Adient Q4 adjusted EPS misses analyst expectations

Overview

• US automotive seating maker's fiscal Q4 adjusted EPS missed analyst expectations

• Company generated $222 mln free cash flow for full year

Outlook

• Adient expects modest Adj.-EBITDA improvement and margin expansion in FY 2027 despite slightly lower revenue

Result Drivers

• SHARE REPURCHASES - Adient repurchased $45 mln of shares in Q4, retiring ~2.3 mln shares

• DEBT REFINANCING - Co paid down $35 mln of notes and refinanced 7% senior secured notes through a $500 mln add-on to its Term Loan B

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Adient PLC is $23.00, about 35.9% above its November 3 closing price of $16.92

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

• Nov 3 - Aptiv Q3 revenue rises on regional sales growth

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• Nov 3 - Germany's Schaeffler 9-month sales flat on China hit, EBIT margin rises

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)