Adient (NYSE:ADNT) Announces Quarterly Earnings Results, Misses Expectations By $0.10 EPS

Adient (NYSE:ADNT) announced its quarterly earnings results on Wednesday. The company reported $0.52 earnings per share for the quarter, missing the consensus estimate of $0.62 by ($0.10), FiscalAI reports. Adient had a net margin of 0.32% and a return on equity of 7.32%. The company had revenue of $3.73 billion for the quarter, compared to analysts’ expectations of $3.62 billion. During the same quarter in the prior year, the business posted $0.52 earnings per share. The firm’s revenue was up 1.1% compared to the same quarter last year.

Here are the key takeaways from Adient’s conference call:

• Adient reported fiscal 2026 revenue of $15.2 billion, up 4%, and adjusted EBITDA of $884 million, essentially flat year over year, despite industry and regional headwinds. Free cash flow was $222 million, though about $60 million reflected timing-related benefits pulled forward from 2027.
• For fiscal 2027, Adient expects revenue of $14.8 billion to $15.0 billion but adjusted EBITDA of $900 million to $925 million, implying modest margin expansion despite lower production volumes. Management says productivity, commercial actions, and restructuring will help offset volume and foreign-exchange pressure.
• Fiscal 2027 free cash flow is expected to be only more than $100 million, down from $222 million in 2026, due partly to timing benefits pulled forward and nonrecurring dividend timing. Higher capital expenditures and restructuring spending will also weigh on cash generation.
• Management described 2027 as a difficult operating environment, with volume and mix headwinds in the Americas and China, ongoing challenges in EMEA, and pressure from commodities, tariffs, and customer downtime. The outlook relies on substantial business-performance improvements and customer cost recoveries that executives said are mapped out but still need to be secured.
• The board approved a $400 million increase to Adient’s share-repurchase authorization, and management is planning approximately $100 million of repurchases in fiscal 2027, subject to cash generation and market conditions. The company also said it will seek to generate cash through potential asset monetizations.

Adient Price Performance

Shares of NYSE ADNT traded up $0.16 during midday trading on Thursday, hitting $17.35. The stock had a trading volume of 722,918 shares, compared to its average volume of 1,023,592. The company has a market capitalization of $1.34 billion, a PE ratio of 28.94, a P/E/G ratio of 0.23 and a beta of 1.64. The stock has a 50 day simple moving average of $17.85 and a 200-day simple moving average of $20.50. Adient has a 1 year low of $15.80 and a 1 year high of $27.32. The company has a quick ratio of 0.91, a current ratio of 1.10 and a debt-to-equity ratio of 1.18.

Key Adient News

Here are the key news stories impacting Adient this week:

• Positive Sentiment: Full-year free cash flow was $222 million, highlighting cash generation. Revenue of $3.73 billion beat analyst estimates of $3.62 billion and rose 1.1% year over year. Adient fourth-quarter and full-year results
• Positive Sentiment: The board increased Adient’s share repurchase authorization by $400 million and adopted a plan to protect the company’s U.S. tax benefits. The larger authorization provides flexibility for future buybacks, though it does not mean shares have already been repurchased. Repurchase authorization and tax benefits plan
• Negative Sentiment: Quarterly EPS of $0.52 fell short of estimates of roughly $0.62–$0.63 and was unchanged from a year earlier. A separate report cited a $47 million quarterly net loss, with higher restructuring costs weighing on results. Adient Q4 earnings miss estimates Quarterly loss and restructuring costs

Insider Activity at Adient

In related news, Director Peter Carlin sold 7,843 shares of the business’s stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $19.25, for a total transaction of $150,977.75. Following the completion of the sale, the director directly owned 38,835 shares in the company, valued at approximately $747,573.75. The trade was a 16.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.94% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on ADNT. Morgan Stanley dropped their price objective on shares of Adient from $22.00 to $21.00 and set an “equal weight” rating on the stock in a research note on Tuesday, August 18th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $28.00 price objective on shares of Adient in a research report on Thursday, August 6th. Weiss Ratings cut Adient from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, August 21st. Zacks Research upgraded Adient from a “strong sell” rating to a “hold” rating in a research report on Wednesday, September 16th. Finally, Wall Street Zen lowered Adient from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Seven equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $24.90.

About Adient

Adient plc (NYSE: ADNT) is a global automotive supplier specializing in the design, development and manufacture of vehicle seating systems. The company supplies complete seating assemblies as well as components such as seat structures, mechanisms, foam, fabrics, leather and other trim materials.

Adient works with automakers and other automotive customers to provide seating solutions for passenger cars, trucks, sport utility vehicles and commercial vehicles. Its offerings are designed to support vehicle comfort, safety, styling, weight reduction and manufacturing efficiency, with products developed for both traditional and electrified vehicles.

The company was formed in 2016 through the separation of Johnson Controls’ automotive seating business.