Adient plc: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 4 February 2026: press release. The quarter’s numbers.

Key takeaways

Net sales rose to $3,644m: The company reported net sales of $3,644 million for the quarter ended December 31, 2025, against $3,495 million a year earlier and $3,688 million in the September 2025 quarter. Gross profit was $217 million. Source
Net loss attributable to Adient: Net income (loss) attributable to Adient was $(22) million, or $(0.28) per diluted share, against nil a year earlier. The September 2025 quarter was $18 million, or $0.22 per diluted share. Source
Adjusted EBITDA rose to $207m: Adjusted EBITDA was $207 million, a 5.7% margin, against $196 million and 5.6% a year earlier. The September 2025 quarter was $226 million, a 6.1% margin. Source
EMEA adjusted EBITDA rose: EMEA adjusted EBITDA was $34 million at a 2.8% margin, against $22 million and 1.9% a year earlier. EMEA net sales were $1,205 million, against $1,129 million. Source
Americas margin fell to 4.9%: Americas net sales were $1,642 million and adjusted EBITDA was $80 million at a 4.9% margin, against $1,611 million, $85 million and 5.3% a year earlier. Source
Free cash flow fell to $15m: Free cash flow was $15 million, against $45 million. Operating cash flow was $80 million, against $109 million, and capital expenditures were $65 million, against $64 million. Source
Net debt rose to $1,536m: Net debt was $1,536 million at December 31, 2025, against $1,439 million at September 30, 2025. The net leverage ratio was 1.72, against 1.63. Source

Quarter results

Net sales rose to $3,644m: The company reported net sales of $3,644 million for the quarter ended December 31, 2025, against $3,495 million a year earlier and $3,688 million in the September 2025 quarter. Gross profit was $217 million. Source
Net loss attributable to Adient: Net income (loss) attributable to Adient was $(22) million, or $(0.28) per diluted share, against nil a year earlier. The September 2025 quarter was $18 million, or $0.22 per diluted share. Source
Adjusted EBITDA rose to $207m: Adjusted EBITDA was $207 million, a 5.7% margin, against $196 million and 5.6% a year earlier. The September 2025 quarter was $226 million, a 6.1% margin. Source
Adjusted diluted EPS rose to $0.35: Adjusted diluted earnings per share were $0.35, against $0.27 a year earlier and $0.52 in the September 2025 quarter. Source

Segments and regions

EMEA adjusted EBITDA rose: EMEA adjusted EBITDA was $34 million at a 2.8% margin, against $22 million and 1.9% a year earlier. EMEA net sales were $1,205 million, against $1,129 million. Source
Americas margin fell to 4.9%: Americas net sales were $1,642 million and adjusted EBITDA was $80 million at a 4.9% margin, against $1,611 million, $85 million and 5.3% a year earlier. Source
Asia margin eased to 14.0%: Asia net sales were $819 million, against $772 million. Asia adjusted EBITDA was $115 million at a 14.0% margin, against $111 million and 14.4% a year earlier. Source
Corporate costs unchanged at $22m: Corporate-related costs not allocated to the segments were $22 million, the same as a year earlier. Restructuring and impairment costs were $24 million, against $23 million. Source

Costs, margins and tax

Gross profit and SG&A edged up: Gross profit was $217 million, against $216 million. Selling, general and administrative expenses were $130 million, against $125 million a year earlier. Source
EBIT eased to $90m: Earnings before interest and income taxes were $90 million, against $93 million, a 2.5% margin against 2.7%. Adjusted EBIT was $130 million, a 3.6% margin, against $122 million. Source
Income tax provision rose to $42m: The income tax provision was $42 million, against $22 million. The adjusted effective tax rate was 37.0%, against 34.2% a year earlier. Source
Equity income rose to $27m: Equity income was $27 million, against $25 million. Adjusted equity income was $29 million, against $21 million, after a $2 million restructuring charge at affiliates was excluded. Source
EBIT adjustments rose to $40m: EBIT adjustments totalled $40 million, against $29 million a year earlier, including restructuring and impairment costs of $24 million and purchase accounting amortization of $11 million. Source
Adjusted net income reached $28m: Adjusted net income attributable to Adient was $28 million, against $23 million a year earlier. The tax impact of EBIT adjustments and other tax items was $12 million. Source

Cash flow and free cash flow

Free cash flow fell to $15m: Free cash flow was $15 million, against $45 million. Operating cash flow was $80 million, against $109 million, and capital expenditures were $65 million, against $64 million. Source
Receivables inflow, payables outflow: Receivables provided $243 million, against $402 million a year earlier. Accounts payable and accrued liabilities used $143 million, against $329 million. Source
Restructuring cash spend declined: Restructuring cash costs were $19 million, against $34 million. Trade working capital provided $187 million, against $234 million. Source

Balance sheet and leverage

Net debt rose to $1,536m: Net debt was $1,536 million at December 31, 2025, against $1,439 million at September 30, 2025. The net leverage ratio was 1.72, against 1.63. Source
Inventories rose; total assets fell: Inventories were $760 million, against $695 million at September 30, 2025. Total assets were $8,774 million, against $8,954 million. Source
Receivables and cash both declined: Accounts receivable were $1,638 million, against $1,873 million at September 30, 2025. Cash and cash equivalents were $855 million, against $958 million. Source

Capital and shareholder returns

Diluted shares fell to 78.7m: Diluted weighted average shares were 78.7 million, against 84.7 million. Shares outstanding at period end were 78.3 million, against 83.9 million. Source
Buybacks held at $25m: Share repurchases were $25 million, the same as a year earlier. The September 2025 quarter had $50 million of repurchases. Source
Noncontrolling interest dividends rose: Dividends paid to noncontrolling interests were $76 million, against $42 million a year earlier. The September 2025 quarter had $4 million. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Appendix

Adient plc

Condensed Consolidated Statements of Income (Loss)

	Three Months Ended December 31,
(in millions, except per share data)		2025		2024
Net sales	$3,644		$3,495
Cost of sales	3,427		3,279
Gross profit	217		216
Selling, general and administrative expenses	130		125
Restructuring and impairment costs	24		23
Equity income	27		25
Earnings before interest and income taxes	90		93
Net financing charges	48		45
Other pension expense	1		1
Income before income taxes	41		47
Income tax provision	42		22
Net income (loss)	(1)		25
Income attributable to noncontrolling interests	21		25
Net income (loss) attributable to Adient	$(22)		$ -
Diluted earnings (loss) per share	$(0.28)		$ -
Shares outstanding at period end	78.3		83.9
Diluted weighted average shares	78.7		84.7

Appendix

Adient plc

Condensed Consolidated Statements of Financial Position

	December 31		September 30,
(in millions)		2025		2025
Assets
Cash and cash equivalents	$855		$958
Accounts receivable - net	1,638		1,873
Inventories	760		695
Other current assets	663		607
Current assets	3,916		4,133
Property, plant and equipment - net	1,401		1,409
Goodwill	1,812		1,807
Other intangible assets - net	313		319
Investments in partially-owned affiliates	312		276
Assets held for sale	12		9
Other noncurrent assets	1,008		1,001
Total assets	$8,774		$8,954
Liabilities and Shareholders' Equity
Short-term debt	$11		$11
Accounts payable and accrued expenses	2,850		2,942
Other current liabilities	731		734
Current liabilities	3,592		3,687
Long-term debt	2,380		2,386
Other noncurrent liabilities	705		723
Redeemable noncontrolling interests	68		95
Shareholders' equity attributable to Adient	1,735		1,766
Noncontrolling interests	294		297
Total liabilities and shareholders' equity	$8,774		$8,954

Appendix

Adient plc

Condensed Consolidated Statements of Cash Flows

	Three Months Ended December 31,
(in millions)		2025		2024
Operating Activities
Net income (loss) attributable to Adient	$(22)		$ -
Income attributable to noncontrolling interests	21		25
Net income (loss)	(1)		25
Adjustments to reconcile net income to cash provided (used) by operating activities:
Depreciation	69		69
Amortization of intangibles	11		11
Pension and postretirement benefit expense	3		2
Pension and postretirement contributions, net	-		(8)
Equity in earnings of partially-owned affiliates, net of dividends received	(27)		(15)
Gain on sale of interests in nonconsolidated partially-owned affiliates	-		(4)
Deferred income taxes	(2)		7
Non-cash impairment charges	-		10
Equity-based compensation	8		5
Other	2		(3)
Changes in assets and liabilities:
Receivables	243		402
Inventories	(65)		6
Other assets	(42)		(70)
Accounts payable and accrued liabilities	(143)		(329)
Accrued income taxes	24		1
Cash provided by operating activities	80		109
Investing Activities
Capital expenditures	(65)		(64)
Sale of property, plant and equipment	2		6
Business divestitures	-		27
Investments in partially-owned affiliates	(4)		(3)
Other	(1)		-
Cash used by investing activities	(68)		(34)
Financing Activities
Increase (decrease) in short-term debt	-		(1)
Repayment of long-term debt	(2)		(2)
Debt financing costs	(6)		(1)
Share repurchases	(25)		(25)
Acquisition of a noncontrolling interest	-		(28)
Dividends paid to noncontrolling interests	(76)		(42)
Share based compensation and other	(5)		(3)
Cash used by financing activities	(114)		(102)
Effect of exchange rate changes on cash and cash equivalents	(1)		(58)
Decrease in cash and cash equivalents	$(103)		$(85)

Appendix

Footnotes

1. Segment Results

Adient manages its business on a geographic basis and operates in the following three reportable segments for financial reporting purposes: 1) Americas, which is inclusive of North America and South America; 2) Europe, the Middle East and Africa ("EMEA") and 3) Asia Pacific/China ("Asia").

Adient evaluates the performance of its reportable segments using an adjusted EBITDA metric defined as income before income taxes and noncontrolling interests, excluding net financing charges, restructuring and impairment costs, restructuring related-costs, net mark-to-market adjustments on pension and postretirement plans, transaction gains/losses, purchase accounting amortization, depreciation, stock-based compensation and other non-recurring items. Also, certain corporate-related costs are not allocated to the segments. The reportable segments are consistent with how management views the markets served by Adient and reflect the financial information that is reviewed by its chief operating decision maker.

Financial information relating to Adient's reportable segments is as follows:

(in millions)	Three months ended December 31, 2025
	Americas	EMEA	Asia	Corporate/Eliminations	Consolidated
Net sales	$1,642	$1,205	$819	$(22)	$3,644
Adjusted EBITDA	$80	$34	$115	$(22)	$207
Adjusted EBITDA margin	4.9%	2.8%	14.0%	N/A	5.7%
	Three months ended December 31, 2024
	Americas	EMEA	Asia	Corporate/Eliminations	Consolidated
Net sales	$1,611	$1,129	$772	$(17)	$3,495
Adjusted EBITDA	$85	$22	$111	$(22)	$196
Adjusted EBITDA margin	5.3%	1.9%	14.4%	N/A	5.6%

Appendix

The following is a reconciliation of Adient's reportable segments' adjusted EBITDA to income before income taxes:

	Three Months Ended December 31,
(in millions)		2025		2024
Adjusted EBITDA
Americas	$80		$85
EMEA	34		22
Asia	115		111
Subtotal	229		218
Corporate-related costs	(22)		(22)
Restructuring and impairment costs	(24)		(23)
Purchase accounting amortization	(11)		(11)
Restructuring related activities	(7)		(1)
Gain (loss) on disposal transactions	-		4
Equity based compensation	(8)		(5)
Depreciation	(69)		(69)
Other items	2		2
Earnings before interest and income taxes	$90		$93
Net financing charges	(48)		(45)
Other pension expense	(1)		(1)
Income before income taxes	$41		$47

2. Earnings Per Share

The following table reconciles the numerators and denominators used to calculate basic and diluted income (loss) per share:

	Three Months Ended December 31,
(in millions, except per share data)		2025		2024
Income available to shareholders
Net income (loss) attributable to Adient	$(22)		$ -
Weighted average shares outstanding
Basic weighted average shares outstanding	78.7		84.4
Effect of dilutive securities:
Unvested restricted stock and unvested performance share awards	-		0.3
Diluted weighted average shares outstanding	78.7		84.7
Earnings (loss) per share:
Basic	$(0.28)		$ -
Diluted	$(0.28)		$ -

Potentially dilutive securities whose effect would have been anti-dilutive are excluded from the computation of diluted earnings per share for the three months ended December 31, 2025 as a result of being in a loss position. The effect of common stock equivalents which would have been anti-dilutive was excluded, and immaterial, from the calculation of diluted earnings per share for the three months ended December 31, 2024.

Appendix

3. Non-GAAP Measures

Adjusted EBIT, adjusted EBIT margin, adjusted EBITDA, adjusted EBITDA margin, adjusted net income attributable to Adient, adjusted effective tax rate, adjusted earnings per share, adjusted equity income, adjusted interest expense, free cash flow, net debt, and net leverage ratio as well as other measures presented on an adjusted basis are not recognized terms under U.S. GAAP and do not purport to be alternatives to the most comparable U.S. GAAP amounts. Since all companies do not use identical calculations, our definition and presentation of these measures may not be comparable to similarly titled measures reported by other companies. Management uses the identified non-GAAP measures to evaluate the operating performance of Adient and its business segments and to forecast future periods. Management believes these non-GAAP measures assist investors and other interested parties in evaluating Adient's on-going operations and provide important supplemental information to management and investors regarding financial and business trends relating to Adient's financial condition and results of operations. Investors should not consider these non-GAAP measures as alternatives to the related GAAP measures. Reconciliations of non-GAAP measures to their closest U.S. GAAP equivalent are presented in the corresponding tables that follow the definitions below. Reconciliations of non-GAAP measures related to guidance for any future period have not been provided due to the unreasonable efforts it would take to provide such reconciliations.

Table

Adjusted EBIT is defined as earnings before income taxes and noncontrolling interests excluding net financing charges, restructuring, impairment and related costs, purchase accounting amortization, transaction gains/losses, other significant non-recurring items, and net mark-to-market adjustments on pension and postretirement plans. Adjusted EBIT margin is adjusted EBIT as a percentage of net sales.
Adjusted EBITDA is defined as adjusted EBIT excluding depreciation and equity based compensation. Certain corporate-related costs are not allocated to the business segments in determining adjusted EBITDA. Adjusted EBITDA margin is adjusted EBITDA as a percentage of net sales.
Adjusted net income attributable to Adient is defined as net income (loss) attributable to Adient excluding restructuring, impairment and related costs, purchase accounting amortization, transaction gains/losses, other significant non-recurring items, net mark-to-market adjustments on pension and postretirement plans, the tax impact of these items and other discrete tax charges/benefits.
Adjusted income tax expense is defined as income tax expense adjusted for the tax effect of the adjustments to income before income taxes and other discrete tax changes/benefits. Adjusted effective tax rate is defined as adjusted income tax provision as a percentage of adjusted income before income taxes.
Adjusted diluted earnings per share is defined as adjusted net income attributable to Adient divided by diluted weighted average shares.
Adjusted equity income is defined as equity income excluding amortization of Adient's intangible assets related to its non-consolidated joint ventures and other unusual or non-recurring items impacting equity income.
Adjusted interest expense is defined as net financing charges excluding unusual or one-time items impacting interest expense.
Free cash flow is defined as cash provided by operating activities less capital expenditures.
Net debt is calculated as total debt (short-term and long-term) less cash and cash equivalents.
Net leverage ratio is calculated as net debt divided by adjusted EBITDA for the last four quarters.

Appendix

Reconciliations of non-GAAP measures to their closest US GAAP equivalent:

(a) & (b) Adjusted EBIT and Adjusted EBITDA

The following table reconciles net income (loss) to EBIT, adjusted EBIT and adjusted EBITDA:

	Three Months Ended December 31,
(in millions)		2025		2024
Net income (loss)	$(1)		$25
Net financing charges	48		45
Other pension expense	1		1
Income tax expense	42		22
Earnings before interest and income taxes (EBIT)	$90		$93
EBIT adjustments:
Restructuring and impairment costs	24		23
Purchase accounting amortization	11		11
Restructuring related activities	7		1
Gain on disposal transactions	-		(4)
Other items	(2)		(2)
EBIT adjustments total	40		29
Adjusted EBIT	$130		$122
EBITDA adjustments:
Depreciation	69		69
Equity based compensation	8		5
Adjusted EBITDA	$207		$196
Net sales	$3,644		$3,495
Net income as % of net sales	- %		0.7%
EBIT as % of net sales	2.5%		2.7%
Adjusted EBIT as % of net sales	3.6%		3.5%
Adjusted EBITDA as % of net sales	5.7%		5.6%

Appendix

The following table reconciles net income (loss) attributable to Adient to adjusted net income attributable to Adient:

	Three Months Ended December 31,
(in millions)		2025		2024
Net income (loss) attributable to Adient	$(22)		$ -
Net income adjustments:
EBIT adjustments total - see table (a) & (b)	40		29
Tax impact of EBIT adjustments and other tax items - see table (d)	12		(4)
Impact of adjustments on noncontrolling interests	(2)		(2)
Net income adjustments total	50		23
Adjusted net income attributable to Adient	$28		$23

(d) Adjusted income tax expense and effective tax rate

The following table reconciles income before income taxes to adjusted income before income taxes, reconciles income tax expense to adjusted income tax expense and presents the related effective tax rate and adjusted effective tax rate:

	Three months ended December 31,
	2025				2024
(in millions, except effective tax rate)	Income before income taxes	Income tax expense (benefit)	Effective tax rate		Income before income taxes	Income tax expense (benefit)	Effective tax rate
As reported	$41	$42		nm	$47	$22	46.8%
Adjustments
EBIT adjustments - see table (a) & (b)	40	3	7.5%		29	3	10.3%
Tax audit closures and statute expirations	-	10		nm	-	7		nm
UTP establishments and interest	-	(24)		nm	-	(1)		nm
FX remeasurements of tax balances	-	1		nm	-	(6)		nm
Other	-	(2)		nm	-	1		nm
Subtotal of adjustments	40	(12)	(30.0)%		29	4	13.8%
As adjusted	$81	$30	37.0%		$76	$26	34.2%

nm - not meaningful

Appendix

(e) Adjusted diluted earnings per share

The following table shows the calculation of diluted earnings per share on an adjusted basis:

	Three Months Ended December 31,
(in millions, except per share data)		2025		2024
Numerator:
Adjusted net income attributable to Adient - see table (c)	$28		$23
Denominator:
Basic weighted average shares outstanding	78.7		84.4
Effect of dilutive securities:
Unvested restricted stock and unvested performance share awards	0.7		0.3
Diluted weighted average shares outstanding	79.4		84.7
Adjusted diluted earnings per share	$0.35		$0.27

The following table reconciles diluted earnings (loss) per share as reported to adjusted diluted earnings per share (see table (c) for corresponding dollar amounts):

	Three Months Ended December 31,
	2025	2024
Diluted earnings (loss) per share as reported	$(0.28)	$ -
EBIT adjustments total	0.51	0.34
Tax impact of EBIT adjustments and other tax items	0.15	(0.05)
Impact of adjustments on noncontrolling interests	(0.03)	(0.02)
Adjusted diluted earnings per share	$0.35	$0.27

(f) Adjusted equity income

The following table reconciles equity income to adjusted equity income:

	Three Months Ended December 31,
(in millions)		2025		2024
Equity income	$27		$25
Equity income adjustments:
Gain on sale of Setex	-		(4)
Restructuring charges at affiliates	2		-
Equity income adjustments total	2		(4)
Adjusted equity income	$29		$21

Appendix

(g) Adjusted interest expense

The following table reconciles net financing charges to adjusted net financing charges:

	Three Months Ended December 31,
(in millions)		2025		2024
Net financing charges	$48		$45
Interest expense adjustments:
None	-		-
Interest expense adjustments total	-		-
Adjusted net financing charges	$48		$45

(h) Free cash flow

The following table reconciles cash from operating activities to free cash flow:

	Three Months Ended December 31,
(in millions)		2025		2024
Operating cash flow	$80		$109
Capital expenditures	(65)		(64)
Free cash flow	$15		$45

The following table reconciles adjusted EBITDA to free cash flow:

	Three Months Ended December 31,
(in millions)		2025		2024
Adjusted EBITDA	$207		$196
Adjusted equity income	(29)		(21)
Dividends from partially owned affiliates	-		6
Restructuring (cash)	(19)		(34)
Net customer tooling	10		(16)
Trade working capital (Net AR/AP + Inventory)	187		234
Accrued compensation	(76)		(78)
Interest paid	(54)		(54)
Tax refund/taxes paid	(20)		(15)
Non-income related taxes (VAT)	(44)		(22)
Commercial settlements	(37)		(9)
Net capitalized engineering	6		5
Other	(51)		(83)
Operating cash flow	80		109
Capital expenditures	(65)		(64)
Free cash flow	$15		$45

Appendix

(i) & (j) Net debt and net leverage ratio

The following table presents calculations of net debt and net leverage ratio:

	December 31		September 30,
(in millions)		2025		2025
Numerator:
Short-term debt	$2		$2
Current portion of long-term debt	9		9
Long-term debt	2,380		2,386
Total debt	2,391		2,397
Less: cash and cash equivalents	855		958
Net debt	$1,536		$1,439
Denominator:
Adjusted EBITDA - last four quarters
Q1 2025		na	$196
Q2 2025	$233		233
Q3 2025	226		226
Q4 2025	226		226
Q1 2026 - see table (a) & (b)	207			na
Last four quarters	$892		$881
Net leverage ratio		1.72		1.63

Appendix

Footnote Addendum

(1) Corporate-related costs not allocated to the segments include executive office, communications, corporate development, legal and corporate finance.

(2) Reflects restructuring charges for costs that are probable and reasonably estimable and one-time asset impairments related to restructuring activities.

(3) Reflects amortization of intangible assets including those related to partially owned affiliates recorded within equity income.

(4) Reflects restructuring-related charges for costs that are recorded as incurred or as earned and other non-recurring impacts that are directly attributable to restructuring activities:

	Three Months Ended June 30,
(in millions)		2025		2024
Restructuring related charges	$(5)		$(6)
Restructuring charges at affiliates	(2)		-
Gain of sale of a restructured facility	-		5
	$(7)		$(1)

(5) Gain on disposal transactions include:

	Three Months Ended June 30,
(in millions)		2025		2024
Gain on sale of Setex	$ -		$4
	$ -		$4

(6) Other items include:

	Three Months Ended June 30,
(in millions)		2025		2024
Non-recurring contract related settlement	$2		$2
	$2		$2

(7) Reflects the impact of adjustments, primarily purchase accounting amortization on noncontrolling interests.