income attributable to Adient for Q4 2025 was $18 million, a decrease from $79 million in Q4 2024[22] - For the twelve months ended September 30, 2025, consolidated net sales totaled $14,535 million, a decrease from $14,688 million in 2024, indicating a decline of 1.0%[30] - Adjusted net income attributable to Adient for the three months ended September 30, 2025, was $42 million, compared to $59 million in the same period of 2024, a decrease of 28.8%[35] - The net income (loss) attributable to Adient for the three months ended September 30, 2025, was $18 million, down from $79 million in the same period of 2024[32] Cash Flow and Liquidity - Free cash flow for FY25 totaled $204M, with $125M returned to shareholders through share repurchases, representing approximately 7% of shares outstanding at the beginning of the fiscal year[2][4] - The company maintained cash and cash equivalents of $958M and total liquidity of $1.8B as of September 30, 2025[4] - Cash provided by operating activities for Q4 2025 was $213 million, down from $263 million in Q4 2024[26] - The free cash flow for the twelve months ended September 30, 2025, was $204 million, down from $277 million in 2024[42] - The operating cash flow for the three months ended September 30, 2025, was $263 million, compared to $213 million in 2024[42] Business Development - Adient secured $1.4B in new business in Asia during FY25, with local OEMs accounting for nearly 70% of this new business[3] - Looking ahead to FY26, Adient expects consolidated sales of approximately $14.4B and adjusted EBITDA of around $845M, impacted by lower year-over-year production volumes[15] - Capital expenditures for FY26 are projected to be around $300M, primarily driven by customer launch plans and innovation projects[15] - The company plans to launch innovative products such as Z-Guard in 2027 and sculpted trim in Q2 FY26, focusing on safety and design flexibility[16][17] Debt and Leverage - Adient's gross debt and net debt were approximately $2.4B and $1.4B respectively as of September 30, 2025[8] - The net debt as of September 30, 2025, was $1,439 million, a slight decrease from $1,460 million in 2024[44] - The total debt as of September 30, 2025, was $2,397 million, down from $2,405 million in 2024[44] - The net leverage ratio as of September 30, 2025, was 1.63, compared to 1.66 in 2024[44] Segment Performance - Adient's segment adjusted EBITDA for Asia was $440M in FY25, showing stability compared to FY24, while Americas and EMEA segments reported $402M and $124M respectively[10] - The Americas segment reported net sales of $6,856 million for the twelve months ended September 30, 2025, up from $6,763 million in 2024, reflecting a growth of 1.4%[30] - The EMEA segment's adjusted EBITDA margin for the three months ended September 30, 2025, was 6.2%, compared to 2.5% in the same period of 2024, indicating significant improvement[30] Adjustments and Non-Recurring Items - Restructuring and impairment costs for Q4 2025 were $11 million, down from $16 million in Q4 2024[22] - The adjusted EBIT for the twelve months ended September 30, 2025, was $570 million, compared to $564 million in 2024, showing a slight increase of 1.1%[34] - The adjusted EBITDA for the twelve months ended September 30, 2025, was $881 million, consistent with $880 million in the previous year[34] - The overall impact of adjustments primarily related to purchase accounting amortization on noncontrolling interests was reflected in the financial results[47]

Group 1 - Adient plc (NYSE:ADNT) is considered one of the most undervalued small-cap stocks currently available for investment, with JPMorgan raising its price target to $26 from $22 while maintaining a Neutral rating [1] - Stifel also increased its price target for Adient plc to $29 from $27, keeping a Buy rating, citing a significant rise in pricing for industrial companies as a key adjustment in the macroeconomic environment [3] - Adient plc specializes in the manufacture, design, and marketing of automotive seating systems, with operations across the Americas, EMEA, and Asia [4] Group 2 - The rating updates for Adient were part of a broader Q3 preview for the automotive sector, where JPMorgan raised estimates for auto suppliers due to favorable commodity and currency trends, as well as solid global light vehicle production [2] - Conversely, estimates for rental car companies and tiremakers were reduced due to aggressive pricing and increased low-cost imports, indicating a mixed outlook within the automotive supply chain [2]