Adient (ADNT) AI Stock Analysis

• Market Cap: $1.63B
• Dividend Yield: N/A
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• 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: 81,245,926
• 10 Day Avg. Volume: 1,546,480
• 30 Day Avg. Volume: 1,049,884
• 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: 2.33
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 3.94
• Enterprise Value/Ebitda: 9.87
• 1Y Price Target: $25.72
• Price Target Upside: 35.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 1.95
• Revenue Forecast (FY): $14.40B

• Rating: 53 Neutral
• Price Target: $20.50 ▲(7.61% Upside)

Adient's overall stock score reflects significant challenges in financial performance and valuation, with high leverage and negative profitability metrics. Technical analysis indicates bearish trends, further weighing on the score. However, the positive aspects from the earnings call, such as strong free cash flow and new business wins, provide some optimism for future performance.

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

Adient's financial statements reflect challenges in profitability and leverage. Despite positive revenue growth, profitability metrics have deteriorated, and high leverage poses risks. Cash flow generation is under pressure, but there is some ability to generate free cash flow. The company needs to focus on improving operational efficiency and reducing debt to enhance financial stability.

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	204.00M	277.00M	415.00M	47.00M	0.00	-80.00M
Operating Cash Flow	449.00M	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	-267.00M	-502.00M	-271.00M	-1.27B	-770.00M	393.00M

Adient Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 19.05 is below the 20-day moving average (MA) of 22.02, below the 50-day MA of 23.27, and above the 200-day MA of 19.02, indicating a neutral trend. The MACD of -1.03 indicates Positive momentum. The RSI at 32.79 is Neutral, neither overbought nor oversold. The STOCH value of 25.92 is Neutral, 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
LEA	75 Outperform	$5.50B	12.98	8.96%	3.02%	-1.90%	-13.86%
BWA	72 Outperform	$9.58B	71.78	2.24%	1.10%	0.08%	-83.69%
VC	71 Outperform	$2.87B	9.44	23.16%	0.25%	-4.03%	-39.51%
ALSN	68 Neutral	$6.80B	10.01	40.38%	1.29%	-4.21%	-0.45%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	54 Neutral	$2.43B	47.10	-4.82%	2.00%	-18.23%	―
ADNT	53 Neutral	$1.63B	―	-14.41%	―	-1.04%	-1510.41%

Adient Corporate Events

Adient Reports Strong 2025 Financial Results

Adient plc is a global leader in automotive seating, operating approximately 200 manufacturing and assembly plants worldwide to produce and deliver seating systems and components for major OEMs.

Adient plc’s Resilient Earnings Call Highlights

Adient plc’s latest earnings call painted a picture of resilience and operational strength, even as the company navigated significant challenges. Despite facing volume and mix headwinds, high restructuring costs, and the impacts of tariffs, Adient showcased its ability to win new business and optimize its capital structure. However, the company also faced substantial decremental margin challenges due to external factors, reflecting a mixed sentiment overall.

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.

Adient Raises Revenue Guidance Amid Strong Q3 Performance

Adient plc reported strong business performance in the third quarter of fiscal year 2025, with improved earnings and margins compared to the previous year. The company generated solid free cash flow, enabling $50 million in additional share repurchases, and raised its revenue and adjusted EBITDA guidance for fiscal year 2025. Adient is well-positioned to benefit from onshoring trends in the U.S., with a significant portion of its North American production based domestically. The company continues to win diversified new business across all regions, particularly in EMEA and Asia, and remains focused on executing its strategic plans to drive shareholder value.

The most recent analyst rating on (ADNT) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Adient stock, see the ADNT Stock Forecast page.

Adient plc’s Strong Q3 Earnings and Future Outlook

Adient plc’s recent earnings call conveyed a positive sentiment, highlighting the company’s strong third-quarter performance. Despite facing challenges such as tariffs and commodity costs, Adient reported increased EBITDA and free cash flow, alongside significant new business wins and recognition for quality and customer service. The company also raised its guidance for the fiscal year, demonstrating confidence in its future prospects.

Adient Reports Strong Q3 2025 Financial Performance

Adient plc is a global leader in automotive seating, operating over 200 manufacturing and assembly plants worldwide, and serving major original equipment manufacturers (OEMs) with complete seating systems and components.