Financial Data and Key Metrics Changes - Revenue for the quarter was $3.6 billion, up 4% year-over-year, primarily driven by foreign exchange tailwinds from Europe [6][27] - Adjusted EBITDA improved by 10 basis points year-over-year to 5.7%, totaling $207 million [27] - Adjusted net income was $28 million or $0.35 per share during the quarter [27] Business Line Data and Key Metrics Changes - In the Americas, consolidated sales were generally in line with the broader market [29] - EMEA sales trailed the market due to customer mix and deliberate portfolio actions [29] - Asia outperformed, driven by significant growth in China as new programs with domestic OEMs ramped up [29] Market Data and Key Metrics Changes - Production volumes are trending higher, particularly in North America, with overall industry volume indicators remaining positive [9] - China is expected to continue double-digit growth through fiscal year 2028, despite relatively flat overall vehicle production [12] - The growth outlook for Asia outside of China is also expected to exceed market growth in fiscal years 2027 and 2028 [12] Company Strategy and Development Direction - The company is focused on onshoring opportunities in North America, having won approximately 150,000 units of direct onshoring business [11] - Investments in automation are expected to ensure continued positive business performance, with most projects having a payback under two years [10] - The introduction of ModuTec, a modular seat design solution, aims to enhance manufacturing efficiency and support onshoring priorities [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in the past quarter but expressed confidence in the company's resilient operating model [6] - The company raised its guidance for revenue, adjusted EBITDA, and free cash flow for the fiscal year 2026 [8][38] - Management emphasized the importance of launching key and complex new programs flawlessly and exceeding customer expectations [9] Other Important Information - The company generated $15 million of free cash flow in the first quarter, higher than internal expectations [33] - Total liquidity was $1.7 billion, comprised of $855 million in cash and $823 million in undrawn capacity under a revolving line of credit [35] - The company returned $25 million to shareholders through share repurchases during the quarter [7][35] Q&A Session Summary Question: Impact of potential disruptions on F-150 F-Series recovery - Management stated they are monitoring the situation and will provide updates based on Ford's guidance [41][42] Question: Onshoring opportunity growth - Management confirmed the onshoring opportunity has grown to $500 million, including a conquest win, and expects updates on significant wins soon [44][46] Question: Update on European restructuring - Management indicated that restructuring spend in Europe is expected to decrease in fiscal year 2027, but future restructuring will depend on customer production plans [54][55] Question: Asia adjusted EBITDA decline - Management noted that increased engineering spending for new programs will continue but is expected to be offset by operational efficiencies [56] Question: Commercial settlement impact - Management clarified that the cash flow from commercial negotiations is a timing issue and part of normal business operations [61][62]

Core Insights - The ModuTec assembly process significantly reduces assembly time from minutes to seconds, enhancing efficiency and lowering costs while enabling unprecedented automation in the automotive seating industry [1][2]. Group 1: ModuTec Assembly Process - ModuTec allows for offline assembly of seat modules, which are then integrated into the main Just-In-Time (JIT) line [1]. - This innovative approach is expected to transform manufacturing by simplifying production workflows and enhancing overall assembly efficiency [5]. Group 2: Industry Impact - The introduction of ModuTec represents a fundamental shift in how vehicle seats are manufactured, emphasizing cost efficiency, engineering criteria, and manufacturing best practices [2][3]. - Adient's vice president highlighted that ModuTec is a bold step towards the future of the automotive seating industry [2]. Group 3: Company Overview - Adient is a global leader in automotive seating, employing over 65,000 people across 29 countries and operating approximately 200 manufacturing and assembly plants worldwide [4]. - The company provides comprehensive automotive seating solutions for all major Original Equipment Manufacturers (OEMs), covering every aspect from research and design to engineering and manufacturing [4].