Adient (ADNT) AI Stock Analysis

• Market Cap: $1.60B
• Dividend Yield: N/A
• Average Volume (3M): 942.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: -1.04%
• EPS Growth: -1510.41%
• Country: US
• Employees: 70,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.35
• Shares Outstanding: 78,341,110
• 10 Day Avg. Volume: 868,811
• 30 Day Avg. Volume: 942,358
• PEG Ratio: <0.01
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 9.80
• Enterprise Value/Market Cap: 1.97
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 3.26
• Enterprise Value/Ebitda: 7.27
• 1Y Price Target: $28.11
• Price Target Upside: 38.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 2.13
• Revenue Forecast (FY): $14.64B

• Rating: 48 Neutral
• Price Target: $19.50 ▼(-4.27% Downside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is held back primarily by weak financial performance (TTM net loss, thin margins, and leverage with shrinking equity) and bearish technicals (below key moving averages with negative MACD). Raised FY2026 guidance and solid liquidity provide the main offset, but valuation remains challenged given losses and no dividend support.

Positive Factors

Cash Generation

Sustained positive operating cash flow and free cash flow provide a durable funding source despite GAAP losses. This cash generation supports program launches, working capital needs, modest buybacks and debt servicing, reducing short-term refinancing risk and enabling execution on structural efficiency projects.

Liquidity & Leverage within Target

A sizable cash balance and undrawn revolver, plus net leverage inside management's target range, give the company flexibility to fund capital-intensive launches, onshoring investments and automation without immediate refinancing stress. This structural liquidity buffer supports multi-quarter execution in a cyclical end market.

Modular Tech & Onshoring Pipeline

ModuTech's modular architecture and automation promise durable cost reduction and faster installs, while a sizable onshoring/conquest pipeline (~$500M) diversifies revenue and captures local content share. Together they structurally improve margins and reduce freight/labor sensitivity over multiple years.

Negative Factors

Weak Profitability

Persistently thin gross and EBIT margins and a TTM net loss indicate structural pressure on earnings power. Low profitability reduces retained earnings, limits reinvestment capacity, and leaves the business sensitive to commodity or labor cost swings and OEM pricing, challenging durable margin recovery.

Elevated Leverage & Declining Equity

Relatively high leverage and a material decline in equity weaken capital structure resilience. Reduced equity cushions and negative ROE constrain strategic flexibility for M&A or heavy capex, raise refinancing risk if markets tighten, and limit the speed of de-leveraging absent sustained profit recovery.

Restructuring & Launch Cost Pressure

Large, ongoing restructuring charges and elevated launch/engineering costs in regions like EMEA and APAC create prolonged margin drag and execution risk. If savings and program ramp benefits are delayed, the structural path to normalized margins and cash generation could be slower and more uncertain.

Adient Business Overview & Revenue Model

Company Description

Adient plc designs, develops, manufactures, and markets a range of seating systems and components for passenger cars, commercial vehicles, and light trucks. The company's seating solutions include frames, mechanisms, foams, head restraints, armrests, and trim covers. It serves automotive original equipment manufacturers in the Americas, including North America and South America; Europe, Middle East, and Africa; and Asia Pacific. The company was incorporated in 2016 and is based in Dublin, Ireland.

How the Company Makes Money

Adient primarily makes money by supplying automotive seating systems to vehicle manufacturers under production contracts tied to specific vehicle platforms and model programs. Revenue is generated mainly from: (1) Complete seat systems: selling fully assembled seats (including frame, foam, trim, and mechanisms) delivered to OEM assembly plants, typically priced on a per-vehicle/per-seat basis and ramping up or down with OEM production volumes. (2) Seating components and subassemblies: selling critical parts such as seat structures (metal frames), recliners and adjusters, tracks, and other mechanisms, either as part of an integrated seat program or as supplied subcomponents. (3) Engineering and program launches: earning revenue embedded in awarded programs through design, engineering, tooling, and launch activities needed to bring a seat system into series production; profitability depends on successful launch execution, manufacturing efficiency, and commercial terms such as material/labor pass-throughs and pricing adjustments. Key factors influencing earnings include global light-vehicle production levels, the mix of awarded platforms, raw-material and labor costs and the ability to recover them through customer agreements, manufacturing utilization and operational performance, and program launch costs and timing. Significant partnerships or customer-specific commercial terms are not provided here and are therefore null.

Adient Financial Statement Overview

Summary

Revenue is stable but profitability is weak (very thin EBIT margin and TTM net loss). Leverage is elevated with declining equity, limiting flexibility, though positive operating cash flow and free cash flow provide near-term support.

Income Statement

TTM (Trailing-Twelve-Months) revenue is essentially flat to slightly up (about +1.0%), but profitability is weak: gross margin is ~6.6% and EBIT margin is ~0.7%. Most importantly, the company is currently loss-making (TTM net margin ~-2.1%; net income -$303M), a deterioration versus positive net income in FY2023–FY2024. The trend shows pressure on earnings power despite stable sales, limiting the income statement strength.

Balance Sheet

Leverage is elevated with debt-to-equity around ~1.38 in TTM (Trailing-Twelve-Months), and equity has declined versus prior years (roughly $1.7B now vs. ~$2.1–$2.2B in FY2023–FY2024). Returns to shareholders are negative (TTM return on equity ~-15.9%), reflecting losses and reducing balance-sheet flexibility. Offsetting this, the company maintains a sizable asset base (~$8.8B total assets), and debt levels have been relatively stable recently, but overall the balance sheet remains moderately constrained by leverage and weakened equity.

Cash Flow

Cash generation is a relative bright spot: TTM (Trailing-Twelve-Months) operating cash flow is positive at ~$421M and free cash flow is positive at ~$175M. However, free cash flow declined versus the prior annual period (TTM free cash flow growth ~-14.6%), and cash flow is not especially strong relative to operating needs (operating cash flow coverage ratio ~0.12). Positive free cash flow despite net losses suggests some earnings/cash flow mismatch, which helps liquidity in the near term but is not a full substitute for sustained profitability.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	14.68B	14.54B	14.69B	15.39B	14.12B	13.68B
Gross Profit	967.00M	961.00M	928.00M	1.03B	807.00M	826.00M
EBITDA	433.00M	438.00M	656.00M	828.00M	603.00M	2.02B
Net Income	-303.00M	-281.00M	18.00M	205.00M	-120.00M	1.11B
Balance Sheet
Total Assets	8.77B	8.95B	9.35B	9.42B	9.16B	10.78B
Cash, Cash Equivalents and Short-Term Investments	855.00M	958.00M	945.00M	1.11B	947.00M	1.52B
Total Debt	2.39B	2.40B	2.40B	2.54B	2.58B	3.70B
Total Liabilities	6.68B	6.80B	6.82B	6.82B	6.74B	7.82B
Stockholders Equity	1.74B	1.77B	2.13B	2.23B	2.07B	2.38B
Cash Flow
Free Cash Flow	175.00M	204.00M	277.00M	415.00M	47.00M	0.00
Operating Cash Flow	421.00M	449.00M	543.00M	667.00M	274.00M	260.00M
Investing Cash Flow	-220.00M	-186.00M	-253.00M	-229.00M	484.00M	347.00M
Financing Cash Flow	-280.00M	-267.00M	-502.00M	-271.00M	-1.27B	-770.00M

Adient Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADNT, the sentiment is Negative. The current price of 20.37 is below the 20-day moving average (MA) of 22.69, below the 50-day MA of 22.69, and below the 200-day MA of 21.86, indicating a bearish trend. The MACD of -0.95 indicates Positive momentum. The RSI at 34.70 is Neutral, neither overbought nor oversold. The STOCH value of 12.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADNT.

Adient Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALSN	74 Outperform	$9.46B	13.20	34.97%	1.07%	-4.21%	-0.45%
LEA	72 Outperform	$6.02B	14.06	8.79%	2.63%	-1.90%	-13.86%
VC	72 Outperform	$2.35B	12.87	13.90%	0.57%	-4.03%	-39.51%
BWA	62 Neutral	$10.83B	35.20	4.80%	1.24%	0.08%	-83.69%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	59 Neutral	$3.56B	38.91	-2.91%	1.70%	-18.23%	―
ADNT	48 Neutral	$1.60B	-17.14	-17.47%	―	-1.04%	-1510.41%

Adient Corporate Events

Adient Grants Retention Award and Holds 2026 AGM

On March 10, 2026, Adient’s board approved a one-time restricted stock unit retention award valued at $500,000 for James Conklin, its Executive Vice President for the Americas, reflecting the central role he is expected to play in fiscal 2026 and recognizing his contributions to date. The award, granted on May 7, 2026 under the company’s 2021 Omnibus Incentive Plan, will vest in two equal annual installments over two years, with continued or accelerated vesting in certain termination or hardship scenarios, signaling a targeted effort to retain key regional leadership.

Also on March 10, 2026, Adient held its 2026 Annual General Meeting, where shareholders elected eight directors to one-year terms ending at the 2027 meeting and gave strong support to the company’s governance and compensation framework. Investors ratified the appointment of PricewaterhouseCoopers LLP as independent auditor for fiscal 2026, approved on an advisory basis the compensation of named executive officers, and renewed the board’s authority under Irish law to issue shares and opt out of statutory preemption rights, reinforcing the board’s financial and capital-raising flexibility.

The most recent analyst rating on (ADNT) stock is a Buy with a $22.50 price target. To see the full list of analyst forecasts on Adient stock, see the ADNT Stock Forecast page.

Adient Highlights Strong Q1 2026 Results and Outlook

Adient reported a solid start to fiscal 2026, highlighting that on February 11, 2026, executives presented at the Wolfe Research Auto, Auto Tech and Semiconductor Conference, where they briefed investors on first-quarter results and strategy. For the quarter ended December 31, 2025, consolidated revenue rose about 4% year on year to roughly $3.6 billion, adjusted EBITDA increased by $11 million to $207 million despite temporary customer production disruptions, and free cash flow reached $15 million, supported by particularly strong sales growth in China that exceeded regional industry production.

The company emphasized that isolated production issues impacting the quarter appeared largely resolved, while onshoring opportunities and its best-in-class modular seating offerings are expected to drive further top-line growth and margin expansion. Adient returned $25 million to shareholders via repurchases of approximately 1.2 million shares, maintained a cash balance of $855 million against gross and net debt of about $2.4 billion and $1.5 billion respectively, and issued its 2025 Sustainability Report, underscoring progress on environmental goals and its commitment to balanced capital allocation and long-term stakeholder value.

The most recent analyst rating on (ADNT) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Adient stock, see the ADNT Stock Forecast page.

Adient amends term loan agreement, lowering interest margin

On January 15, 2026, Adient and certain subsidiaries amended their existing term loan credit agreement, keeping total outstanding borrowings at $624 million while securing a reduction in the interest rate margin to 2.00% for Term SOFR loans and 1.00% for base rate loans. The obligations under the credit agreement remain secured and guaranteed by Adient plc and key wholly owned restricted subsidiaries, a move that lowers financing costs and supports the company’s capital structure without increasing its debt load, which may enhance financial flexibility for operations and stakeholders.

The most recent analyst rating on (ADNT) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Adient stock, see the ADNT Stock Forecast page.