Revenue stabilized around $3.9B with 5.0% YoY growth in Q3 2026, but gross margin remains low at 6.0% and operating margin at 2.9%, reflecting a pass-through cost structure and limited pricing power.
Adient plc (ADNT) annual income statement — 12-year revenue, gross profit & net income history
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 |
|---|
| Sales/Revenue | 15.13B | 14.54B | 14.69B | 15.39B | 14.12B | 13.68B | 12.67B | 16.53B | 17.44B | 16.21B | 16.84B | 20.07B | 22.04B |
| Revenue Growth % | 4.98% | -1.04% | -4.59% | 9.02% | 3.22% | 7.97% | -23.33% | -5.24% | 7.56% | -3.71% | -16.11% | -8.94% | - |
| Cost of Goods Sold | 14.18B | 13.57B | 13.76B | 14.36B | 13.31B | 12.85B | 12.08B | 15.72B | 16.53B | 14.8B | 15.23B | 18.22B | 20.09B |
| COGS % of Revenue | - | 93.39% | 93.68% | 93.29% | 94.29% | 93.96% | 95.33% | 95.15% | 94.78% | 91.32% | 90.44% | 90.77% | 91.14% |
| Gross Profit | 950M | 961M | 928M | 1.03B | 807M | 826M | 592M | 801M | 911M | 1.41B | 1.61B | 1.85B | 1.95B |
| Gross Margin % | 6.28% | 6.61% | 6.32% | 6.71% | 5.71% | 6.04% | 4.67% | 4.85% | 5.22% | 8.68% | 9.56% | 9.23% | 8.86% |
| Gross Profit Growth % | - | 3.56% | -10.16% | 28.01% | -2.3% | 39.53% | -26.09% | -12.07% | -35.3% | -12.49% | -13.12% | -5.17% | - |
| Operating Expenses | 513M | 522M | 507M | 554M | 598M | 537M | 572M | 671M | 694M | 691M | 1.22B | 1.13B | 1.31B |
| OpEx % of Revenue | - | 3.59% | 3.45% | 3.6% | 4.23% | 3.93% | 4.51% | 4.06% | 3.98% | 4.26% | 7.26% | 5.63% | 5.93% |
| Selling, General & Admin | 528M | 522M | 507M | 554M | 598M | 537M | 572M | 671M | 694M | 691M | 1.22B | 1.13B | 1.31B |
| SG&A % of Revenue | - | 3.59% | 3.45% | 3.6% | 4.23% | 3.93% | 4.51% | 4.06% | 3.98% | 4.26% | 7.26% | 5.63% | 5.93% |
| Research & Development | 387M | 387M | 372M | 362M | 322M | 316M | 370M | 454M | 513M | 488M | 460M | 599M | 667M |
| R&D % of Revenue | - | 2.66% | 2.53% | 2.35% | 2.28% | 2.31% | 2.92% | 2.75% | 2.94% | 3.01% | 2.73% | 2.98% | 3.03% |
| Other Operating Expenses | -2M | -387M | -372M | -362M | -322M | -316M | -370M | -45M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 437M | 439M | 421M | 479M | 209M | 289M | 42M | 345M | -1.06B | 1.1B | 369M | 904M | 617M |
| Operating Margin % | 2.89% | 3.02% | 2.87% | 3.11% | 1.48% | 2.11% | 0.33% | 2.09% | -6.1% | 6.8% | 2.19% | 4.5% | 2.8% |
| Operating Income Growth % | - | 4.28% | -12.11% | 129.19% | -27.68% | 588.1% | -87.83% | 132.46% | -196.46% | 198.65% | -59.18% | 46.52% | - |
| EBITDA | 680M | 764M | 753M | 819M | 559M | 619M | 374M | 663M | -616M | 1.46B | 713M | 1.25B | 1.05B |
| EBITDA Margin % | 4.5% | 5.26% | 5.13% | 5.32% | 3.96% | 4.52% | 2.95% | 4.01% | -3.53% | 9.01% | 4.23% | 6.23% | 4.78% |
| EBITDA Growth % | -10.88% | 1.46% | -8.06% | 46.51% | -9.69% | 65.51% | -43.59% | 207.63% | -142.19% | 104.77% | -43.01% | 18.69% | - |
| D&A (Non-Cash Add-back) | 243M | 325M | 332M | 340M | 350M | 330M | 332M | 318M | 447M | 358M | 344M | 347M | 437M |
| EBIT | 446M | 113M | 324M | 488M | 253M | 1.7B | -1M | 169M | -979M | 1.19B | 397M | 955M | 684M |
| Net Interest Income | -187M | -181M | -181M | -181M | -179M | -251M | -224M | -187M | -139M | -168M | -19M | -26M | -20M |
| Interest Income | 26M | 24M | 10M | 22M | 9M | 7M | 11M | 11M | 5M | 4M | 2M | 1M | 2M |
| Interest Expense | 213M | 205M | 191M | 203M | 188M | 258M | 235M | 198M | 144M | 172M | 21M | 27M | 22M |
| Other Income/Expense | -191M | -527M | -288M | -184M | -155M | 1.15B | -463M | -128M | -887M | 344M | -10M | 238M | 25M |
| Pretax Income | 246M | -88M | 133M | 295M | 54M | 1.44B | -429M | 2M | -1.12B | 1.06B | 390M | 959M | 670M |
| Pretax Margin % | 1.63% | -0.61% | 0.91% | 1.92% | 0.38% | 10.52% | -3.39% | 0.01% | -6.43% | 6.54% | 2.32% | 4.78% | 3.04% |
| Income Tax | 123M | 103M | 32M | 0 | 94M | 249M | 57M | 410M | 480M | 99M | 1.84B | 418M | 296M |
| Effective Tax Rate % | 50% | -117.05% | 24.06% | 0% | 174.07% | 17.3% | -13.29% | 20500% | -42.82% | 9.33% | 471.54% | 43.59% | 44.18% |
| Net Income | 48M | -281M | 18M | 205M | -120M | 1.11B | -486M | -408M | -1.69B | 877M | -1.53B | 475M | 307M |
| Net Margin % | 0.32% | -1.93% | 0.12% | 1.33% | -0.85% | 8.1% | -3.84% | -2.47% | -9.66% | 5.41% | -9.1% | 2.37% | 1.39% |
| Net Income Growth % | 121.82% | -1661.11% | -91.22% | 270.83% | -110.83% | 327.98% | -19.12% | 75.79% | -292.13% | 157.21% | -422.74% | 54.72% | - |
| Net Income (Continuing) | 123M | -191M | 101M | 295M | -40M | 1.19B | -486M | -408M | -1.6B | 962M | -1.46B | 526M | 374M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 359M | 392M | 400M | 375M | 347M | 582M | 365M | 392M | 372M | 341M | 165M | 172M | 186M |
| EPS (Diluted) | 0.61 | -3.39 | 0.20 | 2.15 | -1.27 | 11.58 | -5.18 | -4.36 | -18.06 | 9.34 | -16.40 | 4.92 | 3.28 |
| EPS Growth % | 125.21% | -1795% | -90.7% | 269.29% | -110.97% | 323.55% | -18.81% | 75.86% | -293.36% | 156.95% | -433.33% | 50% | - |
| EPS (Basic) | - | -3.39 | 0.20 | 2.17 | -1.27 | 11.76 | -5.18 | -4.36 | -18.06 | 9.38 | -16.40 | 4.92 | 3.28 |
| Diluted Shares Outstanding | 79.2M | 83M | 90.1M | 95.4M | 94.8M | 95.7M | 93.8M | 93.6M | 93.3M | 93.9M | 93.5M | 93.5M | 93.5M |
| Basic Shares Outstanding | 78.1M | 83M | 89.5M | 94.5M | 94.8M | 94.2M | 93.8M | 93.6M | 93.3M | 93.5M | 93.5M | 93.5M | 93.5M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | 5.93% | - | - | - |
Quick answers to the most common questions about buying ADNT stock.
For fiscal year 2025, Adient plc (ADNT) reported total revenue of $14.54B. This represents a 34.1% decline compared to $22.04B in 2014.
Adient plc (ADNT) reported a net loss of $281.0M for the fiscal year ending 2025.
Adient plc (ADNT) reported an operating income of $439.0M, resulting in an operating profit margin of 3.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Adient plc (ADNT) generated $961.0M in gross profit for the year, representing a gross profit margin of 6.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent negative net margins
Metrics are mathematically derived from official filings.
Stabilizing Revenue Amid Cyclical Pressures
Adient's revenue has stabilized around $3.6-3.9B per quarter, with recent growth of 5.0% YoY in Q3 2026, but the -1.0% annual decline suggests a plateau, according to reported figures.
The sequential revenue trend shows a modest recovery from the 2024 trough, with Q3 2026 reaching $3.9B, up from $3.7B in the prior year. However, the -1.0% YoY decline in the latest quarter indicates that growth is not yet durable, likely reflecting flat global light vehicle production. The stability in revenue is a positive sign, but the lack of acceleration suggests Adient is not gaining meaningful market share or benefiting from content-per-vehicle increases.
Gross Margin Trapped in Low Single Digits
Gross margin has hovered between 5.6% and 7.2% over the past ten quarters, with Q3 2026 at 6.0%, reflecting a pass-through cost structure and limited pricing power, as per financial statements.
Adient's gross margin remains structurally low, consistently below 7%, which is significantly lower than peers like Lear (8.2%) and Magna (10.3%). This suggests that the company has limited ability to pass on input cost increases or capture value from content-rich seating. The slight improvement from 5.6% in Q3 2024 to 6.0% in Q3 2026 is marginal and may indicate that cost recovery mechanisms are only partially offsetting commodity inflation.
Operating Leverage Fails to Materialize
Operating margin has remained in a narrow 2.3%-3.4% band despite revenue fluctuations, with Q3 2026 at 2.9%, indicating that fixed costs are not being leveraged effectively, based on reported data.
Despite revenue growth of 5% YoY in Q3 2026, operating income only grew from $108M to $114M, a 5.6% increase, which is roughly in line with revenue growth. This suggests that operating leverage is minimal, as SG&A expenses have remained relatively flat around $130-140M per quarter. The lack of scaling in operating income relative to revenue implies that Adient is not achieving meaningful cost efficiencies, possibly due to the high fixed-cost nature of its assembly plants and the need to maintain JIS capabilities.
Net Income Volatility Masks Underlying Weakness
Net income swung from -$335M in Q2 2025 to $25M in Q3 2026, with EPS of $0.32 missing consensus by 27%, indicating that reported earnings are subject to significant one-off items, as per SEC filings.
The large loss in Q2 2025 was likely driven by impairment or restructuring charges, while recent quarters show small profits. However, the negative net margin of -1.9% over the TTM and ROE of -12.0% suggest that the company is not generating sustainable profitability. The EPS miss in Q3 2026, despite a positive net income, may indicate that the quality of earnings is low, possibly due to tax benefits or non-operating gains. Investors should monitor the sustainability of these earnings, as the underlying operating margin remains thin.
COGS Dominates, SG&A Stable
COGS consistently consumes over 93% of revenue, with Q3 2026 at $3.7B, while SG&A has remained flat around $130M, indicating that cost control is focused on overhead, as reported in financial statements.
The cost structure is heavily weighted towards COGS, which is typical for a pass-through manufacturer. SG&A has been remarkably stable, ranging from $117M to $144M, suggesting disciplined overhead management. However, the lack of reduction in SG&A as a percentage of revenue (around 3.5%) indicates that there is limited room for further cost cutting without impacting operations. The R&D line is mostly zero, except for fiscal year-end quarters, which may reflect that R&D is expensed through COGS or capitalized, but the absence of a consistent R&D expense is notable for a company that needs to innovate in smart seating.
Q2 2025: A Turning Point or a One-Off?
Q2 2025 saw a net loss of -$335M and EPS of -$3.99, a dramatic deviation from the typical $20-40M quarterly profit, likely due to a major restructuring or impairment, based on reported figures.
This quarter stands out as the most significant inflection in the income statement history, with a net margin of -9.3%. The subsequent quarters show a recovery to small profits, but the loss may have been driven by a one-time charge, such as a goodwill impairment or a major restructuring program. The lasting impact is that it highlights the vulnerability of Adient's earnings to non-operating items, and investors should be cautious about extrapolating future profitability from the recent small profits. The recovery to positive EPS in Q3 2026 is encouraging, but the underlying operating margin remains thin, suggesting that the company is not yet out of the woods.
What Could Invalidate the Base Case
Despite recent stabilization, Adient's persistently negative net margin of -1.9% and ROE of -12.0% suggest that the company may be structurally unprofitable, as per reported figures.
Short-sellers would likely focus on the fact that Adient has failed to generate consistent positive net income over the past ten quarters, with only three quarters of positive net income and a cumulative net loss. The gross margin of 6.0% is significantly below peers, indicating a lack of pricing power that could be exacerbated by rising raw material costs. Additionally, the high operating leverage means that any downturn in global light vehicle production could push the company back into deep losses, as seen in Q2 2025. The reliance on unconsolidated JV equity income, which is not reflected in revenue, may also be overstated, and the recent EPS miss suggests that management's guidance may be overly optimistic.