Adient(ADNT) - 2026 Q1 - Quarterly Results

Financial Performance - Adient reported Q1 FY2026 revenue of $3,644M, a 4% increase compared to Q1 FY2025, with adjusted EBITDA of $207M, up $11M year-over-year[1][2] - The company raised its FY26 guidance for revenue to $14.6B (up from $14.4B) and adjusted EBITDA to $880M (up from $845M), reflecting strong business performance and improved vehicle production outlook[6][12] - Adient's adjusted net income attributable to the company was $28M, representing a 22% increase year-over-year, with adjusted EPS of $0.35, a 30% increase compared to the previous year[1][6] - The company achieved an adjusted EBITDA margin of 5.7%, an increase of 10 basis points from the previous year[2][6] - Net sales for the three months ended December 31, 2025, were $3,644 million, an increase of 4.3% compared to $3,495 million in the same period of 2024[24] - Gross profit for the same period was $217 million, slightly up from $216 million year-over-year[24] - Adjusted EBITDA for the three months ended December 31, 2025, was $207 million, compared to $196 million in the prior year, reflecting a year-over-year increase of 5.6%[31] - The adjusted EBITDA margin for the consolidated results was 5.7%, compared to 5.6% in the same quarter of 2024[31] - Net income attributable to Adient for the three months ended December 31, 2025, was a loss of $22 million, compared to a profit of $0 in the same period of 2024[24] - The company reported a cash provided by operating activities of $80 million for the three months ended December 31, 2025, down from $109 million in the same period of 2024[28] - Adjusted EBITDA for Q1 2025 was $207 million, up from $196 million in Q1 2024, representing a 5.6% increase[36] - Adjusted EBIT for Q1 2025 was $130 million, compared to $122 million in Q1 2024, reflecting an increase of 6.6%[36] - Net income attributable to Adient for Q1 2025 was a loss of $22 million, compared to a profit of $0 in Q1 2024[33] - Adjusted net income attributable to Adient for Q1 2025 was $28 million, up from $23 million in Q1 2024, indicating a 21.7% increase[37] - Basic earnings per share for Q1 2025 was $(0.28), while diluted earnings per share was also $(0.28)[33] - Adjusted diluted earnings per share for Q1 2025 was $0.35, compared to $0.27 in Q1 2024, marking a 29.6% increase[39] - Total net sales for Q1 2025 were $3,644 million, up from $3,495 million in Q1 2024, a growth of 4.3%[36] Debt and Cash Management - Adient's gross debt and net debt were approximately $2.4B and $1.5B, respectively, as of December 31, 2025, with cash and cash equivalents totaling $855M[6][11] - Cash and cash equivalents decreased to $855 million from $958 million at the end of the previous quarter[26] - Long-term debt remained stable at $2,380 million, compared to $2,386 million at the end of the previous quarter[26] - Net debt as of December 31, 2025, was $1,536 million, an increase from $1,439 million as of September 30, 2025, indicating a rise of 6.73%[43] - The net leverage ratio increased to 1.72 as of December 31, 2025, compared to 1.63 as of September 30, 2025[43] Shareholder Returns - The company returned $25M to shareholders in Q1 FY2026 through the repurchase of approximately 1.2M shares[6][11] Sustainability Initiatives - Adient's sustainability initiatives include a 42% reduction in Scope 1 and 2 emissions since 2019 and an increase in renewable electricity usage to 30% of total consumption[17] - The company completed 1,990 continuous improvement projects in FY2025, resulting in estimated annual savings of 5,689 metric tons of CO2e and 72.6 million kWh of energy[4][14] Growth and Market Position - The company is positioned for growth, capitalizing on approximately 150K units of incremental annual volume in the Americas and expecting to significantly outpace the market in Asia[5] - Adient's new modular seat design, ModuTec, aims to enhance automation and efficiency in the seat building process, significantly reducing assembly time[3] Other Financial Metrics - Total assets as of December 31, 2025, were $8,774 million, a decrease from $8,954 million as of September 30, 2025[26] - Free cash flow for Q4 2025 was $15 million, down from $45 million in Q4 2024, reflecting a decrease of 66.67%[42] - Operating cash flow for Q4 2025 was $80 million, down from $109 million in Q4 2024, a decline of 26.61%[42] - Capital expenditures for Q4 2025 were $65 million, slightly up from $64 million in Q4 2024[42] - Trade working capital decreased to $187 million in Q4 2025 from $234 million in Q4 2024, a reduction of 20.04%[42] - Restructuring cash charges for Q4 2025 were $19 million, down from $34 million in Q4 2024, a decrease of 44.12%[42] - Dividends from partially owned affiliates were $0 in Q4 2025, compared to $6 million in Q4 2024[42] - Non-income related taxes (VAT) increased to $44 million in Q4 2025 from $22 million in Q4 2024, a rise of 100%[42]