It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.It also includes access to the Zacks Style Scores. What a ...

Core Insights - Adient (ADNT) reported adjusted earnings per share (EPS) of 35 cents for Q1 fiscal 2026, an increase from 27 cents in the same period last year, surpassing the Zacks Consensus Estimate of 20 cents [2] - The company generated net sales of $3.64 billion, reflecting a year-over-year increase of 4.3% and exceeding the Zacks Consensus Estimate of $3.48 billion [2] Segment Performance - The Americas segment achieved revenues of $1.64 billion, a 1.9% increase from the previous year, and exceeded the Zacks Consensus Estimate of $1.54 billion. Adjusted EBITDA for this segment was $80 million, down from $85 million year-over-year but above the consensus estimate of $66 million [4] - The EMEA segment reported revenues of $1.21 billion, up 6.7% year-over-year, surpassing the Zacks Consensus Estimate of $1.14 billion. Adjusted EBITDA increased to $34 million from $22 million in the prior year, also beating the consensus estimate of $24.66 million [5] - The Asia segment generated revenues of $819 million, up from $772 million in the same quarter last year, exceeding the Zacks Consensus Estimate of $797 million. Adjusted EBITDA rose to $115 million from $111 million year-over-year, surpassing the consensus estimate of $111 million [6] Financial Position - As of December 31, 2025, Adient had cash and cash equivalents of $855 million, down from $958 million as of September 30, 2025. Long-term debt stood at $2.38 billion, with capital expenditures totaling $65 million compared to $64 million in the prior-year quarter [7] Fiscal 2026 Outlook - Adient has raised its fiscal 2026 revenue guidance to $14.6 billion from a previous estimate of $14.4 billion. Adjusted EBITDA is now projected at $880 million, up from $845 million, with equity income expected to be $70 million. Free cash flow is anticipated to reach $125 million, an increase from the previous estimate of $90 million, while capital expenditures are estimated at $300 million [8]

Financial Performance - Adient recorded net sales of $3,644 million for Q1 fiscal 2026, an increase of $149 million or 4.3% compared to Q1 fiscal 2025[119]. - Gross profit was $217 million, representing 6.0% of net sales, compared to $216 million or 6.2% of net sales in Q1 fiscal 2025[123]. - Net loss attributable to Adient was $22 million for Q1 fiscal 2026, compared to net income of zero for Q1 fiscal 2025, primarily due to higher income tax expense and unfavorable production volume/mix[123]. - Cost of sales increased by $148 million or 5% year-over-year, driven by unfavorable foreign currency impacts and production volume changes[124]. - Selling, general and administrative expenses rose by $5 million or 4% year-over-year, primarily due to higher compensation expenses and unfavorable foreign currency impacts[126]. - Restructuring and impairment costs increased by $1 million or 4% in Q1 fiscal 2026 compared to Q1 fiscal 2025[127]. - Net financing charges were $48 million, a 7% increase from $45 million in Q1 fiscal 2025, primarily due to higher interest expenses[130]. - Income tax provision increased by 91% to $42 million in Q1 fiscal 2026 from $22 million in Q1 fiscal 2025, mainly due to uncertain tax positions related to a foreign tax audit settlement[132]. - Comprehensive loss attributable to Adient was $8 million in Q1 fiscal 2026, a significant improvement from a comprehensive loss of $225 million in Q1 fiscal 2025, driven by favorable foreign currency translation adjustments[135]. Segment Performance - Net sales for the Americas segment increased by 2% to $1,642 million in Q1 fiscal 2026, with a $31 million increase attributed to favorable commercial pricing adjustments[139]. - EMEA segment net sales rose by 7% to $1,205 million in Q1 fiscal 2026, primarily due to favorable foreign currency impacts[147]. - Asia segment net sales increased by 6% to $819 million in Q1 fiscal 2026, driven by higher production volumes[150]. - Adjusted EBITDA for the Americas segment decreased to $80 million in Q1 fiscal 2026 from $85 million in Q1 fiscal 2025, reflecting unfavorable operating performance[139]. - Adjusted EBITDA for the EMEA segment increased by 55% to $34 million in Q1 fiscal 2026, supported by favorable labor and overhead costs[147]. - Adjusted EBITDA for the Asia segment increased by 4% to $115 million in Q1 fiscal 2026, aided by higher equity income from a China affiliate[150]. Cash Flow and Capital Management - Adient expects lower cash flows in fiscal 2026 compared to fiscal 2025 due to reduced profitability and higher capital spending[152]. - As of December 31, 2025, Adient had $80 million in cash provided by operating activities, a decrease from $109 million in the same period of 2024[158]. - Cash used by investing activities increased to $68 million in the three months ended December 31, 2025, compared to $34 million in the prior year[158]. - The outstanding balance of the Term Loan B Agreement was $624 million as of December 31, 2025, with an amended margin reduced from 2.75% to 2.00%[154][155]. - Working capital decreased by $122 million to $324 million as of December 31, 2025, primarily due to decreases in net accounts receivable and cash[162]. - Adient incurred $23 million in restructuring costs during the first three months of fiscal 2026, aimed at reducing annual operating costs by approximately $15 million[163]. - The amended ABL Credit Facility was reduced from $1,250 million to $1,000 million, with availability of $823 million as of December 31, 2025[153]. - Adient's management is focused on consolidating operations and improving efficiencies in response to changes in the global automotive industry[164]. Shareholder Actions - Adient repurchased 1,232,932 ordinary shares at an average price of $20.27, totaling $25 million in the first quarter of fiscal 2026[165]. - As of December 31, 2025, Adient's liabilities related to supply chain financing programs were $109 million, up from $105 million as of September 30, 2025[168]. - The company has flexibility to expand the amended ABL Credit Facility by up to $500 million in additional commitments[153].

Core Viewpoint - Adient plc is a significant player in the automotive seating industry, demonstrating strong financial performance and exceeding market expectations [1]. Financial Performance - On February 4, 2026, Adient reported an earnings per share (EPS) of $0.35, surpassing the estimated EPS of $0.18 and the Zacks Consensus Estimate of $0.20 per share, marking a 74.13% earnings surprise [2]. - The company reported $3.64 billion in revenue for the quarter ending December 2025, exceeding the consensus estimate by 4.68% and showing an increase from $3.5 billion in the same period last year [2]. Financial Metrics - The price-to-sales ratio is 0.13, indicating that investors are paying 13 cents for every dollar of sales [3]. - The enterprise value to sales ratio is 0.23, reflecting the company's valuation relative to its revenue [3]. - The enterprise value to operating cash flow ratio is 7.31, suggesting reasonable coverage of the enterprise value by operating cash flow [3]. - The debt-to-equity ratio is 1.36, indicating significant reliance on debt compared to equity [3]. - The current ratio is 1.12, suggesting a modest level of short-term financial health with current assets slightly exceeding current liabilities [3]. Leadership and Outlook - The company's leadership, including President and CEO Jerome Dorlack and CFO Mark Oswald, plans to discuss the results and future expectations in a conference call, indicating a positive outlook for fiscal year 2026 [3].

Core Insights - Adient (ADNT) reported revenue of $3.64 billion for the quarter ended December 2025, marking a year-over-year increase of 4.3% and exceeding the Zacks Consensus Estimate of $3.48 billion by 4.68% [1] - The company achieved an EPS of $0.35, up from $0.27 a year ago, resulting in an EPS surprise of 74.13% compared to the consensus estimate of $0.20 [1] Financial Performance - Net Sales in the Americas reached $1.64 billion, surpassing the three-analyst average estimate of $1.54 billion, with a year-over-year change of +1.9% [4] - Net Sales in Asia amounted to $819 million, exceeding the average estimate of $796.85 million, reflecting a +6.1% change year-over-year [4] - Net Sales in EMEA totaled $1.21 billion, above the average estimate of $1.14 billion, indicating a +6.7% change compared to the previous year [4] - Net Sales for Eliminations were reported at $-22 million, slightly better than the average estimate of $-23.02 million, showing a year-over-year change of +29.4% [4] Stock Performance - Adient's shares have returned +7.8% over the past month, outperforming the Zacks S&P 500 composite's +0.9% 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 - Revenue for the quarter was $3.6 billion, up 4% year-over-year, primarily driven by foreign exchange tailwinds from Europe [6][27] - Adjusted EBITDA improved by 10 basis points year-over-year to 5.7%, totaling $207 million [27][30] - Adjusted net income was $28 million or $0.35 per share during the quarter [27] Business Line Data and Key Metrics Changes - In the Americas, consolidated sales were generally in line with the broader market [29] - EMEA sales trailed the market due to customer mix and deliberate portfolio actions [29] - Asia outperformed, driven by significant growth in China as new programs with domestic OEMs ramped [29] Market Data and Key Metrics Changes - Production volumes are trending higher, particularly in North America, with overall industry volume indicators remaining positive [9] - China is expected to continue double-digit growth through fiscal year 2028, despite relatively flat overall vehicle production [12] - The growth outlook for Asia outside of China is expected to exceed market growth in both fiscal year 2027 and 2028 [12] Company Strategy and Development Direction - The company is focused on onshoring opportunities in North America, having won approximately 150,000 units of direct onshoring business [11] - Investments in automation are expected to ensure continued positive business performance, with most projects having a payback under two years [10] - The introduction of Modutec, a modular seat design solution, aims to enhance manufacturing efficiency and support onshoring priorities [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering solid business performance due to a resilient operating model and positive production outlook [9] - The company raised its guidance for revenue, adjusted EBITDA, and free cash flow for fiscal year 2026 [38] - Management acknowledged challenges in Europe due to volumes and capacity but remains committed to delivering positive business performance [15] Other Important Information - The company generated $15 million of free cash flow in the first quarter, exceeding internal expectations [33] - Total liquidity was $1.7 billion, consisting of $855 million in cash and $823 million in undrawn capacity under a revolving line of credit [35] - The company returned $25 million to shareholders through share repurchases during the quarter [35] Q&A Session Summary Question: Impact of potential disruptions on F-150 F-Series recovery - Management indicated that they are monitoring the situation and will provide updates based on Ford's guidance [41][42] Question: Onshoring opportunity growth - Management confirmed that the onshoring opportunity has grown to $500 million, including conquest wins, and expects to finalize additional significant wins soon [44][45][46] Question: Update on European restructuring - Management stated that restructuring spend in Europe is expected to decrease in fiscal year 2027, but future restructuring will depend on customer production plans [54][55] Question: Asia adjusted EBITDA decline - Management acknowledged that increased engineering spending for new programs may continue but overall business performance in Asia is expected to be positive for the full year [56] Question: Commercial settlement impact - Management clarified that the commercial settlement is more about timing and cadence rather than extraordinary circumstances [61][62] Question: Europe market dynamics and margin management - Management is focusing on higher-end segments to insulate from Chinese imports and is actively pursuing components business in Europe [81][82]

Financial Data and Key Metrics Changes - Revenue for the quarter was $3.6 billion, up 4% year-over-year, primarily driven by foreign exchange tailwinds from Europe [6][27] - Adjusted EBITDA improved by 10 basis points year-over-year to 5.7%, totaling $207 million [27] - Adjusted net income was $28 million or $0.35 per share during the quarter [27] Business Line Data and Key Metrics Changes - In the Americas, consolidated sales were generally in line with the broader market [29] - EMEA sales trailed the market due to customer mix and deliberate portfolio actions [29] - Asia outperformed, driven by significant growth in China as new programs with domestic OEMs ramped up [29] Market Data and Key Metrics Changes - Production volumes are trending higher, particularly in North America, with overall industry volume indicators remaining positive [9] - China is expected to continue double-digit growth through fiscal year 2028, despite relatively flat overall vehicle production [12] - The growth outlook for Asia outside of China is also expected to exceed market growth in fiscal years 2027 and 2028 [12] Company Strategy and Development Direction - The company is focused on onshoring opportunities in North America, having won approximately 150,000 units of direct onshoring business [11] - Investments in automation are expected to ensure continued positive business performance, with most projects having a payback under two years [10] - The introduction of ModuTec, a modular seat design solution, aims to enhance manufacturing efficiency and support onshoring priorities [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in the past quarter but expressed confidence in the company's resilient operating model [6] - The company raised its guidance for revenue, adjusted EBITDA, and free cash flow for the fiscal year 2026 [8][38] - Management emphasized the importance of launching key and complex new programs flawlessly and exceeding customer expectations [9] Other Important Information - The company generated $15 million of free cash flow in the first quarter, higher than internal expectations [33] - Total liquidity was $1.7 billion, comprised of $855 million in cash and $823 million in undrawn capacity under a revolving line of credit [35] - The company returned $25 million to shareholders through share repurchases during the quarter [7][35] Q&A Session Summary Question: Impact of potential disruptions on F-150 F-Series recovery - Management stated they are monitoring the situation and will provide updates based on Ford's guidance [41][42] Question: Onshoring opportunity growth - Management confirmed the onshoring opportunity has grown to $500 million, including a conquest win, and expects updates on significant wins soon [44][46] Question: Update on European restructuring - Management indicated that restructuring spend in Europe is expected to decrease in fiscal year 2027, but future restructuring will depend on customer production plans [54][55] Question: Asia adjusted EBITDA decline - Management noted that increased engineering spending for new programs will continue but is expected to be offset by operational efficiencies [56] Question: Commercial settlement impact - Management clarified that the cash flow from commercial negotiations is a timing issue and part of normal business operations [61][62]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $3.6 billion, a 4% increase year-over-year, primarily driven by foreign exchange tailwinds and favorable volume and pricing [25][27] - Adjusted EBITDA improved by 10 basis points year-over-year to 5.7%, totaling $207 million [26][28] - Adjusted net income was $28 million or $0.35 per share during the quarter [26] Business Line Data and Key Metrics Changes - In the Americas, consolidated sales were generally in line with the broader market, while EMEA sales trailed the market due to customer mix and portfolio actions [27] - Asia outperformed, driven by significant growth in China as new programs with domestic OEMs ramped up [27] Market Data and Key Metrics Changes - North America vehicle production is expected to be around 15 million units for fiscal year 2026, up from previous guidance of 14.6 million [36] - China is expected to continue double-digit growth through fiscal year 2028, despite flat overall vehicle production [12] Company Strategy and Development Direction - The company is focused on onshoring opportunities, with approximately $500 million in potential revenue from onshoring and conquest wins [12][43] - Investments in automation are expected to ensure continued positive business performance, with most projects having a payback under two years [10] - The introduction of Modutec, a modular seat design solution, aims to enhance manufacturing efficiency and support onshoring priorities [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering solid business performance due to a resilient operating model and positive production volume trends [9][10] - The company raised its guidance for revenue, adjusted EBITDA, and free cash flow for the fiscal year 2026 [36][37] Other Important Information - The company generated $15 million of free cash flow in Q1 2026, higher than internal expectations [32] - Total liquidity was $1.7 billion, comprised of $855 million in cash and $823 million in undrawn capacity under a revolving line of credit [34] Q&A Session Summary Question: Impact of potential disruptions on F-150 F-Series recovery - Management indicated that they are monitoring the situation and will provide updates based on Ford's guidance [40][41] Question: Update on onshoring opportunities - The company confirmed that onshoring opportunities have increased to $500 million, including a significant domestic OE production move from Mexico to the U.S. [43][45] Question: Progress on European restructuring - Management noted that restructuring spend in Europe is expected to be around $120 million to $130 million in fiscal year 2026, with a decrease anticipated in fiscal year 2027 [52][53] Question: Sustainability and commercial settlements - Management clarified that commercial settlements are part of normal business operations and timing mismatches are expected [60][62] Question: Growth opportunities in Asia and Europe - Management highlighted ongoing discussions with customers regarding onshoring and potential growth in the 2028-2029 timeframe, while also addressing competitive pressures from Chinese imports in Europe [71][82]

分组1 - Adient reported quarterly earnings of $0.35 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, and showing an increase from $0.27 per share a year ago, resulting in an earnings surprise of +74.13% [1] - The company achieved revenues of $3.64 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 4.68% and increasing from $3.5 billion year-over-year [2] - Adient has outperformed the S&P 500, with shares rising about 9.9% since the beginning of the year compared to the S&P 500's gain of 1.1% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $3.65 billion, and for the current fiscal year, it is $1.95 on revenues of $14.51 billion [7] - The Zacks Industry Rank indicates that the Automotive - Original Equipment sector is currently in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8] - Adient holds a Zacks Rank 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

FY26 First Quarter Earnings Call February 4, 2026 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 deleveraging activities ...