Adient Q3 Earnings Miss Expectations, Revenues Improve Y/Y

Adient ADNT reported adjusted earnings per share (EPS) of 45 cents for the third quarter of fiscal 2025. Earnings rose from 32 cents recorded in the year-ago period but lagged the Zacks Consensus Estimate of 47 cents.

The company generated net sales of $3.74 billion, which increased 0.7% year over year and beat the Zacks Consensus Estimate of $3.56 billion.

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 $1.76 billion, which rose 1.3% from the year-ago period and topped the Zacks Consensus Estimate of $1.59 billion. The segment recorded an adjusted EBITDA of $112 million, which increased from $99 million recorded in the prior-year quarter due to improved business performance driven by favorable commercial actions, lower operating expenses and lower launch costs. The metric also surpassed the Zacks Consensus Estimate of $90 million.

The EMEA segment registered revenues of $1.27 billion, which declined 1.6% year over year but topped the Zacks Consensus Estimate of $1.22 billion. The segment recorded an adjusted EBITDA of $21 million, which declined from $25 million generated in the year-ago period due to headwinds from volume/mix and the unfavorable impact of forex movement. The metric lagged the Zacks Consensus Estimate of $30.07 million. 

In the fiscal third quarter, revenues in the Asia segment came in at $721 million, which grew from $712 million in the third quarter of fiscal 2024 but missed the Zacks Consensus Estimate of $739 million. The segment recorded an adjusted EBITDA of $113 million, up from $101 million recorded in the corresponding quarter of fiscal 2024 due to lower operating expenses and launch costs. The figure also surpassed the Zacks Consensus Estimate of $111 million.

Adient’s Financial Position

Adient had cash and cash equivalents of $860 million as of June 30, 2025, compared with $945 million as of Sept. 30, 2024.

As of June 30, 2025, long-term debt amounted to $2.39 billion.

Capital expenditures totaled $57 million compared with $70 million in the prior-year quarter.

ADNT Updates Guidance for FY25

Adient envisions fiscal 2025 revenues to be $14.4 billion, up from the previous estimate of $13.9 billion. Adjusted EBITDA is estimated to be $875 million, an increase from the previous estimate of $850 million. Equity income is projected to be $75 million, down from the prior expectation of $80 million.

Free cash flow is now anticipated to be in the range of $150-$170 million. Capex is estimated to be $260 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 PHINIA Inc. PHIN, Ferrari N.V. RACE and Gentex Corporation GNTX. While PHIN sports a Zacks Rank #1 (Strong Buy) at present, RACE and GNTX carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 0.58% and 13.99%, respectively. EPS estimates for 2025 and 2026 have improved 23 cents and 19 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for RACE’s fiscal 2025 earnings and sales indicates year-over-year growth of 13.65% and 13.76%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 14 cents and 12 cents, respectively, in the past seven days.   

The Zacks Consensus Estimate for GNTX’s 2025 sales and earnings indicates year-over-year growth of 9.24% and 0.57%, respectively. EPS estimates for 2025 and 2026 have improved 5 cents and 7 cents, respectively, in the past 30 days.

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This article originally published on Zacks Investment Research (zacks.com).

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