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]

Financial Performance - FY25 - Consolidated revenue reached approximately $14.5 billion, a decrease of 1% year-over-year[12] - Adjusted EBITDA remained flat year-over-year at $881 million[12] - Free cash flow was reported at $204 million[12] - The company repurchased approximately 7% of its shares outstanding, amounting to $125 million in capital return[12] Q4 FY25 Highlights - Consolidated sales increased by 4% year-over-year, reaching $3.7 billion[13] - Adjusted EBITDA for Q4 FY25 was $226 million, with a margin of 6.1%[13] - Strong free cash flow generation of $134 million was achieved during the quarter[13] FY26 Outlook - Sales are projected to be approximately $14.4 billion due to lower expected production volumes[88] - Adjusted EBITDA is expected to be around $845 million, influenced by business performance offsetting volume headwinds[88] - Free cash flow is forecasted at approximately $90 million, impacted by timing shifts and increased growth spending[88] Regional Sales Performance (Q4 FY25) - Americas sales outperformed the market by 100 bps due to favorable volume/mix[51] - EMEA sales underperformed the market by 400 bps mainly due to customer mix[51]

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]

Core Viewpoint - Adient (ADNT) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending September 2025, with the actual results being a significant factor influencing its near-term stock price [1][2]. Financial Expectations - The upcoming earnings report is expected to reveal quarterly earnings of $0.55 per share, reflecting a year-over-year decrease of 19.1%, while revenues are projected to be $3.63 billion, representing a 2% increase from the previous year [3]. - The consensus EPS estimate has been revised down by 4.76% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that Adient has a positive Earnings ESP of +3.04%, suggesting a likelihood of beating the consensus EPS estimate [12]. - The stock currently holds a Zacks Rank of 3, which, when combined with the positive Earnings ESP, indicates a higher probability of an earnings beat [12]. Historical Performance - In the last reported quarter, Adient was expected to post earnings of $0.47 per share but delivered $0.45, resulting in a surprise of -4.26% [13]. - Over the past four quarters, Adient has surpassed consensus EPS estimates three times [14]. Industry Context - In the broader automotive industry, Magna (MGA) is expected to report earnings of $1.24 per share for the same quarter, reflecting a year-over-year decline of 3.1%, with revenues anticipated at $10.01 billion, down 2.6% from the previous year [18]. - Magna's consensus EPS estimate has been revised up by 1.2% in the last 30 days, and it also has a positive Earnings ESP of +1.34%, indicating a likelihood of beating the consensus EPS estimate [19].

Core Insights - Adient and Autoliv have co-developed innovative safety solutions for zero-gravity seating, enhancing occupant protection in deeply reclined positions [1][4] - The Z-Guard system integrates advanced safety technologies and is ready for mass production, addressing the safety risks associated with conventional systems in deeply reclined seating [3][8] Group 1: Product Development - Adient's Z-Guard offers full-process occupant protection through intelligent seat, restraint, and predictive safety technologies [2] - The Z-Guard concept incorporates Multi-Dimensional Collaborative Protection, utilizing advanced constraint and energy-absorbing technologies for collision protection [5] - Key innovations include an Integrated Seatbelt System, Dynamic Lumbar Retractor, Pelvic Cushion Airbag, and Head Side Airbag, which collectively enhance safety in reclined positions [5] Group 2: Predictive Safety Features - The Z-Guard system integrates with vehicle driver assistance systems, using predictive signals for proactive posture adjustments before a collision [6] - In scenarios where a crash cannot be detected in time, Z-Guard employs dual pretensioners and a collapse mechanism to enhance occupant safety [7] Group 3: Market Readiness - The Z-Guard seating concept is designed to align with the evolving demands of software-defined vehicles, integrating safety features into smart cockpit environments [8] - Adient is set to lead the commercialization of Z-Guard, with plans for production in a high-volume model from a major global OEM [8]

Core Viewpoint - Adient plc (NYSE: ADNT) is an automotive seating-oriented company that has been experiencing a sustained down period in its share price, leading to a 'Hold' rating being reiterated in April of this year [1] Company Summary - The company focuses on deriving income from investment setups by purchasing undervalued profitable stocks with strong balance sheets and minimal debt [1] - The strategy includes writing calls against positions to generate additional income when opportunities arise [1] - Risk management is emphasized through position sizing and the use of trailing stop losses over time [1]

Core Viewpoint - Adient, a global leader in automotive seating, will host a conference call on November 5, 2025, to discuss its fourth quarter fiscal 2025 financial results [1]. Group 1: Company Overview - Adient operates with approximately 70,000 employees across 29 countries and has more than 200 manufacturing and assembly plants worldwide [3]. - The company specializes in producing and delivering automotive seating for all major original equipment manufacturers (OEMs), covering the entire process from research and design to engineering and manufacturing [3]. Group 2: Financial Communication - A live webcast of the upcoming conference call and presentation materials will be available on the Adient Investor Relations website [1]. - Participants can join the call by dialing specific telephone numbers provided for U.S. and international callers, with a passcode required for access [2].

Group 1 - Wells Fargo upgraded Adient from Equal Weight to Overweight, raising its price target to $31 from $24, with shares rising nearly 2% in pre-market trading [1] - Adient is expected to benefit from improved global light vehicle production in 2026, with adjusted EBITDA projected to be about 7% above consensus [1] - The stock is currently trading at near-trough valuation multiples, indicating potential for growth [1] Group 2 - The company's turnaround has faced delays due to weak global production, unfavorable customer mix, extended unprofitable programs, and persistent cost inflation [2] - Margin recovery is anticipated to accelerate starting in 2026 as North American volumes improve, foreign exchange trends stabilize, and unprofitable programs are phased out [2]