Adient (NYSE:ADNT) Announces Quarterly Earnings Results

Adient (NYSE:ADNT) posted its quarterly earnings data on Wednesday. The company reported $0.48 EPS for the quarter, missing analysts’ consensus estimates of $0.56 by ($0.08), FiscalAI reports. Adient had a net margin of 0.39% and a return on equity of 7.28%. The firm had revenue of $3.93 billion for the quarter, compared to analysts’ expectations of $3.71 billion. During the same period in the prior year, the company posted $0.45 earnings per share. Adient’s quarterly revenue was up 4.3% compared to the same quarter last year.

Here are the key takeaways from Adient’s conference call:

• Q3 revenue rose 5% year over year to approximately $3.9 billion, supported by favorable volumes, pricing, foreign exchange, and growth in the Americas and China.
• Adjusted EBITDA was essentially flat at $225 million, with management citing approximately $32 million in temporary costs from Middle East-related freight, commodity inflation, and customer- or supplier-driven inefficiencies.
• Adient raised fiscal 2026 revenue guidance to approximately $15 billion while maintaining adjusted EBITDA guidance of $885 million and free cash flow guidance of $130 million.
• China sales increased about 33% and the Americas delivered margin expansion, while EMEA remained pressured by weak production and customer mix; Adient expects additional China margin compression in fiscal 2027 but anticipates EMEA benefits as underperforming metals programs roll off.
• Fiscal 2027 restructuring costs remain difficult to forecast because of pending customer production decisions, with management warning that an individual facility closure could cost $30 million or more; increased automation spending is also expected to raise capital expenditures.

Adient Price Performance

Shares of NYSE ADNT traded down $0.57 during midday trading on Wednesday, reaching $20.59. 791,455 shares of the company traded hands, compared to its average volume of 1,024,855. Adient has a 12 month low of $17.68 and a 12 month high of $27.32. The company has a debt-to-equity ratio of 1.18, a quick ratio of 0.91 and a current ratio of 1.10. The stock’s 50-day simple moving average is $20.81 and its 200-day simple moving average is $21.61. The firm has a market cap of $1.61 billion, a PE ratio of 29.00, a PEG ratio of 0.41 and a beta of 1.52.

Insider Buying and Selling

In related news, EVP Heather M. Tiltmann sold 22,000 shares of Adient stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $22.71, for a total value of $499,620.00. Following the completion of the transaction, the executive vice president directly owned 110,886 shares of the company’s stock, valued at $2,518,221.06. The trade was a 16.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 0.94% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Adient

A number of institutional investors have recently made changes to their positions in the stock. Invesco Ltd. boosted its position in shares of Adient by 38.6% during the fourth quarter. Invesco Ltd. now owns 1,599,937 shares of the company’s stock worth $30,671,000 after purchasing an additional 445,343 shares in the last quarter. Corient Private Wealth LLC raised its stake in Adient by 5.2% during the 4th quarter. Corient Private Wealth LLC now owns 18,117 shares of the company’s stock worth $347,000 after buying an additional 899 shares during the period. Vident Advisory LLC lifted its holdings in Adient by 25.6% during the fourth quarter. Vident Advisory LLC now owns 34,794 shares of the company’s stock worth $667,000 after acquiring an additional 7,086 shares in the last quarter. Mackenzie Financial Corp bought a new stake in shares of Adient in the fourth quarter worth about $605,000. Finally, XTX Topco Ltd acquired a new stake in shares of Adient during the fourth quarter worth about $935,000. 92.44% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the stock. UBS Group increased their price target on shares of Adient from $33.00 to $34.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Deutsche Bank Aktiengesellschaft lowered their target price on Adient from $31.00 to $29.00 and set a “buy” rating on the stock in a research note on Monday, July 6th. Stifel Nicolaus lowered their price target on Adient from $28.00 to $26.00 and set a “buy” rating for the company in a research note on Monday, July 20th. Citigroup raised shares of Adient from a “neutral” rating to a “buy” rating and raised their price objective for the company from $30.00 to $33.00 in a research report on Wednesday, April 15th. Finally, Weiss Ratings raised shares of Adient from a “sell (d-)” rating to a “hold (c-)” rating in a research report on Wednesday, May 13th. Six equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $27.90.

Adient Company Profile

Adient plc (NYSE: ADNT) is a leading global supplier of automotive seating and interior components. Established in 2016 through a spin-off from Johnson Controls, the company designs, engineers and manufactures complete seat assemblies, seat structures, mechanisms, foams, textiles, trim and electronics. Adient’s product portfolio spans a wide range of seating solutions, from entry-level designs to luxury and high-performance seats, and extends to interior modules such as door panels and center consoles.

Serving major original equipment manufacturers (OEMs) around the world, Adient works closely with automakers to develop lightweight, comfortable and safety-oriented seating systems.