Adient 2025 Q4 Earnings EPS Misses Estimates as Net Income Plummets 62%

Adient (ADNT) reported mixed Q4 results, with revenue beating expectations but adjusted EPS falling short. The company revised FY2026 guidance downward, citing lower production volumes and growth investments.

Revenue

Revenue rose 3.5% to $3.69 billion, exceeding estimates. The Americas drove growth with $1.79 billion (+3.9% YoY), while EMEA saw $1.15 billion (+3.8% YoY). Asia contributed $783 million (+2.4% YoY), though net sales-eliminations declined to -$26 million.

Earnings/Net Income

Adjusted EPS of $0.52 missed the $0.55 estimate, a 5.45% surprise. Net income dropped to $38 million, a 62% decline from $100 million in 2024 Q4. The EPS shortfall reflects operational headwinds, and the net income collapse underscores significant margin pressures.

Price Action

Following the earnings report, Adient’s stock fell 12.3% to $21.04, marking a 22.5% monthly decline. The sharp drop reflects investor concerns over FY2026 production cuts and restructuring costs.

Post-Earnings Price Action Review

Adient’s shares experienced a sharp sell-off, with a 7.54% single-day drop, a 15.62% weekly decline, and a 22.50% monthly slump. The market reacted negatively to the EPS miss and guidance for lower production volumes in FY2026. Analysts noted that the stock’s volatility aligns with broader sector trends, though Adient’s discounted valuation (0.1x P/S) suggests potential for re-rating if margin expansion targets are met.

CEO Commentary

CEO Jerome Dorlack highlighted Asia’s 13.5% EBITDA margin growth as a key driver but warned of $392 million in restructuring costs. He emphasized cost discipline and free cash flow generation ($134 million in Q3 2025) while cautioning on EMEA’s 2.7% margin weakness.

Guidance

Adient maintained a 1.63x net leverage ratio target but guided to $90 million in FY2026 free cash flow, below prior levels. Adjusted EBITDA is expected to remain flat at $881 million, with growth investments and production cuts offsetting business performance improvements.

Additional News

Adient refinanced its ABL revolver in Q4, extending maturity to 2030 and reducing annual interest costs. The company also announced a $125 million share repurchase program in FY2025, reducing its share count by 7%. Meanwhile, CEO Dorlack signaled continued focus on Asia-Pacific/China growth, though restructuring costs and macroeconomic risks remain near-term challenges.