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Adient
(NYSE:ADNT)
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Rating:56Neutral
Price Target:
$21.00
▲(2.94% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by improving financial performance and solid cash generation, supported by a constructive earnings call (raised revenue guidance, strong liquidity, and a credit upgrade). These positives are tempered by thin and volatile margins with elevated leverage, and a neutral-to-weak technical setup. Valuation also pressures the score given the high P/E and no dividend yield.
Positive Factors
Multi-year OEM program growth
New platform awards and launches can create multi-year production revenue across vehicle lifecycles. The higher revenue outlook and broad OEM participation support durable demand beyond a single quarter.
Negative Factors
Thin and volatile profitability
Very thin margins leave earnings highly sensitive to labor, materials, freight and customer production changes. The recent loss also shows that improved revenue does not yet translate into consistently resilient profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year OEM program growth
New platform awards and launches can create multi-year production revenue across vehicle lifecycles. The higher revenue outlook and broad OEM participation support durable demand beyond a single quarter.
Read all positive factors
Adient Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Geography
Breaks down adjusted EBITDA by region to show where Adient is most profitable after removing one-time items. Highlights margin differences driven by local labor costs, pricing power with automakers, currency swings and supply-chain efficiency — helping spot which markets sustain profits and which expose the company to cyclical downturns or cost pressures.
Breaks down adjusted EBITDA by region to show where Adient is most profitable after removing one-time items. Highlights margin differences driven by local labor costs, pricing power with automakers, currency swings and supply-chain efficiency — helping spot which markets sustain profits and which expose the company to cyclical downturns or cost pressures.
Data provided by:
The Fly
The FlyAdient (ADNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.50B
Dividend YieldN/A
Average Volume (3M)1.00M
Price to Earnings (P/E)32.7
Beta (1Y)1.05
Revenue Growth4.98%
EPS GrowthN/A
CountryUS
Employees65,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.60
Shares Outstanding77,096,930
10 Day Avg. Volume808,716
30 Day Avg. Volume1,004,170
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.13
Price to Sales (P/S)0.14
P/FCF Ratio9.80
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$26.78Price Target Upside31.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)2.03
Revenue Forecast (FY)$15.00B
Adient Business Overview & Revenue Model
Company Description
Adient plc engages in the design, development, manufacture, and market of seating systems and components for passenger cars, commercial vehicles, and light trucks. Its automotive seating solutions include complete seating systems, mechanisms, fram...
How the Company Makes Money
Adient primarily makes money by supplying automotive seating products to vehicle manufacturers under production contracts tied to OEM vehicle programs. Revenue is largely generated from: (1) Complete seat systems—selling fully assembled seats (inc...
Adient Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call portrayed a resilient business with top-line growth (+5% revenue; China +33%) and strong liquidity and customer relationships (multiple supplier awards and new program wins). Management emphasized the operating model’s strength and long-term momentum while flagging several near-term headwinds: Middle East conflict-driven commodity and freight costs, customer-driven inefficiencies, EMEA softness, China margin compression (~100 bps), and restructuring uncertainty that can be lumpy. The company raised full-year revenue guidance to ~$15B while maintaining adjusted EBITDA (~$885M) and free cash flow (~$130M) guidance, reflecting confidence in execution but acknowledging near-term cost pressures. Overall, positives (growth, liquidity, rating upgrade, customer awards, program wins) modestly outweigh temporary and manageable lowlights.Positive Updates
Revenue Growth
Consolidated revenue of approximately $3.9 billion in Q3, up 5% year-over-year; company increased full-year revenue guidance to ~ $15 billion.
Negative Updates
Adjusted EBITDA & Margin Pressure
Q3 adjusted EBITDA was $225 million (flat YoY) and adjusted EBITDA margin was 5.7% of sales; the quarter absorbed approximately $32 million of temporary costs tied to Middle East conflict and customer disruptions—management estimates full-year impact of these items at ~$35–40 million.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth
Consolidated revenue of approximately $3.9 billion in Q3, up 5% year-over-year; company increased full-year revenue guidance to ~ $15 billion.
Read all positive updates
Company Guidance
Adient raised fiscal 2026 revenue guidance to about $15.0B while maintaining adjusted EBITDA guidance of roughly $885M and free cash flow guidance of about $130M; in Q3 the company reported ~$3.9B revenue, $225M adjusted EBITDA (5.7% margin), $38M adjusted net income ($0.48/sh), $138M FCF in the quarter and $161M YTD. Balance-sheet and capital-allocation metrics include cash of ~$924M, revolver capacity of ~$834M (total liquidity ~ $1.8B), leverage of 1.7x (target 1.5–2x) and a Moody’s upgrade to Ba3; Adient repurchased ~$30M (1.3M shares) in Q3 and $55M YTD with ~ $80M remaining authorization (Board likely to increase). Management reiterated key headwinds and assumptions: ~$32M of Q3 Middle East/conflict‑related costs (expected ~$35–40M full year), unchanged FY26 restructuring outlook of ~ $120M, a metals business roll‑off (~$90M in ’27), and said FY27 guidance will be provided in November but they expect above‑market growth in the Americas and China.Adient Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
50
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.13B | 14.54B | 14.69B | 15.39B | 14.12B | 13.68B |
| Gross Profit | 950.00M | 961.00M | 928.00M | 1.03B | 807.00M | 826.00M |
| EBITDA | 689.00M | 438.00M | 656.00M | 828.00M | 603.00M | 2.02B |
| Net Income | 48.00M | -281.00M | 18.00M | 205.00M | -120.00M | 1.11B |
Balance Sheet | ||||||
| Total Assets | 8.96B | 8.95B | 9.35B | 9.42B | 9.16B | 10.78B |
| Cash, Cash Equivalents and Short-Term Investments | 924.00M | 958.00M | 945.00M | 1.11B | 947.00M | 1.52B |
| Total Debt | 2.39B | 2.40B | 2.40B | 2.54B | 2.58B | 3.70B |
| Total Liabilities | 6.87B | 6.80B | 6.82B | 6.82B | 6.74B | 7.82B |
| Stockholders Equity | 1.73B | 1.77B | 2.13B | 2.23B | 2.07B | 2.38B |
Cash Flow | ||||||
| Free Cash Flow | 301.00M | 204.00M | 277.00M | 415.00M | 47.00M | 0.00 |
| Operating Cash Flow | 585.00M | 449.00M | 543.00M | 667.00M | 274.00M | 260.00M |
| Investing Cash Flow | -264.00M | -186.00M | -253.00M | -229.00M | 484.00M | 347.00M |
| Financing Cash Flow | -224.00M | -267.00M | -502.00M | -271.00M | -1.27B | -770.00M |
Adient Technical Analysis
Negative
20.40
Price Trends
20.19
Negative
20.82
Negative
21.02
Negative
Market Momentum
-0.20
Positive
47.23
Neutral
45.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADNT, the sentiment is Negative. The current price of 20.4 is above the 20-day moving average (MA) of 20.22, above the 50-day MA of 20.19, and below the 200-day MA of 21.02, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 47.23 is Neutral, neither overbought nor oversold. The STOCH value of 45.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADNT.
Adient Risk Analysis
Adient disclosed 37 risk factors in its most recent earnings report. Adient reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Adient Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $13.84B | 33.12 | 7.37% | 1.06% | 2.17% | 111.19% | |
67 Neutral | $6.11B | 11.52 | 10.90% | 2.14% | 3.55% | 25.67% | |
66 Neutral | $10.36B | 19.69 | 27.88% | 0.92% | 37.56% | -28.71% | |
63 Neutral | $2.82B | 18.90 | 9.71% | 1.23% | -1.13% | -47.30% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $1.50B | 32.72 | 2.77% | ― | 4.98% | ― | |
55 Neutral | $3.31B | -19.26 | -13.31% | 1.63% | -15.78% | -384.04% |
* Consumer Cyclical Sector Average
ADNT
Adient
19.49
-4.08
-17.31%
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Adient Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Adient Highlights 2026 Performance and 2027 Growth Outlook
Positive
Aug 13, 2026
Adient representatives planned to meet certain investors in August 2026, including at the J.P. Morgan Auto Conference held on August 13, 2026, where executives presented an update on fiscal 2026 performance and the outlook for 2027. Management hig...
Business Operations and StrategyExecutive/Board Changes
Adient Announces Planned Transition in CFO Leadership
Neutral
Jul 10, 2026
On July 6, 2026, Adient plc announced that Executive Vice President and Chief Financial Officer Mark Oswald had notified the company of his intention to leave his role no later than December 31, 2026. The company emphasized that his decision did n...
Business Operations and StrategyFinancial Disclosures
Adient Highlights Strong Growth and Expansion in China
Positive
May 20, 2026
At a J.P. Morgan China investor meeting on May 21, 2026, Adient outlined the scale and structure of its China operations, highlighting 25 manufacturing locations in the country and a mix of wholly owned entities and joint ventures serving over 40 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.