Adient (ADNT)
NYSE:ADNT
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Adient
(NYSE:ADNT)
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Rating:48Neutral
Price Target:
$19.50
▼(-4.51% Downside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Adient (ADNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.60B
Dividend YieldN/A
Average Volume (3M)882.16K
Price to Earnings (P/E)―
Beta (1Y)1.08
Revenue Growth-1.04%
EPS Growth-1510.41%
CountryUS
Employees70,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.35
Shares Outstanding78,341,110
10 Day Avg. Volume755,392
30 Day Avg. Volume882,162
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 Cap1.97
Enterprise Value/Revenue0.21
Enterprise Value/Gross Profit3.26
Enterprise Value/Ebitda7.28
Forecast
1Y Price Target
$27.89Price Target Upside36.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)2.12
Revenue Forecast (FY)$14.62B
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, armres...
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 fu...
Adient Key Performance Indicators (KPIs)
Adient Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call balanced clear operational resilience and forward-looking growth catalysts against a set of near-term headwinds. Highlights include revenue and adjusted EBITDA growth, raised full-year guidance, strong liquidity (cash $855M, total liquidity ~$1.7B), renewed share repurchases, large onshoring/conquest pipeline (~$500M incremental revenue opportunity), ModuTech innovation with meaningful cost-saving potential, and substantial sustainability progress (42% reduction in Scope 1 & 2 since 2019). Lowlights were mainly transitory or strategic: a GAAP net loss driven by a one-time tax settlement, temporary production disruptions and mix headwinds in Q1, elevated European restructuring spend and some margin pressure in APAC from higher launch/engineering costs, plus seasonal and timing-related cash flow variability. Overall, management raised guidance and emphasized recoveries, automation and new program ramps as the levers for improvement, indicating confidence in execution over the remainder of the year.Positive Updates
Revenue Growth
Q1 consolidated sales of ~$3.6 billion, up 4% year-over-year (approximately a $149 million increase), driven primarily by FX tailwinds and stronger China volumes (excluding FX).
Negative Updates
GAAP Net Loss Driven by One-Time Tax Settlement
GAAP net loss of $22 million in the quarter primarily due to a one-time non-recurring tax settlement recorded in a non-U.S. jurisdiction.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Q1 consolidated sales of ~$3.6 billion, up 4% year-over-year (approximately a $149 million increase), driven primarily by FX tailwinds and stronger China volumes (excluding FX).
Read all positive updates
Company Guidance
Adient raised its fiscal 2026 guidance, now expecting approximately $14.6 billion of sales (up from $14.4B), adjusted EBITDA of about $880 million (vs. $845M prior) and free cash flow of $125 million (vs. $90M prior), driven by improving production (North America vehicle production now ~15.0M units vs. 14.6M previously) and FX tailwinds; Q1 results included ~$3.6B sales (+4% YoY), $207M adjusted EBITDA (5.7% margin, +10 bps YoY), $28M adjusted net income ($0.35/share) and $15M free cash flow. The company ended the quarter with $855M cash, $823M undrawn revolver (total liquidity ~$1.7B), gross debt of ~$2.4B and net debt ~$1.5B (net leverage 1.7x within a 1.5–2.0x target), returned $25M via repurchases (~2.1M shares, $110M authorization remaining), reduced Term Loan B spread by 25 bps (~$1.5M annual savings), and reiterated that CapEx will be elevated for launches/automation, results remain back‑half weighted (Q2 to be impacted by Chinese New Year with EBITDA roughly similar to Q1). Management also highlighted a ~$500M onshoring/conquest opportunity (≈$300M affecting FY2027 and the full $500M in FY2028) and targets such as 60% of China revenue from domestic OEMs by year‑end.Adient Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
46
Neutral
Cash Flow
55
Neutral
| 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
Negative
20.42
Price Trends
22.36
Negative
21.12
Negative
22.10
Negative
Market Momentum
-0.43
Negative
45.93
Neutral
52.84
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 20.42 is above the 20-day moving average (MA) of 20.31, below the 50-day MA of 22.36, and below the 200-day MA of 22.10, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 45.93 is Neutral, neither overbought nor oversold. The STOCH value of 52.84 is Neutral, 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 | $10.64B | 13.20 | 34.97% | 1.07% | -4.21% | -0.45% | |
72 Outperform | $6.32B | 14.06 | 8.79% | 2.63% | -1.90% | -13.86% | |
72 Outperform | $2.52B | 12.87 | 13.90% | 0.57% | -4.03% | -39.51% | |
62 Neutral | $11.23B | 35.20 | 4.80% | 1.24% | 0.08% | -83.69% | |
62 Neutral | $3.99B | 38.91 | -2.91% | 1.70% | -18.23% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
48 Neutral | $1.60B | -17.14 | -17.47% | ― | -1.04% | -1510.41% |
* Consumer Cyclical Sector Average
ADNT
Adient
20.42
9.46
86.31%
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Adient Corporate Events
Executive/Board ChangesShareholder Meetings
Adient Grants Retention Award and Holds 2026 AGM
Positive
Mar 13, 2026
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 202...
Business Operations and StrategyStock BuybackFinancial Disclosures
Adient Highlights Strong Q1 2026 Results and Outlook
Positive
Feb 10, 2026
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 ...
Business Operations and StrategyPrivate Placements and Financing
Adient amends term loan agreement, lowering interest margin
Positive
Jan 16, 2026
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....
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.