Back to top

Image: Bigstock

Adient Q2 Earnings Surpass Expectations, FCF View Lowered

Read MoreHide Full Article

Adient (ADNT - Free Report) reported adjusted earnings per share (EPS) of 69 cents for the second quarter of fiscal 2025. Earnings rose from 54 cents recorded in the year-ago period and surpassed the Zacks Consensus Estimate of 36 cents.

The company generated net sales of $3.61 billion, which decreased 4% year over year but beat the Zacks Consensus Estimate of $3.47 billion.

Adient Price, Consensus and EPS Surprise

Adient Price, Consensus and EPS Surprise

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

Segmental Performance of ADNT

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 $1.70 billion, which rose 2.3% from the year-ago period and topped the Zacks Consensus Estimate of $1.59 billion. The segment recorded an adjusted EBITDA of $94 million, which increased from $80 million recorded in the prior-year quarter due to favorable volume and mix, improved business performance and favorable impact of forex movements. The metric also surpassed the Zacks Consensus Estimate of $79 million.

The EMEA segment registered revenues of $1.23 billion, which declined 10.1% year over year but topped the Zacks Consensus Estimate of $1.16 billion. The segment recorded an adjusted EBITDA of $50 million, which declined from $57 million generated in the year-ago period due to headwinds from volume/mix and the unfavorable impact of forex movement. The metric, however, surpassed the Zacks Consensus Estimate of $33.39 million 

In the fiscal second quarter, revenues in the Asia segment came in at $707 million, which fell from $742 million in the second quarter of fiscal 2024 and missed the Zacks Consensus Estimate of $736 million. The segment recorded an adjusted EBITDA of $110 million, slightly down from $112 million recorded in the corresponding quarter of fiscal 2024 due to unfavorable volume and mix in China. The figure also missed the Zacks Consensus Estimate of $114 million.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Adient’s Financial Position

Adient had cash and cash equivalents of $754 million as of March 31, 2025, compared with $945 million as of Sept. 30, 2024.

As of March 31, 2025, long-term debt amounted to $2.39 billion.

Capital expenditures totaled $109 million compared with $124 million in the prior-year quarter.

ADNT Updates Guidance for FY25

Adient envisions fiscal 2025 revenues to be $13.9 billion, the same as the previous estimate. Adjusted EBITDA is estimated to be $850 million, the same as the previous estimate. Equity income is projected to be $80 million.

Free cash flow is now anticipated to be in the range of $150-$170 million, down from the previous estimate of $180 million. Capex is estimated to be $285 million. Cash tax is expected to be $105 million. Interest expenses are projected to be $190 million, up from the previous estimate of $185 million.

Adient’s Zacks Rank & Key Picks

ADNT carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Hesai Group (HSAI - Free Report) and Standard Motor Products, Inc. (SMP - Free Report) . HSAI sports a Zacks Rank #1 (Strong Buy), while SMP carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for HSAI’s 2025 earnings indicates year-over-year growth of 336.36%, respectively. EPS estimates for 2026 have improved 12 cents in the past 30 days.

The Zacks Consensus Estimate for SMP’s 2025 sales and earnings implies year-over-year growth of 17.1% and 12.62%, respectively. EPS estimates for 2025 and 2026 have improved 6 cents and a penny, respectively, in the past seven days.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Standard Motor Products, Inc. (SMP) - free report >>

Adient (ADNT) - free report >>

Hesai Group Sponsored ADR (HSAI) - free report >>

Published in