ADNT · Adient plc

Adient’s second-quarter fiscal 2026 results reflect a substantial turnaround in profitability, shifting from a $335 million net loss attributable to Adient in Q2 FY2025 to $27 million in profit this quarter. This reversal is overwhelmingly attributable to the near-elimination of restructuring and impairment costs — down to $5 million from $351 million — which had severely depressed prior-year earnings. While net sales rose 7.1% year-over-year to $3.865 billion, gross profit declined slightly to $257 million, compressing gross margin to 6.6% from 7.2%, suggesting persistent cost pressures. Adjusted EBITDA fell 4.3% to $223 million, with adjusted EBITDA margin contracting 70 basis points to 5.8%, driven by weaker performance in the Americas (5.8% margin, up from 5.5%) and EMEA (3.5% margin, down from 4.1%), partially offset by robust Asia Pacific/China results (12.5% margin, though down from 15.6%). Segment-level analysis shows consolidated adjusted EBITDA declined despite growth in Americas and Asia, underscoring elevated corporate costs and the absence of prior-year segment-level gains. Operating cash flow improved dramatically to $81 million from a $45 million outflow, largely due to favorable changes in accounts receivable ($411 million inflow) and accounts payable ($336 million inflow), signaling stronger working capital discipline. Capital expenditures remained modest at $73 million, yielding minimal free cash flow of $8 million. Balance sheet metrics show stable leverage — total debt held nearly flat at $2.388 billion against $831 million in cash — and equity attributable to Adient declined modestly to $1.713 billion. No forward guidance or capital return actions were disclosed in Exhibit 99.1.