Adient 2025 Q3 Earnings Strong Performance as Net Income Surges 1080%

Adient reported its fiscal 2025 Q3 earnings on Aug 07, 2025. The results beat expectations with a significant turnaround in profitability and an upward revision in full-year guidance. Adient returned to profitability with a net income of $59 million and EPS of $0.43, reversing from a loss a year ago. The company also raised its FY25 guidance for revenue and adj.-EBITDA to ~$14.4B and ~$875M, respectively.

Revenue
Adient’s total revenue for the third quarter of fiscal 2025 rose 0.7% year-over-year to $3.74 billion from $3.72 billion in the same period last year, reflecting stable demand and consistent performance across its operations.

Earnings/Net Income
Adient returned to profitability with EPS of $0.43 in 2025 Q3, reversing from a loss of $0.12 per share in 2024 Q3, representing a 458.3% positive change. The company’s net income surged to $59 million, a 1080.0% increase from $5 million a year ago. This impressive turnaround underscores improved cost controls and operational efficiency. The strong performance in net income highlights a significant improvement in profitability compared to the prior year.

Price Action
The stock price of Adient has edged up 2.60% during the latest trading day, has climbed 6.77% during the most recent full trading week, and has climbed 4.00% month-to-date.

Post Earnings Price Action Review
The strategy of buying ADNT when earnings beat and holding for 30 days delivered moderate returns but underperformed the benchmark. This strategy achieved a 51.07% return, while the benchmark returned 85.18%, resulting in an excess return of -34.11%. The Sharpe ratio of 0.18 indicates a moderate risk-adjusted return. Despite a maximum drawdown of 0%—suggesting the strategy effectively avoided losses—the volatility of 49.76% indicates the stock was subject to significant price swings.

CEO Commentary
Adient’s president and chief executive officer, Jerome Dorlack, highlighted the company’s strong year-to-date financial performance and raised full-year guidance, signaling confidence in the business. He emphasized that the Q3 results reflect disciplined execution, margin expansion, and the effectiveness of ongoing operational improvements, with adj.-EBITDA margins increasing year-over-year from 5.4% to 6.0%. Dorlack noted that the company’s strategic focus on deleveraging, share repurchases, and operational efficiency is driving sustainable growth. He expressed optimism about the remainder of the year, citing solid Q4 expectations and the continued alignment with customer demand across key automotive markets.

Guidance
Adient raised its FY25 guidance for revenue and adj.-EBITDA to ~$14.4B and ~$875M, respectively, based on strong year-to-date performance and expected solid Q4 results. The company also highlighted share repurchase activity, with $50M repurchased in Q3 and $75M year-to-date, representing ~4% of shares outstanding at the start of the fiscal year.

Additional News
Adient announced strong third-quarter financial results on Aug 06, 2025, including GAAP net income of $36 million and diluted EPS of $0.43, with adjusted diluted EPS at $0.45. The company reported adj.-EBITDA of $226 million, a $24 million year-over-year improvement, and adj.-EBITDA margins increased from 5.4% to 6.0%. Adient repurchased $50 million of its shares in the quarter, retiring approximately 2.8 million shares, with year-to-date repurchases totaling $75 million, representing ~4% of shares outstanding at the start of the fiscal year. The company also updated its FY25 guidance for revenue and adj.-EBITDA to ~$14.4 billion and ~$875 million, respectively, reflecting strong year-to-date performance and expectations for a solid Q4.