Adient (NYSE:ADNT) Posts Earnings Results

Key Points

• Adient’s quarterly EPS of $0.48 missed analysts’ $0.56 consensus, although revenue rose 4.3% year over year to $3.93 billion and exceeded estimates of $3.71 billion.
• Management raised fiscal 2026 revenue guidance to approximately $15 billion while maintaining adjusted EBITDA guidance of $885 million and free cash flow guidance of $130 million.
• Adjusted EBITDA remained flat at $225 million because of about $32 million in temporary costs, while the company warned of potential fiscal 2027 restructuring expenses, including facility closures that could cost $30 million or more.

Adient (NYSE:ADNT - Get Free Report) issued its quarterly earnings results on Wednesday. The company reported $0.48 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.56 by ($0.08), FiscalAI reports. The company had revenue of $3.93 billion during the quarter, compared to the consensus estimate of $3.71 billion. Adient had a return on equity of 7.28% and a net margin of 0.39%.The firm's quarterly revenue was up 4.3% on a year-over-year basis. During the same quarter last year, the firm posted $0.45 EPS.

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

• Q3 revenue rose 5% year over year to approximately $3.9 billion, supported by favorable volumes, pricing, foreign exchange, and growth in the Americas and China.
• Adjusted EBITDA was essentially flat at $225 million, with management citing approximately $32 million in temporary costs from Middle East-related freight, commodity inflation, and customer- or supplier-driven inefficiencies.
• Adient raised fiscal 2026 revenue guidance to approximately $15 billion while maintaining adjusted EBITDA guidance of $885 million and free cash flow guidance of $130 million.
• China sales increased about 33% and the Americas delivered margin expansion, while EMEA remained pressured by weak production and customer mix; Adient expects additional China margin compression in fiscal 2027 but anticipates EMEA benefits as underperforming metals programs roll off.
• Fiscal 2027 restructuring costs remain difficult to forecast because of pending customer production decisions, with management warning that an individual facility closure could cost $30 million or more; increased automation spending is also expected to raise capital expenditures.

Adient Price Performance

Adient stock traded down $0.57 during trading hours on Wednesday, hitting $20.59. 791,455 shares of the company traded hands, compared to its average volume of 1,024,855. Adient has a 1-year low of $17.68 and a 1-year high of $27.32. The firm has a market cap of $1.61 billion, a P/E ratio of 29.00, a P/E/G ratio of 0.41 and a beta of 1.52. The firm's 50-day simple moving average is $20.81 and its two-hundred day simple moving average is $21.61. The company has a quick ratio of 0.91, a current ratio of 1.10 and a debt-to-equity ratio of 1.18.

Insider Buying and Selling

In related news, EVP Heather M. Tiltmann sold 22,000 shares of the business's stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $22.71, for a total transaction of $499,620.00. Following the sale, the executive vice president owned 110,886 shares of the company's stock, valued at $2,518,221.06. The trade was a 16.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.94% of the stock is currently owned by insiders.

Institutional Trading of Adient

Institutional investors have recently modified their holdings of the company. Invesco Ltd. raised its position in Adient by 38.6% in the fourth quarter. Invesco Ltd. now owns 1,599,937 shares of the company's stock worth $30,671,000 after acquiring an additional 445,343 shares in the last quarter. Corient Private Wealth LLC raised its holdings in shares of Adient by 5.2% in the 4th quarter. Corient Private Wealth LLC now owns 18,117 shares of the company's stock worth $347,000 after purchasing an additional 899 shares in the last quarter. Vident Advisory LLC lifted its stake in Adient by 25.6% during the fourth quarter. Vident Advisory LLC now owns 34,794 shares of the company's stock valued at $667,000 after purchasing an additional 7,086 shares during the last quarter. Mackenzie Financial Corp bought a new stake in Adient during the fourth quarter worth approximately $605,000. Finally, XTX Topco Ltd bought a new position in shares of Adient in the fourth quarter valued at $935,000. Institutional investors and hedge funds own 92.44% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the company. JPMorgan Chase & Co. lowered their price objective on Adient from $28.00 to $26.00 and set a "neutral" rating for the company in a report on Thursday, April 23rd. Wells Fargo & Company raised their price objective on Adient from $28.00 to $32.00 and gave the stock an "overweight" rating in a research note on Thursday, June 25th. Weiss Ratings upgraded shares of Adient from a "sell (d-)" rating to a "hold (c-)" rating in a research note on Wednesday, May 13th. Citigroup upgraded shares of Adient from a "neutral" rating to a "buy" rating and raised their price target for the stock from $30.00 to $33.00 in a research report on Wednesday, April 15th. Finally, Barclays raised their target price on shares of Adient from $26.00 to $29.00 and gave the stock an "equal weight" rating in a report on Monday, May 11th. Six research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Adient presently has a consensus rating of "Hold" and a consensus target price of $27.90.

About Adient

Adient plc NYSE: ADNT is a leading global supplier of automotive seating and interior components. Established in 2016 through a spin-off from Johnson Controls, the company designs, engineers and manufactures complete seat assemblies, seat structures, mechanisms, foams, textiles, trim and electronics. Adient's product portfolio spans a wide range of seating solutions, from entry-level designs to luxury and high-performance seats, and extends to interior modules such as door panels and center consoles.

Serving major original equipment manufacturers (OEMs) around the world, Adient works closely with automakers to develop lightweight, comfortable and safety-oriented seating systems.

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