Adient (ADNT) AI Stock Analysis

• Market Cap: $1.96B
• Dividend Yield: N/A
• Average Volume (3M): 907.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: -3.00%
• EPS Growth: -447.89%
• Country: US
• Employees: 70,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.43
• Shares Outstanding: 81,245,926
• 10 Day Avg. Volume: 740,382
• 30 Day Avg. Volume: 907,385
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.94
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 3.95
• Enterprise Value/Ebitda: 8.73
• 1Y Price Target: $26.33
• Price Target Upside: 11.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 59 Neutral
• Price Target: $24.50 ▲(3.86% Upside)

Adient's overall stock score reflects a mixed financial performance with strong revenue growth but profitability challenges. The raised guidance and strategic positioning in U.S. onshoring are positive factors, but high leverage and valuation concerns weigh on the score. Technical analysis indicates potential short-term weakness, but longer-term support remains. The optimistic earnings call sentiment contributes positively to the overall assessment.

Positive Factors

Revenue Growth

A strong revenue growth rate indicates that Adient is successfully expanding its market presence and product adoption, which is crucial for sustaining long-term business growth and competitiveness in the automotive industry.

U.S. Onshoring Opportunities

The strategic advantage in U.S. onshoring positions Adient to benefit from increased production volumes domestically, enhancing its competitive edge and potentially boosting revenue through new business opportunities.

Cash Flow Generation

Strong free cash flow generation provides Adient with the financial flexibility to invest in growth opportunities, manage debt, and return value to shareholders, thereby supporting long-term financial health and stability.

Negative Factors

High Leverage

High leverage can pose risks to Adient's financial stability, especially in volatile market conditions, as it may limit the company's ability to invest in growth or weather economic downturns without financial strain.

Profitability Challenges

Ongoing profitability challenges suggest difficulties in cost management or pricing power, which could hinder Adient's ability to sustain long-term growth and shareholder returns if not addressed.

Tariff and Commodity Headwinds

Tariff and commodity headwinds can erode margins and increase costs, impacting Adient's profitability and competitiveness, especially if these challenges persist or escalate in the future.

Adient Business Overview & Revenue Model

Company Description

Adient (ADNT) is a global leader in automotive seating, providing advanced seating solutions and related products for major automotive manufacturers. The company operates in the automotive sector, focusing on designing, engineering, and manufacturing seating systems and components for cars, trucks, and commercial vehicles. With a commitment to innovation and sustainability, Adient's core products include seat structures, foam, and trim components, alongside a range of seating technologies aimed at enhancing comfort, safety, and functionality.

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 performance shows strong revenue growth but faces challenges with profitability and high leverage. The company is improving its cash flow generation, which is a positive indicator for future financial health. Overall, the financial position is moderate with room for improvement in profitability and debt management.

Income Statement

Adient's income statement shows a mixed performance. The company has achieved a positive revenue growth rate of 17.4% in the TTM, indicating a strong recovery from previous declines. However, profitability remains a concern with a negative net profit margin of -1.68% in the TTM, reflecting ongoing challenges in cost management or pricing power. The gross profit margin is relatively low at 6.53%, suggesting limited pricing flexibility or high production costs. EBIT and EBITDA margins are modest at 2.09% and 4.60% respectively, indicating some operational efficiency but room for improvement.

Balance Sheet

Adient's balance sheet reveals a moderate financial position. The debt-to-equity ratio is relatively high at 1.45, indicating significant leverage which could pose risks in a volatile market. The return on equity is negative at -10.47% in the TTM, reflecting challenges in generating returns for shareholders. However, the equity ratio stands at 20.20%, suggesting a reasonable level of equity financing relative to total assets, which provides some stability.

Cash Flow

The cash flow statement shows some positive trends for Adient. The company has achieved a free cash flow growth rate of 11.54% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.14, suggesting that cash flows are not fully aligned with reported earnings, which could be due to non-cash charges or working capital changes. The free cash flow to net income ratio is 0.48, indicating that a significant portion of net income is being converted into free cash flow, which is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.41B	14.69B	15.39B	14.12B	13.68B	12.67B
Gross Profit	959.00M	928.00M	1.03B	807.00M	826.00M	592.00M
EBITDA	434.00M	697.00M	776.00M	644.00M	2.13B	119.00M
Net Income	-195.00M	18.00M	205.00M	-40.00M	1.11B	-486.00M
Balance Sheet
Total Assets	8.84B	9.35B	9.42B	9.16B	10.76B	10.26B
Cash, Cash Equivalents and Short-Term Investments	860.00M	945.00M	1.11B	947.00M	1.52B	1.69B
Total Debt	2.39B	2.40B	2.54B	2.58B	3.70B	4.31B
Total Liabilities	6.68B	6.82B	6.82B	6.74B	7.80B	8.68B
Stockholders Equity	1.78B	2.13B	2.23B	2.07B	2.38B	1.21B
Cash Flow
Free Cash Flow	261.00M	277.00M	415.00M	47.00M	0.00	-80.00M
Operating Cash Flow	499.00M	543.00M	667.00M	274.00M	260.00M	246.00M
Investing Cash Flow	-197.00M	-253.00M	-229.00M	484.00M	347.00M	166.00M
Financing Cash Flow	-401.00M	-502.00M	-271.00M	-1.27B	-770.00M	393.00M

Adient Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.59
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADNT, the sentiment is Positive. The current price of 23.59 is below the 20-day moving average (MA) of 23.78, below the 50-day MA of 24.15, and above the 200-day MA of 18.71, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 48.34 is Neutral, neither overbought nor oversold. The STOCH value of 75.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADNT.

Adient Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEA	―	$5.42B	11.90	9.51%	3.03%	-3.12%	-8.23%
VC	―	$2.94B	9.68	23.16%	0.25%	-4.03%	-39.51%
ALSN	―	$6.92B	9.40	47.08%	1.27%	2.70%	15.17%
BWA	―	$9.52B	46.96	3.66%	1.15%	-2.12%	-69.42%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	―	$2.61B	―	-5.00%	2.03%	-14.46%	-2170.83%
ADNT	―	$1.96B	―	-11.85%	―	-3.00%	-447.89%

Adient Corporate Events

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.