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Adient(ADNT) - 2024 Q2 - Quarterly Results
ADNTAdient(ADNT)2024-05-03 10:55

Financial Performance - Q2 FY2024 revenue was 3,750M,a43,750M, a 4% decrease year-over-year, primarily due to lower volumes and FX headwinds[2] - Adjusted EBITDA for Q2 FY2024 was 227M, up 12Myear−over−year,withanadjustedEBITDAmarginof6.112M year-over-year, with an adjusted EBITDA margin of 6.1%, reflecting a 60 basis points improvement[2] - The company reported a net loss of (70)M for Q2 FY2024, with adjusted net income of 49M,representinga5849M, representing a 58% increase year-over-year[2] - Adient reported net sales of 3,750 million for the three months ended March 31, 2024, a decrease of 4.1% compared to 3,912millioninthesameperiodof2023[18]−Thegrossprofitforthequarterwas3,912 million in the same period of 2023[18] - The gross profit for the quarter was 230 million, down from 250millionyear−over−year,reflectingagrossmarginof6.1250 million year-over-year, reflecting a gross margin of 6.1%[18] - Adjusted EBITDA for the three months ended March 31, 2024, was 227 million, compared to 215millionforthesameperiodin2023,reflectinganincreaseof5.6215 million for the same period in 2023, reflecting an increase of 5.6%[38] - Adjusted net income attributable to Adient for the three months ended March 31, 2024, was 49 million, up from 31millioninthesameperiodin2023,representinga58.131 million in the same period in 2023, representing a 58.1% increase[39] - Adjusted EBIT for the three months ended March 31, 2024, was 147 million, compared to 134millionforthesameperiodin2023,indicatingagrowthof9.7134 million for the same period in 2023, indicating a growth of 9.7%[38] - The adjusted EBITDA margin for the three months ended March 31, 2024, was 6.1%, compared to 5.5% for the same period in 2023, showing an improvement of 0.6 percentage points[38] - Basic and diluted earnings per share for the three months ended March 31, 2024, were both (0.77), compared to (0.16)forthesameperiodin2023[33]CashFlowandCapitalManagement−Cashandcashequivalentsstoodat(0.16) for the same period in 2023[33] Cash Flow and Capital Management - Cash and cash equivalents stood at 905M as of March 31, 2024, down from 1,110MattheendofFY2023[6]−Thecompanyreportedfreecashflowof1,110M at the end of FY2023[6] - The company reported free cash flow of (2)M year-to-date FY2024, compared to 53Minthesameperiodlastyear[6]−Cashprovidedbyoperatingactivitieswas53M in the same period last year[6] - Cash provided by operating activities was 81 million, down from 126millionyear−over−year[25]−OperatingcashflowforQ12024was126 million year-over-year[25] - Operating cash flow for Q1 2024 was 81 million, down from 126millioninQ12023,highlightingchallengesincashgeneration[49]−FreecashflowforthethreemonthsendedMarch31,2024,was126 million in Q1 2023, highlighting challenges in cash generation[49] - Free cash flow for the three months ended March 31, 2024, was 12 million, down from 70millioninthesameperiodof2023,primarilyduetoincreasedcapitalexpenditures[49]−CapitalexpendituresforthethreemonthsendedMarch31,2024,were70 million in the same period of 2023, primarily due to increased capital expenditures[49] - Capital expenditures for the three months ended March 31, 2024, were 69 million, compared to 56millioninthesameperiodof2023,reflectingongoinginvestmentsingrowth[49]ShareholderActions−Year−to−datesharerepurchasestotaled56 million in the same period of 2023, reflecting ongoing investments in growth[49] Shareholder Actions - Year-to-date share repurchases totaled 150M, retiring approximately 4.5M shares, with 385Mremaininginthecurrentsharerepurchaseauthorization[1]FutureGuidance−ThecompanyexpectsFY2024consolidatedsalestobeintherangeof385M remaining in the current share repurchase authorization[1] Future Guidance - The company expects FY2024 consolidated sales to be in the range of 14.8B to 14.9B,downfrompriorguidanceof14.9B, down from prior guidance of 15.4B to 15.5B[8]−AdientanticipatesadjustedEBITDAforFY2024tobebetween15.5B[8] - Adient anticipates adjusted EBITDA for FY2024 to be between 900M and 920M,revisedfromapreviousestimateof920M, revised from a previous estimate of 985M[8] Restructuring and Cost Management - The company plans to implement restructuring actions with 125MinchargesexpectedinQ2FY2024,aimedatachieving 125M in charges expected in Q2 FY2024, aimed at achieving ~60M in reduced annual operating costs by FY2027[2] - The company incurred restructuring and impairment costs of 125millioninthelatestquarter,significantlyhigherthan125 million in the latest quarter, significantly higher than 17 million in the prior year[18] - The company is focused on restructuring plans and managing input cost recoveries amid ongoing economic uncertainties[16] Segment Performance - The Americas segment generated net sales of 1,660million,whileEMEAandAsiareported1,660 million, while EMEA and Asia reported 1,370 million and 742million,respectively[28]DebtandFinancialHealth−Adient′slong−termdebtremainedstableat742 million, respectively[28] Debt and Financial Health - Adient's long-term debt remained stable at 2,401 million, with total liabilities amounting to 3,658million[21][22]−ThenetdebtasofMarch31,2024,was3,658 million[21][22] - The net debt as of March 31, 2024, was 1.63 billion, an increase from 1.43billionasofSeptember30,2023,reflectingchangesincashanddebtmanagement[53]−Thecompanyreportedanetleverageratioof1.71asofMarch31,2024,comparedto1.52inthepreviousperiod,indicatingaslightincreaseinleverage[52]−ThenetleverageratioiscalculatedasnetdebtdividedbyadjustedEBITDAforthelastfourquarters,providinginsightintothecompany′sfinancialhealth[34]EquityandInvestmentPerformance−EquityincomeforthethreemonthsendedMarch31,2024,was1.43 billion as of September 30, 2023, reflecting changes in cash and debt management[53] - The company reported a net leverage ratio of 1.71 as of March 31, 2024, compared to 1.52 in the previous period, indicating a slight increase in leverage[52] - The net leverage ratio is calculated as net debt divided by adjusted EBITDA for the last four quarters, providing insight into the company's financial health[34] Equity and Investment Performance - Equity income for the three months ended March 31, 2024, was 18 million, compared to 4millioninthesameperiodof2023,indicatingstrongperformanceinequityinvestments[45]−Netfinancingchargesdecreasedto4 million in the same period of 2023, indicating strong performance in equity investments[45] - Net financing charges decreased to 47 million in Q1 2024 from $59 million in Q1 2023, showing effective cost management[47]