Adient plc ADNT, one of the world’s largest automotive seating suppliers, is likely to gain from its diverse customer base and international presence, as well as frequent business wins amid higher European restructuring costs and uncertainty in the timing of year-end customer recoveries.
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Adient has been gaining customers with its broad range of products. A diverse customer base and international presence have helped the company create a strong market position. Launch execution continues to be an area of focus for Adient and a key building block to win new business. Given the customer and geographic mix, the company’s market position is likely to strengthen going forward.
Frequent business wins bode well for Adient and should drive growth. In fiscal 2024, ADNT secured new and renewal contracts totaling approximately $1 billion in annual revenues. Around 90% of these agreements are with local OEMs, with many set to launch in fiscal years 2026 and 2027.
The company is gaining momentum in EMEA with improved performance driven by restructuring benefits. It is securing key programs with European customers and developing opportunities with China-based OEMs. The focus remains on enhancing efficiency and executing plans, including phasing out lower-performing metals business and launching higher-margin programs expected to positively impact results in 2026.
Adient’s push for automation and modularity is paying off in 2025. Automation is cutting labor costs while boosting quality, speed and safety. Its AI-powered welding inspection with Mindtrace aims to improve efficiency, while its partnership with PASLIN on 3D sewing automation enhances precision and reduces labor needs. These innovations differentiate Adient in supporting China OEMs expanding internationally.
In the fiscal second quarter, Adient’s sales in China continued to lag the broader market. The company’s revenues from China in fiscal 2025 are expected to remain stable or experience a slight decline, primarily due to an unfavorable production mix driven by rising export volumes and increased output from local OEMs. It anticipates higher European restructuring costs and some uncertainty in the timing of year-end customer recoveries. As a result, it has slashed its free cash flow outlook to $150-$170 million from the previous estimate of $180 million.