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Adient Q1 Earnings Surpass Expectations, FY25 Sales View Cut

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Adient (ADNT - Free Report) reported adjusted earnings per share (EPS) of 27 cents for the first quarter of fiscal 2025. Earnings fell from 31 cents recorded in the year-ago period but surpassed the Zacks Consensus Estimate of 24 cents.

The company generated net sales of $3.5 billion, which decreased 5% year over year but beat the Zacks Consensus Estimate of $3.43 billion.

See the Zacks Earnings Calendar to stay ahead of market-making news.

Adient Price, Consensus and EPS Surprise

Adient Price, Consensus and EPS Surprise

Adient price-consensus-eps-surprise-chart | Adient Quote

Segmental Performance

Adient currently operates through three reportable segments — Americas, including North America and South America; Europe, which includes the Middle East and Africa (EMEA); and Asia Pacific/China (Asia).

In the reported quarter, the Americas segment recorded revenues of $1.61 billion, which declined 2.2% from the year-ago period and marginally missed the Zacks Consensus Estimate of $1.62 billion. The segment recorded an adjusted EBITDA of $85 million, which increased from $80 million recorded in the prior-year quarter due to favorable volume and mix as well as improved business performance in freight and launch costs. The metric, however, missed the Zacks Consensus Estimate of $86 million.

The EMEA segment registered revenues of $1.13 billion, which declined 10.9% year over year and missed the Zacks Consensus Estimate of $1.15 billion. The segment recorded an adjusted EBITDA of $22 million, which declined from $45 million generated in the year-ago period and missed the Zacks Consensus Estimate of $29.2 million due to a decline in customer production volumes.

In the fiscal first quarter, revenues in the Asia segment came in at $772 million, which rose slightly from $770 million in the fiscal first quarter of 2024 and surpassed the Zacks Consensus Estimate of $722 million. The segment recorded an adjusted EBITDA of $111 million, down from $114 million recorded in the corresponding quarter of fiscal 2024 due to unfavorable volume and mix in China. The figure, however, beat the Zacks Consensus Estimate of $108 million.

Financial Position

Adient had cash and cash equivalents of $860 million as of Dec. 31, 2024, compared with $945 million as of Sept. 30, 2024.

As of Dec. 31, 2024, long-term debt amounted to $2.4 billion.

Capital expenditures totaled $64 million compared with $55 million in the prior-year quarter.

During the quarter under review, ADNT repurchased shares worth $25 million.

Revised Guidance for FY25

Adient now envisions fiscal 2025 revenues to be $13.9 billion, down from the previous estimation of $14.1-$14.4 billion. Adjusted EBITDA is estimated to be $850 million compared with the prior expected range of $850-$900 million. Equity income is projected to be $80 million.

Free cash flow is anticipated to be $180 million, down from the previous estimate of $200 million. Capex is estimated to be $285 million. Cash tax is expected to be $105 million, while interest expenses are projected to be $185 million.

Zacks Rank & Key Picks

Adient carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited (GELYY - Free Report) ,Yamaha Motor Co., Ltd. (YMHAY - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , While GELYY sportsa Zacks Rank #1 (Strong Buy), YMHAY and ALSN carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings suggests year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 15 cents and 38 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for YMHAY’s 2025 sales and earnings suggests year-over-year growth of 8.69%and 19.07%, respectively. EPS estimates for 2025 have improved by a penny in the past 60 days.

The Zacks Consensus Estimate for ALSN’s 2025 sales and earnings suggests year-over-year growth of 6.67% and 11.40%, respectively. EPS estimates for 2025 have improved 3 cents in the past 30 days.


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