Adient Reports Q3 Fiscal 2025 Results with $3.741 Billion in Net Sales

Adient plc reported its financial results for the third quarter of fiscal 2025, revealing net sales of $3.741 billion, a slight increase of 0.7% compared to $3.716 billion in the same period last year. The company's gross profit rose to $237 million, representing 6.3% of net sales, up from $207 million or 5.6% of net sales in the prior year. This improvement in profitability was attributed to favorable pricing adjustments and operational performance, which offset lower production volumes in certain regions. Net income attributable to Adient was $36 million, a significant recovery from a net loss of $11 million in the third quarter of fiscal 2024.

In contrast, the nine-month results showed a decline in net sales to $10.847 billion, down 3% from $11.126 billion in the previous year. The decrease was primarily driven by lower production volumes in the EMEA and Asia regions, which were affected by softening consumer demand and adverse product mix. The company recorded a net loss of $299 million for the nine months ended June 30, 2025, compared to a loss of $61 million in the same period last year, largely due to a $333 million non-cash goodwill impairment charge related to its EMEA reporting unit.

Strategically, Adient made notable changes during the quarter, including the acquisition of the remaining noncontrolling interest in Technotrim, Inc. for $28 million, and the sale of 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 company's manufacturing footprint. Additionally, Adient continues to implement its restructuring plan aimed at reducing costs and improving efficiency, with $42 million in restructuring charges recorded in the first nine months of fiscal 2025.

Operationally, Adient's performance varied across its geographic segments. The Americas segment reported net sales of $1.76 billion, a 1% increase, while the EMEA segment saw a decrease of 2% to $1.268 billion, primarily due to lower production volumes. The Asia segment experienced a slight increase in net sales to $721 million, driven by favorable currency impacts despite challenges in premium vehicle production in China. The company’s total assets decreased to $8.836 billion as of June 30, 2025, down from $9.351 billion at the end of the previous fiscal year, reflecting changes in cash and cash equivalents, accounts receivable, and goodwill.

Looking ahead, Adient's management remains cautious about the automotive industry's outlook, citing uncertainties related to consumer demand, production volumes, and macroeconomic conditions. The company is focused on enhancing profitability through efficiency measures and strategic reviews of its portfolio. Adient's liquidity position appears stable, with available credit under its asset-based revolving credit facility amounting to $872 million as of June 30, 2025, which the company believes will be sufficient to meet its operational needs in the near term.