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• Adjusted EBITDA: $233 million, up 3% year over year.

• Adjusted EBITDA Margin: Improved by 40 basis points to 6.5%.

• Revenue: Approximately $3.6 billion, a decrease of $139 million compared to the previous year.

• Net Income: Adjusted net income of $58 million or $0.69 per share.

• Free Cash Flow: Outflow of $90 million, in line with expectations due to seasonality.

• Cash Balance: $754 million at the end of the quarter.

• Total Liquidity: $1.6 billion, including cash and undrawn credit capacity.

• Goodwill Impairment: $333 million noncash impairment recorded in EMEA.

• Debt and Net Debt: Total debt of $2.4 billion and net debt of $1.6 billion.

• Net Leverage: 1.9 times, within the targeted range of 1.5 to 2 times.

• Interest Expense: Expected to be slightly higher at $190 million for the fiscal year.

• Free Cash Flow Forecast: Adjusted to a range of $150 million to $170 million for fiscal 2025.

• Warning! GuruFocus has detected 3 Warning Sign with ADNT.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Adient PLC (NYSE:ADNT) reported strong Q2 results with an adjusted EBITDA of $233 million, reflecting a 3% year-on-year increase.

• The company achieved a 40 basis point improvement in adjusted EBITDA margins, demonstrating operational resilience.

• Adient PLC (NYSE:ADNT) has a strong cash balance of $754 million and total liquidity of $1.6 billion, indicating financial stability.

• The company won several prestigious awards, including the GM Supplier of the Year award and the Best Supplier Award for ESG management from Hyundai Motor Group.

• Adient PLC (NYSE:ADNT) is effectively managing tariff impacts, with 75% of its gross tariff exposure already resolved and plans in place to address the remaining 25%.

Negative Points

• Adient PLC (NYSE:ADNT) recorded a $333 million noncash goodwill impairment in its EMEA reporting unit due to market uncertainties.

• The company faces ongoing volume and mix headwinds, particularly in EMEA and Asia, impacting revenue.

• Adient PLC (NYSE:ADNT) is dealing with a significant tariff exposure, particularly from parts imported from China, which are subject to a 145% tariff.

• The company experienced a $90 million free cash flow outflow in Q2, reflecting normal seasonality but also indicating cash management challenges.

• Adient PLC (NYSE:ADNT) adjusted its free cash flow forecast for fiscal 2025 to a range of $150 million to $170 million, down from a previous guide of $180 million, due to potential accelerated European restructuring costs and tariff-related uncertainties.