Adient Earnings: Cost-Control Efforts Shine in Final Quarter of Fiscal 2024

Adient finished fiscal 2024 with a strong quarter despite significant headwinds in customer light vehicle production, especially in Europe. We are leaving our fair value estimate in place but will reassess all modeling inputs once we roll our model forward for the yet-to-be-filed 10-K. Adjusted diluted EPS of $0.68 increased 33.3% year over year and beat the $0.52 LSEG consensus. Management’s cost-control efforts showed with revenue down 4.5% but adjusted EBITDA flat, enabling a 30-basis-point margin increase to 6.6%. Revenue saw a $177 million headwind on lower volume with the Europe and Americas segments’ customer production down 7% and 2%, respectively. China industry production fell 3%, but consolidated revenue there rose 5% on new customer wins. Adient’s fiscal 2024 China revenue including unconsolidated operations was about $4.2 billion with 40% from Chinese automakers, a ratio management targets at 60% in fiscal 2027.