In This Article:
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Revenue: $3.6 billion in Q4, a decrease of $167 million year-over-year.
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Adjusted EBITDA: $235 million, flat year-over-year.
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Free Cash Flow: Over $190 million in Q4; $277 million for the full year.
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Share Repurchases: $50 million in Q4; $275 million for fiscal year '24, approximately 10% of outstanding shares.
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Net Income: Adjusted net income of $59 million or $0.68 per share in Q4.
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Full Year Sales: Approximately $14.7 billion, down about 5% year-over-year.
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EBITDA Margin: 6% total company EBITDA margin.
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Debt and Net Debt: $2.4 billion and $1.5 billion, respectively, as of September 30, 2024.
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Liquidity: $1.7 billion, including $945 million in cash and $779 million in undrawn credit.
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Fiscal Year '25 Outlook: Sales expected to be 3% lower; adjusted EBITDA between $850 million to $900 million.
Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Adient PLC (NYSE:ADNT) achieved a solid Q4 performance despite a challenging macro environment, maintaining adjusted EBITDA at $235 million and generating over $190 million in free cash flow.
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The company successfully expanded margins by 30 basis points despite a 4% year-over-year decline in revenue.
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Adient PLC (NYSE:ADNT) returned nearly 100% of its fiscal year '24 free cash flow to shareholders, including $275 million in share repurchases.
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The company is leveraging automation and artificial intelligence to drive efficiencies, including launching an AI welding inspection tool and developing automated sewing cells.
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Adient PLC (NYSE:ADNT) continues to win new business in China, expecting double-digit annual growth between fiscal year '24 and fiscal year '27, with a focus on local Chinese OEMs.
Negative Points
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Adient PLC (NYSE:ADNT) faces ongoing volume pressures in Europe and the Americas, with a forecasted 5% contraction in European light vehicle production for fiscal '25.
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The company's total EBITDA margins remain at 6%, which is below their goal of achieving 8% EBITDA margins.
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Adient PLC (NYSE:ADNT) anticipates lower profitability in EMEA due to volume and mix headwinds, with the first half of fiscal year '25 likely being the low point of their margin recovery plan.
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The company is under a heightened risk of impairment in EMEA due to recent trends in results, and restructuring costs are expected to increase to approximately $100 million in fiscal year 2025.
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Adient PLC (NYSE:ADNT) expects a $300 million headwind in the Americas due to the sunsetting of the Dodge Ram Classic program and the exit of the BMW business in Europe, impacting fiscal year '25 sales.