Adient Q1 Earnings Surpass Expectations, FY25 Sales View Cut

Core Insights - Adient reported adjusted earnings per share (EPS) of 27 cents for Q1 fiscal 2025, down from 31 cents year-over-year but above the Zacks Consensus Estimate of 24 cents [1] - The company generated net sales of $3.5 billion, a 5$3.43 billion [1] Segmental Performance - The Americas segment recorded revenues of $1.61 billion, a decline of 2.2$1.62 billion. Adjusted EBITDA for this segment was $85 million, up from$80 million in the prior-year quarter but below the consensus estimate of $86 million [3] - The EMEA segment reported revenues of$1.13 billion, down 10.9% year-over-year, missing the Zacks Consensus Estimate of $1.15 billion. Adjusted EBITDA fell to$22 million from $45 million in the previous year, also missing the consensus estimate of$29.2 million [4] - The Asia segment's revenues were $772 million, a slight increase from$770 million year-over-year, surpassing the Zacks Consensus Estimate of $722 million. Adjusted EBITDA decreased to$111 million from $114 million in the prior year but exceeded the consensus estimate of$108 million [5] Financial Position - As of December 31, 2024, Adient had cash and cash equivalents of $860 million, down from$945 million as of September 30, 2024. Long-term debt stood at $2.4 billion, and capital expenditures totaled$64 million compared to $55 million in the prior-year quarter. The company repurchased shares worth$25 million during the quarter [6] Revised Guidance for FY25 - Adient revised its fiscal 2025 revenue guidance to $13.9 billion, down from the previous estimate of$14.1-$14.4 billion. Adjusted EBITDA is now estimated at$850 million, compared to the prior range of $850-$900 million. Equity income is projected to be $80 million [7] Cash Flow and Expenses - Free cash flow is anticipated to be$180 million, reduced from the previous estimate of $200 million. Capital expenditures are estimated at$285 million, with cash tax expected to be $105 million and interest expenses projected at$185 million [8]