Adient (ADNT) Q3 2026 earnings summary

Executive summary

• Q3 FY26 revenue rose 5% year-over-year to $3.93B, driven by new launches and market share gains in the Americas and Asia, despite $32M in temporary headwinds from Middle East conflict and supply chain inefficiencies.

• Adjusted EBITDA was $225M, flat year-over-year, reflecting resilience amid cost inflation and lower European production.

• Free cash flow for Q3 was $138M, supporting $30M in share repurchases during the quarter; $55M year-to-date.

• Net income attributable to shareholders was $25M, down from $36M, mainly due to higher tax and SG&A costs; adjusted net income was $38M, adjusted diluted EPS $0.48.

• Multiple supplier awards and new business wins with major OEMs, including GM, NIO, Chery, Stellantis, and Honda, reinforce durable revenue streams and operational excellence.

Financial highlights

• Q3 consolidated sales: $3,929M (up 5% year-over-year); adjusted EBITDA: $225M; adjusted EBITDA margin: 5.7%.

• Adjusted net income was $38M, or $0.48 per share; GAAP net income was $25M, diluted EPS $0.32.

• Free cash flow for Q3 was $138M, year-to-date $161M; cash and equivalents at quarter end were $924M.

• Net leverage ratio at quarter end was 1.7x, within the target range of 1.5x–2.0x.

• Liquidity at quarter end was ~$1.8B, including $834M in revolver capacity.

Outlook and guidance

• FY26 consolidated revenue guidance raised to ~$15.0B (from $14.8B); adjusted EBITDA guidance unchanged at ~$885M.

• Free cash flow guidance reaffirmed at ~$130M; capital expenditures expected at ~$300M.

• Persistent headwinds from Middle East conflict and input costs expected to pressure near-term results, but underlying performance remains solid.

• Above-market growth anticipated in Americas and China for FY27, with continued focus on automation, restructuring, and commercial discipline.

• Management expects sufficient liquidity for at least the next twelve months.