Highlights

  • Third quarter fiscal 2026 net sales were $3,929 million, compared with $3,741 million, and net income attributable to Adient was $25 million.
  • Diluted earnings per share were $0.32, compared with $0.43 a year earlier, and Adjusted EBITDA was $225 million.
  • Management raised fiscal 2026 revenue guidance to approximately $15 billion and kept adjusted EBITDA guidance at approximately $885 million.
  • Adient repurchased 1,333,761 ordinary shares for $30 million in the quarter and held cash and cash equivalents of $924 million.

Adient plc (NYSE: ADNT) shares were trading at USD 16.82 on October 27, 2026, up 0.42%, with a relative volume at time of 2.21. The automotive seating supplier reported third quarter fiscal 2026 results on August 5, 2026, covering the quarter ended June 30, 2026, and updated its fiscal 2026 guidance on its earnings call.

Adient is incorporated in Ireland and lists its principal executive offices in Dublin, Ireland. It designs, manufactures and markets automotive seating systems and components for passenger cars, commercial vehicles and light trucks. It operates approximately 200 wholly- and majority-owned manufacturing, assembly or sequencing facilities in 29 countries. It reports three segments, Americas, EMEA and Asia, and its fiscal year ends September 30.

Third Quarter Results

Net sales for the quarter ended June 30, 2026 were $3,929 million, up 5% from $3,741 million. The company attributed the increase to higher production volumes in Americas and Asia, partly offset by lower production volumes in EMEA, and to foreign currency effects. Gross profit was $235 million, or 6.0% of net sales, compared with $237 million, or 6.3%.

SG&A expenses were $136 million, compared with $129 million. The income tax provision was $23 million, compared with $7 million a year earlier. Net income attributable to Adient was $25 million, compared with $36 million, and diluted earnings per share were $0.32, compared with $0.43. The company cited higher income tax expense, higher SG&A and production volume and mix, partly offset by IEEPA tariff refunds.

Adjusted EBITDA, a non-GAAP measure, was $225 million, compared with $226 million. By segment, Americas net sales were $1,928 million with Adjusted EBITDA of $125 million, EMEA net sales were $1,211 million with $14 million, compared with $21 million, and Asia net sales were $810 million with $107 million, compared with $113 million.

For the nine months, net sales were $11,438 million, compared with $10,847 million, and net income attributable to Adient was $30 million, compared with a net loss of $299 million. The prior-year period included a $333 million non-cash goodwill impairment charge for the EMEA reporting unit.

Cash Flow, Debt and Share Repurchases

Cash and cash equivalents were $924 million at June 30, 2026, compared with $958 million at September 30, 2025. For the nine months, cash provided by operating activities was $366 million, compared with $236 million, and capital expenditures were $205 million.

The Term Loan B Agreement had an outstanding balance of $621 million. Adient's subsidiary also maintains $500 million of 7.00% senior secured notes due 2028, $500 million of 8.250% senior unsecured notes due 2031 and $795 million of 7.50% senior unsecured notes due 2033.

During the third quarter, Adient repurchased and retired 1,333,761 ordinary shares at an average price of $22.49 for $30 million. Management said on the call that approximately $80 million remained under the $600 million authorization and that it expects the board to increase it later this year.

Operating Environment and Outlook

The filing states that the company faces higher energy, freight and other costs from conflicts in the Middle East, softening consumer demand, tariffs, intensifying competition from Chinese imports, and overcapacity and pricing pressure in EMEA. Global light vehicle production increased 1.3% in the quarter, and EMEA production decreased 2.1%.

On the earnings call, management increased fiscal 2026 revenue guidance to approximately $15 billion. It maintained adjusted EBITDA guidance of approximately $885 million and free cash flow guidance of approximately $130 million. Management said Middle East-related freight and commodity cost pressure is expected to continue into the fourth quarter and that about $90 million of lower-margin metals revenue is expected to exit in fiscal 2027. It reported net leverage of 1.7x and total liquidity of approximately $1.8 billion.