Adient (ADNT) investor relations material

Executive summary

• Achieved solid Q1 FY26 performance with 4% revenue growth to $3.64B, driven by FX tailwinds, strong China sales, and new business wins, despite industry and customer production disruptions now largely resolved.

• Adjusted EBITDA rose to $207M, with margin improving to 5.7% from 5.6% year-over-year; adjusted net income was $28M, or $0.35 per share, while GAAP net loss was $22M due to higher tax expense and SG&A.

• Returned $25M to shareholders via share repurchases, reinforcing disciplined capital allocation.

• Issued 2025 Sustainability Report, highlighting a 42% reduction in emissions since 2019 and increased use of renewables.

• Continued focus on innovation, automation, and sustainability, including the launch of ModuTec modular seat design.

Financial highlights

• Q1 sales reached $3.64B, up 4% year-over-year, with growth led by China and FX tailwinds.

• Adjusted EBITDA was $207M, up $11M year-over-year, with margin at 5.7%; adjusted net income was $28M, or $0.35 per share.

• Free cash flow for Q1 was $15M, exceeding internal expectations.

• Ended quarter with $855M in cash and total liquidity of $1.7B; gross and net debt at $2.4B and $1.5B, respectively.

• Share repurchases totaled $25M for 1.2M shares at an average price of $20.27.

Outlook and guidance

• FY26 guidance raised: revenue to ~$14.6B (from $14.4B), adjusted EBITDA to ~$880M (from $845M), and free cash flow to ~$125M (from $90M), reflecting improved production outlook and business performance.

• Capex expected at ~$300M; cash taxes temporarily elevated at ~$125M due to a non-recurring tax audit settlement.

• Earnings expected to be second-half weighted; Q2 to be impacted by Chinese New Year seasonality.

• No significant changes expected in equity income, interest expense, or capital expenditures guidance.

• Management expects current financial resources to be sufficient for at least the next twelve months.