Adient plcADNT
Adient plc Segments Disclosure
17. Segment Information
Adient manages its business on a geographic basis and operates in the following three reportable segments for financial reporting purposes: 1) Americas, which is inclusive of North America and South America; 2) Europe, the Middle East and Africa (“EMEA”) and 3) Asia Pacific/China (“Asia”).
Adient evaluates the performance of its reportable segments using an adjusted EBITDA metric defined as income before income taxes and noncontrolling interests, excluding net financing charges, restructuring and impairment costs, restructuring-related costs, net mark-to-market adjustments on pension plans, transaction gains/losses, purchase accounting amortization, depreciation, stock-based compensation and other non-recurring items (“Adjusted EBITDA”). Also, certain corporate-related costs are not allocated to the segments. The reportable segments are consistent with how management views the markets served by Adient and reflect the financial information that is reviewed by its chief operating decision maker.
During the fourth quarter of fiscal 2025, Adient adopted ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure. Prior period disclosures have been reclassified to conform to the current period presentation. The President and Chief Executive Officer is Adient’s chief operating decision maker (“CODM”). The CODM evaluates the performance of the reportable segments using Adjusted EBITDA. Adjusted EBITDA is used for forecasting and to measure periodic performance and cash flow generation of the reportable segments and to make capital allocation decisions within the operations that ultimately provide shareholder returns.
The following tables summarize Adient's reportable segments' sales and Adjusted EBITDA which includes significant expenses that align with the segment-level information that is regularly provided to the CODM. The reportable segments’ Adjusted EBITDA is reconciled to income (loss) before income taxes for fiscal 2025, 2024 and 2023:
| Year Ended September 30, 2025 | ||||||||||||||||||||||||||
| (in millions) | Americas | EMEA | Asia | Consolidated | ||||||||||||||||||||||
| Segment net sales | $ | 6,856 | $ | 4,773 | $ | 2,983 | $ | 14,612 | ||||||||||||||||||
| Eliminations | (77) | |||||||||||||||||||||||||
| Consolidated net sales | $ | 14,535 | ||||||||||||||||||||||||
| Material costs | 4,444 | 2,958 | 2,056 | |||||||||||||||||||||||
| Labor and overhead | 1,819 | 1,495 | 419 | |||||||||||||||||||||||
| Administrative, engineering and allocated costs | 191 | 213 | 122 | |||||||||||||||||||||||
| Equity income | — | 17 | 54 | |||||||||||||||||||||||
| Adjusted EBITDA | $ | 402 | $ | 124 | $ | 440 | $ | 966 | ||||||||||||||||||
| Reconciliation to income (loss) before income taxes | ||||||||||||||||||||||||||
Corporate-related costs (1) | (85) | |||||||||||||||||||||||||
Restructuring and impairment costs (2) | (392) | |||||||||||||||||||||||||
Purchase accounting amortization (3) | (47) | |||||||||||||||||||||||||
Restructuring-related activities (4) | (11) | |||||||||||||||||||||||||
Gain on disposal transactions (5) | 4 | |||||||||||||||||||||||||
| Depreciation expense | (279) | |||||||||||||||||||||||||
| Equity based compensation | (32) | |||||||||||||||||||||||||
Other items (6) | (9) | |||||||||||||||||||||||||
| Net financing charges | (193) | |||||||||||||||||||||||||
| Other pension expense | (10) | |||||||||||||||||||||||||
| Income (loss) before income taxes | (88) | |||||||||||||||||||||||||
Notes:
(1) Certain corporate-related costs are not allocated to the segments including executive office, communications, corporate development, legal and corporate finance.
(2) Reflects restructuring charges for costs that are probable and reasonably estimable and non-recurring asset impairments, including a non-recurring, non-cash goodwill impairment charge of $333 million in the EMEA reporting unit, restructuring charges of $51 million, and an impairment charge of $8 million related to Adient’s investment in Adient Aerospace. Refer to Note 6, “Goodwill and Other Intangible Assets” and Note 15, “Restructuring and Impairment Costs” of the notes to the consolidated financial statements for additional information.
(3) Reflects amortization of intangible assets including those related to partially-owned affiliates recorded within equity income.
(4) Reflects restructuring-related charges for costs that are recorded as incurred or as earned and other non-recurring impacts that are directly attributable to restructuring activities, including $29 million of restructuring-related charges primarily recorded in cost of sales and $5 million of restructuring-related charges at a partially-owned affiliate recorded in equity income, partially offset by a $23 million gain on the sales of restructured facilities across all segments recorded in SG&A.
(5) Reflects a $4 million gain on sale of Adient's partially-owned affiliate investment in Setex recorded within equity income.
(6) Includes $10 million of third-party consulting costs associated with strategic planning and a $1 million non-recurring loss at a partially-owned affiliate recorded within equity income, partially offset by a $2 million gain on a non-recurring contract related settlement.
| Year Ended September 30, 2024 | ||||||||||||||||||||||||||
| (in millions) | Americas | EMEA | Asia | Consolidated | ||||||||||||||||||||||
| Segment net sales | $ | 6,763 | $ | 5,029 | $ | 2,989 | $ | 14,781 | ||||||||||||||||||
| Eliminations | (93) | |||||||||||||||||||||||||
| Consolidated net sales | $ | 14,688 | ||||||||||||||||||||||||
| Material costs | 4,394 | 3,123 | 2,061 | |||||||||||||||||||||||
| Labor and overhead | 1,841 | 1,568 | 426 | |||||||||||||||||||||||
| Administrative, engineering and allocated costs | 156 | 198 | 136 | |||||||||||||||||||||||
| Equity income | 3 | 15 | 73 | |||||||||||||||||||||||
| Adjusted EBITDA | $ | 375 | $ | 155 | $ | 439 | $ | 969 | ||||||||||||||||||
| Reconciliation to income (loss) before income taxes | ||||||||||||||||||||||||||
Corporate-related costs (1) | (89) | |||||||||||||||||||||||||
Restructuring and impairment costs (2) | (168) | |||||||||||||||||||||||||
Purchase accounting amortization (3) | (48) | |||||||||||||||||||||||||
Restructuring-related activities (4) | — | |||||||||||||||||||||||||
Loss on disposal transactions (5) | (7) | |||||||||||||||||||||||||
| Depreciation expense | (285) | |||||||||||||||||||||||||
| Equity based compensation | (31) | |||||||||||||||||||||||||
Other items (6) | 2 | |||||||||||||||||||||||||
| Net financing charges | (189) | |||||||||||||||||||||||||
| Other pension expense | (21) | |||||||||||||||||||||||||
| Income (loss) before income taxes | 133 | |||||||||||||||||||||||||
Notes:
(1) Certain corporate-related costs are not allocated to the segments including executive office, communications, corporate development, legal and corporate finance.
(2) Reflects restructuring charges for costs that are probable and reasonably estimable and non-recurring asset impairments, including restructuring charges of $159 million and an impairment charge of $9 million related to Adient’s investment in Adient Aerospace. Refer to Note 15, “Restructuring and Impairment Costs” of the notes to the consolidated financial statements for additional information.
(3) Reflects amortization of intangible assets including those related to partially-owned affiliates recorded within equity income.
(4) Reflects restructuring-related charges for costs that are recorded as incurred or as earned and other non-recurring impacts that are directly attributable to restructuring activities, including a $10 million gain on sale of a restructured facility in Americas recorded in SG&A, offset by $10 million in restructuring-related charges primarily recorded in cost of sales.
(5) Includes an $8 million loss on sale of 51% of Adient's interest in LFADNT, partially offset by a $1 million gain on sale of a partially-owned affiliate recorded within equity income. Refer to Note 3, “Acquisitions and Divestitures,” of the notes to the consolidated financial statements for additional information.
(6) Includes a $3 million non-recurring gain on a contract related settlement and $1 million of indirect tax recoveries in Brazil, partially offset by $1 million one-time divestiture related tax impact at a partially-owned affiliate recorded within equity income and $1 million of transaction costs.
| Year Ended September 30, 2023 | ||||||||||||||||||||||||||
| (in millions) | Americas | EMEA | Asia | Consolidated | ||||||||||||||||||||||
| Segment net sales | $ | 7,220 | $ | 5,195 | $ | 3,085 | $ | 15,500 | ||||||||||||||||||
| Eliminations | (105) | |||||||||||||||||||||||||
| Consolidated net sales | $ | 15,395 | ||||||||||||||||||||||||
| Material costs | 4,755 | 3,268 | 2,096 | |||||||||||||||||||||||
| Labor and overhead | 1,926 | 1,517 | 463 | |||||||||||||||||||||||
| Administrative, engineering and allocated costs | 206 | 193 | 134 | |||||||||||||||||||||||
| Equity income | 3 | 15 | 72 | |||||||||||||||||||||||
| Adjusted EBITDA | $ | 336 | $ | 232 | $ | 464 | $ | 1,032 | ||||||||||||||||||
| Reconciliation to income (loss) before income taxes | ||||||||||||||||||||||||||
Corporate-related costs (1) | (94) | |||||||||||||||||||||||||
Restructuring and impairment costs (2) | (40) | |||||||||||||||||||||||||
Purchase accounting amortization (3) | (52) | |||||||||||||||||||||||||
Restructuring-related activities (4) | 2 | |||||||||||||||||||||||||
Loss on disposal transactions (5) | (6) | |||||||||||||||||||||||||
| Depreciation expense | (290) | |||||||||||||||||||||||||
| Equity based compensation | (34) | |||||||||||||||||||||||||
Other items (6) | 5 | |||||||||||||||||||||||||
| Net financing charges | (195) | |||||||||||||||||||||||||
| Other pension expense | (33) | |||||||||||||||||||||||||
| Income (loss) before income taxes | 295 | |||||||||||||||||||||||||
Notes:
(1) Certain corporate-related costs are not allocated to the segments including executive office, communications, corporate development, legal and corporate finance.
(2) Reflects restructuring charges for costs that are probable and reasonably estimable and non-recurring asset impairments. Fiscal 2023 reflects restructuring charges of $40 million. Refer to Note 15, “Restructuring and Impairment Costs” of the notes to the consolidated financial statements for additional information.
(3) Reflects amortization of intangible assets including those related to partially-owned affiliates recorded within equity income.
(4) Reflects restructuring-related charges for costs that are recorded as incurred or as earned and other non-recurring impacts that are directly attributable to restructuring activities, including a $10 million gain on sale of a restructured facility in Americas recorded in SG&A, partially offset by $6 million of restructuring-related charges primarily recorded in cost of sales and $2 million of restructuring-related charges at a partially-owned affiliate recorded in equity income.
(5) Reflects $3 million and $3 million of non-cash impairment related to certain of Adient's investments in partially-owned affiliates in Asia and EMEA, respectively, recorded within equity income.
(6) Reflects $4 million of one-time divestiture gain at a partially-owned affiliate recorded within equity income and $4 million of a gain associated with the retrospective recovery of indirect tax credits in Brazil, partially offset by $3 million of transaction costs.
Additional Segment Information
| Year Ended September 30, 2025 | ||||||||||||||||||||||||||||||||
| Reportable Segments | Reconciling Items(1) | Consolidated | ||||||||||||||||||||||||||||||
| (in millions) | Americas | EMEA | Asia | |||||||||||||||||||||||||||||
| Total Assets | 2,850 | 2,085 | 3,042 | 977 | 8,954 | |||||||||||||||||||||||||||
| Investment in partially-owned affiliates | 3 | 37 | 236 | — | 276 | |||||||||||||||||||||||||||
| Equity income | — | 17 | 54 | (3) | 68 | |||||||||||||||||||||||||||
| Depreciation | 126 | 106 | 47 | — | 279 | |||||||||||||||||||||||||||
| Amortization | 11 | — | 35 | — | 46 | |||||||||||||||||||||||||||
| Capital Expenditures | 94 | 105 | 46 | — | 245 | |||||||||||||||||||||||||||
(1) Corporate-related assets primarily include cash and assets held for sale. Specific reconciling items for equity income represents $2 million of purchase accounting amortization, a $5 million restructuring charges at an affiliate, partially offset by a $4 million gain on a disposal transaction.
| Year Ended September 30, 2024 | ||||||||||||||||||||||||||||||||
| Reportable Segments | Reconciling Items(1) | Consolidated | ||||||||||||||||||||||||||||||
| (in millions) | Americas | EMEA | Asia | |||||||||||||||||||||||||||||
| Total Assets | 2,863 | 2,349 | 3,185 | 954 | 9,351 | |||||||||||||||||||||||||||
| Investment in partially-owned affiliates | 28 | 37 | 273 | — | 338 | |||||||||||||||||||||||||||
| Equity income | 3 | 15 | 73 | (1) | 90 | |||||||||||||||||||||||||||
| Depreciation | 127 | 112 | 46 | — | 285 | |||||||||||||||||||||||||||
| Amortization | 12 | 2 | 33 | — | 47 | |||||||||||||||||||||||||||
| Capital Expenditures | 100 | 107 | 59 | — | 266 | |||||||||||||||||||||||||||
(1) Corporate-related assets primarily include cash and assets held for sale. Specific reconciling items for equity income represents $2 million of purchase accounting amortization, partially offset by a $1 million gain on a disposal transaction.
| Year Ended September 30, 2023 | ||||||||||||||||||||||||||||||||
| Reportable Segments | Reconciling Items(1) | Consolidated | ||||||||||||||||||||||||||||||
| (in millions) | Americas | EMEA | Asia | |||||||||||||||||||||||||||||
| Total Assets | 3,122 | 2,252 | 2,930 | 1,120 | 9,424 | |||||||||||||||||||||||||||
| Investment in partially-owned affiliates | 27 | 38 | 238 | — | 303 | |||||||||||||||||||||||||||
| Equity income | 3 | 15 | 72 | (6) | 84 | |||||||||||||||||||||||||||
| Depreciation | 133 | 107 | 50 | — | 290 | |||||||||||||||||||||||||||
| Amortization | 12 | 3 | 35 | — | 50 | |||||||||||||||||||||||||||
| Capital Expenditures | 114 | 81 | 57 | — | 252 | |||||||||||||||||||||||||||
(1) Corporate-related assets primarily include cash and assets held for sale. Specific reconciling items for equity income represents $6 million of non-cash impairments of Adient's investments in partially-owned affiliates, $2 million of restructuring-related charges, and $2 million of purchase accounting amortization, partially offset by a $4 million gain on sale of certain assets at affiliates in China.
Geographic Information
Financial information relating to Adient's operations by geographic area is as follows:
| Net Sales | ||||||||||||||||||||
| Year Ended September 30, | ||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Americas | ||||||||||||||||||||
| United States | $ | 6,140 | $ | 5,893 | $ | 6,530 | ||||||||||||||
| Mexico | 2,543 | 2,634 | 2,661 | |||||||||||||||||
| Other Americas | 299 | 314 | 338 | |||||||||||||||||
| Regional Elimination | (2,126) | (2,078) | (2,309) | |||||||||||||||||
| 6,856 | 6,763 | 7,220 | ||||||||||||||||||
| EMEA | ||||||||||||||||||||
| Germany | 903 | 942 | 1,046 | |||||||||||||||||
| Poland | 846 | 939 | 963 | |||||||||||||||||
| Spain | 718 | 744 | 725 | |||||||||||||||||
| Czech Republic | 694 | 756 | 900 | |||||||||||||||||
| Sweden | 545 | 567 | 517 | |||||||||||||||||
| Romania | 500 | 474 | 481 | |||||||||||||||||
| Other EMEA | 1,711 | 1,951 | 1,991 | |||||||||||||||||
| Regional Elimination | (1,144) | (1,344) | (1,428) | |||||||||||||||||
| 4,773 | 5,029 | 5,195 | ||||||||||||||||||
| Asia | ||||||||||||||||||||
| China | 1,286 | 1,420 | 1,385 | |||||||||||||||||
| Korea | 535 | 488 | 534 | |||||||||||||||||
| Thailand | 515 | 496 | 564 | |||||||||||||||||
| Japan | 415 | 344 | 373 | |||||||||||||||||
| Other Asia | 300 | 294 | 284 | |||||||||||||||||
| Regional Elimination | (68) | (53) | (55) | |||||||||||||||||
| 2,983 | 2,989 | 3,085 | ||||||||||||||||||
| Inter-segment elimination | (77) | (93) | (105) | |||||||||||||||||
| Total | $ | 14,535 | $ | 14,688 | $ | 15,395 | ||||||||||||||
| Long-Lived Assets (consisting of net property, plant and equipment) | ||||||||||||||
| Year Ended September 30, | ||||||||||||||
| (in millions) | 2025 | 2024 | ||||||||||||
| Americas | ||||||||||||||
| United States | $ | 416 | $ | 420 | ||||||||||
| Mexico | 143 | 151 | ||||||||||||
| Other Americas | 20 | 17 | ||||||||||||
| 579 | 588 | |||||||||||||
| EMEA | ||||||||||||||
| Poland | 155 | 155 | ||||||||||||
| Germany | 122 | 127 | ||||||||||||
| Spain | 52 | 39 | ||||||||||||
| Hungary | 38 | 31 | ||||||||||||
| Czech Republic | 28 | 35 | ||||||||||||
| Other EMEA | 177 | 163 | ||||||||||||
| 572 | 550 | |||||||||||||
| Asia | ||||||||||||||
| China | 107 | 115 | ||||||||||||
| Japan | 64 | 62 | ||||||||||||
| Thailand | 50 | 52 | ||||||||||||
| Korea | 21 | 23 | ||||||||||||
| Other Asia | 16 | 20 | ||||||||||||
| 258 | 272 | |||||||||||||
| Total | $ | 1,409 | $ | 1,410 | ||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 18, 2025 | Showing above |
| 2024 | Nov 18, 2024 | |
| 2023 | Nov 17, 2023 | |
| 2022 | Nov 22, 2022 | |
| 2021 | Nov 23, 2021 | |
| 2020 | Nov 30, 2020 | |
| 2019 | Nov 22, 2019 | |
| 2018 | Nov 29, 2018 | |
| 2017 | Nov 22, 2017 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.