This article first appeared on GuruFocus.
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Revenue: $3.6 billion, up 4% year-over-year.
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Adjusted EBITDA: $207 million, up 6% from the previous year.
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Adjusted EBITDA Margin: 5.7%, improved by 10 basis points year-over-year.
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Adjusted Net Income: $28 million or $0.35 per share.
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Free Cash Flow: $15 million for the quarter.
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Cash on Hand: $855 million at the end of the quarter.
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Share Repurchases: $25 million returned to shareholders through repurchases.
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Net Leverage: 1.7 times, within target range of 1.5 to 2 times.
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Updated Full-Year Revenue Guidance: $14.6 billion, up from $14.4 billion.
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Updated Full-Year Adjusted EBITDA Guidance: $880 million, up from $845 million.
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Updated Full-Year Free Cash Flow Guidance: $125 million, up from $90 million.
Release Date: February 04, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Adient PLC (NYSE:ADNT) reported a 4% year-over-year increase in revenue for the first quarter, driven by FX tailwinds from Europe and significant growth in China.
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The company raised its guidance for revenue, adjusted EBITDA, and free cash flow for fiscal year 2026, indicating strong business performance and confidence in future growth.
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Adient PLC (NYSE:ADNT) successfully managed through significant challenges such as the Novelis fire and Nexperia shortage, demonstrating resilience in its operating model.
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The company returned $25 million to shareholders through share repurchases, reflecting a disciplined approach to capital allocation.
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Adient PLC (NYSE:ADNT) continues to win new business and conquest opportunities, with an estimated additional revenue of $500 million expected from these wins by fiscal year 2028.
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Adient PLC (NYSE:ADNT) faced production disruptions in the first quarter, impacting customer schedules and resulting in temporary inefficiencies.
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The European market remains challenged by volumes, capacity, and the import of vehicles from China, which could stretch the industry and impact performance.
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The company’s Asia segment experienced a decline in adjusted EBITDA due to increased engineering spending for new programs, indicating higher costs associated with growth.
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There are concerns about potential disruptions in the F-Series recovery, which could impact Adient PLC (NYSE:ADNT)’s guidance if realized.
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Adient PLC (NYSE:ADNT) continues to face restructuring challenges in Europe, with significant restructuring spend expected to continue into fiscal year 2027.
Q: Have you seen any impact from potential disruptions in the F-Series recovery, and how might this affect your guidance? A: Jerome Dorlack, President and CEO, responded that they are not preemptively adjusting guidance based on potential disruptions. They are relying on current release information and anticipate making up any lost production in the back half of the year. They will update guidance if significant changes occur after Ford’s announcements.
Q: Can you provide more details on the onshoring opportunity and its timeline? A: Jerome Dorlack explained that the onshoring opportunity has grown from $175 million to $500 million, including a significant conquest win. They are in the final stages of quoting for a domestic OEM moving production from Mexico to the US, which could be finalized soon. They expect $300 million of this to impact fiscal year ’27 and the full $500 million by fiscal year ’28.
Q: What progress has been made in restructuring the European business? A: Mark Oswald, CFO, stated that restructuring in Europe is ongoing, with significant spend expected in fiscal year ’26. They anticipate a reduction in restructuring costs in fiscal year ’27, but future actions will depend on customer production plans.
Q: How are commercial settlements impacting your financial outlook? A: Mark Oswald noted that commercial settlements are more about timing and cadence rather than extraordinary impacts. The first quarter benefited from the timing of certain recoveries, but overall, these are part of the normal course of business.
Q: How are you addressing the impact of Chinese imports on the European market? A: Jerome Dorlack explained that Adient is focusing on higher-end segments less affected by Chinese imports and is also pursuing opportunities to supply components and JIT products for Chinese vehicles localized in Europe. They are also leveraging joint ventures to gain access to export markets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.