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Adient plc (ADNT)
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Adient (ADNT) AI Stock Analysis

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Adient

(NYSE:ADNT)

Rating:66Neutral
Price Target:
$22.50
▲(2.04%Upside)
Adient's overall stock score reflects a mix of strong technical momentum and strategic corporate initiatives offset by financial challenges and an unattractive valuation. The company's operational resilience and positive cash flows provide stability, but profitability issues and valuation concerns weigh on the score.

Adient (ADNT) vs. SPDR S&P 500 ETF (SPY)

Adient Business Overview & Revenue Model

Company DescriptionAdient (ADNT) is a global leader in automotive seating, providing high-quality seating systems and components for a wide range of vehicles. The company operates across various sectors within the automotive industry, focusing on the design, manufacturing, and supply of seating solutions to original equipment manufacturers (OEMs) worldwide. Adient's core products include complete seating systems, seat structures and mechanisms, foam, and trim products, catering to passenger vehicles, commercial vehicles, and other mobility solutions.
How the Company Makes MoneyAdient makes money primarily through the manufacturing and sale of automotive seating systems and components to original equipment manufacturers (OEMs) in the automotive industry. The company's revenue model is largely centered around long-term contracts with major automotive OEMs, which include firms like Ford, General Motors, and BMW. These contracts often involve multi-year agreements that provide a steady stream of revenue. Adient's key revenue streams are derived from the sale of complete seating systems, as well as individual components such as seat frames, foam, and trim. Additionally, the company may engage in strategic partnerships and joint ventures to enhance its market reach and product offerings, contributing further to its earnings. Adient's global manufacturing footprint and extensive research and development capabilities also play a crucial role in maintaining competitiveness and securing new business with existing and potential clients.

Adient Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q2-2025)
|
% Change Since: 74.45%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
Adient's earnings call highlighted strong financial performance, operational resilience, and significant new business wins, bolstered by a robust liquidity position. However, challenges include goodwill impairment in EMEA, tariff exposures, and lower revenues in key regions. The company is actively working on mitigating these issues through strategic actions and restructuring.
Q2-2025 Updates
Positive Updates
Strong Q2 Financial Performance
Adient reported adjusted EBITDA of $233 million, up 3% year-over-year, with improved EBITDA margins by 40 basis points to 6.5%.
Operational Excellence and Resilience
Adient improved adjusted EBITDA margins by 40 basis points and achieved $233 million of adjusted EBITDA, demonstrating resilience amid volume pressure and macro volatility.
Significant New Business Wins
Adient won significant new business across all regions, with notable wins including FAW Hongqi H5, Kia K5, and Ram 1500, supported by innovative seat solutions.
Awards and Industry Recognition
Adient received several awards, including the GM Supplier of the Year Award for the fourth consecutive year and the Best Supplier Award for ESG management from Hyundai Motor Group.
Strong Liquidity Position
Adient ended the quarter with a strong cash balance of $754 million and $1.6 billion of liquidity, maintaining a strong balance sheet and no near-term debt maturities.
Negative Updates
Goodwill Impairment in EMEA
Adient recorded a $333 million non-cash goodwill impairment in its EMEA reporting unit due to a significant decline in the market value of Adient shares.
Tariff Exposure and Challenges
Adient faces tariff challenges with an approximate gross monthly tariff exposure of $12 million, largely due to imports from China. The company is working on mitigating these impacts.
Volume and Currency Headwinds
Adient experienced a $139 million decrease in revenue due to lower customer volumes and FX impacts, with volume and mix as a $6 million headwind.
Restructuring Costs in Europe
Adient incurred $33 million in cash restructuring costs in Europe, with further costs anticipated to accelerate restructuring actions.
Lower Revenues in EMEA and Asia
Sales in EMEA and Asia were lower year-over-year, with particular pressure on China revenue due to decreased volumes from traditional luxury OEM customers.
Company Guidance
During the call, Adient provided guidance for fiscal year 2025, reiterating their revenue and adjusted EBITDA targets while addressing potential impacts from tariffs. Adient achieved $233 million in adjusted EBITDA for Q2, with a 40 basis point improvement in company adjusted EBITDA margins. Despite a $139 million decrease in revenue from lower customer volumes and FX headwinds, the company demonstrated resilience by mitigating these pressures through improved business performance. Adient's free cash flow for Q2 was aligned with internal expectations, ending the quarter with a strong cash balance of $754 million and $1.6 billion in liquidity. The company is actively working on mitigating tariff impacts, with about 75% of its gross tariff exposure already resolved. The guidance assumes no changes to current tariff policies, most tariff costs being resolved, and no significant declines in forecasted volumes due to tariffs.

Adient Financial Statement Overview

Summary
Adient's financial performance is challenged by negative net profit margins and inconsistent revenue growth. Despite this, the company maintains positive operating cash flows and a balanced asset structure with moderate debt levels, which provides some stability.
Income Statement
58
Neutral
Adient's revenue growth is inconsistent, with a decline in the most recent TTM period compared to the previous year. Gross Profit Margin is low at 6.53%, and the company faces a negative Net Profit Margin of -1.68% in TTM, indicating profitability challenges. The EBIT and EBITDA margins are modest, showing operational efficiencies but also highlighting net losses.
Balance Sheet
65
Positive
The debt-to-equity ratio of 1.45 in the TTM period suggests moderate leverage, but with declining equity due to consecutive losses. The equity ratio stands at a reasonable 19.24%, indicating some stability in the asset structure. Return on Equity is negative (-14.65%), reflecting the company's struggles in generating returns for shareholders.
Cash Flow
60
Neutral
There is a negative Free Cash Flow growth rate, but the company maintains a positive Free Cash Flow to Net Income ratio, indicating efficient cash usage despite net losses. The Operating Cash Flow to Net Income ratio is positive and high, showing strong cash flow relative to reported earnings, a positive sign of cash generation abilities.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue14.69B15.39B14.12B13.68B12.67B
Gross Profit928.00M1.03B807.00M826.00M592.00M
EBITDA697.00M776.00M644.00M2.13B119.00M
Net Income18.00M205.00M-40.00M1.11B-486.00M
Balance Sheet
Total Assets9.35B9.42B9.16B10.76B10.26B
Cash, Cash Equivalents and Short-Term Investments945.00M1.11B947.00M1.52B1.69B
Total Debt2.40B2.54B2.58B3.70B4.31B
Total Liabilities6.82B6.82B6.74B7.80B8.68B
Stockholders Equity2.13B2.23B2.07B2.38B1.21B
Cash Flow
Free Cash Flow277.00M415.00M47.00M0.00-80.00M
Operating Cash Flow543.00M667.00M274.00M260.00M246.00M
Investing Cash Flow-253.00M-229.00M484.00M347.00M166.00M
Financing Cash Flow-497.00M-271.00M-1.27B-770.00M393.00M

Adient Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.05
Price Trends
50DMA
17.80
Positive
100DMA
15.59
Positive
200DMA
17.37
Positive
Market Momentum
MACD
1.49
Positive
RSI
70.35
Negative
STOCH
58.28
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 22.05 is above the 20-day moving average (MA) of 20.94, above the 50-day MA of 17.80, and above the 200-day MA of 17.37, indicating a bullish trend. The MACD of 1.49 indicates Positive momentum. The RSI at 70.35 is Negative, neither overbought nor oversold. The STOCH value of 58.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADNT.

Adient Risk Analysis

Adient disclosed 36 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
VCVC
80
Outperform
$2.99B10.3425.15%-1.35%-39.06%
ALALV
79
Outperform
$9.03B13.4529.99%2.40%-2.29%35.00%
79
Outperform
$15.27B11.6415.52%-2.47%-43.12%
BWBWA
76
Outperform
$7.69B28.135.38%1.24%-8.23%-52.61%
LELEA
74
Outperform
$5.69B12.4110.00%2.91%-3.15%-6.70%
66
Neutral
$1.88B805.10-14.33%-5.33%-292.58%
56
Neutral
HK$25.22B4.10-2.03%6.15%-0.31%-67.64%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ADNT
Adient
21.75
-2.75
-11.22%
ALV
Autoliv
112.08
17.11
18.02%
BWA
BorgWarner
34.98
2.80
8.70%
APTV
Aptiv
68.20
-0.67
-0.97%
LEA
Lear
104.00
-10.55
-9.21%
VC
Visteon
109.44
1.50
1.39%

Adient Corporate Events

Business Operations and StrategyFinancial Disclosures
Adient Highlights Strong Performance at Deutsche Bank Conference
Positive
Jun 10, 2025

Adient plc announced its participation in the Deutsche Bank Global Auto Conference on June 11, 2025, where it highlighted its strong business performance in the first half of fiscal year 2025. Despite lower customer volumes, Adient achieved year-over-year improvement in its adjusted EBITDA margin and maintained a solid cash balance. The company continues to win new business and receive customer recognition, including its fourth consecutive GM Supplier of the Year award. Adient’s strategic focus on operational excellence and resilience positions it well for future growth, with ongoing restructuring in Europe and strong execution in Asia.

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.

Business Operations and StrategyFinancial Disclosures
Adient to Discuss China Operations with Investors
Positive
May 22, 2025

In May 2025, Adient representatives are scheduled to meet with investors to discuss the company’s business operations in China. The company has achieved significant growth in the past year, winning approximately $1 billion in new business and expanding its relationships with Chinese OEMs. Adient has also upgraded its technical center in Chongqing, enhancing its capabilities in electrification and smartification of auto seating technology. Despite challenging macroeconomic conditions, Adient continues to focus on profitable growth and maintaining strong financial performance.

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.

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.Date of analysis: Jul 02, 2025