Adient (NYSE:ADNT) Releases Quarterly Earnings Results, Misses Expectations By $0.12 EPS

Adient (NYSE:ADNT) posted its quarterly earnings results on Wednesday. The company reported $0.52 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.64 by ($0.12), FiscalAI reports. Adient had a negative net margin of 0.11% and a positive return on equity of 7.35%. The company had revenue of $3.73 billion during the quarter, compared to analyst estimates of $3.62 billion. During the same period in the prior year, the business earned $0.52 EPS. Adient’s revenue for the quarter was up 1.1% on a year-over-year basis.

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

• Adient reported fiscal 2026 revenue of $15.2 billion, up 4%, and adjusted EBITDA of $884 million, essentially flat year over year, despite industry and regional headwinds. Free cash flow was $222 million, though about $60 million reflected timing-related benefits pulled forward from 2027.
• For fiscal 2027, Adient expects revenue of $14.8 billion to $15.0 billion but adjusted EBITDA of $900 million to $925 million, implying modest margin expansion despite lower production volumes. Management says productivity, commercial actions, and restructuring will help offset volume and foreign-exchange pressure.
• Fiscal 2027 free cash flow is expected to be only more than $100 million, down from $222 million in 2026, due partly to timing benefits pulled forward and nonrecurring dividend timing. Higher capital expenditures and restructuring spending will also weigh on cash generation.
• Management described 2027 as a difficult operating environment, with volume and mix headwinds in the Americas and China, ongoing challenges in EMEA, and pressure from commodities, tariffs, and customer downtime. The outlook relies on substantial business-performance improvements and customer cost recoveries that executives said are mapped out but still need to be secured.
• The board approved a $400 million increase to Adient’s share-repurchase authorization, and management is planning approximately $100 million of repurchases in fiscal 2027, subject to cash generation and market conditions. The company also said it will seek to generate cash through potential asset monetizations.

Adient Stock Performance

ADNT traded down $0.74 during trading on Friday, hitting $16.33. 1,261,171 shares of the stock were exchanged, compared to its average volume of 1,032,448. The firm has a market capitalization of $1.26 billion, a P/E ratio of -68.03, a PEG ratio of 0.24 and a beta of 1.64. Adient has a 1-year low of $15.80 and a 1-year high of $27.32. The stock has a fifty day moving average price of $17.82 and a two-hundred day moving average price of $20.47. The company has a quick ratio of 0.91, a current ratio of 1.09 and a debt-to-equity ratio of 1.21.

Insider Buying and Selling at Adient

In other news, Director Peter Carlin sold 7,843 shares of the stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $19.25, for a total value of $150,977.75. Following the completion of the sale, the director directly owned 38,835 shares of the company’s stock, valued at approximately $747,573.75. This represents a 16.80% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.94% of the company’s stock.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the stock. BNP Paribas Exane upgraded shares of Adient from a “neutral” rating to an “outperform” rating and set a $26.00 price objective on the stock in a report on Thursday, July 30th. Zacks Research upgraded shares of Adient from a “strong sell” rating to a “hold” rating in a report on Wednesday, September 16th. Stifel Nicolaus dropped their target price on shares of Adient from $26.00 to $21.00 and set a “buy” rating on the stock in a research report on Monday, October 19th. Barclays dropped their target price on shares of Adient from $25.00 to $22.00 and set an “equal weight” rating on the stock in a research report on Friday, October 9th. Finally, Citigroup cut their price target on shares of Adient from $33.00 to $29.00 and set a “buy” rating on the stock in a research note on Tuesday, August 11th. Seven research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $24.60.

Adient Company Profile

Adient plc (NYSE: ADNT) is a global automotive supplier specializing in the design, development and manufacture of vehicle seating systems. The company supplies complete seating assemblies as well as components such as seat structures, mechanisms, foam, fabrics, leather and other trim materials.

Adient works with automakers and other automotive customers to provide seating solutions for passenger cars, trucks, sport utility vehicles and commercial vehicles. Its offerings are designed to support vehicle comfort, safety, styling, weight reduction and manufacturing efficiency, with products developed for both traditional and electrified vehicles.

The company was formed in 2016 through the separation of Johnson Controls’ automotive seating business.