Adient plc Q1 FY2025 earnings call

• Jerome discussed Q1 results, regional dynamics (Americas, EMEA, Asia), China market challenges and opportunities, new business wins, sustainability efforts. - Mark covered financials, adjusted EBITDA, revenue trends, segment performance, cash flow, and fiscal 2025 outlook.

Americas: Revenue decreased, but customers reduced inventories, especially in full-size pickup trucks. Adjusted EBITDA improved due to favorable freight costs and lower launch costs. EMEA: Industry conditions challenging with production headwinds. Multi-year restructuring plan on track, savings to ramp up through 2027. Asia: Macro conditions tough, but Asia region had strong margins and free cash flow. China sales underperformed, but Asia outside China outperformed. Asia segment had >14% adjusted EBITDA margins in Q1.

Sales expected $13.9 billion, down from previous due to FX and lower production in Asia/EMEA. Adjusted EBITDA near low end of guidance range ($850 million). Free cash flow ~$180 million. Focus on cash generation and efficiencies.

• Tariffs impacting Americas business, potential production shifts affecting margins, macro headwinds in China and EMEA.

Q: Dan Levy asked about end markets and customer mix dynamics.

A: Mark Oswald said current outlook is in-line with third-party data, and mix in China is affected by lower margin EVs. Jerome Dorlack added they run on EDIs for near-term quarters.

Q: Dan Levy followed up on business performance.

A: Mark Oswald said business performance includes launch costs, ops waste, freight costs, etc. Jerome Dorlack mentioned 2024 was a proof-point of driving business performance through automation and operational belt tightening.

Q: Jake Scholl asked about North American tariffs and Mexico initiatives.

A: Jerome Dorlack said they have Mexico footprint, action plans with customers, and are working through tariff impacts.

Q: Jake Scholl asked about incrementals and decrementals.

A: Mark Oswald said typical decremental margins are 17-18%, they minimized it to 12% in Q1, and will continue to keep decrementals lower.

Q: Kosta Tasoulis asked about tariff playbook comparison to 2017.

A: Jerome Dorlack said they were effective in 2017 with lower net exposure now, and difference is speed of working through solutions.

Q: Kosta Tasoulis asked about China growth guidance.

A: Mark Oswald said China sales expected flat to down, but won $1 billion new business in 2024 to come on board in 2026-2027.