Q4 2024 Adient PLC Earnings Call Transcript
Key Points
- Adient PLC (ADNT) achieved a solid Q4 performance despite a challenging macro environment, maintaining adjusted EBITDA at $235 million and generating over $190 million in free cash flow.
- The company successfully expanded margins by 30 basis points despite a 4% year-over-year decline in revenue.
- Adient PLC (ADNT) returned nearly 100% of its fiscal year '24 free cash flow to shareholders, including $275 million in share repurchases.
- The company is leveraging automation and artificial intelligence to drive efficiencies, including launching an AI welding inspection tool and developing automated sewing cells.
- Adient PLC (ADNT) continues to win new business in China, expecting double-digit annual growth between fiscal year '24 and fiscal year '27, with a focus on local Chinese OEMs.
- Adient PLC (ADNT) faces ongoing volume pressures in Europe and the Americas, with a forecasted 5% contraction in European light vehicle production for fiscal '25.
- The company's total EBITDA margins remain at 6%, which is below their goal of achieving 8% EBITDA margins.
- Adient PLC (ADNT) anticipates lower profitability in EMEA due to volume and mix headwinds, with the first half of fiscal year '25 likely being the low point of their margin recovery plan.
- The company is under a heightened risk of impairment in EMEA due to recent trends in results, and restructuring costs are expected to increase to approximately $100 million in fiscal year 2025.
- Adient PLC (ADNT) expects a $300 million headwind in the Americas due to the sunsetting of the Dodge Ram Classic program and the exit of the BMW business in Europe, impacting fiscal year '25 sales.
Welcome to the Adient's Fourth Quarter 2024 Earnings Call. Parties will be in a listen-only mode until the question-and-answer session of todayâs call. I'd like to inform all parties that todayâs call is being recorded. (Operator Instructions)
I'd now like to turn the call over to Mike Heifler. Thank you. You may begin.
Thank you, Amenda. Good morning, everyone and thank you for joining us. The press release and presentation slides for our call today have been posted to the Investors section of our website at adient.com.
This morning, I'm joined by Jerome Dorlack, Adient's President and Chief Executive Officer; and Mark Oswald, our Executive Vice President and Chief Financial Officer. On today's call, Jerome will provide an update on the business.
Based on feedback from our investors, we have spotlighted our efforts in the EMEA and APAC regions, as well as how we are driving overall future positive performance. Mark will then review our Q4 financial
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