Adient Q1 Earnings Surpass Expectations, FY25 Sales View Cut

Adient ADNT reported adjusted earnings per share (EPS) of 27 cents for the first quarter of fiscal 2025. Earnings fell from 31 cents recorded in the year-ago period but surpassed the Zacks Consensus Estimate of 24 cents.

The company generated net sales of $3.5 billion, which decreased 5% year over year but beat the Zacks Consensus Estimate of $3.43 billion.

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Adient price-consensus-eps-surprise-chart | Adient Quote

Adient currently operates through three reportable segments — Americas, including North America and South America; Europe, which includes the Middle East and Africa (EMEA); and Asia Pacific/China (Asia).

In the reported quarter, the Americas segment recorded revenues of $1.61 billion, which declined 2.2% from the year-ago period and marginally missed the Zacks Consensus Estimate of $1.62 billion. The segment recorded an adjusted EBITDA of $85 million, which increased from $80 million recorded in the prior-year quarter due to favorable volume and mix as well as improved business performance in freight and launch costs. The metric, however, missed the Zacks Consensus Estimate of $86 million.

The EMEA segment registered revenues of $1.13 billion, which declined 10.9% year over year and missed the Zacks Consensus Estimate of $1.15 billion. The segment recorded an adjusted EBITDA of $22 million, which declined from $45 million generated in the year-ago period and missed the Zacks Consensus Estimate of $29.2 million due to a decline in customer production volumes.

In the fiscal first quarter, revenues in the Asia segment came in at $772 million, which rose slightly from $770 million in the fiscal first quarter of 2024 and surpassed the Zacks Consensus Estimate of $722 million. The segment recorded an adjusted EBITDA of $111 million, down from $114 million recorded in the corresponding quarter of fiscal 2024 due to unfavorable volume and mix in China. The figure, however, beat the Zacks Consensus Estimate of $108 million.

Adient had cash and cash equivalents of $860 million as of Dec. 31, 2024, compared with $945 million as of Sept. 30, 2024.

As of Dec. 31, 2024, long-term debt amounted to $2.4 billion.

Capital expenditures totaled $64 million compared with $55 million in the prior-year quarter.

During the quarter under review, ADNT repurchased shares worth $25 million.

Adient now envisions fiscal 2025 revenues to be $13.9 billion, down from the previous estimation of $14.1-$14.4 billion. Adjusted EBITDA is estimated to be $850 million compared with the prior expected range of $850-$900 million. Equity income is projected to be $80 million.

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