Adient plc (ADNT) Bundle
A Brief History of Adient
Adient plc, a global leader in automotive seating, was formed in 2016 as a spin-off from Johnson Controls. Since then, it has focused on providing innovative seating solutions for automotive manufacturers worldwide.
Financial Performance
As of September 30, 2024, Adient reported consolidated net sales of $14.688 billion, a decrease from $15.395 billion in the previous year. The company’s operating income for the twelve months ending September 30, 2024, was $343 million, down from $523 million in 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Sales | $14.688 billion | $15.395 billion |
| Operating Income | $343 million | $523 million |
| Net Income | $101 million | $295 million |
| Free Cash Flow | $277 million | $415 million |
Segment Performance
Adient operates in three primary geographical segments: Americas, EMEA (Europe, Middle East, and Africa), and Asia. For the twelve months ended September 30, 2024, the segment performance was as follows:
| Segment | Net Sales | Adjusted EBITDA |
|---|---|---|
| Americas | $6.763 billion | $375 million |
| EMEA | $5.029 billion | $155 million |
| Asia | $2.989 billion | $439 million |
Debt and Leverage
As of September 30, 2024, Adient's total debt stood at $2.405 billion, with a net debt of $1.460 billion. The net leverage ratio was calculated at 1.66, an increase from 1.52 in 2023.
| Debt Metrics | 2024 | 2023 |
|---|---|---|
| Total Debt | $2.405 billion | $2.535 billion |
| Net Debt | $1.460 billion | $1.425 billion |
| Net Leverage Ratio | 1.66 | 1.52 |
Stock Performance
Adient's stock performance has reflected its operational challenges and market conditions. As of the end of September 2024, the diluted earnings per share (EPS) was $0.20, compared to $2.15 in the previous year.
| Stock Metrics | 2024 | 2023 |
|---|---|---|
| Diluted EPS | $0.20 | $2.15 |
| Shares Outstanding | 84.9 million | 93.7 million |
Throughout 2024, Adient has continued to focus on strategic initiatives, including restructuring efforts aimed at enhancing operational efficiency and cost management, as evidenced by restructuring costs amounting to $168 million for the year.
A Who Owns Adient plc (ADNT)
Major Shareholders
As of 2024, Adient plc (ADNT) has a diversified ownership structure with significant institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| BlackRock, Inc. | 8.5% | Institutional Investor |
| The Vanguard Group, Inc. | 7.3% | Institutional Investor |
| State Street Corporation | 4.9% | Institutional Investor |
| Wellington Management Co. LLP | 3.7% | Institutional Investor |
| Invesco Ltd. | 3.1% | Institutional Investor |
| Other Institutional Investors | 40.5% | Various |
| Individual Shareholders | 28.0% | Retail Investors |
Shareholder Composition
The shareholder composition reveals a predominance of institutional investors, which collectively hold a substantial majority of the shares. This indicates a strong level of institutional interest in Adient's performance and governance.
Recent Stock Performance
As of September 30, 2024, Adient's stock performance has shown fluctuations influenced by market conditions and company-specific events. The following table details Adient's stock performance metrics:
| Metric | Value |
|---|---|
| Current Share Price | $16.50 |
| 52-Week High | $25.00 |
| 52-Week Low | $12.00 |
| Market Capitalization | $1.4 billion |
| Shares Outstanding | 84.9 million |
Institutional Ownership Trends
Recent trends indicate a slight increase in institutional ownership, reflecting confidence in Adient's strategic direction and financial health. The following table outlines changes in institutional ownership over the last year:
| Quarter | Institutional Ownership Percentage |
|---|---|
| Q1 2023 | 48.0% |
| Q2 2023 | 49.5% |
| Q3 2023 | 50.0% |
| Q4 2023 | 51.0% |
| Q1 2024 | 52.0% |
Noncontrolling Interests
Adient also reports noncontrolling interests, primarily stemming from its joint ventures and partnerships. As of September 30, 2024, the following table summarizes the noncontrolling interests:
| Type of Interest | Value (in millions) |
|---|---|
| Noncontrolling Interests | $309 |
| Redeemable Noncontrolling Interests | $91 |
Conclusion on Ownership Structure
The ownership structure of Adient plc reflects a well-balanced mix of institutional and individual investors, with a notable trend towards increasing institutional ownership. This structure supports the company's governance and strategic goals moving forward.
Adient plc (ADNT) Mission Statement
Overview of Mission Statement
The mission statement of Adient plc emphasizes its commitment to providing innovative seating solutions, enhancing passenger comfort, and improving the overall vehicle experience. The company aims to lead in the automotive seating industry through customer-centric approaches and operational excellence.
Financial Performance Metrics
As of the twelve months ended September 30, 2024, Adient reported the following financial metrics:
| Metric | Value (in millions) |
|---|---|
| Net Sales | $14,688 |
| Adjusted EBITDA | $880 |
| Net Income Attributable to Adient | $18 |
| Adjusted Diluted Earnings per Share | $1.84 |
| Total Assets | $9,351 |
| Debt | $2,405 |
| Cash and Cash Equivalents | $945 |
Segment Performance
Adient operates across three geographical segments: Americas, EMEA, and Asia. The financial performance for each segment as of September 30, 2024, is detailed below:
| Segment | Net Sales (in millions) | Adjusted EBITDA (in millions) | Adjusted EBITDA Margin |
|---|---|---|---|
| Americas | $6,763 | $375 | 5.5% |
| EMEA | $5,029 | $155 | 3.1% |
| Asia | $2,989 | $439 | 14.7% |
| Corporate/Eliminations | ($93) | ($89) | N/A |
| Total Consolidated | $14,688 | $880 | 6.0% |
Strategic Initiatives
Adient's mission is supported by various strategic initiatives aimed at enhancing operational efficiency, increasing market share, and fostering innovation. Key initiatives include:
- Investment in advanced manufacturing technologies.
- Focus on sustainability and eco-friendly materials.
- Enhancing customer collaboration for tailored seating solutions.
- Expansion into emerging markets with high growth potential.
Market Position and Competitive Edge
Adient positions itself as a leader in the automotive seating industry, leveraging its extensive experience and technological advancements to outperform competitors. The company’s focus on customer satisfaction and product quality enhances its competitive edge in the market.
Future Outlook
Looking forward, Adient aims to capitalize on trends in the automotive industry, including the shift towards electric vehicles and increasing consumer demand for comfort and safety features in seating. The company is well-positioned to adapt its mission to meet evolving market needs.
How Adient plc (ADNT) Works
Company Overview
Adient plc (ADNT) is a global leader in automotive seating, providing innovative solutions for automotive manufacturers worldwide. The company's operations are segmented into three primary geographic regions: Americas, EMEA (Europe, Middle East, and Africa), and Asia.
Financial Performance
As of September 30, 2024, Adient reported the following financial metrics:
| Metric | Q4 2024 (in millions) | Q4 2023 (in millions) | FY 2024 (in millions) | FY 2023 (in millions) |
|---|---|---|---|---|
| Net Sales | $3,562 | $3,729 | $14,688 | $15,395 |
| Gross Profit | $245 | $250 | $928 | $1,033 |
| Net Income | $100 | $157 | $101 | $295 |
| EBIT | $130 | $140 | $343 | $523 |
| Adjusted EBITDA | $235 | $235 | $880 | $938 |
| Adjusted Net Income | $59 | $48 | $166 | $205 |
| Diluted Earnings per Share | $0.91 | $1.42 | $0.20 | $2.15 |
Segment Performance
Adient operates through three reportable segments, each contributing to the overall financial performance:
| Segment | Net Sales (FY 2024 in millions) | Adjusted EBITDA (FY 2024 in millions) | Adjusted EBITDA Margin |
|---|---|---|---|
| Americas | $6,763 | $375 | 5.5% |
| EMEA | $5,029 | $155 | 3.1% |
| Asia | $2,989 | $439 | 14.7% |
Cash Flow Analysis
For the fiscal year ending September 30, 2024, Adient reported the following cash flow metrics:
| Metric | FY 2024 (in millions) | FY 2023 (in millions) |
|---|---|---|
| Operating Cash Flow | $543 | $667 |
| Capital Expenditures | $266 | $252 |
| Free Cash Flow | $277 | $415 |
Debt and Leverage
As of September 30, 2024, Adient's debt metrics were as follows:
| Metric | Value (in millions) |
|---|---|
| Total Debt | $2,405 |
| Cash and Cash Equivalents | $945 |
| Net Debt | $1,460 |
| Adjusted EBITDA (last four quarters) | $880 |
| Net Leverage Ratio | 1.66 |
Operational Highlights
Adient's operational efficiency is illustrated in the following metrics:
| Metric | Value |
|---|---|
| Employee Count | Approximately 75,000 |
| Global Manufacturing Facilities | Over 200 |
| Research and Development Investment (FY 2024) | $100 million |
Market Position and Strategy
Adient focuses on strategic partnerships and innovation in seating technology to maintain its competitive edge. The company invests significantly in R&D to enhance product offerings and improve sustainability practices across its manufacturing processes.
How Adient plc (ADNT) Makes Money
Revenue Streams
Adient plc primarily generates revenue through the manufacturing and supply of automotive seating and interior systems. The company's net sales for the twelve months ended September 30, 2024, were $14.688 billion, a decrease from $15.395 billion in the previous year.
| Segment | Net Sales (in millions) | Adjusted EBITDA (in millions) | Adjusted EBITDA Margin |
|---|---|---|---|
| Americas | $6,763 | $375 | 5.5% |
| EMEA | $5,029 | $155 | 3.1% |
| Asia | $2,989 | $439 | 14.7% |
| Corporate/Eliminations | ($93) | ($89) | N/A |
| Consolidated Total | $14,688 | $880 | 6.0% |
Cost Structure
The cost of sales for Adient for the twelve months ended September 30, 2024, was $13.760 billion, which reflects ongoing operational expenses related to manufacturing and supply chain management. This resulted in a gross profit of $928 million.
Profitability Metrics
For the same period, Adient's net income attributable to the company was $18 million, translating to a net income margin of approximately 0.7%. In comparison, the previous year showed a net income of $205 million, with a margin of 1.9%.
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Net Sales | $14,688 million | $15,395 million |
| Cost of Sales | $13,760 million | $14,362 million |
| Gross Profit | $928 million | $1,033 million |
| Net Income | $18 million | $205 million |
| Net Income Margin | 0.7% | 1.9% |
Operating Expenses
Operating expenses, including selling, general, and administrative costs, were $507 million for the twelve months ended September 30, 2024, compared to $554 million in 2023. Restructuring and impairment costs also increased significantly to $168 million from $40 million in the prior year.
Cash Flow Analysis
Adient's cash flow from operating activities for the twelve months ended September 30, 2024, was $543 million, down from $667 million in 2023. After accounting for capital expenditures of $266 million, the free cash flow was $277 million.
| Cash Flow Item | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Operating Cash Flow | $543 | $667 |
| Capital Expenditures | $266 | $252 |
| Free Cash Flow | $277 | $415 |
Debt Management
As of September 30, 2024, Adient's total debt stood at $2.405 billion, with a net debt of $1.460 billion after accounting for cash and cash equivalents of $945 million. The net leverage ratio was calculated at 1.66, compared to 1.52 in 2023.
| Debt Metric | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Total Debt | $2,405 | $2,535 |
| Cash and Cash Equivalents | $945 | $1,110 |
| Net Debt | $1,460 | $1,425 |
| Net Leverage Ratio | 1.66 | 1.52 |
Equity Income
Equity income from partially-owned affiliates for the twelve months ended September 30, 2024, was $90 million, up from $84 million in 2023. Adjusted equity income was $91 million for 2024 compared to $90 million in the previous year.
| Equity Income Item | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Equity Income | $90 | $84 |
| Adjusted Equity Income | $91 | $90 |
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Resources:
- Adient plc (ADNT) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of Adient plc (ADNT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Adient plc (ADNT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.