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Adient (ADNT)
NYSE:ADNT
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Adient
(NYSE:ADNT)
Select Model
Select Model
Rating:55Neutral
Price Target:
$27.00
▲(8.91% Upside)
Action:ReiteratedDate:02/11/26
The score is held back primarily by weak current profitability and a moderately constrained balance sheet despite positive free cash flow. This is partly offset by constructive technical trend strength and a supportive earnings-call backdrop with raised FY2026 guidance and identifiable growth catalysts, though valuation remains challenged due to losses.
Positive Factors
Consistent cash generation
Positive operating cash flow (~$421M TTM) and positive free cash flow (~$175M TTM) provide durable internal funding for program launches, working capital and capex. This cash-generation helps bridge GAAP losses and reduces near-term reliance on external financing while supporting execution.
Strong liquidity and targeted leverage
Robust liquidity (~$1.7B) and net leverage inside target (1.7x) give the company flexibility to fund launches, sustain automation capex, and execute buybacks without immediate refinancing pressure. This balance reduces short-term solvency risk and supports multi-quarter operational plans.
Material onshoring / new business pipeline
A disclosed ~$500M pipeline from onshoring and conquest awards represents a structural revenue growth vector over FY2027–FY2028. Winning and ramping these programs can improve utilization, diversify customer mix, and drive sustainable margin improvement as fixed costs spread over higher volumes.
Negative Factors
Weak profitability and net losses
Persistently thin gross and EBIT margins and a TTM net loss (-$303M) indicate constrained earnings power. Weak profitability limits reinvestment capacity and raises sensitivity to raw-material, labor, or customer mix shocks, requiring sustained operational improvements to normalize returns.
Elevated leverage and eroded equity
Higher leverage and reduced shareholders' equity weaken financial flexibility and increase exposure to interest or covenant risk if results slip. Lower equity and negative ROE constrain the ability to absorb shocks or pursue large discretionary investments without relying on external capital or asset sales.
European restructuring and regional margin pressure
Significant, multi-year restructuring costs in Europe and ongoing EMEA margin pressure create execution risk and near-term cash outflows. Uncertainty about program outcomes and visibility beyond FY2027 could suppress margins and offset gains from other regions until restructurings complete.
Adient (ADNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.95B
Dividend YieldN/A
Average Volume (3M)1.11M
Price to Earnings (P/E)―
Beta (1Y)1.09
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. Volume794,646
30 Day Avg. Volume1,105,506
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 Cap1.79
Enterprise Value/Revenue0.24
Enterprise Value/Gross Profit3.62
Enterprise Value/Ebitda8.08
Forecast
1Y Price Target
$28.88Price Target Upside16.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)2.1
Revenue Forecast (FY)$14.62B
Adient Business Overview & Revenue Model
Company DescriptionAdient 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 MoneyAdient 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 Key Performance Indicators (KPIs)
Adient Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 30, 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.Q1-2026 Updates
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).
Improved Profitability (Adjusted)
Adjusted EBITDA of $207 million, up 6% year-over-year with an adjusted EBITDA margin of 5.7% (improvement of ~10 basis points versus prior year).
Adjusted Net Income and EPS
Reported adjusted net income of $28 million, or $0.35 per share for the quarter.
Raised Full-Year Financial Guidance
Management raised FY2026 guidance: sales to ~$14.6 billion (from $14.4B, +~1.4%), adjusted EBITDA to ~$880 million (from $845M, +~4.1%), and free cash flow to $125 million (from $90M, +~39%).
Cash, Liquidity and Balance Sheet Strength
Ended Q1 with $855 million cash on hand and total liquidity of ~$1.7 billion (including ~$823M undrawn revolver). Net leverage 1.7x, comfortably inside the 1.5x–2.0x target range.
Shareholder Returns and Cost Savings
Returned $25 million to shareholders via repurchasing ~2.1 million shares (remaining authorization ~$110M). Repriced term loan B reducing interest by 25 basis points, saving ~ $1.5 million annually.
China and Asia Momentum
China revenue up significantly (ex-FX) with Asia outperforming overall driven by China domestic OEM ramp; company expects double-digit China growth through FY2028 and to exit the year with ~60% of China revenue from domestic OEMs.
Onshoring & New Business Awards
Captured ~150,000 units of direct onshoring business, ~25,000 indirect units, plus ~100,000 units of new/conquest business. Management cites an aggregate opportunity of ~$500 million incremental revenue (with ~$300M impacting FY2027 and the full $500M in FY2028).
Innovation & Manufacturing Efficiency (ModuTech)
Introduced ModuTech modular seat architecture; early results claim ~20% total value-chain savings (labor and freight efficiencies) and ~15% reduction in JIT floor space; automation projects cited as having paybacks under two years.
Sustainability Achievements
FY2025 highlights include a 42% reduction in Scope 1 & 2 emissions since 2019, 30% of electricity from renewable sources, 6% year-over-year reduction in total water withdrawal, and 80% of suppliers assessed for sustainability.
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.
Q1 Production Disruptions and Volume Headwinds
Temporary customer production disruptions (Novella fire, Nexperia shortage, JLR production issues) created inefficiencies and impacted North American production; volume mix was a reported ~$11 million headwind during the quarter.
Weakness and Margin Pressure in EMEA
EMEA sales trailed the market, challenged by volumes, capacity and increasing imports from China. Europe is undergoing strategic program actions and elevated restructuring that weighed on results.
Elevated European Restructuring Spend and Uncertainty
Restructuring spending remains elevated (management cited another ~$120–130 million in FY2026 primarily in Europe) with limited visibility beyond FY2027 — magnitude will depend on customer program plans.
Asia Outside China Lagging; Higher Launch/Engineering Costs
Asia ex-China lagged industry trends (notably Japan and India). APAC experienced increased engineering and launch spending (Q1 APAC adjusted EBITDA down roughly $7 million per management commentary), contributing to near-term margin pressure.
Consolidated-Unconsolidated Mix & JV Rationalization Impact
Unconsolidated revenue declined ~3% year-over-year (adjusted for FX), primarily from joint-venture portfolio rationalization actions, tempering overall consolidated growth.
Free Cash Flow & Timing Items
Q1 free cash flow was modest at $15 million; cash flow remains second-half weighted. Management noted timing items including a ~$20 million timing impact tied to the tax settlement (expected cash payment in Q2) and a ~$37 million commercial settlement cash flow effect, creating temporary cadence distortions.
Near-Term Seasonality and Potential OEM Disruptions
Q2 expected to be impacted by Chinese New Year seasonality (lower production and equity income). Management also flagged production uncertainty tied to large OEM schedules (e.g., F-Series/F-150 cadence) which could affect guidance if disruptions materialize.
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
Revenue is stable, but profitability is currently weak (TTM net margin about -2.1% with very thin EBIT margin ~0.7%). Leverage is elevated (debt-to-equity ~1.38) and equity has declined, pressuring flexibility, though operating cash flow (~$421M) and free cash flow (~$175M) remain positive, supporting near-term liquidity.Income Statement
TTM (Trailing-Twelve-Months) revenue is essentially flat to slightly up (about +1.0%), but profitability is weak: gross margin is ~6.6% and EBIT margin is ~0.7%. Most importantly, the company is currently loss-making (TTM net margin ~-2.1%; net income -$303M), a deterioration versus positive net income in FY2023–FY2024. The trend shows pressure on earnings power despite stable sales, limiting the income statement strength.38
Negative
Balance Sheet
Leverage is elevated with debt-to-equity around ~1.38 in TTM (Trailing-Twelve-Months), and equity has declined versus prior years (roughly $1.7B now vs. ~$2.1–$2.2B in FY2023–FY2024). Returns to shareholders are negative (TTM return on equity ~-15.9%), reflecting losses and reducing balance-sheet flexibility. Offsetting this, the company maintains a sizable asset base (~$8.8B total assets), and debt levels have been relatively stable recently, but overall the balance sheet remains moderately constrained by leverage and weakened equity.46
Neutral
Cash Flow
Cash generation is a relative bright spot: TTM (Trailing-Twelve-Months) operating cash flow is positive at ~$421M and free cash flow is positive at ~$175M. However, free cash flow declined versus the prior annual period (TTM free cash flow growth ~-14.6%), and cash flow is not especially strong relative to operating needs (operating cash flow coverage ratio ~0.12). Positive free cash flow despite net losses suggests some earnings/cash flow mismatch, which helps liquidity in the near term but is not a full substitute for sustained profitability.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
Positive
24.79
Price Trends
21.99
Positive
21.71
Positive
21.42
Positive
Market Momentum
0.91
Positive
55.46
Neutral
21.29
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 24.79 is above the 20-day moving average (MA) of 24.44, above the 50-day MA of 21.99, and above the 200-day MA of 21.42, indicating a bullish trend. The MACD of 0.91 indicates Positive momentum. The RSI at 55.46 is Neutral, neither overbought nor oversold. The STOCH value of 21.29 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 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 | $10.15B | 16.64 | 35.42% | 1.07% | -4.21% | -0.45% | |
72 Outperform | $6.80B | 16.46 | 9.21% | 2.63% | -1.90% | -13.86% | |
72 Outperform | $2.62B | 13.43 | 14.37% | 0.57% | -4.03% | -39.51% | |
62 Neutral | $12.18B | 45.98 | 5.05% | 1.24% | 0.08% | -83.69% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $1.95B | -6.86 | -16.78% | ― | -1.04% | -1510.41% | |
53 Neutral | $4.18B | 80.90 | -4.82% | 1.70% | -18.23% | ― |
* Consumer Cyclical Sector Average
ADNT
Adient
24.79
8.02
47.82%
ALSN
Allison Transmission Holdings
122.72
23.43
23.60%
BWA
BorgWarner
59.45
29.84
100.78%
DAN
Dana Incorporated
35.78
20.56
135.09%
LEA
Lear
133.61
39.40
41.82%
VC
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99.59
11.83
13.48%
Adient Corporate Events
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 the quarter ended December 31, 2025, consolidated revenue rose about 4% year on year to roughly $3.6 billion, adjusted EBITDA increased by $11 million to $207 million despite temporary customer production disruptions, and free cash flow reached $15 million, supported by particularly strong sales growth in China that exceeded regional industry production.
The company emphasized that isolated production issues impacting the quarter appeared largely resolved, while onshoring opportunities and its best-in-class modular seating offerings are expected to drive further top-line growth and margin expansion. Adient returned $25 million to shareholders via repurchases of approximately 1.2 million shares, maintained a cash balance of $855 million against gross and net debt of about $2.4 billion and $1.5 billion respectively, and issued its 2025 Sustainability Report, underscoring progress on environmental goals and its commitment to balanced capital allocation and long-term stakeholder value.
The most recent analyst rating on (ADNT) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Adient stock, see the ADNT Stock Forecast page.
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 1.00% for base rate loans. The obligations under the credit agreement remain secured and guaranteed by Adient plc and key wholly owned restricted subsidiaries, a move that lowers financing costs and supports the company’s capital structure without increasing its debt load, which may enhance financial flexibility for operations and stakeholders.
The most recent analyst rating on (ADNT) stock is a Hold with a $22.00 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.