Adient Stock Earnings Reports

Adient reported a strong Q3 driven by improved operational performance across regions, with adjusted EBITDA of $226M (up 12%) and a 60 bps margin expansion. Management says tariff risk is being actively mitigated and is now smaller than earlier in the year (gross monthly exposure reduced from ~$12M to ~$4M), and views current U.S. tariff/onshoring dynamics as a net opportunity. The company announced tangible onshoring and conquest wins (e.g., additional Nissan Rogue volumes to Murfreesboro, a Canada-to-U.S. program, Mercedes VAN C‑Large, BYD wins) that together could add meaningful revenue over 2026–2027; Jerome highlighted an estimated addressable onshoring opportunity of ~600k vehicles (not all expected to be won). Cash flow was strong: Q3 free cash flow $115M, cash on hand $860M, total liquidity ~$1.7B, net leverage ~1.7x. Adient repurchased $50M of stock in the quarter ($75M YTD) and has $185M remaining authorization. Management raised FY25 guidance to revenue ~$14.4B and adjusted EBITDA ~$875M while maintaining free cash flow guidance of $150–170M; they caution guidance assumes no further tariff changes. EMEA remains a turnaround focus with restructuring and expected margin inflection toward mid-single-digit EBITDA in ensuing years; APAC remains the highest-margin region and Americas shows margin expansion. Key risks: tariff policy changes, commodity timing/recoveries, and vehicle production volume uncertainty (especially China/launch cadence).