Key Highlights

  • Net sales were USD 3.73 billion against USD 3.62 billion estimated, with adjusted EPS of USD 0.52 against USD 0.64.
  • GAAP diluted loss per share was USD 0.62, and net loss attributable to the company was USD 47 million.
  • Adjusted EBITDA was USD 229 million, a 6.1% margin, with Asia at USD 136 million and a 17.3% margin.
  • The company issued USD 500 million of long-term debt, repaid USD 549 million, and reported net Leverage of 1.66.

Adient (NYSE:ADNT) closed its fiscal year with a fourth quarter that included Debt issuance and repayment. It issued USD 500 million of long-term debt, repaid USD 549 million including a premium, and reported net leverage of 1.66 at September 30, against 1.63 a year earlier. Net sales for the quarter were USD 3.73 billion, compared with USD 3.688 billion a year earlier and an estimate of USD 3.62 billion.

Debt, Cash and Capital Position

The debt actions carried one-time costs. A premium of USD 10 million on the debt repurchase, a USD 3 million write-off of deferred financing costs and USD 2 million of fees on Term Loan B modifications were each excluded from adjusted results. Net financing charges were USD 62 million against USD 49 million, and adjusted net financing charges were USD 47 million.

Total debt was USD 2.352 billion and cash was USD 886 million, giving net debt of USD 1.466 billion against USD 1.439 billion at the end of the prior fiscal year. Share repurchases were USD 45 million in the quarter and USD 100 million for the twelve months, and shares outstanding stood at 74.8 million against 79.2 million.

The Quarter in Detail

Adjusted EPS was USD 0.52, against USD 0.52 in the prior-year quarter and an estimate of USD 0.64. The GAAP diluted loss was USD 0.62 per share, against Earnings of USD 0.22. Adjusted Net Income attributable to the company was USD 40 million against USD 42 million, and the net loss attributable to the company was USD 47 million against income of USD 18 million.

Selling, general and administrative expenses were USD 151 million against USD 124 million, and restructuring and Impairment costs were USD 74 million against USD 11 million. Equity income was USD 20 million against USD 8 million. Earnings before interest and income taxes were USD 44 million against USD 120 million.

Operating cash flow was USD 167 million against USD 213 million, and capital expenditures were USD 106 million against USD 79 million. Free cash flow was USD 61 million against USD 134 million.

Regional Segment Detail

Americas net sales were USD 1.915 billion against USD 1.786 billion, with adjusted EBITDA of USD 85 million, a 4.4% margin, against USD 111 million and 6.2%. EMEA net sales were USD 1.054 billion against USD 1.145 billion, with adjusted EBITDA of USD 32 million, a 3.0% margin, against USD 31 million and 2.7%. Asia net sales were USD 785 million against USD 783 million, with adjusted EBITDA of USD 136 million, a 17.3% margin, against USD 106 million and 13.5%.

For the full fiscal year, net sales were USD 15.168 billion against USD 14.535 billion, and adjusted EBITDA was USD 884 million against USD 881 million. Adjusted diluted EPS for the year was USD 1.87 against USD 1.93, and the GAAP diluted loss was USD 0.22 per share. Free cash flow for the year was USD 222 million against USD 204 million, before dividends paid to noncontrolling interests.

Guidance Versus Reported Results

Adjusted EPS of USD 0.52 sits alongside a GAAP loss of USD 0.62 per share, adjusted EBITDA of USD 229 million and free cash flow of USD 61 million. No fiscal 2027 guidance figures were stated.

The stated reference points for the year are net sales of USD 15.168 billion, adjusted EBITDA of USD 884 million, a 5.8% margin, and free cash flow of USD 222 million. Net debt of USD 1.466 billion and cash of USD 886 million frame the Balance Sheet at fiscal year end.