Core Insights - Adient (ADNT) is expected to report quarterly earnings of $0.47 per share, reflecting a year-over-year increase of 38.2% [1] - Anticipated revenues for the quarter are projected at $3.72 billion, showing a slight increase of 0.5% compared to the previous year [1] - The consensus EPS estimate has been revised downward by 38.6% in the past 30 days, indicating a reassessment by analysts [1] Revenue Estimates - The consensus estimate for 'Net Sales- Asia' is $844.49 million, indicating a year-over-year change of +2.9% [2] - 'Net Sales- America' is forecasted to reach $1.64 billion, suggesting a decline of -4.8% year over year [2] - The average prediction for 'Net Sales- EMEA' stands at $1.25 billion, reflecting a year-over-year increase of +6.1% [2] Production Estimates - 'Light Vehicle Production - North America' is estimated to reach 3.71 million, up from 3.6 million in the same quarter last year [2] - 'Light Vehicle Production - China' is projected at 6.19 million, down from 7.2 million in the same quarter last year [3] - 'Light Vehicle Production - EMEA' is estimated at 4.60 million, compared to 4.2 million in the same quarter last year [3] EBITDA Estimates - 'Adjusted EBITDA- Americas' is expected to be $57.25 million, down from $69 million in the same quarter last year [3] - 'Adjusted EBITDA- Asia' is projected to reach $149.72 million, compared to $138 million in the same quarter last year [3] - 'Adjusted EBITDA- EMEA' is estimated at $40.99 million, up from $28 million in the same quarter last year [4] Stock Performance - Adient shares have changed by +0.9% in the past month, compared to a +5.3% move of the Zacks S&P 500 composite [4] - The company holds a Zacks Rank 3 (Hold), indicating expected performance in line with the overall market [4]

Wall Street expects a year-over-year increase in earnings on higher revenues when Adient (ADNT) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. On ...

Key PointsAdient is the world's largest automotive seat manufacturer, serving major automotive manufacturers like General Motors, Ford, Stellantis, Toyota, and Volkswagen.Adient lowered its fiscal Q1 2024 earnings forecast, but shares rallied as markets expected worse.Adient expects to improve sales and margins in fiscal 2024.5 stocks we like better than AdientAdient PLC NYSE: ADNT is one of the largest manufacturers of automotive seating and interior systems in the world. The company designs complete seat ...

     Adient to announce Q1FY24 financial results on Feb. 7, 2024 PLYMOUTH, Mich., Jan. 22, 2024 /PRNewswire/ -- Adient (NYSE: ADNT), a global leader in automotive seating, today reported certain unaudited preliminary financial results for the quarter ended Dec. 31, 2023.  Revenue in Q1FY24 is expected to be approximately $3.7B, or about flat vs. Q1FY23.  Q1FY24 Adjusted EBITDA is expected to be approximately $215M, versus $212M in the prior-year quarter. Additional details related to Adient's first quarter ...

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-37757 Adient plc (exact name of Registrant as specified in its charter) Ireland 98-1328821 (State or other jurisdiction o ...

Financial Data and Key Metrics Changes - Adient reported Q4 revenue of $3.7 billion, an increase of $79 million year-over-year, with adjusted EBITDA of $235 million, up $8 million from the previous year [6][22][24] - For the full year, sales reached $15.4 billion, a 9% increase compared to fiscal 2022, with adjusted EBITDA of $938 million, up $263 million year-over-year [23][24] - The company ended the year with total liquidity of $2.0 billion, including $1.1 billion in cash [6][30] Business Line Data and Key Metrics Changes - Adient's unconsolidated seating revenue increased by about 3% year-over-year, driven by higher production volumes at joint ventures, primarily in China [25] - The Americas' sales were generally in line with production, while EMEA was modestly lower due to planned exits from low-profit platforms [25] Market Data and Key Metrics Changes - Asia demonstrated strong growth, with consolidated sales up 8% versus production in the region, which was up approximately 2% [25] - The company expects growth over market in China to continue, driven by added seating content and favorable customer mix [25][33] Company Strategy and Development Direction - Adient's strategy focuses on operational excellence, innovation, and adapting to industry dynamics, particularly in the context of electric vehicles (EVs) and traditional platforms [13][14] - The company is fine-tuning its strategy to leverage shifts in the automotive industry, including the growth of Chinese domestic manufacturers and the importance of cost competitiveness [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as labor availability, elevated interest rates, and geopolitical concerns but expressed confidence in navigating these obstacles [19][33] - The company anticipates earnings and margin growth in 2024, despite the impact of the UAW strike and foreign exchange headwinds [33][34] Other Important Information - Adient's cash conservation efforts during the UAW strike resulted in a strong cash position, with plans to resume capital allocation as conditions stabilize [30] - The company has received approximately 60 awards in fiscal 2023, highlighting its commitment to excellence and operational performance [8] Q&A Session Summary Question: Why is the CEO leaving by the end of the year? - The CEO indicated personal and professional reasons for the departure, emphasizing the successful execution of the company's operational focus over the past five years [42][44] Question: What is offsetting the margin performance guidance? - Management noted that foreign exchange impacts, particularly from the Mexican peso, are muting margin performance despite achieving 130 basis points of margin expansion in 2023 [45][46] Question: Can you elaborate on the FX impact on EBITDA? - The CFO explained that the company’s hedging strategies protected against FX impacts in 2023, but as those hedges roll off, the company is now exposed to market movements, particularly with the peso [48][49] Question: How does the company view cash conversion moving forward? - Management indicated that while 2023 saw strong cash conversion due to conservation efforts, normalization in CapEx and other factors may lead to a swing in cash conversion in 2024 [59][60] Question: What is the outlook for the mix of Chinese domestic vehicles? - The CEO projected a shift in the customer mix towards Chinese domestic manufacturers over a three to five-year period, with confidence in the company's positioning [62][63]

FY 2023 Fourth Quarter Earnings Call November 8, 2023 ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Unaudited Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) Adient's unaudited consolidated financial statements for Q3 and nine months ended June 30, 2023, detail income, position, cash flows, and notes [Consolidated Statements of Income (Loss)](index=3&type=section&id=Consolidated%20Statements%20of%20Income%20%28Loss%29) Adient reported a significant turnaround in Q3 2023, with **net income of $95 million** and **16.4% net sales growth** Consolidated Statements of Income (Loss) Summary | Financial Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Nine Months Ended June 30, 2023 | Nine Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $4,055 million | $3,485 million | $11,666 million | $10,471 million | | **Gross Profit** | $302 million | $173 million | $783 million | $524 million | | **Net Income (Loss)** | $95 million | $(20) million | $138 million | $(110) million | | **Net Income (Loss) Attributable to Adient** | $73 million | $(30) million | $70 million | $(165) million | | **Diluted EPS** | $0.77 | $(0.32) | $0.73 | $(1.74) | [Consolidated Statements of Financial Position](index=5&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) Total assets increased to **$9.482 billion** as of June 30, 2023, with liabilities and shareholders' equity also rising Consolidated Statements of Financial Position Summary | Balance Sheet Item | June 30, 2023 | September 30, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $4,406 million | $4,163 million | | **Total Assets** | $9,482 million | $9,158 million | | **Total Current Liabilities** | $3,720 million | $3,501 million | | **Long-term Debt** | $2,532 million | $2,564 million | | **Total Liabilities** | $6,940 million | $6,738 million | | **Total Shareholders' Equity** | $2,485 million | $2,375 million | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly improved to **$373 million** for the nine months ended June 30, 2023, with shifts in investing and financing Consolidated Statements of Cash Flows Summary | Cash Flow Activity (Nine Months Ended June 30) | 2023 | 2022 | | :--- | :--- | :--- | | **Cash provided (used) by operating activities** | $373 million | $38 million | | **Cash provided (used) by investing activities** | $(164) million | $539 million | | **Cash provided (used) by financing activities** | $(261) million | $(1,164) million | | **Increase (decrease) in cash and cash equivalents** | $(39) million | $(629) million | | **Cash and cash equivalents at end of period** | $908 million | $892 million | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, revenue recognition, acquisitions, debt refinancing, and restructuring plans - Adient generates revenue from the sale of automotive seating systems and components, with **revenue recognized at the point in time when parts are shipped** and control has transferred to the customer[26](index=26&type=chunk) - In April 2023, Adient **acquired the remaining interest in Nantong Yanfeng Adient Seating Trim Co., Ltd. (YFAT) for $23 million**, resulting in **$13 million of goodwill**[29](index=29&type=chunk) - During Q2 2023, Adient **issued $500 million of 7% senior secured notes due 2028** and **$500 million of 8.25% senior unsecured notes due 2031**, using proceeds to **prepay $350 million of its Term Loan B** and **repurchase €700 million of its 3.50% notes due 2024**[50](index=50&type=chunk) - In fiscal 2023, Adient initiated a **new restructuring plan totaling $26 million**, primarily for **workforce reductions in the EMEA region**, expected to be completed by fiscal 2026[91](index=91&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q3 financial results, highlighting **16.4% net sales growth**, segment performance, liquidity, and debt refinancing [Consolidated Results of Operations](index=31&type=section&id=Consolidated%20Results%20of%20Operations) Q3 2023 net sales rose **16% to $4.055 billion**, gross profit surged **75%**, and net income reached **$73 million** Consolidated Results of Operations Summary | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $4,055M | $3,485M | +16% | | **Gross Profit** | $302M | $173M | +75% | | **Gross Margin** | 7.4% | 5.0% | +240 bps | | **Net Income Attributable to Adient** | $73M | $(30)M | >100% | - The increase in Q3 net sales was primarily due to **higher overall production volumes across all operating segments**, contributing **$628 million**[133](index=133&type=chunk) - **Equity income increased to $25 million in Q3 2023 from $16 million in Q3 2022**, mainly due to higher production volumes and favorable operating performance at partially-owned affiliates[141](index=141&type=chunk) [Segment Analysis](index=35&type=section&id=Segment%20Analysis) All segments reported strong Q3 2023 growth, with Americas, EMEA, and Asia net sales increasing **14%**, **18%**, and **18%** respectively Segment Performance Summary | Segment | Q3 2023 Net Sales | YoY Change | Q3 2023 Adjusted EBITDA | YoY Change | | :--- | :--- | :--- | :--- | :--- | | **Americas** | $1,900 million | +14% | $95 million | +36% | | **EMEA** | $1,438 million | +18% | $103 million | >100% | | **Asia** | $742 million | +18% | $100 million | +56% | - **EMEA's Adjusted EBITDA surged** due to **higher production volumes**, **net material margin improvements**, and **non-recurring insurance recoveries**[166](index=166&type=chunk) - **Asia's Adjusted EBITDA growth** was driven by **favorable volume and mix ($33 million)** and **higher equity income ($17 million)**[169](index=169&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) Adient maintains solid liquidity with **$1.008 billion** available from ABL facility and **$373 million** in nine-month operating cash flow - As of June 30, 2023, Adient had **not drawn on its $1.25 billion ABL Credit Facility** and had **availability of $1.008 billion**[172](index=172&type=chunk) Cash Flow Summary | Cash Flow (Nine Months Ended June 30) | 2023 | 2022 | | :--- | :--- | :--- | | **Operating Cash Flow** | $373 million | $38 million | | **Investing Cash Flow** | $(164) million | $539 million | | **Financing Cash Flow** | $(261) million | $(1,164) million | - In November 2022, the board **authorized a $600 million share repurchase program**; during Q3 2023, Adient **repurchased 997,176 shares for approximately $37 million**, with **$535 million remaining authorization**[87](index=87&type=chunk)[185](index=185&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material adverse changes in market risk exposures were reported as of June 30, 2023, compared to the prior 10-K filing - The company states that there were **no material changes in its market risk exposures**, such as interest rate risk, foreign currency exchange risk, and commodity price risk, during the quarter[190](index=190&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal controls - Management concluded that **disclosure controls and procedures were effective** as of the end of the period[191](index=191&type=chunk) - **No material changes to internal control over financial reporting** were identified during the third quarter of fiscal 2023[192](index=192&type=chunk) [PART II - OTHER INFORMATION](index=43&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) Adient is involved in routine legal proceedings, none expected to materially impact financial position or results - The company is involved in various legal proceedings related to product liability, environmental, employment, and commercial matters, but **management does not expect them to have a material adverse impact**[193](index=193&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported compared to the prior 10-K filing - **No material changes from the risk factors disclosed in the last Annual Report on Form 10-K** were reported[195](index=195&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details of share repurchase activity, including 997,176 shares bought for $37 million, with $535 million remaining Share Repurchase Activity | Period | Total Shares Purchased | Average Price Paid per Share | Approx. Dollar Value Remaining in Program | | :--- | :--- | :--- | :--- | | May 1 to May 31, 2023 | 997,176 | $35.10 | $535 million | - The **share repurchase program, authorized in November 2022 for up to $600 million**, has **no expiration date**[197](index=197&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) An index of exhibits filed with Form 10-Q, including CEO/CFO certifications and XBRL data files - The filing includes **CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act**[200](index=200&type=chunk) - **Interactive data files (XBRL documents) are included as exhibits** to the report[200](index=200&type=chunk)

Financial Data and Key Metrics Changes - Adient reported Q3 2023 revenue of $4.1 billion, an increase of $570 million year-over-year, with adjusted EBITDA of $276 million, up $133 million from the previous year [7][19][30] - The company ended the quarter with a cash balance of $908 million and total liquidity of $1.9 billion, enabling $37 million in share repurchases during the quarter [8][29] Business Line Data and Key Metrics Changes - The Americas region's performance was in line with the broader market, while EMEA outperformed due to favorable customer and program mix [21][27] - In Asia, particularly China, the year-over-year improvement was driven by higher volumes and increased equity income [21][27] Market Data and Key Metrics Changes - Adient's unconsolidated seating revenue was up about 5% year-over-year, primarily due to increased production volume at joint ventures in China [21] - The company expects its volume growth in China to exceed market growth by 2x over the next five years, with a shift in customer mix towards local manufacturers [12][49] Company Strategy and Development Direction - Adient's strategy focuses on operational excellence, cost control, and winning new business across various regions and platforms [9][15] - The company is positioning itself for sustained success, particularly in China, which is viewed as a growth engine despite geopolitical risks [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges and maintain positive business performance into 2024, with expectations for continued earnings margin and free cash flow growth [16][30] - The company is currently developing its 2024 plan, with a focus on global production forecasts and market conditions [16][30] Other Important Information - Adient's updated FY2023 guidance forecasts consolidated sales of approximately $15.4 billion and adjusted EBITDA of about $920 million, reflecting strong business performance and increased production volumes [30][31] - The company highlighted the importance of partnerships with alternative suppliers rather than pursuing vertical integration, which can be risky and capital-intensive [44][45] Q&A Session Summary Question: Impact of inflation recovery on commodity costs - Management confirmed that the $55 million commodity impact is a net figure and attributed performance slowdowns to timing and volume drops, particularly in Europe [36][39][41] Question: Market share growth in China - Management indicated that market share growth in China is expected to come from a shift towards domestic manufacturers, with a focus on agility and local customer needs [49][50] Question: UAW strike potential impact - Management clarified that there are no assumptions regarding a UAW strike in their guidance, emphasizing their diversified customer base mitigates potential impacts [51][53] Question: Commodity costs and sticky costs - Management noted that commodity costs are expected to exceed $135 million, with sticky costs being offset by positive business performance [66][68] Question: European margins sustainability - Management expressed optimism about the sustainability of high European margins, attributing performance to volume increases and structural changes made in the business [73]