Earnings

Adient's Restructuring Costs Widen a Third-Quarter Loss

The Tip Desk · November 11, 2026 · 3 min read

The auto-interior supplier posted a $47 million loss, or $0.62 a share, as restructuring and impairment costs reached $74 million and net sales were $3.73 billion.

Adient plc (ADNT), the automotive seating and interior supplier, reported a $47 million loss for the three months ended September 30, 2026, or $0.62 a share, after a year-earlier profit of $18 million, or $0.22 a share.

The swing followed a $25 million profit, or $0.32 a share, in the June quarter. Restructuring and impairment costs were $74 million, up from $11 million a year earlier and $5 million in the prior quarter. Earnings before interest and income taxes fell to $44 million from $120 million a year earlier, and the EBIT margin compressed to 1.2% from 3.3%.

Net sales were $3.73 billion, up 1.1% from $3.688 billion a year earlier. Gross profit was $249 million. Selling, general and administrative expenses were $151 million. Equity income was $20 million. Net financing charges were $62 million. Other pension income was $16 million. Income before income taxes was a $2 million loss. Income tax expense was $18 million. Income attributable to noncontrolling interests was $27 million.

On an adjusted basis, net income attributable to Adient was $40 million, versus $42 million a year earlier, and adjusted diluted earnings held at $0.52 a share. Adjusted EBITDA was $229 million, up from $226 million a year earlier, with the adjusted EBITDA margin unchanged at 6.1%. Adjusted EBIT was $146 million, or 3.9% of sales.

The Americas, which includes North and South America, generated $1.915 billion of net sales, up from $1.786 billion a year earlier. Americas adjusted EBITDA fell to $85 million from $111 million, and the segment margin dropped to 4.4% from 6.2%. EMEA net sales were $1.054 billion, down from $1.145 billion. EMEA adjusted EBITDA was $32 million, with margin at 3.0%. Asia net sales were $785 million. Asia adjusted EBITDA rose to $136 million from $106 million, and the margin widened to 17.3% from 13.5%.

Operating cash flow was $167 million, down from $213 million a year earlier. Free cash flow was $61 million, versus $134 million. Capital expenditures were $106 million. Cash and cash equivalents were $886 million at September 30, 2026. Net debt was $1.466 billion, and the net leverage ratio was 1.66 times trailing adjusted EBITDA. The company issued $500 million of long-term debt and repaid $549 million, including a premium, in the quarter. Share repurchases were $45 million.

Adjusted EBITDA of $229 million in the September quarter compared with $223 million in the June quarter. Americas adjusted EBITDA of $85 million and Asia adjusted EBITDA of $136 million left the Asia-Pacific/China region as the largest contributor to segment adjusted EBITDA, with a 17.3% margin. EMEA remained the smallest of the three reportable segments on both sales and adjusted EBITDA.

The company said it manages the business on a geographic basis across Americas, EMEA and Asia Pacific/China, and that adjusted EBITDA excludes net financing charges, restructuring and impairment costs, purchase accounting amortization, depreciation, stock-based compensation and other non-recurring items, with certain corporate-related costs not allocated to the segments.