Adient plc: Q4 FY2026 earnings call

What management said about Q4 FY2026, from the documents filed with the SEC on 4 November 2026: press release. The quarter’s numbers.

Key takeaways

Sales rose for the quarter and year: Net sales were $3,730 million for the three months ended September 30, 2026, against $3,688 million a year earlier. For the twelve months, net sales were $15,168 million, against $14,535 million. Source
Net loss attributable to Adient: The company reported a net loss attributable to Adient of $47 million for the quarter, against net income of $18 million a year earlier. Diluted loss per share was $0.62, compared with diluted earnings of $0.22. Source
Adjusted EBITDA nearly unchanged: Adjusted EBITDA was $229 million for the quarter, against $226 million, with the margin at 6.1% in both periods. For the twelve months it was $884 million, against $881 million, a 5.8% margin against 6.1%. Source
Asia lifted adjusted EBITDA: Asia adjusted EBITDA rose to $136 million from $106 million on net sales of $785 million, a 17.3% margin against 13.5%. It was the largest segment contributor to adjusted EBITDA in the quarter. Source
Americas profit fell on lower margin: Americas adjusted EBITDA was $85 million against $111 million, on net sales of $1,915 million against $1,786 million. The margin fell to 4.4% from 6.2%. Source
SG&A expense rose on the quarter: Selling, general and administrative expenses were $151 million, against $124 million, and $555 million for the year, against $522 million. Source
Restructuring charges rose in quarter: Restructuring and impairment costs were $74 million in the quarter, against $11 million. For the twelve months they were $108 million, against $392 million in the prior year. Source
Free cash flow rose for the year: Free cash flow was $222 million for the twelve months, against $204 million, after capital expenditures of $311 million against $245 million. For the quarter it was $61 million, against $134 million. Source
Net debt and leverage little changed: Net debt was $1,466 million at September 30, 2026, against $1,439 million a year earlier and $1,464 million at June 30, 2026. Net leverage was 1.66, against 1.63. Cash and cash equivalents were $886 million. Source

Results and sales

Sales rose for the quarter and year: Net sales were $3,730 million for the three months ended September 30, 2026, against $3,688 million a year earlier. For the twelve months, net sales were $15,168 million, against $14,535 million. Source
Net loss attributable to Adient: The company reported a net loss attributable to Adient of $47 million for the quarter, against net income of $18 million a year earlier. Diluted loss per share was $0.62, compared with diluted earnings of $0.22. Source
Full-year net loss narrowed: For the twelve months, the net loss attributable to Adient was $17 million, against $281 million. The prior year included a $333 million goodwill impairment and an $8 million aerospace joint venture impairment. Source
Adjusted EBITDA nearly unchanged: Adjusted EBITDA was $229 million for the quarter, against $226 million, with the margin at 6.1% in both periods. For the twelve months it was $884 million, against $881 million, a 5.8% margin against 6.1%. Source
Adjusted EPS flat on the quarter: Adjusted diluted earnings per share was $0.52 in both quarters. For the twelve months it was $1.87, against $1.93, on adjusted net income of $147 million against $161 million. Source
Sales lower than the June quarter: Net sales of $3,730 million compared with $3,929 million in the three months ended June 30, 2026, a decrease of $199 million. Adjusted EBITDA was $229 million, against $225 million in that quarter.

Segments and regions

Asia lifted adjusted EBITDA: Asia adjusted EBITDA rose to $136 million from $106 million on net sales of $785 million, a 17.3% margin against 13.5%. It was the largest segment contributor to adjusted EBITDA in the quarter. Source
Americas profit fell on lower margin: Americas adjusted EBITDA was $85 million against $111 million, on net sales of $1,915 million against $1,786 million. The margin fell to 4.4% from 6.2%. Source
EMEA sales down, margin up: EMEA net sales were $1,054 million against $1,145 million, while adjusted EBITDA was $32 million against $31 million. The EMEA margin was 3.0% against 2.7%. Source
Full-year Americas and Asia results: For the twelve months, Americas net sales were $7,369 million against $6,856 million, with adjusted EBITDA of $399 million against $402 million. Asia adjusted EBITDA was $450 million against $440 million. Source

Costs, margins and equity income

Gross profit little changed: Gross profit was $249 million for the quarter, against $247 million, and $958 million for the year, against $961 million. Cost of sales was $3,481 million against $3,441 million. Source
SG&A expense rose on the quarter: Selling, general and administrative expenses were $151 million, against $124 million, and $555 million for the year, against $522 million. Source
Restructuring charges rose in quarter: Restructuring and impairment costs were $74 million in the quarter, against $11 million. For the twelve months they were $108 million, against $392 million in the prior year. Source
Equity income and adjusted equity income rose: Equity income was $20 million for the quarter, against $8 million, and $80 million for the year, against $68 million. Adjusted equity income was $83 million for the year, against $71 million. Source

Earnings and tax

Pre-tax result turned to a loss: The company reported a pre-tax loss of $2 million for the quarter, against pre-tax income of $64 million. For the twelve months, income before income taxes was $180 million, against a loss of $88 million. Source
Reported tax expense rose for year: Income tax expense was $18 million in the quarter, against $26 million, and $115 million for the year, against $103 million. The reported effective tax rate for the year was 63.9%. Source
Adjusted tax rate rose for the year: On an adjusted basis the effective tax rate was 36.3% for the twelve months, against 31.6%. For the quarter it was 30.6%, against 32.3%. Source
Net financing charges increased: Net financing charges were $62 million in the quarter, against $49 million, and $206 million for the year, against $193 million. Source

Cash flow and shareholder returns

Free cash flow rose for the year: Free cash flow was $222 million for the twelve months, against $204 million, after capital expenditures of $311 million against $245 million. For the quarter it was $61 million, against $134 million. Source
Operating cash flow rose for year: Cash provided by operating activities was $533 million for the twelve months, against $449 million. In the quarter it was $167 million, against $213 million. Source
Capital spending rose on the year: Capital expenditures were $106 million in the quarter, against $79 million, and $311 million for the year, against $245 million. Source
Share repurchases fell year on year: Share repurchases were $45 million in the quarter, against $50 million, and $100 million for the year, against $125 million. Source
Dividends to noncontrolling interests: Dividends paid to noncontrolling interests were $92 million for the twelve months, against $90 million. The company states that free cash flow figures exclude these dividends. Source

Debt and net leverage

Net debt and leverage little changed: Net debt was $1,466 million at September 30, 2026, against $1,439 million a year earlier and $1,464 million at June 30, 2026. Net leverage was 1.66, against 1.63. Cash and cash equivalents were $886 million. Source
Debt issued and repaid in quarter: The company issued $500 million of long-term debt in the quarter and repaid $549 million, including premium. Total debt was $2,352 million at September 30, 2026, against $2,397 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 September 30,				Twelve Months Ended September 30,
(in millions, except per share data)		2026		2025		2026		2025
Net sales	$3,730		$3,688		$15,168		$14,535
Cost of sales	3,481		3,441		14,210		13,574
Gross profit	249		247		958		961
Selling, general and administrative expenses	151		124		555		522
Restructuring and impairment costs	74		11		108		392
Equity income	20		8		80		68
Earnings before interest and income taxes	44		120		375		115
Net financing charges	62		49		206		193
Other pension expense (income)	(16)		7		(11)		10
Income (loss) before income taxes	(2)		64		180		(88)
Income tax expense	18		26		115		103
Net income (loss)	(20)		38		65		(191)
Income attributable to noncontrolling interests	27		20		82		90
Net income (loss) attributable to Adient	$(47)		$18		$(17)		$(281)
Diluted earnings (loss) per share	$(0.62)		$0.22		$(0.22)		$(3.39)
Shares outstanding at period end	74.8		79.2		74.8		79.2
Diluted weighted average shares	76.1		81.3		77.8		83.0

Appendix

Adient plc

Condensed Consolidated Statements of Financial Position

	September 30,
(in millions)		2026		2025
Assets
Cash and cash equivalents	$886		$958
Accounts receivable - net	1,975		1,873
Inventories	690		695
Other current assets	495		607
Current assets	4,046		4,133
Property, plant and equipment - net	1,401		1,409
Goodwill	1,808		1,807
Other intangible assets - net	290		319
Investments in partially-owned affiliates	267		276
Assets held for sale	20		9
Other noncurrent assets	986		1,001
Total assets	$8,818		$8,954
Liabilities and Shareholders' Equity
Short-term debt	$14		$11
Accounts payable and accrued expenses	3,058		2,942
Other current liabilities	656		734
Current liabilities	3,728		3,687
Long-term debt	2,338		2,386
Other noncurrent liabilities	737		723
Redeemable noncontrolling interests	88		95
Shareholders' equity attributable to Adient	1,634		1,766
Noncontrolling interests	293		297
Total liabilities and shareholders' equity	$8,818		$8,954

Appendix

Adient plc

Condensed Consolidated Statements of Cash Flows

	Three Months Ended September 30,				Twelve Months Ended September 30,
(in millions)		2026		2025		2026		2025
Operating Activities
Net income (loss) attributable to Adient	$(47)		$18		$(17)		$(281)
Income attributable to noncontrolling interests	27		20		82		90
Net income (loss)	(20)		38		65		(191)
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities:
Depreciation	75		72		286		279
Amortization of intangibles	12		11		47		46
Pension and postretirement benefit expense (income)	(9)		9		1		16
Pension and postretirement contributions, net	(2)		(3)		(18)		(18)
Equity in earnings of partially-owned affiliates, net of dividends received	11		20		29		36
Gain on sale / impairment of nonconsolidated partially owned affiliate	-		-		-		(4)
Premium paid on repurchase of debt	10		-		10		-
Deferred income taxes	2		(29)		(14)		(28)
Non-cash impairment charge	-		(2)		-		341
Equity-based compensation	8		12		34		32
Other	4		(12)		7		(15)
Changes in assets and liabilities:
Receivables	(85)		(49)		(140)		31
Inventories	37		31		(4)		75
Other assets	143		16		180		(121)
Accounts payable and accrued liabilities	(13)		65		47		(69)
Accrued income taxes	(6)		34		3		39
Cash provided by operating activities	167		213		533		449
Investing Activities
Capital expenditures	(106)		(79)		(311)		(245)
Sale of property, plant and equipment	-		18		8		34
Settlement of derivatives	-		-		3		-
Acquisition of businesses, net of cash acquired	(7)		-		(11)		-
Business divestitures	-		-		-		27
Changes in long-term investments	-		-		(6)		(3)
Other	-		2		(1)		1
Cash used by investing activities	(113)		(59)		(318)		(186)
Financing Activities
Drawdown of ABL revolver and other bank borrowings	-		2		153		2
Repayment of ABL revolver and other bank borrowings	-		-		(155)		(1)
Issuance of long-term debt	500		-		500		795
Repayment of long-term debt, including premium paid	(549)		(2)		(556)		(803)
Debt financing costs	(5)		-		(12)		(13)
Share repurchases	(45)		(50)		(100)		(125)
Cash paid to acquire a noncontrolling interest	-		-		-		(28)
Dividends paid to noncontrolling interests	(5)		(4)		(92)		(90)
Other	-		(1)		(5)		(4)
Cash used by financing activities	(104)		(55)		(267)		(267)
Effect of exchange rate changes on cash and cash equivalents	12		(1)		(20)		17
Increase (decrease) in cash and cash equivalents	$(38)		$98		$(72)		$13

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 (loss) 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 ("Adjusted EBITDA"). 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 September 30, 2026
	Americas	EMEA	Asia	Corporate/Eliminations	Consolidated
Net sales	$1,915	$1,054	$785	$(24)	$3,730
Adjusted EBITDA	$85	$32	$136	$(24)	$229
Adjusted EBITDA margin	4.4%	3.0%	17.3%	N/A	6.1%
	Three months ended September 30, 2025
	Americas	EMEA	Asia	Corporate/Eliminations	Consolidated
Net sales	$1,786	$1,145	$783	$(26)	$3,688
Adjusted EBITDA	$111	$31	$106	$(22)	$226
Adjusted EBITDA margin	6.2%	2.7%	13.5%	N/A	6.1%

(in millions)	Twelve months ended September 30, 2026
	Americas	EMEA	Asia	Corporate/Eliminations	Consolidated
Net sales	$7,369	$4,742	$3,148	$(91)	$15,168
Adjusted EBITDA	$399	$125	$450	$(90)	$884
Adjusted EBITDA margin	5.4%	2.6%	14.3%	N/A	5.8%
	Twelve months ended September 30, 2025
	Americas	EMEA	Asia	Corporate/Eliminations	Consolidated
Net sales	$6,856	$4,773	$2,983	$(77)	$14,535
Adjusted EBITDA	$402	$124	$440	$(85)	$881
Adjusted EBITDA margin	5.9%	2.6%	14.8%	N/A	6.1%

Appendix

	Three Months Ended September 30,				Twelve Months Ended September 30,
(in millions)		2026		2025		2026		2025
Adjusted EBITDA
Americas	$85		$111		$399		$402
EMEA	32		31		125		124
Asia	136		106		450		440
Subtotal	253		248		974		966
Corporate-related costs	(24)		(22)		(90)		(85)
Restructuring and impairment costs	(74)		(11)		(108)		(392)
Purchase accounting amortization	(12)		(12)		(47)		(47)
Restructuring related activities	(9)		2		(30)		(11)
Equity based compensation	(8)		(12)		(34)		(32)
Depreciation	(75)		(72)		(286)		(279)
Gain on disposal transactions	-		-		-		4
Other items	(7)		(1)		(4)		(9)
Earnings before interest and income taxes	44		120		375		115
Net financing charges	(62)		(49)		(206)		(193)
Other pension income (expense)	16		(7)		11		(10)
Income (loss) before income taxes	$(2)		$64		$180		$(88)

2. Earnings Per Share

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

	Three Months Ended September 30,				Twelve Months Ended September 30,
(in millions, except per share data)		2026		2025		2026		2025
Income available to shareholders
Net income (loss) attributable to Adient	$(47)		$18		$(17)		$(281)
Weighted average shares outstanding
Basic weighted average shares outstanding	76.1		80.3		77.8		83.0
Effect of dilutive securities:
Stock options, unvested restricted stock and unvested performance share awards	-		1.0		-		-
Diluted weighted average shares outstanding	76.1		81.3		77.8		83.0

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 the Company 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.

Adjusted EBIT is defined as income (loss) 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, expenses associated with becoming an independent company, 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 (benefit) 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 expense (benefit) as a percentage of adjusted income before income taxes.
Adjusted diluted earnings per share is defined as adjusted net income (loss) 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 September 30,				Twelve Months Ended September 30,
(in millions)		2026		2025		2026		2025
Net income (loss)	$(20)		$38		$65		$(191)
Net financing charges	62		49		206		193
Other pension expense (income)	(16)		7		(11)		10
Income tax expense	18		26		115		103
Earnings before interest and income taxes (EBIT)	$44		$120		$375		$115
EBIT adjustments:
Restructuring and impairment charges	74		11		108		392
Purchase accounting amortization	12		12		47		47
Restructuring related activities	9		(2)		30		11
Gain on disposal transactions	-		-		-		(4)
Other items	7		1		4		9
EBIT adjustments total	102		22		189		455
Adjusted EBIT	$146		$142		$564		$570
EBITDA adjustments:
Depreciation	75		72		286		279
Equity based compensation	8		12		34		32
Adjusted EBITDA	$229		$226		$884		$881
Net sales	$3,730		$3,688		$15,168		$14,535
Net income (loss) as % of net sales	(0.5)%		1.0%		0.4%		(1.3)%
EBIT as % of net sales	1.2%		3.3%		2.5%		0.8%
Adjusted EBIT as % of net sales	3.9%		3.9%		3.7%		3.9%
Adjusted EBITDA as % of net sales	6.1%		6.1%		5.8%		6.1%

Appendix

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

	Three Months Ended September 30,				Twelve Months Ended September 30,
(in millions)		2026		2025		2026		2025
Net income (loss) attributable to Adient	$(47)		$18		$(17)		$(281)
Net income adjustments:
EBIT adjustments total - see table (a) & (b)	102		22		189		455
Tax impact of EBIT adjustments and other tax items - see table (d)	(12)		(4)		(19)		(16)
Pension mark-to-market & settlement loss (gain)	(17)		7		(15)		7
Fees paid on Term Loan B modifications	2		-		2		-
Premium paid on repurchase of debt	10		-		10		-
Write off of deferred financing costs upon repurchase of debt	3		-		3		2
Impact of adjustments on noncontrolling interests	(1)		(1)		(6)		(6)
Net income (loss) adjustments total	87		24		164		442
Adjusted net income attributable to Adient	$40		$42		$147		$161

(d) Adjusted income tax expense and effective tax rate

The following tables reconcile income (loss) before income taxes to adjusted income before income taxes, income tax expense (benefit) to adjusted income tax expense (benefit) and presents the related effective tax rate and adjusted effective tax rate:

	Three months ended September 30,
	2026				2025
(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	$(2)	$18		nm	$64	$26	40.6%
Adjustments
EBIT adjustments - see table (a) & (b)	102	16	15.7%		22	3	13.6%
Premium paid on repurchase of debt	10	-	- %		-	-		nm
Write off of deferred financing charges upon repurchase of debt	3	-	- %		-	-		nm
Fees paid on Term Loan B modifications	2	-	- %		-	-		nm
Pension mark-to-market & settlement loss	(17)	-	- %		7	4	57.1%
UTP establishments and interest	-	(5)		nm	-	(4)		nm
Tax audit closures and statute expirations	-	-		nm	-	2		nm
FX remeasurements of tax balances	-	(2)		nm	-	1		nm
Other	-	3		nm	-	(2)		nm
Subtotal of adjustments	100	12	12.0%		29	4	13.8%
As adjusted	$98	$30	30.6%		$93	$30	32.3%

Appendix

	Twelve months ended September 30,
	2026				2025
(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	$180	$115	63.9%		$(88)	$103		nm
Adjustments
EBIT adjustments - see table (a) & (b)	189	24	12.7%		455	23	5.1%
Premium paid on repurchase of debt	10	-	- %		-	-		nm
Write off of deferred financing charges upon repurchase of debt	3	-	- %		2	-	- %
Fees paid on Term Loan B modifications	2	-	- %		-	-		nm
Pension mark-to-market & settlement loss	(15)	-	- %		7	4	57.1%
NOL DTA adjustments	-	-		nm	-	(19)		nm
UTP establishments and interest	-	(34)		nm	-	(17)		nm
Tax audit closures and statute expirations	-	12		nm	-	25		nm
Intellectual property rights transfer	-	11		nm	-	-		nm
FX remeasurements of tax balances	-	2		nm	-	4		nm
Other	-	4		nm	-	(4)		nm
Subtotal of adjustments	189	19	10.1%		464	16	3.4%
As adjusted	$369	$134	36.3%		$376	$119	31.6%

(e) Adjusted diluted earnings per share

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

	Three Months Ended September 30,				Twelve Months Ended September 30,
(in millions, except per share data)		2026		2025		2026		2025
Numerator:
Adjusted net income attributable to Adient - see table (c)	$40		$42		$147		$161
Denominator:
Basic weighted average shares outstanding	76.1		80.3		77.8		83.0
Effect of dilutive securities:
Unvested restricted stock and unvested performance share awards	1.3		1.0		1.0		0.4
Diluted weighted average shares outstanding	77.4		81.3		78.8		83.4
Adjusted diluted earnings per share	$0.52		$0.52		$1.87		$1.93

Appendix

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 September 30,		Twelve Months Ended September 30,
	2026	2025	2026	2025
Diluted earnings (loss) per share as reported	$(0.62)	$0.22	$(0.22)	$(3.39)
EBIT adjustments total	1.33	0.27	2.40	5.47
Tax impact of EBIT adjustments and other tax items	(0.16)	(0.05)	(0.24)	(0.18)
Pension mark-to-market & settlement loss	(0.22)	0.09	(0.19)	0.08
Fees paid on Term Loan B modifications	0.03	-	0.03	-
Premium paid on repurchase of debt	0.13	-	0.13	-
Write off of deferred financing costs upon repurchase of debt	0.04	-	0.04	0.02
Impact of adjustments on noncontrolling interests	(0.01)	(0.01)	(0.08)	(0.07)
Adjusted diluted earnings per share	$0.52	$0.52	$1.87	$1.93

(f) Adjusted equity income

The following table reconciles equity income to adjusted equity income:

	Three Months Ended September 30,				Twelve Months Ended September 30,
(in millions)		2026		2025		2026		2025
Equity income	$20		$8		$80		$68
Equity income adjustments:
Gain on disposal transactions	-		-		-		(4)
Restructuring charges at an affiliate	-		(1)		3		5
Purchase accounting amortization and other	-		1		-		2
Equity income adjustments total	-		-		3		3
Adjusted equity income	$20		$8		$83		$71

(g) Adjusted interest expense

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

	Three Months Ended September 30,				Twelve Months Ended September 30,
(in millions)		2026		2025		2026		2025
Net financing charges	$62		$49		$206		$193
Interest expense adjustments:
Premium paid on repurchase of debt	(10)		-		(10)		-
Write off of deferred financing costs upon repurchase of debt	(3)		-		(3)		(2)
Fees paid on Term Loan B modifications	(2)		-		(2)		-
Interest expense adjustments total	(15)		-		(15)		(2)
Adjusted net financing charges	$47		$49		$191		$191

Appendix

(h) Free cash flow

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

	Three Months Ended September 30,				Twelve Months Ended September 30,
(in millions)		2026		2025		2026		2025
Operating cash flow	$167		$213		$533		$449
Capital expenditures	(106)		(79)		(311)		(245)
Free cash flow **	61		134		222		204

** Free cash flows for the twelve months ended September 30, 2026 and 2025 exclude dividends paid to noncontrolling interests of $92 million and $90 million, respectively.

The following table reconciles adjusted EBITDA to free cash flow:

	Three Months Ended September 30,				Twelve Months Ended September 30,
(in millions)		2026		2025		2026		2025
Adjusted EBITDA	$229		$226		$884		$881
Adjusted equity income	(20)		(8)		(83)		(71)
Dividends from partially-owned affiliates	32		28		110		100
Restructuring (cash)	(28)		(30)		(105)		(131)
Trade working capital (Net AR/AP + Inventory)	32		29		137		(9)
Interest paid	(57)		(46)		(207)		(188)
Cash taxes	(23)		(22)		(127)		(92)
Other	2		36		(76)		(41)
Capital expenditures	(106)		(79)		(311)		(245)
Free cash flow	$61		$134		$222		$204

Appendix

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

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

	September 30,		September 30,
(in millions)		2026		2025
Numerator:
Short-term debt	$ -		$2
Current portion of long-term debt	14		9
Long-term debt	2,338		2,386
Total debt	2,352		2,397
Less: cash and cash equivalents	(886)		(958)
Net debt	$1,466		$1,439
Denominator:
Adjusted EBITDA - last four quarters
Q1 2025		na	196
Q2 2025		na	233
Q3 2025		na	226
Q4 2025		na	226
Q1 2026	207			na
Q2 2026	223			na
Q3 2026	225			na
Q4 2026 - see table (a) & (b)	229			na
Last four quarters	$884		$881
Net leverage ratio		1.66		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, including a $333 million goodwill impairment and an $8 million impairment of the Adient Aerospace joint venture recorded during the twelve months ended September 30, 2025.

(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 September 30,				Twelve Months Ended September 30,
(in millions)		2026		2025		2026		2025
Restructuring related charges	$(9)		$(11)		$(27)		$(29)
Restructuring adjustments/(charges) at an affiliate	-		1		(3)		(5)
Gain on sales of restructured facilities	-		12		-		23
	$(9)		$2		$(30)		$(11)

(5) Reflects $4 million gain on sale of Setex recorded during the twelve months ended September 30, 2025.

(6) Other items include:

	Three Months Ended September 30,				Twelve Months Ended September 30,
(in millions)		2026		2025		2026		2025
Non-recurring contract related settlement	$ -		$ -		$2		$2
Transaction costs	(1)		(1)		(5)		(10)
Non-recurring FX-related expense	(6)		-		(6)		-
Non-recurring reserve release	-		-		5		-
Other	-		-		-		(1)
	$(7)		$(1)		$(4)		$(9)

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