Adient Q2 Earnings Surpass Expectations, FCF View Lowered

Adient ADNT 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-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 and Standard Motor Products, Inc. SMP. 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.

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

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