Executive Summary

Q4 FY25: Revenue $3.69B (+4% y/y), Adjusted EBITDA $226M (6.1% margin), Adjusted EPS $0.52; free cash flow $134M .
Versus consensus: Revenue beat ($3.69B vs $3.62B); EPS slight miss ($0.52 vs $0.56); EBITDA modestly below consensus ($226M vs ~$229M). Bold: revenue beat; EPS/EBITDA misses. Values retrieved from S&P Global.*
FY26 guidance: Sales ~$14.4B, Adj. EBITDA ~$845M, Equity income ~$70M, Interest ~$185M, Cash taxes ~$125M, Capex ~$300M, FCF ~$90M; at flat volumes: ~$14.8B sales and ~$925M Adj. EBITDA (6.3% margin) .
Key watch items: Ford F-150 downtime and Nexperia chip shortage create Q1 FY26 trough; management sees recovery trajectory in 2H with business performance offsets and China growth with domestic OEMs .

What Went Well and What Went Wrong

What Went Well

Strong execution and cash generation: Q4 free cash flow $134M; FY25 FCF $204M, above prior high end due to pull‑ahead actions (~$30M) and JV dividends .
Strategic wins and innovation: Replacement JIT/foam plus trim conquest on Ford F‑150; ~$1.2B–$1.4B of new business in China with ~70% from domestic OEMs; launch of AI‑driven manufacturing (Relax Ovens); product innovation in deep recline mechanical massage seats and Sculpted Trim .
Quote (CEO): “We delivered an adjusted EBITDA margin of 6.1% and free cash flow of $134 million in the quarter… we have successfully mitigated the lion's share of our tariff exposure this year.” .

What Went Wrong

Equity income lumpy and lower y/y: Q4 equity income $8M vs $25M y/y, impacted by KEIPER JV agreement modifications and one‑time items; adjusted EBITDA down $9M y/y with equity income –$15M drag .
EMEA volume/mix and restructuring drag: FY25 EMEA Adj. EBITDA fell to $124M (from $155M), with volume/mix –$36M and FX –$12M headwinds; elevated cash restructuring (~$131M FY25) .
Near‑term FY26 margin pressure: China margin compression (~100 bps) from mix shift to domestic OEMs; North America/Europe revenue seen down ~$650M y/y with headwinds concentrated in Q1 (F‑150 downtime, Nexperia) .

Financial Results

Consolidated Performance (oldest → newest)

Metric	Q4 2024	Q2 2025	Q3 2025	Q4 2025
Revenue ($USD Billions)	$3.56	$3.61	$3.74	$3.69
Adjusted EBITDA ($USD Millions)	$235	$233	$226	$226
Adjusted EBITDA Margin (%)	6.6%	6.5%	6.0%	6.1%
Adjusted EPS (Diluted, $USD)	$0.68	$0.69	$0.45	$0.52
GAAP EPS (Diluted, $USD)	$0.91	—	—	$0.22

Notes: Q4 FY25 revenue +4% y/y . Q4 Adj. EBITDA down $9M y/y primarily on equity income timing .

Segment Breakdown (Q4 2025 vs Q4 2024)

Segment	Net Sales Q4 2024 ($MM)	Net Sales Q4 2025 ($MM)	Adj. EBITDA Q4 2024 ($MM)	Adj. EBITDA Q4 2025 ($MM)	Adj. EBITDA Margin Q4 2024 (%)	Adj. EBITDA Margin Q4 2025 (%)
Americas	1,719	1,786	116	111	6.7%	6.2%
EMEA	1,103	1,145	28	31	2.5%	2.7%
Asia	765	783	112	106	14.6%	13.5%
Corporate/Elims	(25)	(26)	(21)	(22)	N/A	N/A

KPIs and Cash/Liquidity

KPI	Q4 2024	Q4 2025
Free Cash Flow ($MM)	$191	$134
Operating Cash Flow ($MM)	$263	$213
Cash & Equivalents ($MM, 9/30)	$945	$958
Total Debt ($MM, 9/30)	$2,405	$2,397
Net Debt ($MM, 9/30)	$1,460	$1,439
Net Leverage (x)	1.66x	1.63x
Equity Income ($MM)	$25	$8
Factored Receivables ($MM)	$170 (12/31/24)	$185 (9/30/25)
Share Repurchases ($MM, Q4)	$50	$50

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Sales	FY26	Not previously issued	~$14.4B	Initiated
Adjusted EBITDA	FY26	Not previously issued	~$845M	Initiated
Equity Income (incl. in Adj. EBITDA)	FY26	Not previously issued	~$70M	Initiated
Interest Expense	FY26	Not previously issued	~$185M	Initiated
Cash Taxes	FY26	Not previously issued	~$125M	Initiated
Capex	FY26	Not previously issued	~$300M	Initiated
Free Cash Flow	FY26	Not previously issued	~$90M	Initiated
“Flat Volume” Scenario	FY26	N/A	Sales ~$14.8B; Adj. EBITDA ~$925M (6.3%)	Illustrative

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4)	Trend
Tariffs and recoveries	Gross monthly exposure ~$12M; targeting 100% recoveries/resourcing; net tariff headwind $9M in Q2; $4M in Q3	$4M net tariff impact in Q4; FY25 net tariff expense $17M; “lion’s share” mitigated	Improving mitigation
Onshoring wins	Nissan Rogue incremental US volume; Canada→US shift; estimated 600k units addressable; $150–$200M incremental revenue in 2026–27	F‑150 replacement (JIT/foam) and trim conquest; additional onshoring negotiation of 200–250k units Mexico→US	Building pipeline
AI/automation	Capex ~$25M in FY25, ~$20M savings run rate	AI integrated across operations; FY26 AI/automation spend ~$60M with ~$40M savings run rate	Scaling up
China strategy	Shift to domestic OEMs (BYD, FAW); wins; local tech center expansion	New China JV partnership targeted to close Q1 FY26; growth over market; margin compression ~100 bps from mix	Growth with mix headwind
EMEA restructuring	Goodwill impairment $333M; multi‑year restructuring; benefits starting	Continued progress; margins expected mid‑single digits beyond FY26	Slow improvement
Supply chain risk	Stable volumes; tariff timing; general watch	F‑150 downtime; Nexperia chip challenges; JLR cyber receivables mitigation	Near‑term headwinds (Q1)

Management Commentary

“On a full year basis, we generated $881 million of adjusted EBITDA and $14.5 billion in sales with an adjusted EBITDA margin of 6.1%.”
“We have secured the replacement of the JIT and foam business on the Ford F-150… and secured the trim business as well.”
“We are strategically integrating artificial intelligence into our operations… to enhance safety, efficiency, quality, and scalability.”
“Adient ended the fiscal year with strong liquidity totaling $1.8 billion, comprised of $958 million of cash… and $814 million of undrawn capacity.”
“We launched an amend and extend initiative on our ABL revolver… extended maturity to 2030… reduced annual interest expense by ~$2 million.”

Q&A Highlights

Decrementals and Q1 trough: Q1 FY26 EBITDA could be down $15–$20M y/y driven by F‑150 downtime and Nexperia chip issues; recovery expected through Q2–Q4 as supply stabilizes .
F‑150 recovery sensitivity: Incrementals depend on cadence (overtime/weekends, crew additions); management refrained from forecasting without Ford clarity .
Free cash flow normalization: At ~$900M EBITDA, normalized FCF ~$250–$260M (capex ~$280–$300M; cash interest ~$185–$190M; cash taxes ~$100M; restructuring ~$50M) post‑FY26 .
Capital allocation: $135M buyback authorization remaining; opportunistic balance between repurchases and debt paydown in FY26 .
Mid‑term margin path: 8% EBITDA margin target remains; 2026 viewed as transition year; uplift from portfolio mix, “balance‑in/balance‑out,” and growth programs in 2027–28 .

Estimates Context

Q4 FY25 vs S&P Global consensus:
- Revenue: Actual $3.69B vs Consensus $3.62B — bold beat.*
- EPS (Adj. Diluted): Actual $0.52 vs Consensus $0.56 — bold miss.*
- Adjusted EBITDA: Actual $226M vs Consensus ~$229M — modest miss.*

Metric	Consensus	Actual
Revenue ($USD Billions)	$3.620*	$3.688
EPS (Adj. Diluted, $USD)	$0.561*	$0.52
Adjusted EBITDA ($USD Millions)	$228.9*	$226

Values retrieved from S&P Global.*

Forward look (Q1 FY26):

Consensus Revenue ~$3.47B; EPS ~$0.15; EBITDA ~$177M — aligned with management’s indication of Q1 trough on production disruptions.* [GetEstimates]

Key Takeaways for Investors

Q4 printed solid top‑line growth and strong FCF despite equity income and tariff timing headwinds; liquidity remains robust with net leverage 1.6x .
Near‑term risk skewed to Q1 on F‑150 downtime and Nexperia chips; model a sequential recovery through FY26 as disruptions abate and business performance offsets .
Structural positives: onshoring wins (F‑150, Nissan, pending Mexico→US program), China domestic OEM growth, and scaled AI/automation to drive cost savings and margin resilience .
EMEA path to mid‑single‑digit margins beyond FY26 anchored by restructuring, portfolio rotation, and program launches; expect multi‑year cadence .
FY26 guide embeds conservative volumes and investment ($85M growth spend; ~$300M capex); at flat volumes, EBITDA could reach ~$925M (6.3% margin) .
Capital allocation flexible: $135M buyback capacity, extended ABL to 2030, and strong cash position provide optionality through macro volatility .
Estimate updates likely: Street may trim near‑term (EPS/EBITDA) for Q1, but maintain/raise outer‑year trajectories on onshoring/China pipeline and margin pathway to ~8% .

Citations: Q4 earnings call transcript [1:x], Q4 slides [2:x], Form 8‑K (Ex. 99.1) [4:x], Q3 press release/transcript [9:x] [8:x], Q2 transcript [13:x].

Adient plc (ADNT)·Q4 2025 Earnings Summary