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Adient
(NYSE:ADNT)
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Rating:54Neutral
Price Target:
$18.50
▼(-15.10% Downside)
Action:Reiterated
Date:06/30/26
ADNT scores in the mid-range primarily because financial performance is improving (return to profitability and stronger free cash flow) but remains constrained by thin margins and elevated leverage. The weakest driver is technicals, with the stock trading below all key moving averages and negative momentum indicators. Valuation provides limited support given the 28.18 P/E and no dividend yield, while the earnings call adds modest positives from raised guidance and bookings but is tempered by near-term margin and cash-flow headwinds.
Positive Factors
Strong cash generation
Sustained operating cash flow and a sharp year-over-year free cash flow increase provide a durable funding source for launches, capex and debt reduction. Reliable cash conversion improves financial flexibility to weather cyclical OEM volumes and fund targeted investments without overreliance on external financing.
Negative Factors
Very thin profit margins
Sub‑5% gross margins and near‑zero net margins leave limited buffer for commodity swings, warranty or launch costs. Small margin headwinds materially erode earnings and free cash flow, making profitability highly sensitive to mix shifts and input-cost volatility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained operating cash flow and a sharp year-over-year free cash flow increase provide a durable funding source for launches, capex and debt reduction. Reliable cash conversion improves financial flexibility to weather cyclical OEM volumes and fund targeted investments without overreliance on external financing.
Read all positive factors
Adient Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Geography
Breaks down adjusted EBITDA by region to show where Adient is most profitable after removing one-time items. Highlights margin differences driven by local labor costs, pricing power with automakers, currency swings and supply-chain efficiency — helping spot which markets sustain profits and which expose the company to cyclical downturns or cost pressures.
Breaks down adjusted EBITDA by region to show where Adient is most profitable after removing one-time items. Highlights margin differences driven by local labor costs, pricing power with automakers, currency swings and supply-chain efficiency — helping spot which markets sustain profits and which expose the company to cyclical downturns or cost pressures.
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The Fly
The FlyAdient (ADNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.47B
Dividend YieldN/A
Average Volume (3M)1.02M
Price to Earnings (P/E)26.4
Beta (1Y)1.12
Revenue Growth3.85%
EPS GrowthN/A
CountryUS
Employees66,250
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.71
Shares Outstanding78,413,380
10 Day Avg. Volume1,066,835
30 Day Avg. Volume1,023,007
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.13
Price to Sales (P/S)0.14
P/FCF Ratio9.80
Enterprise Value/Market Cap2.15
Enterprise Value/Revenue0.21
Enterprise Value/Gross Profit3.32
Enterprise Value/Ebitda4.07
Forecast
1Y Price Target
$30.00Price Target Upside37.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)2.11
Revenue Forecast (FY)$14.83B
Adient Business Overview & Revenue Model
Company Description
Adient plc engages in the design, development, manufacture, and market of seating systems and components for passenger cars, commercial vehicles, and light trucks. Its automotive seating solutions include complete seating systems, mechanisms, fram...
How the Company Makes Money
Adient primarily makes money by selling automotive seating products and systems to original equipment manufacturers (OEMs) under supply agreements tied to specific vehicle programs. Revenue is generated from producing and delivering complete seats...
Adient Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presents a cautiously optimistic outlook: top-line momentum (revenue +7% and China outperformance), meaningful bookings, innovation wins, an acquisition to bolster vertical integration, and modestly raised full-year guidance underpin confidence in execution. However, near-term profitability and cash generation are weighed down by mix-driven margin compression, temporary production inefficiencies, launch costs, a Q2 cash timing benefit that will reverse in Q3, and ~$35M of expected input-cost headwinds tied to geopolitical and supply disruptions. Management emphasizes operational discipline, a strong balance sheet (net leverage 1.8x) and pathways to improved free cash flow as transitional items normalize, supporting a positive but guarded tone.Positive Updates
Revenue Growth
Consolidated sales of $3.9 billion in Q2, up 7% year-over-year, driven by favorable FX, solid volumes and pricing.
Negative Updates
Adjusted EBITDA and Margin Pressure
Adjusted EBITDA was $223 million in Q2 and declined year-over-year; reported margin compression of ~70 basis points (approximately 60 bps driven by mix) driven by mix shift to lower‑margin platforms and China domestic OEM exposure.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Consolidated sales of $3.9 billion in Q2, up 7% year-over-year, driven by favorable FX, solid volumes and pricing.
Read all positive updates
Company Guidance
Management modestly raised fiscal 2026 guidance to about $14.8 billion of revenue (from ~$14.6B), adjusted EBITDA of roughly $885 million (vs. $880M) and free cash flow of ≈$130 million (vs. $125M), while keeping cash taxes at ~$125M and CapEx at ~$300M; this assumes ~$35 million of input‑cost headwinds (~$25M from Middle East chemical/freight impacts and ~$10M from the LyondellBasell disruption) that they expect to more than offset with volume and stronger business performance. In Q2 Adient reported $3.9B of sales, $223M of adjusted EBITDA, adjusted net income of $41M ($0.52/share), $8M of Q2 free cash flow ($23M YTD), a cash balance of $831M and total liquidity of ~ $1.8B (undrawn revolver ~$957M); management noted ~$90M of timing-related cash benefits in Q2 that will reverse in Q3, an ABL draw that was repaid (~$150M referenced), and trailing‑12‑month net leverage of 1.8x (target range 1.5–2.0x). They also highlighted forward bookings (FY27 ≈$400M, FY28 ≈$630M ~700k incremental vehicles), regional trends (Americas TTM sales +5%, China Q2 +10% with ~70% of new China wins from local OEMs and an expected ~100 bps China margin compression) and specific program wins (~200k Chevrolet Equinox, ~180k Volkswagen South America).Adient Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
57
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.94B | 14.54B | 14.69B | 15.39B | 14.12B | 13.68B |
| Gross Profit | 952.00M | 961.00M | 928.00M | 1.03B | 807.00M | 826.00M |
| EBITDA | 776.00M | 438.00M | 656.00M | 828.00M | 603.00M | 2.02B |
| Net Income | 59.00M | -281.00M | 18.00M | 205.00M | -120.00M | 1.11B |
Balance Sheet | ||||||
| Total Assets | 9.03B | 8.95B | 9.35B | 9.42B | 9.16B | 10.78B |
| Cash, Cash Equivalents and Short-Term Investments | 831.00M | 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 | 6.94B | 6.80B | 6.82B | 6.82B | 6.74B | 7.82B |
| Stockholders Equity | 1.71B | 1.77B | 2.13B | 2.23B | 2.07B | 2.38B |
Cash Flow | ||||||
| Free Cash Flow | 278.00M | 204.00M | 277.00M | 415.00M | 47.00M | 0.00 |
| Operating Cash Flow | 552.00M | 449.00M | 543.00M | 667.00M | 274.00M | 260.00M |
| Investing Cash Flow | -251.00M | -186.00M | -253.00M | -229.00M | 484.00M | 347.00M |
| Financing Cash Flow | -245.00M | -267.00M | -502.00M | -271.00M | -1.27B | -770.00M |
Adient Technical Analysis
Negative
21.79
Price Trends
21.41
Negative
21.77
Negative
21.67
Negative
Market Momentum
-0.90
Positive
35.64
Neutral
18.44
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 21.79 is above the 20-day moving average (MA) of 20.84, above the 50-day MA of 21.41, and above the 200-day MA of 21.67, indicating a bearish trend. The MACD of -0.90 indicates Positive momentum. The RSI at 35.64 is Neutral, neither overbought nor oversold. The STOCH value of 18.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADNT.
Adient Risk Analysis
Adient disclosed 37 risk factors in its most recent earnings report. Adient reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Adient Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.55B | 12.97 | 10.41% | 2.63% | 2.86% | 17.30% | |
72 Outperform | $3.04B | 18.47 | 11.08% | 0.57% | -2.04% | -43.19% | |
71 Outperform | $13.03B | 36.93 | 6.34% | 1.24% | 2.36% | 34.03% | |
64 Neutral | $9.65B | 18.01 | 29.49% | 1.07% | 13.99% | -25.70% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $1.47B | 26.42 | 3.37% | ― | 3.85% | ― | |
52 Neutral | $2.68B | -18.32 | -12.67% | 1.70% | -23.37% | -131.29% |
* Consumer Cyclical Sector Average
ADNT
Adient
18.76
-3.24
-14.73%
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116.37
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23.82%
BWA
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63.52
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DAN
Dana Incorporated
24.91
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44.92%
LEA
Lear
130.85
30.77
30.74%
VC
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102.45
2.06
2.06%
Adient Corporate Events
Business Operations and StrategyFinancial Disclosures
Adient Highlights Strong Growth and Expansion in China
Positive
May 20, 2026
At a J.P. Morgan China investor meeting on May 21, 2026, Adient outlined the scale and structure of its China operations, highlighting 25 manufacturing locations in the country and a mix of wholly owned entities and joint ventures serving over 40 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.