Adient(ADNT) - 2025 Q1 - Quarterly Results

Financial Performance - Q1 FY2025 revenue was $3.495 billion, down 5% compared to Q1 FY2024, with adjusted EBITDA of $196 million, a decrease of $20 million year-over-year[2][3] - Adjusted net income attributable to Adient was $23 million, with adjusted EPS diluted at $0.27, reflecting a 21% decline compared to Q1 FY2024[2][3] - Net sales for the three months ended December 31, 2024, were $3,495 million, a decrease of 4.5% compared to $3,660 million in the same period of 2023[25] - Gross profit for the same period was $216 million, down 12.2% from $246 million year-over-year[25] - Adjusted EBITDA for the three months ended December 31, 2024, was $196 million, compared to $216 million in the prior year, reflecting a decrease of 9.3%[32] - The company reported a net income of $25 million for the three months ended December 31, 2024, down from $45 million in the same period of 2023[25] - Net income attributable to Adient for Q4 2024 was $23 million, down from $29 million in Q4 2023, reflecting a decrease of approximately 20.7%[38] - Adjusted EBIT for Q4 2024 was $122 million, compared to $131 million in Q4 2023, representing a decline of about 6.9%[37] - Adjusted EBITDA for Q4 2024 was $196 million, down from $216 million in Q4 2023, indicating a decrease of approximately 9.3%[37] - Adjusted diluted earnings per share for Q4 2024 were $0.27, down from $0.31 in Q4 2023, a decrease of approximately 12.9%[40] Cash Flow and Liquidity - Operating cash flow for Q1 FY2025 was $109 million, significantly up from $41 million in Q1 FY2024, while free cash flow was $45 million compared to a negative $14 million in the prior year[12] - The company ended Q1 with a liquidity of approximately $1.7 billion and executed $25 million in share repurchases, totaling around 1.2 million shares[7][8] - Free cash flow for Q4 2024 was $45 million, a significant improvement from a negative $14 million in Q4 2023[43] - Total debt as of December 31, 2024, was $2,402 million, with net debt calculated at $1,542 million after accounting for cash and cash equivalents[44] Segment Performance - Segment results showed adjusted EBITDA of $85 million for Americas, $22 million for EMEA, and $111 million for Asia, with year-over-year declines primarily due to reduced customer production volumes[9][10] - The Americas segment reported net sales of $1,611 million, while EMEA and Asia reported $1,129 million and $772 million, respectively, for the three months ended December 31, 2024[32] Outlook and Guidance - The updated FY2025 outlook includes consolidated sales of approximately $13.9 billion, adjusted EBITDA of around $850 million, and free cash flow of about $180 million[14] Environmental Initiatives - The company achieved a 38% reduction in scope 1 and 2 greenhouse gas emissions compared to the 2019 baseline, and a 29% increase in renewable electricity usage since 2020[6] Assets and Liabilities - Total assets decreased to $8,533 million as of December 31, 2024, from $9,351 million at the end of September 2024, a decline of 8.8%[27] - Cash and cash equivalents decreased to $860 million from $945 million, a reduction of 9.0%[27] Restructuring and Costs - The company incurred restructuring and impairment costs of $23 million in the three months ended December 31, 2024, compared to $11 million in the same period of 2023[25] Taxation - The effective tax rate for Q4 2024 was 46.8%, compared to 30.8% in Q4 2023, indicating an increase in the tax burden[39]