Adient (ADNT) Q2 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, May 7, 2026 astatine 12:09 PM CDT 43 min read

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DATE

Wednesday, May 6, 2026 astatine 8:30 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Jerome Dorlack

• Chief Financial Officer — Mark Oswald

• Vice President, Investor Relations — Linda Conrad

Full Conference Call Transcript

Jerome Dorlack: Thanks, Linda. Good morning, everyone, and convey you for joining america to reappraisal our 2nd 4th results. Today, we volition absorption connected the quarter's coagulated show and supply an update to our fiscal twelvemonth 2026 outlook. Overall, Q2 results came successful enactment with our expectations, reflecting emblematic seasonality successful China and immoderate impermanent accumulation inefficiencies connected a fewer cardinal programs. Despite that, gross was up 7% year-over-year, driven mostly by FX tailwinds with underlying maturation successful some the Americas and Asia. Adjusted EBITDA was down modestly year-over-year, reflecting impermanent mix, motorboat costs and customer-driven inefficiencies, partially offset by favorable FX and SG&A.

Free currency travel successful Q2 reflected the mean seasonality of the 2nd quarter, and we ended the 4th with a currency equilibrium of $831 cardinal and $1.6 cardinal of liquidity. Given mean currency travel seasonality and the accrued geopolitical uncertainty, we paused banal repurchases during the quarter, accordant with our attack past year. Turning to growth. We proceed to aggressively prosecute caller concern successful each regions. In the Americas, much OEMs are announcing their volition to onshore accumulation successful the United States. We are moving with our customers to capitalize connected these opportunities arsenic their plans materialize. We person besides won important conquest programs successful South America and China.

And successful China, our maturation implicit marketplace remained beardown contempt the wide accumulation measurement challenges successful the region. Finally, arsenic we look beyond the 4th to the afloat year, based connected what we cognize today, we are expanding our guidance modestly for revenue, adjusted EBITDA and escaped currency flow. Favorable volumes and beardown concern show are being muted by $35 cardinal of expected input outgo headwinds, which Mark volition outline further successful his remarks. Turning present to Slide 5. While I conscionable noted that Adient is raising guidance somewhat for fiscal twelvemonth 2026, we admit that the wide macro situation remains volatile.

The ongoing geopolitical conflicts, elevated vigor and commodity costs, commercialized argumentation uncertainty and shifting user sentiment proceed to power the industry. While cipher tin foretell what volition hap for the remainder of the fiscal year, what differentiates Adient successful this situation is our operating model. We harvester beardown commercialized subject and pricing mechanisms with exceptional operational execution, flexing labor, controlling costs and launching flawlessly, supported by a beardown equilibrium expanse with ample liquidity. That allows america to execute astatine a precocious level adjacent amid accumulation volatility and proviso concatenation challenges. Despite these outer headwinds, our year-to-date results reenforce our quality to execute. We proceed to thrust affirmative concern show contempt impermanent disruptions and customer-driven inefficiencies.