Adient (NYSE:ADNT) Posts Earnings Results, Misses Expectations By $0.13 EPS

Adient (NYSE:ADNT) announced its quarterly earnings results on Wednesday. The company reported $0.52 EPS for the quarter, missing analysts’ consensus estimates of $0.65 by ($0.13), FiscalAI reports. The company had revenue of $3.73 billion during the quarter, compared to the consensus estimate of $3.60 billion. Adient had a net margin of 0.32% and a return on equity of 7.32%. The business’s revenue was up 1.1% compared to the same quarter last year. During the same period last year, the company earned $0.52 earnings per share.

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

NYSE ADNT traded down $0.36 during trading hours on Wednesday, reaching $16.55. 1,091,553 shares of the company were exchanged, compared to its average volume of 1,019,553. The business’s 50 day simple moving average is $17.88 and its 200-day simple moving average is $20.53. Adient has a 1 year low of $15.80 and a 1 year high of $27.32. The stock has a market capitalization of $1.28 billion, a P/E ratio of 27.59, a P/E/G ratio of 0.24 and a beta of 1.64. The company has a quick ratio of 0.91, a current ratio of 1.10 and a debt-to-equity ratio of 1.18.

Adient News Roundup

Here are the key news stories impacting Adient this week:

• Positive Sentiment: Adient’s board approved a $400 million increase to its share repurchase authorization, which could support shareholder returns. The company also adopted a plan to protect its U.S. tax benefits. Adient announces increased share repurchase authorization and adoption of tax benefits preservation plan
• Positive Sentiment: Fourth-quarter revenue was $3.73 billion, above analysts’ $3.60 billion estimate, and rose 1.1% year over year. Adient also reported $222 million in full-year free cash flow. Adient reports fourth quarter and full-year 2026 results
• Negative Sentiment: Quarterly EPS was $0.52, below consensus estimates of approximately $0.63–$0.65 and unchanged from a year earlier. The earnings shortfall may weigh on sentiment despite the revenue beat. Adient Q4 Earnings Miss Estimates

Insider Activity

In other Adient news, Director Peter Carlin sold 7,843 shares of the stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $19.25, for a total value of $150,977.75. Following the sale, the director directly owned 38,835 shares in the company, valued at $747,573.75. This represents a 16.80% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.94% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several analysts recently issued reports on the company. JPMorgan Chase & Co. upgraded Adient from a “neutral” rating to an “overweight” rating and dropped their target price for the stock from $28.00 to $25.00 in a report on Tuesday, September 15th. BNP Paribas Exane upgraded shares of Adient from a “neutral” rating to an “outperform” rating and set a $26.00 price target on the stock in a research note on Thursday, July 30th. Weiss Ratings downgraded Adient from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, August 21st. Stifel Nicolaus decreased their price objective on shares of Adient from $26.00 to $21.00 and set a “buy” rating on the stock in a research note on Monday, October 19th. Finally, Citigroup reduced 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 assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Adient presently has an average rating of “Hold” and an average price target of $24.90.

About Adient

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.