Adient(US:ADNT)2025-05-07 11:39Financial Performance - Adient's Q2 FY25 consolidated revenue was approximately $3.6 billion, a decrease of 4% year-over-year[11, 36] - Adjusted EBITDA for Q2 FY25 was $233 million, an increase of $6 million year-over-year, with an adjusted EBITDA margin of 6.5%, up 40 bps year-over-year[11, 36, 40] - Free cash flow for Q2 FY25 was negative $90 million[11, 43] - The company maintains a strong cash balance of $754 million as of March 31, 2025[11] - Gross debt and net debt were approximately $2.4 billion and $1.6 billion, respectively[11] Tariff Mitigation - Adient estimates approximately monthly tariff exposure of $8 million, with the largest exposure concentrated from goods coming from China[14, 15, 17] - The company has mitigated over 75% of tariff risk and is actively working to close the gap with customers, targeting 100% recovery/cost offsets[16, 17, 21] - Approximately 95% of Adient's parts produced in Mexico and Canada and shipped to the U S are USMCA compliant, representing about $100 million monthly imports[17] Regional Performance - Americas sales outperformed the market by 700 bps due to favorable volume/mix and slow ramping launches on high-volume customer programs last year[39] - EMEA sales were mostly in line with the broader market[39] - Sales in China underperformed industry production primarily due to production declines from traditional luxury OEMs[39] - Growth in the rest of Asia outpaced the broader market by 300 bps, driven by new customer launches in H2FY24 reaching full production volumes[39] Outlook - Adient maintains its FY25 revenue and adjusted EBITDA outlook, expecting positive momentum from H1 to carry into H2, excluding potential tariff-related volume impacts[12, 58] - Free cash flow is now forecast between $150 million and $170 million, influenced by the timing of customer recoveries and potential acceleration of European restructuring cash costs[59]