Summary:
- Adient (ADNT, Financial) reported a Q2 2025 GAAP net loss of $335M, influenced by a $333M goodwill impairment.
- Adjusted EPS of $0.69 and Adjusted EBITDA of $233M showed improvement despite revenue challenges.
- Strong liquidity with $754M in cash, successful refinancing of $795M in senior notes.
Adient (ADNT), a prominent player in the automotive seating industry, has disclosed its financial results for the second quarter of 2025. During this period, the company experienced a GAAP net loss of $335 million and recorded an EPS of -$3.99. This loss was primarily attributed to a significant $333 million non-cash goodwill impairment.
On a more positive note, Adient's adjusted earnings per share (Adj.-EPS) stood at $0.69, and the company reported an adjusted EBITDA of $233 million, indicating a year-over-year improvement despite facing revenue challenges. This reflects the company's resilience and ability to adapt to market conditions.
The company's liquidity position remains robust, with $754 million in cash and cash equivalents as of March 31, 2025. Additionally, Adient successfully refinanced $795 million of senior unsecured notes, extending its average maturity profile from 4.0 to 6.1 years, thus securing its financial stability in the mid-term.
Looking ahead, Adient maintains its fiscal year 2025 revenue and adjusted EBITDA guidance, expecting the positive momentum from the first half of the year to carry forward into the second half. However, the company is cautious about potential volume impacts related to tariffs that may affect future performances.
The company's overall debt load is substantial, with gross and net debts totaling approximately $2.4 billion and $1.6 billion, respectively, by the end of the quarter. Despite these figures, Adient's operational strategy and financial measures hint at continued progress in managing these debts effectively.
