Adient Reports $335 Million Net Loss and $3.611 Billion in Sales for Q2 Fiscal 2025

Adient plc reported a net loss of $335 million for the second quarter of fiscal 2025, a significant increase from the $70 million loss recorded in the same period last year. The company's net sales for the quarter were $3.611 billion, down 3.7% from $3.750 billion in the prior year, primarily due to lower production volumes in the EMEA and Asia regions. The decrease in sales was partially offset by increased production in the Americas. Gross profit improved to $261 million, representing 7.2% of net sales, compared to $230 million or 6.1% of net sales in the previous year, attributed to favorable pricing adjustments and operational performance.

The financial results were impacted by a $333 million non-cash goodwill impairment charge related to the EMEA reporting unit, reflecting ongoing challenges in the automotive industry, including weakening consumer demand and increased competition. Selling, general, and administrative expenses rose by 25% to $144 million, driven by higher engineering and administrative costs, as well as third-party consulting expenses. The company also faced a higher income tax provision of $48 million, which contributed to the overall net loss.

In terms of strategic developments, Adient acquired the remaining noncontrolling interest in Technotrim, Inc. for $28 million and divested its interests in Setex, Inc. for $27 million, resulting in a one-time gain of $4 million. These transactions are expected to enhance operational synergies and optimize the manufacturing footprint in the Americas. The company continues to focus on restructuring efforts, with $33 million in charges related to workforce reductions and cost-cutting initiatives aimed at maintaining a competitive cost structure.

Operationally, Adient's total assets decreased to $8.589 billion as of March 31, 2025, down from $9.351 billion at the end of the previous fiscal year. The company reported a total of 84 million ordinary shares outstanding. Looking ahead, Adient anticipates ongoing challenges in the automotive sector, including potential further impairments and the need for additional restructuring actions. The company remains committed to monitoring economic conditions and adjusting its strategies to enhance profitability and cash flow in the long term.