Adient (ADNT) Q2 2026 earnings summary

Executive summary

• Q2 FY26 revenue rose 7% year-over-year to $3.87B, driven by FX tailwinds and higher volumes in Americas and Asia, with resilience amid macro and geopolitical headwinds.

• Adjusted EBITDA was $223M (margin 5.8%), down year-over-year due to temporary launch costs, customer-driven inefficiencies, and margin compression in China.

• Net income attributable to shareholders was $27M (diluted EPS $0.34); adjusted net income was $41M (adjusted EPS $0.52).

• Free cash flow for Q2 was $8M, with cash and equivalents at $831M and total liquidity of ~$1.6B–$1.8B.

• Over 60 industry and customer awards received, with new product launches in seating comfort technology and a strategic foam plant acquisition in North America.

Financial highlights

• Q2 sales were $3.9B, up 7% YoY, with adjusted EBITDA at $223M and adjusted EBIT at $146M, up 9% YoY.

• Gross margin for Q2 FY26 was 6.6%, down from 7.2% a year ago; SG&A expenses decreased 4% YoY.

• Net leverage at 1.8x, within the 1.5–2x target range; gross debt at $2.4B, net debt at $1.6B.

• Free cash flow for Q2 was $8M; YTD free cash flow was $23M, including $90M in timing benefits.

• Operating cash flow for Q2 was $81M, up from $(45)M year-over-year.

Outlook and guidance

• FY26 consolidated sales guidance raised to ~$14.8B (prior $14.6B); adjusted EBITDA to ~$885M (prior $880M); free cash flow to ~$130M (prior $125M).

• $35M input cost headwind expected in H2, mainly from Middle East conflict and chemical supply disruption, but offset by volume and business performance.

• CapEx and cash tax guidance unchanged at ~$300M and ~$125M, respectively.

• Liquidity is considered sufficient for at least the next twelve months.

• Longer-term, free cash flow expected to strengthen as transitional cash uses normalize.