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1. Company Snapshot

1.a. Company Description

Adient 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.

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1.b. Last Insights on ADNT

Adient's recent performance was negatively impacted by its Q4 earnings miss, with EPS of $0.52 per share falling short of the Zacks Consensus Estimate of $0.55 per share. The company's segment margins narrowed, and its FY26 outlook forecasts lower revenues and EBITDA. Additionally, the company's Q4 sales, although higher year-over-year, were not enough to offset the earnings miss. Adient's FY26 outlook also points to lower revenues, which may have contributed to the negative performance. (Source: Adient Q4 Earnings Miss Expectations, Revenues Rise Y/Y)

1.c. Company Highlights

2. Adient's FY25 Earnings: A Mixed Bag with Margin Pressures and Growth Initiatives

Adient reported revenues of $14.5 billion for FY25, down 1% year-over-year due to lower customer volumes and unfavorable mix. Adjusted EBITDA landed at $881 million, essentially flat with 2024, despite the decrease in volume. The adjusted EBITDA margin was 6.1%, while adjusted EPS came in at $1.93, a 5% improvement year-over-year. Actual EPS for the fourth quarter was $0.52, slightly below estimates of $0.55.

Publication Date: Nov -12

📋 Highlights
  • 2025 Financial Performance:: Full-year adjusted EBITDA of $881 million and $14.5 billion sales, with a 6.1% margin, despite 1% sales decline due to lower customer volumes.
  • Operational Efficiency Gains:: $25 million spent on automation/AI in 2025 yielded $20 million in savings; 2026 plans include $60 million investment for $40 million in savings.
  • New Business Wins:: Secured Ford F-150 conquest JIT/foam business and expanded partnerships with Chinese OEMs like BYD and Cherry, driving growth in key markets.
  • 2026 Guidance Challenges:: $75 million adjusted EBITDA impact from European exit of unprofitable businesses and F-150 production downtime, but maintains 8% EBITDA margin target.

Segment Performance

In the Americas, margins increased by 40 basis points, driven by $41 million of incremental favorable business performance through lower launch costs, commercial actions, and input costs. However, a $17 million net tariff impact and a $19 million volume and mix headwind offset some of the gains. In EMEA, volume mix was a $36 million headwind due to lower customer production volumes. In Asia, business performance was a $34 million tailwind due to improved net material margin, lower launch costs, and improved engineering and administrative expenses.

Growth Initiatives and Outlook

Adient has made significant progress in winning new business, including conquest JIT and foam business on the Ford F-150, and securing the trim business. The company expects to grow significantly above market in China but face stiff headwinds in Europe and North America. For FY26, the company expects to generate approximately $90 million of free cash flow, driven by lower adjusted EBITDA and higher CapEx.

Valuation and Cash Flow

With a P/E Ratio of -8.8 and an EV/EBITDA of 7.38, the market appears to be pricing in some level of distress. The company's Free Cash Flow Yield is 15.63%, indicating a potentially attractive return for investors. Adient's ROIC is 12.18%, suggesting a reasonable return on invested capital. However, the Net Debt / EBITDA ratio of 3.53x indicates a relatively high level of indebtedness.

Operational Efficiency

Mark Oswald noted that the payback on capital expenditures is typically around 2 years, highlighting the company's focus on operational efficiency. Adient spent $25 million on automation and AI in 2025, yielding $20 million in savings, and plans to spend upwards of $60 million this year, which will yield almost $40 million in savings.

3. NewsRoom

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Adient (NYSE:ADNT) Given Consensus Rating of “Reduce” by Analysts

Nov -29

Source: defenseworld.net

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Adient Q4 Earnings Miss Expectations, Revenues Rise Y/Y

Nov -07

Source: zacks.com

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Adient plc (ADNT) Q4 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Compared to Estimates, Adient (ADNT) Q4 Earnings: A Look at Key Metrics

Nov -05

Source: zacks.com

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Adient (ADNT) Q4 Earnings Miss Estimates

Nov -05

Source: zacks.com

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Adient reports solid fourth quarter and full-year 2025 financial results; provides full-year FY26 outlook

Nov -05

Source: prnewswire.com

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Ethic Inc. Makes New $210,000 Investment in Adient $ADNT

Nov -01

Source: defenseworld.net

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Adient (NYSE:ADNT) & Faraday Future Intelligent Electric (NASDAQ:FFAI) Head-To-Head Survey

Oct -26

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.65%)

6. Segments

Automotive Seating Supply

Expected Growth: 4.65%

Adient plc's 4.65% growth in Automotive Seating Supply is driven by increasing global vehicle production, rising demand for comfort and safety features, and growing adoption of electric vehicles. Additionally, the company's focus on innovation, cost reduction, and strategic partnerships have contributed to its growth momentum.

7. Detailed Products

Seating Systems

Adient plc designs, manufactures, and supplies a wide range of seating systems for passenger cars, commercial vehicles, and heavy trucks.

Seat Structures and Mechanisms

Adient develops and manufactures seat structures and mechanisms, including seat frames, adjusters, and recliners.

Cockpit and Interior Components

Adient designs and manufactures cockpit and interior components, including instrument panels, door trim, and center consoles.

Electronics and Safety Systems

Adient develops and supplies electronic systems, including seatbelt systems, airbag modules, and advanced driver-assistance systems (ADAS).

Trim and Fabrication

Adient provides trim and fabrication services, including cut-and-sew operations, foam molding, and surface finishing.

8. Adient plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Adient plc faces moderate threat from substitutes, as customers have limited alternatives for automotive seating and components. However, the company's focus on innovation and technology helps to mitigate this threat.

Bargaining Power Of Customers

Adient plc's customers, including major automotive manufacturers, have significant bargaining power due to their large scale and global presence. This gives them the ability to negotiate prices and terms.

Bargaining Power Of Suppliers

Adient plc's suppliers have limited bargaining power due to the company's large scale and global presence. This allows Adient to negotiate favorable terms and prices.

Threat Of New Entrants

The threat of new entrants is low for Adient plc, as the automotive seating and components industry has high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The automotive seating and components industry is highly competitive, with several established players competing for market share. Adient plc must focus on innovation and cost management to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.22%
Debt Cost 11.07%
Equity Weight 46.78%
Equity Cost 15.93%
WACC 13.34%
Leverage 113.78%

11. Quality Control: Adient plc passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Continental

A-Score: 4.7/10

Value: 7.7

Growth: 3.3

Quality: 4.6

Yield: 5.6

Momentum: 4.0

Volatility: 3.0

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Knorr-Bremse

A-Score: 4.5/10

Value: 3.8

Growth: 3.4

Quality: 5.2

Yield: 3.8

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

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Valeo

A-Score: 4.4/10

Value: 8.3

Growth: 3.8

Quality: 2.5

Yield: 4.4

Momentum: 5.5

Volatility: 2.0

1-Year Total Return ->

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Forvia

A-Score: 4.1/10

Value: 9.6

Growth: 3.2

Quality: 1.5

Yield: 1.2

Momentum: 8.0

Volatility: 1.3

1-Year Total Return ->

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Vitesco Technologies

A-Score: 3.5/10

Value: 7.0

Growth: 3.6

Quality: 4.3

Yield: 0.0

Momentum: 4.0

Volatility: 2.3

1-Year Total Return ->

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Adient

A-Score: 3.5/10

Value: 8.2

Growth: 3.6

Quality: 1.5

Yield: 0.0

Momentum: 6.0

Volatility: 1.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.52$

Current Price

18.52$

Potential

-0.00%

Expected Cash-Flows