Adient Plc · NYSE:ADNT
Adient — Q2 2025 Earnings Presentation
30 slides from Adient's earnings presentation, May 7, 2025
Slide 1: FY2025 Second Quarter Earnings Call
FY2025 Second Quarter Earnings Call May 7, 2025 Adient – PUBLIC
Slide 2: Important Information
Important Information Adient has made statements in this document that are forward-looking and, therefore, are subject to risks and uncertainties. All statements in this document other than statements of historical fact are statements that are, or could be, deemed “forward-looking statements” within
Slide 3: Agenda
Agenda > Introduction Michael Heifler VP, Investor Relations and Strategy > Business Update Jerome Dorlack President and CEO > Financial Review Mark Oswald Executive VP and CFO > Q&A FY2025 Second Quarter Earnings Call Adient – PUBLIC 3
Slide 4: Delivered strong Q2 operating results
Delivered strong Q2 operating results, driven by further improvement in business performance > Strong business performance in Q2 drove y-o-y improvement in Adj. EBITDA; Q2 adj. EBITDA margin up 40 bps y-o-y despite Key Q2 FY25 lower customer volumes Financial Metrics > Demonstrated ongoing operation
Slide 5: Tariff landscape
Tariff landscape Adient approx. monthly tariff exposure ($ Millions) > Adient is successfully executing actions to reduce the direct impact of tariffs (resourcing components, customer negotiations, etc.) – target is Gross Exposure* Country of Origin * 100% recovery/cost offsets with all customers Ma
Slide 6: Adient's action plan for U.S. tariffs
Adient’s action plan for U.S. tariffs > Engaged with all customers to identify and execute actions to mitigate/reduce exposure - 100% resolution targeted > Adient’s resourcefulness and world-class global footprint enables localization, increased USMCA content, and value-add opportunities for our cus
Slide 7: Regional update
Regional update > Continuing margin > Restructuring actions > Strong footprint and expansion yielding benefits outstanding Asia-based > Navigating tariff dynamics, > Region winning key programs customer relationships driving value for our > Developing opportunities as enabling growth customers by mi
Slide 8: New business wins and launches
New business wins and launches New business wins Recent and upcoming launches Kia Kia TK Nissan SV Infinity Honda Passport FAW Hongqi Stellantis K5, mid-size Asia Asia Americas H5 Ram 1500 Sedan Complete Seat * Metals and Foam Complete Seat * Fujian-Benz Ford Transit Renault 4EVER Dongfeng Honda Vol
Slide 9: Leveraging innovation and automation to grow with China OEMs globally
Leveraging innovation and automation to grow with China OEMs globally Ongoing global emphasis on product innovation and Adient continues to drive manufacturing automation to support our customers automation globally, and has been a pioneer in smart manufacturing > Recent completion of Adient China T
Slide 10: Key takeaways
Key takeaways Strong second quarter, and we are seeing positive momentum, though uncertainty around volumes in H2 Tariff headwinds appear to be manageable – comprehensive action plans in place to mitigate, >75% already mitigated Executing plans to drive value to our customers and capitalizing on opp
Slide 11: Financial Review
Financial Review FY2025 Second Quarter Adient – PUBLIC
Slide 12: Q2 FY25 key financials
Q2 FY25 key financials As Reported As Adjusted 1 $ millions, except per share data Q2 FY25 3 Q2 FY24 Q2 FY25 Q2 FY24 B/(W) Consolidated Revenue $ 3,611 $ 3,750 $ 3,611 $ 3,750 (4%) EBIT $ (216) $ 8 $ 161 $ 147 10% Margin -6.0% 0.2% 4.5% 3.9% EBITDA N/A N/A $ 233 $ 227 3% Margin 6.5% 6.1% Memo: Equit
Slide 13: Q2 FY25 revenue: consolidated and unconsolidated sales
Q2 FY25 revenue: consolidated and unconsolidated sales Regional Performance $ in millions Consolidated sales (consolidated sales y-o-y growth vs. Q2FY24 by region) 1 Q2 Q2 $(49) S&P Production $(90) Americas 3% -4% $3,750 $3,611 EMEA 2 -8% -7% Asia -4% 7% Note: China -14% 11% Note: Asia excl. China
Slide 14: Q2 FY25 adjusted EBITDA
Q2 FY25 adjusted EBITDA $ in millions Q2 FY25 adjusted EBITDA of $233M, up $6M y-o-y, was $14 primarily driven by: $1 $(7) $(2) > Improved business performance of $37M, $227 $233 primarily resulting from better net material margin and reduced operating costs including lower launch costs Q2FY24 Ameri
Slide 15: Q2 FY25 cash flow
Q2 FY25 cash flow Free Cash Flow Key drivers impacting YTD FY25 FCF: Adjusted EBITDA to Free Cash Flow Q2 YTD (in $ millions) 2025 2024 2025 2024 (+) Dividend payment timing (reflects a delayed payment Adjusted-EBITDA $ 233 $ 227 $ 429 $ 443 from a joint venture) Adjusted Equity Income (18) (19) (39
Slide 16: Debt and capital structure
Debt and capital structure ($ in millions) 3/31/2025 Adient continues to proactively manage its debt maturity Cash & Debt Profile Amount profile: successfully refinanced $795M senior unsecured notes Cash & Cash Equivalents (1) 754 due 2026 during the quarter; no near-term maturities ABL Revolver, in
Slide 17: H1 vs H2 expectations
H1 vs H2 expectations H1 FY2025 > Strong momentum in H1, only 5% decremental Strong business performance margin significantly offset ongoing volume > Market volumes have been lower, but more stable headwinds, resulting in solid H1 > At onset of tariffs, incurred $9M gross expense, performance in lin
Slide 18: FY25 Outlook update
FY25 Outlook update > Guidance assumes no change to current tariff policies; most tariff Consolidated sales ~$13.9B costs are resolved and no meaningful decline in previously forecasted volumes from tariffs Adj.-EBITDA ~$850M > Based on ADNT’s solid performance through the first half of FY25, the co
Slide 19: Appendix and financial reconciliations
Appendix and financial reconciliations FY2025 Second Quarter Adient – PUBLIC
Slide 20: Q2 FY25 Adjusted-EBITDA: Americas
Q2 FY25 Adjusted-EBITDA: Americas Q2 FY25 of $94M, up $14M y-o-y, driven by: $ in millions YTD View > Improved business performance of $15M, primarily driven by favorable commercial $23 $18 $179 actions, lower input costs, and lower launch $160 $(1) $(3) $(18) costs, partially offset by a tariff imp
Slide 21: Q2 FY25 Adjusted-EBITDA: EMEA
Q2 FY25 Adjusted-EBITDA: EMEA $ in millions Q2 FY25 of $50M, down $7M y-o-y, driven by: YTD View $18 $1 > Business performance was a $16M tailwind $102 in the quarter, mainly due to improved net $(5) $(9) $72 material margin and operating performance 3.9% $(35) 3.1% > Commodities were a headwind of
Slide 22: Q2 FY25 Adjusted-EBITDA: Asia
Q2 FY25 Adjusted-EBITDA: Asia $ in millions YTD View Q2 FY25 of $110M, down $2M y-o-y, driven by: $7 $19 > Improved business performance of $5M, $(3) mainly due to improved net material margin $226 $221 and operational efficiencies 14.9% $(28) 14.9% > Equity income was slightly higher by $2M due to
Slide 23: Non-GAAP financial measurements and pro-forma reconciliations
Non-GAAP financial measurements and pro-forma reconciliations Adjusted EBIT, adjusted EBIT margin, adjusted EBITDA, adjusted EBITDA margin, adjusted net income attributable to Adient, adjusted effective tax rate, adjusted earnings per share, adjusted equity income, adjusted interest expense, free ca
Slide 24: Non-GAAP reconciliations – EBIT, adj. EBIT, adj. EBITDA, net income
Non-GAAP reconciliations – EBIT, adj.-EBIT, adj.-EBITDA, and adj.- net income FY2025 Second Quarter Earnings Call Adient – PUBLIC May 7, 2025 24
Slide 25: Non-GAAP reconciliations – adj. income tax expense and rate
Non-GAAP reconciliations – adj. income tax expense and effective tax rate FY2025 Second Quarter Earnings Call Adient – PUBLIC May 7, 2025 25
Slide 26: Non-GAAP reconciliations – adj. EPS and adj. equity income
Non-GAAP reconciliations – adj. EPS and adj.-equity income FY2025 Second Quarter Earnings Call Adient – PUBLIC May 7, 2025 26
Slide 27: Non-GAAP reconciliations – adj. interest expense, free cash flow, net debt
Non-GAAP reconciliations – adj. interest expense, free cash flow, net debt leverage ratio FY2025 Second Quarter Earnings Call Adient – PUBLIC May 7, 2025 27
Slide 28: Non-GAAP reconciliations – consolidated & unconsolidated sales
Non-GAAP reconciliations – consolidated & unconsolidated sales (FX adj.) (k) FX adj. sales Consolidated Sales (FX adjusted) (in $ millions) Consolidated Net Sales Q1 Q2 Q3 Q4 FY2024 As reported $ 3,660 $ 3,750 $ 7,410 FX Impact (5) (49) $ (54) FX Adjusted 3,655 3,701 - - 7,356 Unconsolidated Sales (
Slide 29: Segment Performance
Segment Performance Q1 2024 Q1 2025 Corporate/ Corporate/ Americas EMEA Asia Consolidated Americas EMEA Asia Consolidated Eliminations Eliminations Net Sales 1,647 1,268 770 (25) 3,660 1,611 1,129 772 (17) 3,495 Adjusted EBITDA 80 45 114 (23) 216 85 22 111 (22) 196 Adjusted Equity Income 1 4 20 - 25
Slide 30: Non-GAAP reconciliation – footnote addendum
Non-GAAP reconciliation – footnote addendum FY2025 Second Quarter Earnings Call Adient – PUBLIC May 7, 2025 30