Adient (ADNT) AI Stock Analysis

• Market Cap: $1.65B
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -1.04%
• EPS Growth: -1510.41%
• Country: US
• Employees: 70,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.52
• Shares Outstanding: 79,151,500
• 10 Day Avg. Volume: 873,656
• 30 Day Avg. Volume: 1,044,129
• PEG Ratio: -1.24
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 7.29
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 3.21
• Enterprise Value/Ebitda: 8.03
• 1Y Price Target: $25.21
• Price Target Upside: 21.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $24.00 ▲(15.38% Upside)

The score is held back primarily by weak profitability and high leverage despite modest revenue growth and some free-cash-flow generation. Technical momentum is positive but looks overextended, while valuation is constrained by negative earnings. Earnings-call guidance and cost/financing initiatives provide moderate support but do not fully offset margin and restructuring headwinds.

Positive Factors

Strong Free Cash Flow

Exceeding free cash flow guidance indicates robust cash generation, providing financial flexibility for investments and debt reduction.

New Business Wins in China

Securing significant new contracts in China strengthens market position and supports revenue growth in a key automotive market.

Operational Efficiency

Improved operational efficiency enhances profitability and competitiveness, supporting long-term financial health and market position.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest and grow sustainably.

Negative Profitability

Negative profitability undermines financial stability and can hinder reinvestment in growth and innovation, affecting long-term viability.

Volume and Mix Headwinds

Volume and mix headwinds can reduce revenue and margins, challenging the company's ability to maintain growth and profitability.

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 generates revenue primarily through the sale of automotive seating systems and components to original equipment manufacturers (OEMs) and suppliers in the automotive industry. The company operates on a business model that includes long-term contracts with automotive manufacturers, which ensures a steady stream of income. Key revenue streams include the production and supply of seat structures, foam, and trim, as well as specialized seating solutions that incorporate advanced technologies such as adjustable seating and integrated safety features. Additionally, partnerships with leading automotive brands and participation in global automotive programs contribute significantly to its earnings. Factors such as market demand for vehicles, trends in vehicle design and technology, and the overall health of the automotive industry play crucial roles in influencing Adient's financial performance.

Adient Financial Statement Overview

Summary

Mixed fundamentals: revenue growth is positive (8.74% TTM) and gross margin improved slightly, but profitability has deteriorated (net margin -1.35%, negative ROE -10.47%) and leverage is elevated (debt-to-equity 1.34). Cash flow is a relative support, though free cash flow growth is down (-21.84% TTM).

Income Statement

Adient's income statement shows mixed performance. The TTM gross profit margin is 6.66%, slightly above the previous year's 6.32%, indicating some improvement in cost management. However, the net profit margin has turned negative at -1.35%, reflecting a loss in profitability. Revenue growth is positive at 8.74% TTM, but this follows a decline in the previous year. The EBIT and EBITDA margins have decreased, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.34 TTM, indicating significant leverage, which poses a risk. Return on equity is negative at -10.47%, reflecting poor returns for shareholders. The equity ratio is not explicitly calculated, but the high leverage suggests a lower proportion of equity in the capital structure.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by -21.84% TTM, indicating potential liquidity issues. However, the operating cash flow to net income ratio is 0.14, suggesting some ability to cover net losses with operating cash. The free cash flow to net income ratio is 0.52, indicating that despite losses, the company is generating some free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.54B	14.69B	15.39B	14.12B	13.68B	12.67B
Gross Profit	961.00M	928.00M	1.03B	807.00M	826.00M	592.00M
EBITDA	384.00M	656.00M	828.00M	603.00M	2.02B	119.00M
Net Income	-281.00M	18.00M	205.00M	-120.00M	1.11B	-486.00M
Balance Sheet
Total Assets	8.95B	9.35B	9.42B	9.16B	10.78B	10.26B
Cash, Cash Equivalents and Short-Term Investments	958.00M	945.00M	1.11B	947.00M	1.52B	1.69B
Total Debt	2.40B	2.40B	2.54B	2.58B	3.70B	4.31B
Total Liabilities	6.80B	6.82B	6.82B	6.74B	7.82B	8.68B
Stockholders Equity	1.77B	2.13B	2.23B	2.07B	2.38B	1.21B
Cash Flow
Free Cash Flow	205.00M	277.00M	415.00M	47.00M	0.00	-80.00M
Operating Cash Flow	450.00M	543.00M	667.00M	274.00M	260.00M	246.00M
Investing Cash Flow	-186.00M	-253.00M	-229.00M	484.00M	347.00M	166.00M
Financing Cash Flow	-268.00M	-502.00M	-271.00M	-1.27B	-770.00M	393.00M

Adient Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.80
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• 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 Neutral. The current price of 20.8 is below the 20-day moving average (MA) of 21.18, above the 50-day MA of 19.93, and above the 200-day MA of 20.34, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 48.81 is Neutral, neither overbought nor oversold. The STOCH value of 15.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ADNT.

Adient Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEA	75 Outperform	$6.07B	14.33	8.96%	2.63%	-1.90%	-13.86%
VC	73 Outperform	$2.48B	8.16	23.16%	0.57%	-4.03%	-39.51%
ALSN	72 Outperform	$9.05B	13.31	40.38%	1.07%	-4.21%	-0.45%
BWA	65 Neutral	$10.14B	75.97	2.24%	1.24%	0.08%	-83.69%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ADNT	57 Neutral	$1.65B	-6.23	-14.41%	―	-1.04%	-1510.41%
DAN	53 Neutral	$3.38B	65.41	-4.82%	1.70%	-18.23%	―

Adient Corporate Events

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.

Adient Amends Revolving Credit Agreement with JPMorgan

On October 17, 2025, Adient US LLC and Adient plc, along with other loan parties, amended their existing revolving credit agreement with JPMorgan Chase Bank. The amendment extends the maturity date by five years and reduces the aggregate commitments to $1 billion, maintaining secured guarantees by the company and its subsidiaries.

The most recent analyst rating on (ADNT) stock is a Sell with a $20.00 price target. To see the full list of analyst forecasts on Adient stock, see the ADNT Stock Forecast page.