Adient (NYSE:ADNT) Posts Earnings Results, Misses Expectations By $0.13 EPS

Key Points

• Adient reported quarterly EPS of $0.52, missing the $0.65 consensus estimate by $0.13; revenue was $3.73 billion, above estimates and up 1.1% year over year.
• For fiscal 2027, Adient expects revenue of $14.8 billion to $15.0 billion and adjusted EBITDA of $900 million to $925 million, but free cash flow is forecast to exceed only $100 million, down from $222 million in fiscal 2026.
• The board expanded its share-repurchase authorization by $400 million; management is considering about $100 million in fiscal 2027 repurchases, subject to cash generation and market conditions.

Adient (NYSE:ADNT - Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $0.52 earnings per share for the quarter, missing the consensus estimate of $0.65 by ($0.13), FiscalAI reports. The business had revenue of $3.73 billion during the quarter, compared to the consensus estimate of $3.60 billion. Adient had a net margin of 0.32% and a return on equity of 7.32%. Adient's revenue was up 1.1% compared to the same quarter last year. During the same period in the previous year, the business posted $0.52 EPS.

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 Stock Performance

NYSE ADNT traded down $0.34 during trading hours on Wednesday, reaching $16.58. 1,030,954 shares of the company were exchanged, compared to its average volume of 1,019,366. Adient has a 1 year low of $15.80 and a 1 year high of $27.32. The business's 50 day simple moving average is $17.88 and its 200-day simple moving average is $20.53. The company has a quick ratio of 0.91, a current ratio of 1.10 and a debt-to-equity ratio of 1.18. The stock has a market capitalization of $1.28 billion, a P/E ratio of 27.50, a P/E/G ratio of 0.24 and a beta of 1.64.

Key Adient News

Here are the key news stories impacting Adient this week:

• Positive Sentiment: Adient’s board increased its share repurchase authorization by $400 million, which could support shareholder returns, although it does not guarantee the company will repurchase that amount. Adient announces increased share repurchase authorization and adoption of tax benefits preservation plan
• Positive Sentiment: Adient reported $222 million in free cash flow for full-year 2026, a potentially supportive sign of cash generation. Adient reports fourth quarter and full-year 2026 results
• Neutral Sentiment: Revenue was $3.73 billion, ahead of the $3.60 billion analyst estimate and up 1.1% year over year. The board also adopted a plan intended to preserve the value of Adient’s U.S. tax attributes. Adient reports fourth quarter and full-year 2026 results Adient announces increased share repurchase authorization and adoption of tax benefits preservation plan
• Negative Sentiment: Fourth-quarter EPS was $0.52, below estimates of $0.63–$0.65 and unchanged from a year earlier. The earnings shortfall may weigh on investor sentiment, particularly given the company’s thin 0.32% net margin. Adient Q4 Earnings Miss Estimates

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on ADNT shares. Barclays cut their price objective on shares of Adient from $25.00 to $22.00 and set an "equal weight" rating on the stock in a report on Friday, October 9th. Citigroup lowered their target price on shares of Adient from $33.00 to $29.00 and set a "buy" rating for the company in a report on Tuesday, August 11th. Zacks Research raised shares of Adient from a "strong sell" rating to a "hold" rating in a research report on Wednesday, September 16th. JPMorgan Chase & Co. upgraded shares of Adient from a "neutral" rating to an "overweight" rating and cut their price target for the stock from $28.00 to $25.00 in a report on Tuesday, September 15th. Finally, BNP Paribas Exane raised shares of Adient from a "neutral" rating to an "outperform" rating and set a $26.00 price objective for the company in a research report on Thursday, July 30th. Seven investment analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, Adient currently has an average rating of "Hold" and an average price target of $24.90.

Insider Buying and Selling

In other Adient news, Director Peter Carlin sold 7,843 shares of the business's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $19.25, for a total value of $150,977.75. Following the transaction, the director directly owned 38,835 shares in the company, valued at $747,573.75. The trade was a 16.80% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.94% of the company's stock.

Adient Company Profile

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.

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