Adient plc Q2 FY2026 earnings call

Jerome mentioned Q2 results in line with expectations, revenue up due to FX tailwinds and underlying growth. Adjusted EBITDA down due to temporary inefficiencies. Paused stock repurchases. Pursuing new business globally. Americas onshoring and conquest wins. EMEA market uncertainty but team winning business. Asia outperforming market. Completed tuck-in acquisition in Americas. Recent launches and innovation milestones. Teams received over 60 awards.

Revenue was up 7% year-over-year to $3.9 billion. Adjusted EBITDA was $223 million, down modestly year over year. Free cash flow in Q2 was $8 million. Americas had 5% growth outperforming flat market; EMEA sales trailed market; China sales grew double digits. Revenue contribution: Americas, EMEA, Asia each had respective performances.

Modestly increasing full-year guidance for revenue, adjusted EBITDA, and free cash flow. Now expect revenue ~$14.8B, adjusted EBITDA ~$885M, free cash flow ~$130M. Offset $35M input cost headwinds with volume and business performance.

Geopolitical uncertainty, ongoing conflicts, elevated energy and commodity costs, trade policy uncertainty, shifting consumer sentiment. Middle East conflict impacting chemical costs, supplier disruption issues.

Q: Color on revenue increase, A: FX tailwinds, volume, pricing.

Q: Onshoring, A: Active discussions, best positioned.

Q: Margins, A: Mix shift, recoverable.

Q: China mix, A: 70% local OEMs.

Q: Normalized free cash flow, A: Revenue growth, cash tax, restructuring, interest.

Q: Commodities, A: Visibility, supply secured.

Q: Second half guidance, A: Offset costs with business performance.

Q: Market share, A: Consolidation to competitive offerings.