Adient(ADNT) - 2025 Q4 - Annual Results

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]