Core Insights - Adient and Autoliv have co-developed innovative safety solutions for zero-gravity seating, enhancing occupant protection in deeply reclined positions [1][4] - The Z-Guard system integrates advanced safety technologies and is ready for mass production, addressing the safety risks associated with conventional systems in deeply reclined seating [3][8] Group 1: Product Development - Adient's Z-Guard offers full-process occupant protection through intelligent seat, restraint, and predictive safety technologies [2] - The Z-Guard concept incorporates Multi-Dimensional Collaborative Protection, utilizing advanced constraint and energy-absorbing technologies for collision protection [5] - Key innovations include an Integrated Seatbelt System, Dynamic Lumbar Retractor, Pelvic Cushion Airbag, and Head Side Airbag, which collectively enhance safety in reclined positions [5] Group 2: Predictive Safety Features - The Z-Guard system integrates with vehicle driver assistance systems, using predictive signals for proactive posture adjustments before a collision [6] - In scenarios where a crash cannot be detected in time, Z-Guard employs dual pretensioners and a collapse mechanism to enhance occupant safety [7] Group 3: Market Readiness - The Z-Guard seating concept is designed to align with the evolving demands of software-defined vehicles, integrating safety features into smart cockpit environments [8] - Adient is set to lead the commercialization of Z-Guard, with plans for production in a high-volume model from a major global OEM [8]

Core Viewpoint - Adient plc (NYSE: ADNT) is an automotive seating-oriented company that has been experiencing a sustained down period in its share price, leading to a 'Hold' rating being reiterated in April of this year [1] Company Summary - The company focuses on deriving income from investment setups by purchasing undervalued profitable stocks with strong balance sheets and minimal debt [1] - The strategy includes writing calls against positions to generate additional income when opportunities arise [1] - Risk management is emphasized through position sizing and the use of trailing stop losses over time [1]

Core Viewpoint - Adient, a global leader in automotive seating, will host a conference call on November 5, 2025, to discuss its fourth quarter fiscal 2025 financial results [1]. Group 1: Company Overview - Adient operates with approximately 70,000 employees across 29 countries and has more than 200 manufacturing and assembly plants worldwide [3]. - The company specializes in producing and delivering automotive seating for all major original equipment manufacturers (OEMs), covering the entire process from research and design to engineering and manufacturing [3]. Group 2: Financial Communication - A live webcast of the upcoming conference call and presentation materials will be available on the Adient Investor Relations website [1]. - Participants can join the call by dialing specific telephone numbers provided for U.S. and international callers, with a passcode required for access [2].

Group 1 - Wells Fargo upgraded Adient from Equal Weight to Overweight, raising its price target to $31 from $24, with shares rising nearly 2% in pre-market trading [1] - Adient is expected to benefit from improved global light vehicle production in 2026, with adjusted EBITDA projected to be about 7% above consensus [1] - The stock is currently trading at near-trough valuation multiples, indicating potential for growth [1] Group 2 - The company's turnaround has faced delays due to weak global production, unfavorable customer mix, extended unprofitable programs, and persistent cost inflation [2] - Margin recovery is anticipated to accelerate starting in 2026 as North American volumes improve, foreign exchange trends stabilize, and unprofitable programs are phased out [2]

Industry Overview - The Zacks Automotive - Original Equipment industry is expected to benefit from acquisitions, collaborations, a diverse customer base, and the global expansion of original equipment manufacturers [1][2] - The industry focuses on designing and producing passive safety systems, driveline, and metal forming technologies for various vehicle types, including electric and hybrid vehicles [2] Factors Influencing the Industry Outlook - Automation technology is enhancing efficiency, productivity, quality, and safety while reducing labor costs for manufacturers, providing a competitive edge [3] - A new tax incentive allows car buyers to deduct up to $10,000 annually in auto loan interest from their federal taxable income, which is anticipated to increase demand for new vehicles [4] Demand and Production Trends - A decline in vehicle production due to weak demand, particularly for unsold electric vehicles, is expected to negatively impact the demand for auto equipment [5] - The U.S. government has implemented a 25% import tax on essential auto components, raising costs for domestic equipment manufacturers [6] Industry Performance and Valuation - The Zacks Automotive - Original Equipment Industry ranks 91, placing it in the top 37% of over 250 Zacks industries, indicating positive near-term prospects [7][8] - The industry has underperformed the S&P 500, declining 3% over the past year compared to the S&P 500's growth of 16.6% [10] - The industry is currently trading at an EV/EBITDA ratio of 18.57X, higher than the S&P 500's 17.77X and lower than the sector's 22.63X [13] Company Highlights - **Gentex Corporation (GNTX)**: Supplies automatic-dimming mirrors and electronics, with growth potential in tech products and a recent acquisition of VOXX International expanding its portfolio [16][17] - **Adient plc (ADNT)**: A leading automotive seating supplier focusing on automation and modularity, with a diverse customer base and international presence [22][23] - **American Axle & Manufacturing Holdings, Inc. (AXL)**: A supplier of driveline systems advancing in electrification, with a strong market position bolstered by recent acquisitions [26][27]

Core Insights - Adient (ADNT) reported adjusted earnings per share (EPS) of 45 cents for Q3 FY2025, an increase from 32 cents year-over-year but below the Zacks Consensus Estimate of 47 cents [1][9] - The company generated net sales of $3.74 billion, reflecting a 0.7% year-over-year increase and exceeding the Zacks Consensus Estimate of $3.56 billion [1][9] - Adient raised its revenue guidance for FY2025 to $14.4 billion from a previous estimate of $13.9 billion, with adjusted EBITDA also increased to $875 million from $850 million [7][9] Segment Performance - The Americas segment reported revenues of $1.76 billion, up 1.3% year-over-year, surpassing the Zacks Consensus Estimate of $1.59 billion, with adjusted EBITDA of $112 million, an increase from $99 million in the prior year [3] - The EMEA segment generated revenues of $1.27 billion, down 1.6% year-over-year but above the Zacks Consensus Estimate of $1.22 billion, with adjusted EBITDA declining to $21 million from $25 million [4] - The Asia segment's revenues were $721 million, slightly up from $712 million year-over-year but below the Zacks Consensus Estimate of $739 million, with adjusted EBITDA increasing to $113 million from $101 million [5] Financial Position - As of June 30, 2025, Adient had cash and cash equivalents of $860 million, down from $945 million as of September 30, 2024, and long-term debt stood at $2.39 billion [6] - Capital expenditures for the quarter totaled $57 million, compared to $70 million in the prior-year quarter [6] Guidance Updates - Adient's updated guidance for FY2025 includes projected revenues of $14.4 billion, adjusted EBITDA of $875 million, equity income of $75 million, and free cash flow anticipated in the range of $150-$170 million, with capital expenditures estimated at $260 million [7]

Group 1 - Adient has appointed Linda Conrad as vice president of Financial Planning & Analysis (FP&A) and Investor Relations, effective August 11, 2025 [1][2] - Linda Conrad has extensive financial expertise, having previously served as vice president of Finance - Corporate at Harman International and held leadership roles at tier one automotive and manufacturing organizations [2] - Linda holds an MBA in Finance from Case Western Reserve University and a bachelor's degree in Business - Finance from the University of Denver [2] Group 2 - Adient is a global leader in automotive seating, employing approximately 70,000 people across 29 countries and operating over 200 manufacturing and assembly plants worldwide [4] - The company produces and delivers automotive seating for all major OEMs, covering the entire process from research and design to engineering and manufacturing [4]

Summary of Aptiv Conference Call - August 12, 2025 Company Overview - **Company**: Aptiv (APTV) - **Industry**: Automotive parts supplier Key Points and Arguments Financial Performance and Outlook - **Strong Q2 Performance**: Aptiv reported a strong second quarter with vehicle production exceeding expectations, leading to increased confidence in Q3 outlook [3][4] - **Conservative Guidance for H2 2025**: The company has reinstated its 2025 outlook with some conservatism, anticipating potential softening in vehicle production due to tariffs [5][6] - **Cash Position**: Aptiv holds a strong balance sheet with $1.4 billion in cash, allowing for stock repurchases and potential M&A activities [3][9] - **Operational Efficiency**: The company has achieved strong margin expansion and cash flow generation, returning to pre-COVID operational levels [8] Tariff Management - **Direct Impact of Tariffs**: The direct impact of tariffs on Aptiv has been minimal due to effective supply chain management and regional sourcing strategies [11][12] - **Future Tariff Concerns**: The company is monitoring proposed semiconductor tariffs closely, as they could significantly impact operations [13][14] - **USMCA Compliance**: 95% of imports into the U.S. from Aptiv's operations in Mexico are USMCA compliant, which is crucial for maintaining tariff advantages [15][16] Vehicle Electrification - **EV Adoption Forecast**: Aptiv's outlook for EV penetration is around 50% by 2030, lower than IHS's forecast of 70%, with strong growth expected in China and Europe but flat growth in North America [19][20][21] - **Content Opportunities**: EVs present significant content opportunities for Aptiv, particularly in the BEV and plug-in hybrid segments [23][24] Chinese Market Dynamics - **Focus on Top OEMs**: Aptiv is concentrating on partnerships with the top five Chinese OEMs, such as BYD and Geely, while maintaining profitability and cash flow [28][30] - **Growth in Domestic Automakers**: The company has seen a shift towards a higher percentage of business from Chinese domestic automakers, with a focus on maintaining commercial discipline [93][94] EDS Spin-Off - **Value Creation from Spin-Off**: The separation of the EDS business is expected to enhance capital allocation and allow both entities to pursue growth opportunities more effectively [32][38] - **Market Position of EDS**: EDS is a leading player in the wire harness market, with significant margin advantages over competitors [34] Non-Automotive Business Growth - **Increasing Non-Automotive Revenue**: Aptiv's non-automotive revenue is projected to grow, currently at 22% post-spin, with a focus on high-growth markets [46][50] Award Activity and Market Position - **New Business Bookings**: Aptiv has not seen a slowdown in award activity but rather an elongated award cycle due to regulatory uncertainties [52][53] - **Gen Six ADAS Product**: The company has gained traction with its Gen Six ADAS product, which offers cost savings and flexibility for OEMs [56][60] Capital Structure Post-Separation - **Capital Structure Plans**: Post-separation, EDS will have a high sub-investment grade capital structure, while the remaining Aptiv will maintain an investment-grade profile [76][78] Additional Important Insights - **Copper Tariffs**: The impact of copper tariffs is being managed effectively, with minimal exposure anticipated [70][72] - **Mexican Peso Exposure**: The strengthening of the Mexican peso poses a cash flow headwind for Aptiv, as most employees are paid in pesos while revenue is generated in dollars [74][75] This summary encapsulates the key insights and strategic directions discussed during the Aptiv conference call, highlighting the company's performance, market dynamics, and future outlook.

Core Insights - Adient reported revenue of $3.74 billion for the quarter ended June 2025, reflecting a year-over-year increase of 0.7% and a surprise of +5.08% over the Zacks Consensus Estimate of $3.56 billion [1] - The company's EPS for the quarter was $0.45, compared to $0.32 in the same quarter last year, although it fell short of the consensus estimate of $0.47, resulting in an EPS surprise of -4.26% [1] Company Performance Metrics - Adient's stock has returned -0.2% over the past month, while the Zacks S&P 500 composite has increased by +0.5%, indicating underperformance relative to the broader market [3] - The company holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3] Light Vehicle Production Insights - Global light vehicle production reached 22.6 million, exceeding the two-analyst average estimate of 21.97 million [4] - North American light vehicle production was 4 million, surpassing the average estimate of 3.81 million [4] - Light vehicle production in Asia (excluding China) was 5.9 million, above the average estimate of 5.6 million [4] - EMEA light vehicle production was reported at 4.4 million, slightly above the average estimate of 4.35 million [4] - In China, light vehicle production was 7.6 million, exceeding the average estimate of 7.47 million [4] - South American light vehicle production was 0.7 million, slightly below the average estimate of 0.75 million [4] Net Sales Performance - Net sales in the Americas were $1.76 billion, exceeding the average estimate of $1.59 billion, with a year-over-year change of +1.3% [4] - Net sales from eliminations were reported at -$8 million, significantly better than the average estimate of -$25.92 million, representing a year-over-year change of -61.9% [4] - Net sales in Asia were $721 million, slightly below the average estimate of $739.34 million, with a year-over-year change of +1.3% [4] - EMEA net sales were $1.27 billion, above the average estimate of $1.22 billion, but showed a year-over-year decline of -1.6% [4]

PART I - FINANCIAL INFORMATION [Unaudited Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) The company's Q3 net income improved to $36 million, but the nine-month net loss widened to $299 million due to a significant goodwill impairment charge Consolidated Statements of Income (Loss) Highlights | Indicator (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $3,741 | $3,716 | $10,847 | $11,126 | | **Gross profit** | $237 | $207 | $714 | $683 | | **Earnings before interest and income taxes** | $118 | $94 | $(5) | $213 | | **Net income (loss) attributable to Adient** | $36 | $(11) | $(299) | $(61) | | **Diluted EPS** | $0.43 | $(0.12) | $(3.56) | $(0.67) | Consolidated Statements of Financial Position Highlights | Indicator (in millions) | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Total current assets** | $4,022 | $4,086 | | **Total assets** | $8,836 | $9,351 | | **Total current liabilities** | $3,598 | $3,678 | | **Long-term debt** | $2,385 | $2,396 | | **Total liabilities** | $6,676 | $6,817 | | **Total shareholders' equity** | $2,074 | $2,443 | Consolidated Statements of Cash Flows Highlights (Nine Months Ended June 30) | Indicator (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | **Cash provided by operating activities** | $236 | $280 | | **Cash used by investing activities** | $(127) | $(183) | | **Cash used by financing activities** | $(212) | $(313) | | **Decrease in cash and cash equivalents** | $(85) | $(220) | | **Cash and cash equivalents at end of period** | $860 | $890 | - A triggering event in Q2 fiscal 2025 led to a **$333 million non-cash goodwill impairment charge** for the EMEA reporting unit, leaving no remaining goodwill in that segment[35](index=35&type=chunk)[36](index=36&type=chunk) - In February 2025, the company issued **$795 million of 7.50% senior unsecured notes** due 2033 to redeem its 4.875% notes due 2026[50](index=50&type=chunk) - Adient repurchased **4,014,410 ordinary shares for $75 million** during the first nine months of fiscal 2025, with **$185 million remaining** under the repurchase authorization[75](index=75&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Macroeconomic pressures and slower EV adoption impacted performance, leading to a goodwill impairment, while restructuring efforts continue amid sufficient liquidity [Factors Affecting Adient's Operating Environment](index=33&type=section&id=Factors%20Affecting%20Adient's%20Operating%20Environment) The company's operating environment is challenged by weakening consumer demand, tariffs, and market pressures, which prompted a significant goodwill impairment charge - The company faces uncertainties from weakening consumer demand, tariffs, market share loss for foreign OEMs in Asia, and overcapacity in EMEA due to slower EV adoption rates[117](index=117&type=chunk) - As a result of these macroeconomic factors, Adient recorded a **$333 million non-cash goodwill impairment** in its EMEA segment as of March 31, 2025[118](index=118&type=chunk) [Consolidated Results of Operations](index=34&type=section&id=Consolidated%20Results%20of%20Operations) Q3 net sales rose 1% to $3.74 billion, while the nine-month net loss widened to $299 million, primarily due to a goodwill impairment charge Net Sales Performance | Period | Net Sales (in millions) | Change YoY | | :--- | :--- | :--- | | **Q3 2025** | $3,741 | +1% | | **Nine Months 2025** | $10,847 | -3% | - Q3 2025 net sales increase was driven by favorable foreign currencies (**$84M**) and pricing (**$10M**), partially offset by lower volumes (**$54M**)[125](index=125&type=chunk) - Gross profit margin improved from **5.6% to 6.3%** in Q3 YoY and from **6.1% to 6.6%** for the nine-month period YoY, driven by favorable pricing and operating performance[127](index=127&type=chunk) - The nine-month net loss of **$299 million** was primarily driven by a **$333 million goodwill impairment charge** in EMEA and a **$10 million impairment** on an investment[132](index=132&type=chunk)[143](index=143&type=chunk) [Segment Analysis](index=39&type=section&id=Segment%20Analysis) Segment performance varied, with Americas and Asia showing Adjusted EBITDA growth, while the EMEA segment experienced a decline Adjusted EBITDA by Segment (Q3 2025 vs Q3 2024) | Segment | Q3 2025 Adj. EBITDA (in millions) | Q3 2024 Adj. EBITDA (in millions) | Change YoY | | :--- | :--- | :--- | :--- | | **Americas** | $112 | $99 | +13% | | **EMEA** | $21 | $25 | -16% | | **Asia** | $113 | $101 | +12% | - **Americas:** Adjusted EBITDA increased by **$13 million** in Q3 due to favorable pricing adjustments (**$22M**) and improved operating performance (**$6M**)[160](index=160&type=chunk) - **EMEA:** Adjusted EBITDA decreased by **$4 million** in Q3 due to higher administrative expenses (**$11M**) and lower production volumes (**$5M**), partially offset by favorable pricing (**$14M**)[164](index=164&type=chunk) - **Asia:** Adjusted EBITDA increased by **$12 million** in Q3 due to favorable operating performance (**$10M**) and positive currency effects (**$6M**)[168](index=168&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity through operating cash flow and its credit facility while continuing share repurchases and restructuring efforts Cash Flow Summary (Nine Months Ended June 30) | Cash Flow (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | **Operating Activities** | $236 | $280 | | **Investing Activities** | $(127) | $(183) | | **Financing Activities** | $(212) | $(313) | - As of June 30, 2025, Adient had **$872 million of availability** under its ABL Credit Facility, with no amounts drawn down[172](index=172&type=chunk) - The company initiated the "2025 Plan" for restructuring, with expected annual operating cost savings of approximately **$53 million** upon completion[181](index=181&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There were no material changes to the company's market risk exposures since the last annual report - Adient reported **no material adverse changes** in its market risk exposures since its last annual report[197](index=197&type=chunk) [Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the period[198](index=198&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[199](index=199&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing legal proceedings are not expected to have a material adverse effect on the company's financial condition - The company is involved in various legal proceedings but does not expect them to have a **material adverse effect** on its financial condition or results[201](index=201&type=chunk) [Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) Updated risks include impacts from U.S. trade policy, auto industry conditions evidenced by a goodwill impairment, and potential limitations on tax attribute usage - An updated risk factor highlights the adverse effect of U.S. trade policy and tariffs, noting that Adient had incurred **$13 million of incremental tariff expense**, net of recoveries[204](index=204&type=chunk) - The risk related to the global automotive industry's condition was updated to reflect the **$333 million non-cash goodwill impairment** in the EMEA reporting unit[207](index=207&type=chunk) - A new risk factor was added regarding the potential limitation on using net operating loss carryforwards if the company undergoes an **"ownership change"** under U.S. tax law[208](index=208&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased approximately $50 million of its shares in June 2025, with $185 million remaining under its repurchase authorization Share Repurchase Activity (Q3 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Total Cost (approx. in millions) | | :--- | :--- | :--- | :--- | | **April 2025** | — | $— | $0 | | **May 2025** | — | $— | $0 | | **June 2025** | 2,787,081 | $17.94 | $50 | | **Total** | **2,787,081** | **$17.94** | **$50** | - As of June 30, 2025, the remaining authorized amount for share repurchases under the program was **$185 million**[211](index=211&type=chunk) [Defaults Upon Senior Securities](index=50&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - None[212](index=212&type=chunk) [Mine Safety Disclosures](index=50&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Adient's business - Not applicable[213](index=213&type=chunk) [Other Information](index=50&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter - No directors or executive officers adopted or terminated any Rule 10b5-1 trading arrangements during the quarter[214](index=214&type=chunk) [Exhibits](index=51&type=section&id=Item%206.%20Exhibits) This section indexes the exhibits filed with the report, including required CEO/CFO certifications and interactive data files - The report includes CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act, as well as Inline XBRL documents[217](index=217&type=chunk)