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- **FY25 Performance**: $14.5B sales, 6.1% EBITDA margin, $204M free cash flow, $125M buybacks.
- **FY26 Challenges**: 1% below market growth due to F-150 downtime, $90M FCF vs. $170M at constant volume.
- **Strategic Investments**: $60M AI/automation CapEx, $100M business performance target, China JV expansion.
- **Risks**: F-150 production uncertainty, Europe restructuring, Nexperia chip shortages.
- **Long-Term Goals**: 8% EBITDA margin by FY28, double-digit China growth, mid-single-digit North America growth.

**【CEO Summary Section】**
- Delivered Q4 revenue of $3.7 billion, up 4% YoY, with full-year sales of $14.5 billion. Adjusted EBITDA margin of 6.1% for the year, driven by $100 million in business performance improvements.
- Secured $1.2 billion in new business wins, including conquest of JIT and trim on Ford F-150, and expanded presence in China with domestic OEMs.
- Invested in AI and automation, with $60 million in CapEx for FY26, targeting $40 million in annual savings.
- Free cash flow of $204 million for FY25, exceeding guidance, with $125 million returned to shareholders via buybacks.
- FY26 outlook: 1% below market growth due to F-150 production downtime and Europe restructuring, but targeting $100 million in business performance.

**【CFO Financial Commentary】**
- Q4 adjusted EBITDA of $226 million (6.1% margin), down 4% YoY due to timing of commercial settlements and lower equity income.
- FY25 adjusted EBITDA of $881 million, flat YoY, with $100 million in business performance offsetting $50 million in volume/mix headwinds.
- FY26 guidance: $14.8 billion in sales, $925 million EBITDA (6.3% margin), with $90 million free cash flow (vs. $170 million at constant volume).
- Risk factors include F-150 downtime (6% of sales), Nexperia chip shortages, and Europe restructuring costs.

**【Q&A Key Highlights】**
- **F-150 Production Challenges**: Q1 FY26 EBITDA expected to decline $15-20M YoY due to F-150 downtime (half-shifts, sub-pay labor) and Nexperia chip shortages. Recovery timing uncertain.
- **Onshoring Progress**: Secured Japanese OEM onshore production win for FY26, with 200k-250k unit program in final negotiation.
- **Free Cash Flow**: FY26 FCF of $90M reflects elevated restructuring ($120M vs. $50M run rate), higher taxes ($120M vs. $100M), and CapEx ($280M for growth/automation).
- **Margin Outlook**: Target 8% EBITDA margin by FY28, driven by China growth (double-digit), North America (mid-single-digit), and Europe restructuring completion.


Adient plc (ADNT) Q4 2025 Earnings Call Transcript

- **Revenue Growth**: Q3 +12% EBITDA to $226M, 60 bps margin expansion. FY25 guidance raised to $14.4B rev, $875M EBITDA.
- **Onshoring Opportunity**: $150-200M incremental from U.S. wins, 600K units potential. Adient's 75% U.S. footprint vs. 55% peers.
- **Margin Targets**: 8% EBITDA margin target. Europe to trough at 2.5-3% in 2025, improving to 5-6%.
- **Cash Allocation**: $75M share buybacks YTD, $185M remaining. FCF $150-170M FY25.
- **Risks**: Tariffs ($4M/month), China volume volatility, Europe restructuring costs.

**【CEO Summary Section】**
- **Q3 Performance**: Adjusted EBITDA of $226 million, up 12% YoY, with 60 bps margin expansion to 6.0%. Americas and APAC outperformed, offsetting EMEA volume headwinds.
- **Onshoring Wins**: Secured $150-200M incremental revenue from U.S. onshoring (e.g., Nissan Rogue, Asian OEM moving from Canada). Potential 600K units could shift to U.S., with Adient's 75% U.S. production vs. 55% for competitors.
- **New Business**: Mercedes C-Large (full value chain), BYD Denza D9 trim, and Toyota 560B in India. Europe restructuring to improve margins to mid-single digits by 2026.
- **Guidance Update**: FY25 revenue raised to $14.4B, EBITDA to $875M. Free cash flow maintained at $150-170M.

**【CFO Financial Commentary】**
- **Revenue**: Q3 $3.7B, +$25M YoY (FX +$84M). Americas +15%, EMEA/China -10% due to volume/mix.
- **Margins**: Tariffs ($4M Q3) and commodities ($7M) offset by $33M business performance (lower costs, launches). FY25 EBITDA margin target ~6.5%.
- **Cash Flow**: Q3 FCF $115M, YTD $70M. Share buybacks $75M (4% of shares), $185M remaining.
- **Balance Sheet**: Net debt $1.5B, leverage 1.7x. Liquidity $1.7B.

**【Q&A Highlights】**
- **Onshoring Potential**: 600K units could shift to U.S., Adient expects >fair share with minimal capex. Tariffs manageable at $4M/month.
- **China Dynamics**: New BYD wins (trim, components) offset short-term volume. Long-term growth tied to local OEM expansion.
- **Europe Restructuring**: $130M cash restructuring in FY25. Margins to trough in 2025, improving to 5-6% in 2026+.
- **Competitive Edge**: 75% U.S. production vs. 55% peers. JIT delivery track record (100% on-time launches) and customer intimacy drive wins.

Adient (ADNT)-6 Aug 25-2025 Q3 Earnings call transcript

- **Resilient Q2 Growth**: 3% EBITDA rise to $233M, 40bps margin expansion, driven by Americas outperformance. 
- **Tariff Mitigation Success**: 75% of $12M/month exposure resolved, 100% recovery target via global footprint (e.g., China to Mexico resourcing). 
- **China Innovation Lead**: Mechanical massage system launch; China Tech Center expansion supports 75% new business from local OEMs. 
- **Strong Cash Position**: $754M cash, $1.6B liquidity; FY25 FCF guide $150-170M reflects cautious H2 outlook. 
- **EMEA Turnaround**: Stabilizing margins (+$16M YoY), but 2026+ upside from metals exit and new business ramp. 
- **Tariff Risk Management**: 95% USMCA compliance; China exposure via 145% tariffs on non-Annex 1 parts, 25% of $12M/month to resolve H2.

**【CEO Business Update】**
- **Q2 Performance**: Adjusted EBITDA of $233M, up 3% YoY, with 40bps margin expansion to 6.5%. Americas outperformed industry volumes, while EMEA and Asia faced headwinds. 
- **Tariff Mitigation**: 75% of $12M monthly tariff exposure resolved, targeting 100% recovery through resourcing (e.g., China recliners to Mexico/Germany) and customer collaboration. 
- **New Business Wins**: Launches with FAW Hongqi H5, Kia K5, and Ram 1500; China local OEMs account for ~75% of new business. 
- **Innovation**: Mechanical massage system launch with GAC Trumpchi; China Tech Center expansion for electrification solutions. 

**【CFO Financial Review】**
- **Revenue**: $3.6B (-3.7% YoY) due to lower volumes ($90M) and FX (-$49M). Americas up 6%, EMEA/Asia down 5%. 
- **Profitability**: Adjusted EBITDA margin 6.5% (+40bps YoY). Americas margin +150bps, EMEA stabilization, Asia flat. 
- **Cash Flow**: Q2 FCF outflow of $90M (seasonal), H2 expected to improve. FY25 FCF guide $150-170M vs prior $180M. 
- **Balance Sheet**: $754M cash, $1.6B liquidity. Refinanced $795M debt to 2033 maturity, reducing near-term risk. 

**【Q&A Key Takeaways】**
- **Tariff Detail**: 95% USMCA-compliant parts; China exposure via IEEPA/Section 232 tariffs (145% on non-Annex 1 parts). 25% of $12M/month exposure to be resolved H2. 
- **EMEA Recovery**: EBITDA +$16M YoY from restructuring, but 2026+ upside from metals roll-off. 
- **FX Assumptions**: Euro at $1.06 vs current $1.08; no material changes to FY25 guidance. 
- **Capital Allocation**: Free cash flow generation supports buybacks, but prioritizes Europe restructuring ($100M+ H2). 
- **China Mix**: Local OEM share ~45% vs target 60% by 2027; Keiper JV exports to Mexico/Midwest support USMCA compliance.

Adient (ADNT)-7 May 25-2025 Q2 Earnings call transcript

- **Resilient Q1 Performance**: 12% decremental margins vs. 18% norm, driven by $28M business performance improvements. Americas truck programs offset destocking headwinds.
- **China Strategy**: 2025 sales flat/down but 14%+ EBITDA margins sustained; $1B new business pipeline for 2026-2027 growth.
- **Tariff Mitigation**: Mexico manufacturing ramping up; 2025 playbook builds on 2024's 11-12% decremental success.
- **Liquidity Strength**: $860M cash, $1.7B total liquidity, $45M free cash flow Q1.


**【CEO Business Update】**
- Q1 2025 revenue decreased 5% YoY to $3.5B, driven by inventory destocking in North America and soft demand in China. Adjusted EBITDA was $196M, down 9% YoY, but outperformed expectations with decremental margins at 12% vs. typical 18%.
- Americas: Stronger production of high-content trucks (e.g., GM Traverse) offset pickup truck destocking. Europe: Restructuring savings expected to ramp up, with $100M+ annualized by 2027. Asia: China sales underperformed due to luxury OEM cuts, but 14%+ EBITDA margins sustained through cost controls and new program launches.
- Sustainability: 38% reduction in Scope 1/2 emissions YoY, 29% renewable energy usage, and $300M+ share buybacks YTD.

**【CFO Financial Review】**
- Adjusted EBITDA of $196M included $12M Kuiper JV retroactive adjustment. Free cash flow was $45M, with $860M cash on hand and $1.7B total liquidity.
- FY25 Outlook: Sales $13.9B (down $200M from prior guidance) due to FX and lower Asia/EMEA volumes. EBITDA near low end of $850M guidance, with H2 weighted results.
- Business Performance: $28M improvement from net material margin, launch cost reductions, and operational efficiency. Americas: $8M benefit from freight/cost savings. EMEA: $2M from restructuring. Asia: $14M from margin improvements.

**【Q&A Key Takeaways】**
- Tariff Playbook: Mexico manufacturing shift underway; customer dialogues ongoing for cost recovery. 2017 playbook refined with faster execution and net exposure <10%.
- China Growth: 2026-2027 pipeline of $1B new business with local OEMs offsets 2025 volume declines. 2025 China sales flat/down, but 14%+ margins maintained.
- Decremental Management: 2024 proved ability to hold decrementals to 11-12% vs. 18% norm. 2025 playbook includes automation, launch cost controls, and material margin optimization.


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