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Research Alert: Adnt: Earnings Exceed Expectations; Raises Fy 26 Guidance Slightly

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Adient (ADNT) posted Mar-Q (Q2 FY 26 [Sep.]) adjusted EPS of $0.52 vs. $0.69 (-25%), well ahead of the $0.44 consensus. The beat was driven by stronger-than-expected sales, as revenue rose 7% to $3.87B ($240M ahead of consensus), and adjusted EBITDA margin contracted 70 bps to 5.8% (in-line with consensus). ADNT increased its FY 26 guidance for net sales and adjusted EBITDA to approximately $14.8B and $885M, respectively, versus $14.6B and $880M, previously. These numbers are ahead of the current net sales and EBITDA consensus estimates of $14.63B and $880M, respectively. At quarter-end, ADNT had cash and equivalents of $831M and total debt of $2.39B. The company did not repurchase any stock during the quarter, which we consider a slight negative. In our view, ADNT's results underscore the challenging operating environment facing automotive seating suppliers, with the company continuing to navigate competitive pricing pressures while investing in operational efficiency initiatives.

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