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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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ADNT

ADNT fundamentals

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