Adient(US:ADNT)2026-02-04 21:33Financial 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].