Adient Q2 Earnings Surpass Expectations, FCF View Lowered

Adient ADNT reported adjusted earnings per share (EPS) of 69 cents for the second quarter of fiscal 2025. Earnings rose from 54 cents recorded in the year-ago period and surpassed the Zacks Consensus Estimate of 36 cents.The company generated net sales of $3.61 billion, which decreased 4% year over year but beat the Zacks Consensus Estimate of $3.47 billion.Adient Price, Consensus and EPS Surprise Adient price-consensus-eps-surprise-chart | Adient QuoteSegmental Performance of ADNTAdient currently operates through three reportable segments — Americas, including North America and South America; Europe, which includes the Middle East and Africa (EMEA); and Asia Pacific/China (Asia).In the reported quarter, the Americas segment recorded revenues of $1.70 billion, which rose 2.3% from the year-ago period and topped the Zacks Consensus Estimate of $1.59 billion. The segment recorded an adjusted EBITDA of $94 million, which increased from $80 million recorded in the prior-year quarter due to favorable volume and mix, improved business performance and favorable impact of forex movements. The metric also surpassed the Zacks Consensus Estimate of $79 million.The EMEA segment registered revenues of $1.23 billion, which declined 10.1% year over year but topped the Zacks Consensus Estimate of $1.16 billion. The segment recorded an adjusted EBITDA of $50 million, which declined from $57 million generated in the year-ago period due to headwinds from volume/mix and the unfavorable impact of forex movement. The metric, however, surpassed the Zacks Consensus Estimate of $33.39 million In the fiscal second quarter, revenues in the Asia segment came in at $707 million, which fell from $742 million in the second quarter of fiscal 2024 and missed the Zacks Consensus Estimate of $736 million. The segment recorded an adjusted EBITDA of $110 million, slightly down from $112 million recorded in the corresponding quarter of fiscal 2024 due to unfavorable volume and mix in China. The figure also missed the Zacks Consensus Estimate of $114 million.(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Adient’s Financial PositionAdient had cash and cash equivalents of $754 million as of March 31, 2025, compared with $945 million as of Sept. 30, 2024.As of March 31, 2025, long-term debt amounted to $2.39 billion.Capital expenditures totaled $109 million compared with $124 million in the prior-year quarter.ADNT Updates Guidance for FY25Adient envisions fiscal 2025 revenues to be $13.9 billion, the same as the previous estimate. Adjusted EBITDA is estimated to be $850 million, the same as the previous estimate. Equity income is projected to be $80 million.Free cash flow is now anticipated to be in the range of $150-$170 million, down from the previous estimate of $180 million. Capex is estimated to be $285 million. Cash tax is expected to be $105 million. Interest expenses are projected to be $190 million, up from the previous estimate of $185 million.Adient’s Zacks Rank & Key PicksADNT carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the auto space are Hesai Group HSAI and Standard Motor Products, Inc. SMP. HSAI sports a Zacks Rank #1 (Strong Buy), while SMP carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for HSAI’s 2025 earnings indicates year-over-year growth of 336.36%, respectively. EPS estimates for 2026 have improved 12 cents in the past 30 days.The Zacks Consensus Estimate for SMP’s 2025 sales and earnings implies year-over-year growth of 17.1% and 12.62%, respectively. EPS estimates for 2025 and 2026 have improved 6 cents and a penny, respectively, in the past seven days.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Standard Motor Products, Inc. (SMP): Free Stock Analysis Report Adient (ADNT): Free Stock Analysis Report Hesai Group Sponsored ADR (HSAI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks