Adient plc — Call Transcript 2026

To inform all participants that today's call is being recorded. If you have any objections, you may disconnect at this time. I will now turn the call over to Linda Conrad. Thank you. You may begin. Thank you, Denise. Good morning, everyone, and thank you for joining us. The press release and presentation slides for our call today have been posted to the investor 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. Mark will then review our Q1 financial results and our outlook for the remainder of our fiscal year. After our prepared remarks, we will open the call to your questions. Before I turn the call over to Jerome and Mark, there are a few items I'd like to cover. First, today's conference call will include forward-looking statements. These statements are based on the environment as we see it today, and therefore involve risks and uncertainties. I would caution you that our actual results could differ materially from these forward-looking statements made on the call. Please refer to slide 2 of the presentation for our complete safe harbor statement. In addition to the financial results presented on a GAAP basis, we will be discussing non-GAAP information that we believe is useful in evaluating the company's operating performance. Reconciliations for these non-GAAP measures to the closest GAAP equivalent can be found in the appendix of our full earnings release. With that, it's my pleasure to turn the call over to Jerome. Thanks, Linda. Good morning, everyone, and thank you for joining us to review our first quarter results. Today, we will focus on the quarter's solid performance and provide an update to our fiscal year 2026 outlook. We will also discuss new business awards and launches, as well as share some insights on our expectations for the future beyond fiscal year 2026. Before we get into the results, I would like to take a moment to acknowledge the hard work and dedication of our more than 65,000 employees that work diligently every day to deliver on our commitments, especially in light of the significant challenges during the past quarter. The management team and I appreciate the team's collective efforts, which resulted in a solid start to fiscal year 2026. I would also like to thank our customers around the world who continue to recognize Adient as the world's preeminent seating supplier. Thank you. Turning to slide 4, which summarizes our first quarter results. The beginning of the year was filled with uncertainty. The Novelis fire, the Nexperia shortage, and JLR productions were all unknowns, but as the Adient team does time and time again, we managed through each of these events by leveraging a resilient operating model. Thankfully, the uncertainty of these events is nearly behind us, and we are focused on execution to meet the needs of our customers. For the most part, volumes are expected to recover within our fiscal year, and we expect to mitigate much of the overall impact of these events. Our revenue for the quarter was up 4% year-over-year, primarily driven by FX tailwinds from Europe. Excluding FX, revenue in China was up significantly as expected, delivering on our growth commitments and more than offsetting production headwinds from North America. We remain laser-focused on new business wins and ensuring we remain our customer supplier of choice. We are supporting our customers' onshoring efforts in North America, both direct and indirect, and continue to view Adient as a net beneficiary of onshoring. While we have no new programs to announce at this time, we remain highly optimistic about the near-term potential for a large domestic OEM program. Our free cash flow generation and balance sheet remain strong, which allowed us to allocate capital in a disciplined manner. We returned an additional $25 million to shareholders through share repurchases this quarter, which Mark will detail further in his section, and we ended the quarter with $855 million in cash. Focusing beyond the operations and the quarterly financials, I would like to highlight that we have issued our 2025 sustainability report, which we will talk about in more detail in a few slides. Finally, as we look beyond the quarter to the full year, we are raising our guidance for revenue, Adjusted EBITDA, and free cash flow, which Mark will outline in more detail during his section. Let's turn now to slide 5. As fiscal year 2026 has become another year of transition for the industry, analysts and investors have been asking about fiscal year 2027 and beyond. So we wanted to provide our perspective on this year, as well as some insights on where Adient is heading. We have said a key factor impacting this year's outlook is volume, which is very true. We are a volume-driven business. Production volumes are trending higher, particularly in North America, and overall industry volume indicators remain positive. With this production outlook and our resilient operating model, we are confident that we can deliver solid business performance, and as a result, we are able to raise our guidance. But this year is much more, is about much more than just volume. It's about launching several key and complex new programs flawlessly. It's about continuing our drive for automation.... It's about exceeding our customers' expectations with new and innovative products. It's about ensuring that our teams have the tools and the skills to evolve as AI takes hold. These are the things we are focusing on this year that go beyond our drive for operational excellence. Whether it's cross-functional or cross-regional, our teams are collectively working together to ensure Adient is equally focused on operational excellence and growth. As a result, this is what we expect for 2027 fiscal year and beyond. We expect our investments in automation to ensure continued positive business performance, as most projects have a payback under 2 years. We are capitalizing on approximately 400,000 units of near-term onshoring opportunities, and we'll support our customers as they continue to reevaluate their manufacturing footprints. Our innovative products and processes, such as Sculpted Trim, will help us win new business as they are expected to improve styling and also reduce costs by nearly double-digit percents. We have accelerated our growth with China domestic OEMs, and will exit this year at 60% of our revenue in China from domestic OEMs. We expect this trend to continue. We expect our growth and cash flow generation to continue to reinforce our disciplined and balanced approach to capital allocation. It is for all these reasons that Adient is well-positioned for the long-term shareholder value creation. In addition to outlining our expectations, I also want to provide some additional specific context around our growth opportunities. As we have discussed, onshoring in North America remains a clear focus, and we are actively working with all of our customers to support their onshoring activities. To date, we have won approximately 150,000 units of direct onshoring business and hope to be able to provide an update on another significant win in the near term. For clarity, when we talk about onshoring, onshoring for us means business that is produced outside of the borders of the U.S. and is moved within the borders of the U.S. In addition to direct onshoring opportunities, we've also won indirect opportunities, resulting in an incremental 25,000 units for Adient. Beyond onshoring, our customers have continued to recognize us as a supplier of choice, resulting in approximately 100,000 units of new and conquest business to the Americas. The collective impact of these wins and anticipated wins is an additional estimated revenue of $500 million, with $300 million impacting fiscal year 2027, and the full $500 million impacting fiscal year 2028. Looking beyond the Americas, the growth outlook for Asia is also solid. We expect China will continue to have double-digit growth through fiscal year 2028, in spite of relatively flat overall vehicle production. In addition, Asia, outside of China, is expected to grow above market in both fiscal year 2027 and 2028. Turning to Europe, our teams continue to win new business in Europe. We expect these wins to offset the impact of our planned strategic program actions in the region and also expect these wins to be margin accretive. Now that we have outlined our future, future expectations, let's turn back to the near term and talk about the regions on the next slide on page seven. For the Americas, as we have discussed, the team delivered positive business performance in the first quarter despite the production disruptions, and expect their favorable business performance to continue. In addition, they are focused on executing key launches, including the Kia Telluride and the Rivian R2. Our manufacturing teams are also focused on expanding automation across plants wherever possible. Commercially, the team is laser-focused on growth and onshoring opportunities, which they will continue to aggressively pursue, as we already mentioned. In Europe, the overall industry remains challenged by volumes, capacity, and the importing of vehicles from China. This will continue to stretch the industry and the European team, but they remain committed to delivering positive business performance for the remainder of the year, just as they did this quarter. The European team is also focused on a complex launch with a German customer. The team continues to pursue and win new and conquest business, and restructuring activities remain on track as planned. Finally, in Asia, the team is aggressively pursuing innovation and is winning new business as customers recognize Adient as a supplier of choice. This would not happen without Adient's focus on operational excellence, which the team will continue to demonstrate as they launch new programs throughout the year. In China, the team continues to strengthen relationships with both China domestic OEMs and suppliers to drive top-line growth. As you can see in each of our regions, Adient's resilient operating model is focused on driving value for all of our stakeholders. Turning to page 8, we continue to win new and conquest business in all regions we operate in and have many successful ongoing launches to highlight. Starting in EMEA, as highlighted during our last earnings call, it appeared as if the region was showing signs of stabilization. We have seen customers move forward with some sourcing decisions, which is positive. We have recently won new metals business with Ford on a compact crossover SUV and have other sourcing decisions pending. We expect to see some of these benefits on these programs coming online in late fiscal year 2027 and early 2028. We have also just successfully launched complete seat business on the Mercedes-Benz GLB for the region. With that said, we are also hearing some mixed signals from customers on near-term volume concerns, and so Europe remains a bit more of a wait and see at this point. In Asia, our momentum continues to build, highlighted by new conquest business with leading domestic OEMs, key replacement business, and the successful launch of the Hyptec HT, which features a zero-gravity passenger seat and showcases the region's ability to deliver innovation at scale. And finally, in the Americas, we continue to strengthen our position with key replacement wins, such as the Honda Pilot and MDX metals business, and we successfully launched the region's first long-distance JIT program with the Chevy Bolt, which we commented on 18 months ago as a conquest win. A clear demonstration of our operational capabilities and our ability to meet customers' evolving needs. Before we move on, I want to underscore why we continue to win new and conquest business across every region. These wins are not coincidental. They're a direct result of our team's excellence in operational execution and their track record of successful launches and innovation, not only in product design, but also in manufacturing. I'd like to recognize the entire Adient team and the relentless effort and focused execution across the globe in delivering for our customers day in and day out. Customers continue to recognize Adient as a reliable, high-performing partner because we deliver. Our teams consistently meet and often exceed customers' expectations, and that performance builds trust, which translates into new awards, expanded platforms, and increased share with both global and domestic OEMs. Our success, our success in securing these programs is a reflection of the credibility our operations have earned over time, and it positions us exceptionally well as we look ahead to fiscal 2027 and beyond. These wins set the stage for innovations we're bringing to market that will further enhance our competitive position. For a closer look at one of these innovations, let's move to slide 9. Adient is clearly focused on innovation, and within the last few weeks, we announced the introduction of ModuTec, which showcases Adient's forward-thinking approach to modular manufacturing. This advancement will benefit Adient, our customers, and the ultimate end user greatly. ModuTec is a modular seat design solution that greatly simplifies the seat build process, that opens the door for a higher level of automation across our plants. For our customers, ModuTec means enhanced seat comfort and craftsmanship, faster and more flexible launch execution, and a lower delivered cost, all while enabling long-distance JIT and a more resilient supply chain solution. These advantages directly support our OEM partners' onshoring priorities and their ability to compete and make vehicles more affordable for the end customer. ModuTec unlocks another level of modularity. The early benefits we are seeing from modularity are compelling, with upwards of 20% total value chain savings, driven by significant labor and freight efficiencies, and nearly a 15% reduction in JIT floor space requirements. No other seat supplier is delivering a modular architecture at this scale. With this level of manufacturability improvement, modularity strengthens our position as a supplier of choice and enhances our ability to win new business, especially as our customers look to optimize their footprint. Ultimately, both ModuTec and modularity drive sustained margin expansion, capital efficiency, and enhanced free cash flow conversion. This is a prime example of how innovation in our product and process drives durable value, not only by lowering our cost structure, but by expanding our competitive advantage and our ability to drive sustainable shareholder value. Turning to slide 10, Adient remains focused on driving sustainable growth into our business and reducing our impact on climate change. We strive for responsible use of natural resources by improving energy efficiency in our operation, reducing the carbon footprint of our finished products, and developing processes that protect our planet's natural resources. Adient is pursuing the use of sustainable materials and products by identifying materials and manufacturing methods that minimize our environmental impact and promote a circular approach to product development. Some of the highlights for fiscal year 2025 include: We have had a 42% reduction in Scope 1 and Scope 2 emissions since 2019. We are proud to share that 30% of our electricity is now attributable to natural or to renewable resources. Our total water withdrawal was reduced by 6% year-over-year, and 80% of our suppliers have been assessed with a sustainability rating. These accomplishments aren't just environmental milestones. They demonstrate the discipline and execution that underpin Adient's operating model. They show that our teams are embedding sustainability into the way we run our business, strengthening our cost structure through efficiency, reducing long-term risk, and increasing resilience across our global footprint. Just as importantly, they reinforce our position as a trusted supplier to the world's leading OEMs, who are increasingly prioritizing responsible sourcing and measurable climate action. We view this as progress and as a competitive advantage, a value driver, and a key component of our long-term strategy. Let me leave you with a few takeaways before I hand it over to Mark. The company consistently delivers positive business performance through our focus on operational excellence, which allows us to meet or exceed our stakeholders' expectations and drive margin expansion. Our commitment to innovation and automation is reflected in our products, our processes, and our people, cross-functionally and across regions to deliver value-added solutions to our customers. While the company remains focused on operational excellence, we are also focused on delivering growth by being a supplier of choice with our customers. Adient is committed to being good stewards of capital on behalf of our shareholders through a disciplined approach to balanced capital allocation. Adient is well positioned for growth and committed to delivering long-term shareholder value. With that, I'll turn it over to Mark to take you through the financials and our outlook. Thanks, Jerome. Let's move to the financials on slide 13. Adhering to our typical format, the page shows our reported results on the left side and our adjusted results on the right side. I will focus my commentary on the adjusted results, which exclude special items that we view as either one-time in nature or otherwise skew important trends and underlying performance. While the details of all adjustments for the quarter are listed in the appendix of the presentation for reference, I would like to specifically highlight one adjustment related to our tax expense. You may recall on our fourth quarter call, when we gave our outlook for fiscal year 2026, we mentioned a one-time, non-recurring tax settlement in a non-U.S. jurisdiction. That settlement was recorded this quarter and is the key driver of the GAAP net loss of $22 million. Moving to the right side, high level for the quarter. Sales of $3.6 billion were 4% better than first quarter fiscal year 2025, with adjusted EBITDA of $207 million. As Jerome mentioned earlier, there were some temporary customer production disruptions during the quarter, and despite these challenges, the team improved adjusted EBITDA by 10 basis points year-over-year to 5.7%. This improvement continues to demonstrate the resilience of the Adient operating model and the team's ability to efficiently and effectively manage external disruptions. Moving on. Equity income was favorable year-over-year, primarily due to increased sales at our joint ventures. Adient reported adjusted net income of $28 million or $0.35 per share during the quarter. Let's move to the revenue and regional performance versus the market on slide 14. I'll go through the next few slides relatively quickly, as details for the results are included on the slides, allowing adequate time for Q&A. Adient reported consolidated sales of approximately $3.6 billion in Q1, which was a $149 million increase compared to the same period last year, primarily driven by FX tailwinds and favorable volume and pricing in the quarter. Shifting focus to the regional performance on the right-hand side of the slide. In the Americas, Adient's consolidated sales were generally in line with the broader market. In EMEA, sales trailed the market, reflecting customer mix and deliberate portfolio actions. Asia outperformed, driven by expected significant growth in China as new programs with domestic OEMs ramped throughout the quarter. The remainder of Asia lagged the industry trends, particularly in Japan and India, where our customer presence is more limited. In Adient's unconsolidated revenue, year-over-year results declined approximately 3%, adjusted for FX. Results were primarily affected by the joint venture portfolio rationalization action in the Americas that was finalized in late first quarter 2025. While both our EMEA and China unconsolidated businesses experienced growth year-over-year. Turning to Slide 15, we provided a bridge of adjusted EBITDA to show the performance of our segments between the periods. Adjusted EBITDA was up 6% at $207 million versus the same period last year. The primary drivers of the year-over-year comparison are detailed on the page. Business performance improved by $8 million year-over-year, despite the temporary inefficiencies experienced this quarter due to customer disruptions. As we've highlighted in the past, commercial recoveries tend to be a bit lumpy throughout the year, and the favorable timing of some recoveries partially offset these inefficiencies, as well as the planned increases in launch costs during the quarter. Equity income was favorable $8 million year-over-year, mainly due to higher sales and favorable business performance in our joint ventures. FX was a $6 million tailwind stemming from a combination of translational and transactional benefits. And finally, volume mix was an $11 million headwind during the quarter, driven by anticipated margin compression in China, as well as unfavorable customer mix due to disruptions with key customers in the Americas. Overall, it was a solid start to the year, and the Adient team did well from an operational perspective, continuing to execute and manage what is within our control. As in past quarters, we provided our detailed segment performance slides in the appendix of the presentation for your review. High-level, both the Americas and EMEA continue to drive positive business performance. In Asia, business performance was impacted by the timing of certain growth investments, namely increased engineering spend and launch costs. Before we move to the cash and liquidity section, I'd like to point out that we have provided additional context on how our customer base is distributed across regions. In the appendix, the Adient at a Glance slide provides a helpful view of our customer mix and revenue contribution based on our fiscal year 2025 consolidated revenue, as well as some of our top programs by region. Moving on, let me flip to our cash, liquidity, and capital structure on slides 16 and 17. Starting on Slide 16. For the first quarter, the company generated $15 million of free cash flow, defined as operating cash less CapEx. This was higher than our internal expectations leading into the quarter. The team did a lot of good work to drive this number higher. We also benefited from an approximately $20 million timing impact from the previously mentioned non-U.S. jurisdictional tax settlement, which is now expected to be paid out in Q2. On the right side of the slide, we have highlighted the key drivers impacting the free cash flow during the quarter. These include timing and amount of net customer tooling payments, reduced restructuring spend year-over-year in Europe, and higher adjusted earnings compared to the same period last year. These benefits were offset by timing and level of VAT tax payments, timing and level of commercial settlement payments, as well as your typical period-to-period working capital movements. As we've mentioned in the past, our cash flow is typically more second half-weighted due to the seasonality of our business. We continue to expect solid cash generation for the full year. In fact, our expectations have increased to $125 million. I'll have more on our outlook in just a minute. As a reminder, as mentioned on our last earnings call, there are a few timing and non-recurring items placing temporary downward pressure on our free cash flow this year, such as the one-time non-recurring tax settlement previously discussed. Beyond fiscal year 2026, we expect free cash flow to return to normalized levels and benefit from our increased sales, earnings in a lower level of cash restructuring. Moving now to Slide 17 for our liquidity and capital structure. Total liquidity for the company was $1.7 billion at December 31, 2025, comprised of $855 million of cash on hand and $823 million of undrawn capacity under a revolving line of credit. During the quarter, the company returned a total of $25 million to its shareholders, repurchasing approximately 2.1 million shares, leaving approved authorization of $110 million. In addition, Adient continues to proactively manage our debt maturity and costs. In January, subsequent to the quarter end, we successfully repriced our Term Loan B and achieved a 25 basis point reduction, resulting in an annual savings of approximately $1.5 million. Focusing on our balance sheet, Adient's debt and net debt position totaled approximately $2.4 billion and $1.5 billion, respectively, at December 31, 2025. The company's net leverage at December 31 was 1.7 times, comfortably within our target range of 1.5-2 times. Moving now to Slide 18. Let's review our updated expectations for the remainder of the fiscal year. As we highlighted in our Q4 call, when we provided our full year fiscal year 2026 guidance, we anticipated an improvement in production volume environment would be meaningful impact on our results. That said, with North America vehicle production now expected to be in the 15 million unit ballpark for fiscal year 2026, up from the 14.6 million at the time we gave the original guidance, we are raising our outlook for revenue, Adjusted EBITDA, and free cash flow. For the full year, we now expect sales to be approximately $14.6 billion, up from our previous guidance of $14.4 billion. Adjusted EBITDA is now expected to land around $880 million, up from our previous guidance of $845 million. free cash flow, as I indicated earlier, is now expected to be $125 million, up from $90 million in our previous guide. Keep in mind, this revised guidance reflects our current production schedules, FX rates, and assumes no significant changes to the current tariff policies. We continue to expect our overall earnings will be weighted towards the second half of the year. While we don't provide quarterly guidance, it's important to note that our second quarter results are expected to be impacted by the seasonality of the Chinese New Year, as in past quarters. The lower level of production forecast for Q2 versus Q1 will translate into lower consolidated sales, earnings, and equity income for the region. Obviously, regaining momentum and adding it to Q3 and Q4 as production picks up. Given the puts and takes in production across the regions, we'd expect Q2 EBITDA to look very similar to the quarter just completed. For purposes of our analysis, we don't expect any meaningful changes to equity income, interest expense, or cash taxes from our previous guidance, and CapEx is expected to remain at the elevated this year due to customer launch schedules and increased investment in innovation and automation. To summarize, production schedules are normalizing and that improved backdrop is showing up in our execution. We're carrying momentum into the balance of the year through disciplined cost and commercial management, and we expect solid free cash flow as the operating performance is expected to continue to flow through our bottom line. With that, we can now move to the question-and-answer portion of the call. Operator, can we please have our first question? Thank you. If you would like to ask a question, please press Star one. To withdraw your question, you may press Star two. Again, Star one to ask a question. The first question today comes from Colin Langan with Wells Fargo. Your line is open. Oh, great! Thanks for taking my questions. There's been some media headlines that there's possible disruption around the maybe, maybe it's a little worse for the F-150 F-Series recovery. Have you seen any impact in your schedule so far? And is there any way, you know, to kind of help frame maybe the, the risk to guidance if there is some hiccups in the recovery? So first of all, Colin, thanks very much for the question. You know, I think as we handled in the what would have been our Q4 call, you know, we're not, we're not going to kind of front run Ford. I think what we have guided to currently represents what we have on, on releases and our, our best information that we have today. You know, when Ford says kind of F-Series, we always have to remember there's going to be this split between F-150, which is the platform we have, and then Super Duty production that they have in Kentucky. And so we don't know if there is going to be a disruption, how that disruption will unfold. Then in terms of framing, you know, what the disruption will be, I think that's why we put into the appendix material, kind of what the split is, what our key platforms are, and how those key platforms break out. I think if they're, you know, once Ford comes out, I think they've said on the 10th, they'll give kind of their guidance and kind of updated figures. You know, if there is something meaningful, we can always circle back with you guys. But as of now, it's kind of best-known information. And I think as we said in the commentary or in my commentary, in the prepared remarks, we kind of anticipate making up any of that production that we lost in Q1, kind of now throughout the back half of the year. That's what we've tried to reflect in the guide as best we can. Got it. No, that's helpful. And maybe if you could just talk a bit on the onshoring opportunity that you flagged. I think it was a couple quarters ago, you said it was $175 million, so we're up to $500 million. And then also in your commentary today, I'm not sure if I heard it right, that there's a significant near-term upside that you're hoping to update us on. So any color on, you know, maybe how quickly some of these wins could come, because I feel like some might start trailing out into 2029 and beyond, or, or are these actually gonna still be things that hit in 2027 and 2028? Yeah. So what I would say is, you know, so the 175 has grown to 500. That includes a conquest win that's in there as well. So we picked up a conquest win. Call that, you know, it's about $100 million-$150 million. So between onshoring and conquest now it's up to $500 million. And the big, you know, the big thing that's still left to get that I think we feel, we feel confident in is a domestic OE who is moving production from Mexico into the U.S. You know, we're in the quote process, kind of the final stages of that right now. I think we're hopeful that we'll hear something in the next couple weeks on kind of the final decision, and that now makes up kind of the, the gap, of between... You know, we're at what I'd call $250 million of booked, $250-$300 million. That'll make up the gap between the $300-$500 million. So kind of the, if you wanna think of the bridge, last time we gave you an update, we were at $175 million. We're now kind of on the books for $300 million, and we've got another $200 million of wood to chop, and we hope to know about that in the next, I'd say, two weeks or so. Yep, and then Colin, with regard to your question in terms of what rolls on, right? Assuming that all comes in, you know, we've indicated that about $300 million of that $500 million comes in in 2027, and the other, you know, rest of it, the run rate, full run rate comes in in 2028. Yeah, I think that's a good point. I mean, we really don't see that, any of that really pushing out into 2029. I mean, it's and some of it's already launching in this year, with a lot of it now coming on in 2028. So it is, you know, known booked revenue. We're spending capital now and launching up now to be able to roll it on in 2027. Just to quickly clarify, the win that you're hoping to get from the domestic going from Mexico to the U.S., is that in the $500 already, or is that that would be incremental? Yes. Yes. No, that would be in the $500. That would be the bridge from kind of $300 on the books going to $500. Okay, got it. Okay. All right. Thanks for taking my questions. No, thank you. Thank you. The next question is from Nathan Jones with Stifel. Your line is open. Good morning, everyone. This is Andres on for Nathan Jones. Thanks for taking my question. Regarding Europe restructuring spend, can you please provide an update as to the progress you're making in restructuring the European business? Yeah, so, so, you know, what we've indicated in the past and, and what we've guided to looking forward, right? If you look at the elevated spend last year, call it, you know, around that $130 million-ish, most of that was in Europe. This year, 2026. Another, call it $120 million-$130 million in restructuring, primarily Europe. We did indicate that that goes down in fiscal year 2027. Beyond that, we said it's very hard for us to give you a good line of sight because a lot of any type of restructure that goes out beyond 2027 is really dependent on what our customers do with their programs, right? So we're in active discussions with them, just looking to see, you know, end of production for certain programs, what new programs might be rolling into plants. So really, you know, we'd love to be able to tell you what's happening in 2028 and 2029. There's gonna be restructuring. It's just a question of the magnitude of that, and again, it's really relative to what our customer production plans are. Awesome. Thank you. And then just one more. That's helpful. Asia adjusted EBITDA declined $7 million, driven by increased engineering spending for new programs. Should this be expected to continue, sustain? Just trying to get a better idea as to timing there. Yeah, I'd say that overall, APAC, right, if I look at business performance, that's gonna be positive for full year 2026. Clearly, there's gonna be certain quarters where you have increased launch and engineering costs, but again, those are gonna be offset as I go through the quarter with, you know, other ops, you know, other efficiencies that roll on. But we did, you know, indicate that net engineering and launch, we're gonna be higher this year as we continue to grow out and spend for the growth. Gotcha. Thank you. Appreciate it. Thanks for taking my questions. Thank you. The next question is from Emmanuel Rosner with Wolfe Research. Your line is open. Great. Thank you very much. I was hoping to ask you about the commercial settlement. I think it's you mentioned it in a few slides as a factor in terms of at least timing and sometimes magnitudes. Can you just help us understand if, you know, the magnitude of it is beyond what's usual, sort of like this year, if that's sort of like helping the outlook, or if you're just flagging it as essentially a cadence or calendarization impact? Yeah, Emmanuel, it's a good question, and thanks for the call and question. I'd say it's more of timing and cadence. You know, as you know, our business is a transactional business. There's always, you know, certain commercial negotiations that are planned for the year. So we did have what I'd say a bucket of planned commercial actions that the team had to go out there and get. Obviously, you know, first quarter was benefited from, you know, I'd say, the timing pull forward or certain of those commercial actions. So nothing that I would say is extraordinary versus what we were planning within the original 26 plan. Okay. And then if we're trying to think about, you know, fiscal 2026 as sort of like a bridge, or like in future years, are there any sort of extra recoveries expected this year that we should be capitalizing, or is that sort of normal course of business? I'd say normal course of business. Okay, understood. Help me out with this, because I don't want to do anything wrong. I also wanted to ask you about the Asia business. You know, obviously, you know, joint venture income, you know, trending in the right direction. Can you just remind us when does Adient get the cash from the joint venture? Yeah, so it depends on the joint venture, right? So we have them cadenced throughout the course of the year. So, you know, in the first quarter, we'll get certain dividends in. You know, if you look at, you know, our largest joint venture over there, Keiper, right? That's typically back half weighted in terms of when the dividends come in. Understood. Thank you. Thank you for the question, Emmanuel. Thank you. The next question comes from Joe Spak with UBS. Your line is open. Hi, Joe. Thanks. Good morning. Hey, good morning, everyone. Want to just go back to the growth opportunities. You know, and I know you gave a lot of good color here, but it does seem like maybe the pie is also growing, right, versus sort of what you indicated prior. Like, I just want to get your sense of sort of, you know, whether you think most of these reshoring decisions, at least in production, maybe not sort of the sourcing for that production is done more, or if you're continuing to see customers look to move more here, so that could, you know, maybe grow over time, even if it doesn't come in necessarily in a 2027 timeframe. And then on the EMEA portion, I know you mentioned, you know, a creative balance and balance out, and, you know, that, that's long been part of the plan, but it's been delayed. And are you implying that you now see better line of sight to that really start to kick in in 2027, where margins can start to, to move higher? Yeah, so, so, first, thanks for the questions, and both are really good questions. On the nearshoring or maybe onshoring, I think, yes, we see an acceleration in the discussion with our customers on onshoring opportunities, and what we've highlighted today are ones that we are actively in the quote process or awarded on, and that's what kind of totals to that $400 million-$500 million, including the Conquest wins. That said, to your point, we are seeing more activity with the, you know, particularly with the Japanese OEMs, where we are very well positioned, given our long-term, you know, partnerships with those customers for additional potential volume growth in the 2028, 2029 timeframe. Whether that be, you know, some of their, you know, vehicles, kind of two- and three-row SUV-type things, that they're looking to move back here. I do think there is that potential. A lot of it will come down to their capital allocation decisions and long term, where does USMCA set up next generation? So I think, as they make their footprint decisions over the next, possibly 6-8 months, that will then influence their loading of their vehicle assembly plants. And what's key for us is, you know, given those relationships, given where our JIT facilities are, and given how well we service them, we are ideally suited to be able to capitalize on that growth. And so I do think we see a potential tailwind, even beyond what we've talked to today, and there'll be more to come as they make their slotting decisions. So yes, I do think there is potential there. On your second question on EMEA, we are getting a greater line of sight on some of the roll-on, roll-off. I think as we look into fiscal year 2027 and 2028, you know, we do see recovery. Mark and I have been talking to you about the recovery, you know, and the balance and balance out. So it's not anything that's going to be above and beyond, you know, what we've been speaking, you know, seeing another, call it, you know, 25-50 basis points as we move out of 2026 into 2027 and just continue to slug through that region there. I just think it's getting the credibility in our customers' ability to launch the programs there. Certainly, the new business that we're bidding, the business that we're rolling on, is coming on at accretive margins. It's just the timing associated with it. What's really driving the timing of our customers launching programs over there is the different legislation around emissions and, you know, when are they going to phase out the current products, and are their current products competitive or not? And then what's happening, especially in the A and B segment, with respect to Chinese onshoring, are they competitive or aren't they? And they're really evaluating the things that I have in the pipeline. Are they competitive? And if they're not, they're going back to the drawing board, scrapping them, which is leading to delays in their product cycle, which is leading to our delays and our ability to then launch some of these new projects. Hopefully, that answers your question. Yeah. No, that it does. I appreciate that. Maybe just as a second question, and Mark, sort of a quick follow-up to your recoveries comment. I just like it does seem like it helped the results in the quarter from an earnings perspective. Can you just help me understand the -$37 million outflow you're showing in the cash from commercial negotiations? Like, is that just timing of when, like, you're booking it versus the cash? Like, I just any color on that would be helpful. It really is, Joe. So again, as I indicated, yes, it did benefit the quarter, helped offset some of those operational inefficiencies, but again, it was pulled ahead either from a Q3 or a Q4 or a Q2 timing right into Q1. So again, over the course of the year, it's no different than what we are expecting from a commercial. And again, whenever we have commercial recoveries, there's always a timing mismatch between what we're trying to recover versus when that expense or when that cost actually hit. Tariffs is a perfect example, right? We'll have a tariff, you know, impact in our financials, but yet we don't get the recovery for that for, you know, several quarters after that, right? So it's normal course, but I'd say timing. Okay, so that also helps the free cash flow cadence in the back half? What- Correct. Because that's when you expect to get that. Okay. Thank you. Thank you. And as a reminder, if you would like to ask a question, please press star one. The next question comes from Andrew Percoco with Morgan Stanley. Your line is open. Great. Thanks so much for taking the question this morning. I do just want to come back one more time to the Europe dynamics. You know, it sounds like you're expecting some improvement in that market in 2027. But in your prepared remarks, you talked about how, you know, one of the headwinds is, you know, essentially the China import volumes into that market. But that doesn't seem like something that is maybe going to slow anytime soon. So I guess my question would be, you know, what are you doing to essentially either buffer yourself or manage margins if that continues? And I guess maybe a second part to that question would be: is there an opportunity to support those customers? Obviously, you're, you've seen some success with the domestic, China OEMs in China, but as they, you know, export more volumes to other markets, I'm just wondering if there's an opportunity to be a supplier of choice there, and that might also help, you know, in terms of the margin improvement in that market. Thank you. Yeah. So I think there's two, two ways that we think about, you know, addressing that. So the first one is, you know, understanding where the Chinese exports are coming into Europe, what segments they're attacking there, and trying to insulate ourselves from the segment. So primarily, as they're coming into Europe, they're heavy on the A and B segment, and so we've been very focused on going up segment. If you look at, you know, a lot of our conquest wins in the region, you know, they've been with, say, kind of call it, you know, C segment, luxury segment, Porsche vehicles, the higher end segment, Volvo high-end segment type of platforms. And so the business that's rolling on, you know, we talked to, we didn't give the platform name. We're in the middle of a complex launch with a German OE at the moment, that's on a very high-end segment type of vehicle. And so it's going up segment on vehicles that are insulated at the moment from the Chinese, where the Chinese are succeeding within Europe. So that's one way that we're going about it. Another way that we're going about it is, as the Chinese are localizing within Europe, we're able to win components business there. We're also able to bid on some of the JIT products and win some of the JIT content where possible. That's another avenue that we're able to actually attack and benefit from some of that. Then the last way that we see is, you know, where possible, what vehicles are the Chinese exporting into China from, you know, or exporting into Europe from China, and can we, you know, win share there? In some cases, you know, because the large exporters would be with SAIC, and SAIC is historically one of our competitors' territory, Yanfeng, so that's not, you know, that's not territory that Adient plays in. But when it's a NIO or when it is a, you know, I'll point to, say, Geely as an example, and, you know, we've just recently signed a joint venture with one of Geely's largest seating suppliers that we're able to capitalize on, and that will give us access into that export market. And that's why we were very strategic in signing that joint venture, to be able to gain access into the export market for vehicles that are exported into Europe. And so it really is kind of a three-layered approach into looking at it. You know, insulate ourselves from the segments that are being attacked. Where we can't do that, can we gain components on vehicles that are being produced in there? And then looking at what vehicles are being exported, and can we gain content directly on the export vehicles? Got it. Okay, that's, that's super helpful context. And, and maybe just continuing on, on the onshoring, debate and, and opportunity, I guess. You know, I'm, I'm curious, and this may be a, a few years out, but, I'm curious to what extent you're hearing or having conversations with the China domestic OEMs in terms of their aspirations to come to the, the U.S. or, or Canada market. Obviously, you know, recently, Canada making a deal, with, with China on reducing tariffs on EVs. I'm just wondering if that's gonna become a bigger opportunity, for you guys going forward, and if you're starting to have those preliminary conversations. Yeah, so maybe. So the first thing I would say, and it's, you know, because you had said, you know, on the onshoring debate, it- I mean, I just want to be very, very clear. I mean, there is no debate. Adient will be a net beneficiary from onshoring. I mean, of all the seating suppliers, we will be a net winner from onshoring. It's already being shown today. We will be a net beneficiary, net winner from onshoring. That I mean, that's already shown, and that trend will continue. Secondly, to your question then, as it pertains to, you know, the Chinese kind of coming to, whether it be Canada or Mexico, I think Mexico is another potential, depending on how USMCA plays out and if the U.S. leverages Mexico into putting tariffs on. I mean, we are working through our China, because there are such strong ties in China, with some of those OEs that may explore a relationship with Canada or with Mexico. So absolutely, we're having those discussions, you know, with the BYDs of the world, with the Geelys of the world on, you know, if they want to go to Canada, or if they want to go to Mexico, we could be there to service them. The question is: What is their real appetite for doing so?... but if they, you know, if they want to explore that, we would absolutely be able to service them. You know, the question is, do they want to? And what are those long-term trade and industrialization ties look like? Absolutely, because of our strong, strong relationships in China, we are able and we do have those discussions. Okay, great. Thank you so much. Yeah, thank you for the questions. Thank you. The next question comes from Dan Levy with Barclays. Your line is open. Hi. Great, good morning. Thank you for taking the questions. Wanted to first start with a question on your equity income, and specifically the margin dynamics. This quarter was especially, especially strong, higher equity income despite lower revenue. And I think this is interesting in context of our understanding that some of the increased China business was supposed to roll on at lower margins. So maybe you could just talk through what occurred in the first quarter on the China equity income and how we might expect some of the margin dynamics to play out as you get some of this new China business, how margin diluted it is, and what's your confidence that the net profit will in fact be better? Yeah, so maybe a couple of points there, Dan, and thanks for the question. You know, we talk about the new business rolling on in China, which would result in what I'd call manageable compression in our margins over there. That's really the consolidated business, right? So think of that, you know, whether it's business with the Chinese locals that we're funneling through our, you know, consolidated sales, consolidated EBITDA, et cetera, in China. For the equity income piece, that's really derived from our joint ventures, right? Like, with Keiper and certain of the other joint ventures that we have over in EMEA. Those sales, as I mentioned in my prepared comments, were actually higher this quarter. And so again, it drove my performance and my better operating performance at those joint ventures, right? Keiper being one of those joint ventures. So I think it's important to differentiate between each of those buckets, the consolidated piece as well as the unconsolidated piece. Great. Understood. Thank you. And then second, wondering if you could just comment on... One of your competitors who reported this morning pointed to a large conquest win for complete seats on a U.S. automaker's truck program. I know you gave some positive updates here on onshoring, but maybe you could just talk about maybe some of the dynamics within sourcing for large trucks, which we know are a key program for you and also for you know, this competitor as well on some of the other platforms out there. Just if you could comment on that development from them. Yeah, I think what you're getting at, did we lose any large truck programs? You know, we haven't lost any large truck programs. I think their win isn't reflective of any Adient losses. So I, you know, I would anticipate that it is something that one of our competitors has lost, which, you guys know the market pretty well, so you can anticipate where that loss would have come from. But I think, you know, stepping back more strategically and saying, you know, what does this mean for the market? First of all, you know, congratulations to Ray and Frank and Jason up there in Southfield, and I mean that. I think more strategically, though, what it means for the market is, and this is what, I think, both they've been saying and we've been saying is, you know, this is a market that needs consolidation. You know, the competitor who had that business, we have been actively conquesting their business. You know, we've conquested a large portion of their other business that sits in, in other portions of the U.S. So we've taken quite a few of their dots off the map. We've taken dots off of their map elsewhere. And, you know, I just think it's representative of a larger symptom of what needs to happen in seating, which is consolidation. I think, you know, for them, I think it's, you know, I'll assume it's a good thing, and I think for seating, the more of this that can maybe force through consolidation is generally what needs to occur in the space. But for Adient, it's, you know, no impact. It isn't anything that we had. It's none of our business in terms of anything that we were an incumbent on. Great, thank you. That's helpful insight. Great. Thank you, and there are no further questions. Perfect. Thanks, Denise. And so in closing, I want to thank everyone once again for your interest in Adient. If you do have any follow-up questions, please feel free to reach out to me. Also, I would like to acknowledge that we will be in New York City next week, participating at the Wolfe Conference, and hope to see many of you then. With that, operator, we can close out the call. Thank you. This does conclude today's call. We thank you for your participation. At this time, you may disconnect your lines.

Speaker 9: To inform all participants that today's call is being recorded. If you have any objections, you may disconnect at this time. I will now turn the call over to Linda Conrad. Thank you. You may begin. To inform all participants that today's call is being recorded. to inform all participants that today's call is being recorded If you have any objections, you may disconnect at this time. if you have any objections you may disconnect at this time I will now turn the call over to Linda Conrad. i will now turn the call over to linda conrad Thank you. thank you You may begin. you may begin

Speaker 7: Thank you, Denise. Good morning, everyone, and thank you for joining us. The press release and presentation slides for our call today have been posted to the investor 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. Mark will then review our Q1 financial results and our outlook for the remainder of our fiscal year. After our prepared remarks, we will open the call to your questions. Before I turn the call over to Jerome and Mark, there are a few items I'd like to cover. First, today's conference call will include forward-looking statements. These statements are based on the environment as we see it today, and therefore involve risks and uncertainties. Thank you, Denise. thank you denise Good morning, everyone, and thank you for joining us. good morning everyone and thank you for joining us The press release and presentation slides for our call today have been posted to the investor section of our website at adient.com. the press release and presentation slides for our call today have been posted to the investor 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. 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. on today's call jerome will provide an update on the business Mark will then review our Q1 financial results and our outlook for the remainder of our fiscal year. mark will then review our q1 financial results and our outlook for the remainder of our fiscal year After our prepared remarks, we will open the call to your questions. after our prepared remarks we will open the call to your questions Before I turn the call over to Jerome and Mark, there are a few items I'd like to cover. before i turn the call over to jerome and mark there are a few items i'd like to cover First, today's conference call will include forward-looking statements. first today's conference call will include forward-looking statements These statements are based on the environment as we see it today, and therefore involve risks and uncertainties. these statements are based on the environment as we see it today and therefore involve risks and uncertainties I would caution you that our actual results could differ materially from these forward-looking statements made on the call. Please refer to slide 2 of the presentation for our complete safe harbor statement. In addition to the financial results presented on a GAAP basis, we will be discussing non-GAAP information that we believe is useful in evaluating the company's operating performance. Reconciliations for these non-GAAP measures to the closest GAAP equivalent can be found in the appendix of our full earnings release. With that, it's my pleasure to turn the call over to Jerome. I would caution you that our actual results could differ materially from these forward-looking statements made on the call. i would caution you that our actual results could differ materially from these forward-looking statements made on the call Please refer to slide 2 of the presentation for our complete safe harbor statement. please refer to slide 2 of the presentation for our complete safe harbor statement In addition to the financial results presented on a GAAP basis, we will be discussing non-GAAP information that we believe is useful in evaluating the company's operating performance. in addition to the financial results presented on a gaap basis we will be discussing non-gaap information that we believe is useful in evaluating the company's operating performance Reconciliations for these non-GAAP measures to the closest GAAP equivalent can be found in the appendix of our full earnings release. reconciliations for these non-gaap measures to the closest gaap equivalent can be found in the appendix of our full earnings release With that, it's my pleasure to turn the call over to Jerome. with that it's my pleasure to turn the call over to jerome

Speaker 5: Thanks, Linda. Good morning, everyone, and thank you for joining us to review our first quarter results. Today, we will focus on the quarter's solid performance and provide an update to our fiscal year 2026 outlook. We will also discuss new business awards and launches, as well as share some insights on our expectations for the future beyond fiscal year 2026. Before we get into the results, I would like to take a moment to acknowledge the hard work and dedication of our more than 65,000 employees that work diligently every day to deliver on our commitments, especially in light of the significant challenges during the past quarter. The management team and I appreciate the team's collective efforts, which resulted in a solid start to fiscal year 2026. Thanks, Linda. thanks linda Good morning, everyone, and thank you for joining us to review our first quarter results. good morning everyone and thank you for joining us to review our first quarter results Today, we will focus on the quarter's solid performance and provide an update to our fiscal year 2026 outlook. today we will focus on the quarter's solid performance and provide an update to our fiscal year 2026 outlook We will also discuss new business awards and launches, as well as share some insights on our expectations for the future beyond fiscal year 2026. we will also discuss new business awards and launches as well as share some insights on our expectations for the future beyond fiscal year 2026 Before we get into the results, I would like to take a moment to acknowledge the hard work and dedication of our more than 65,000 employees that work diligently every day to deliver on our commitments, especially in light of the significant challenges during the past quarter. before we get into the results i would like to take a moment to acknowledge the hard work and dedication of our more than 65,000 employees that work diligently every day to deliver on our commitments especially in light of the significant challenges during the past quarter The management team and I appreciate the team's collective efforts, which resulted in a solid start to fiscal year 2026. the management team and i appreciate the team's collective efforts which resulted in a solid start to fiscal year 2026 I would also like to thank our customers around the world who continue to recognize Adient as the world's preeminent seating supplier. Thank you. Turning to slide 4, which summarizes our first quarter results. The beginning of the year was filled with uncertainty. The Novelis fire, the Nexperia shortage, and JLR productions were all unknowns, but as the Adient team does time and time again, we managed through each of these events by leveraging a resilient operating model. Thankfully, the uncertainty of these events is nearly behind us, and we are focused on execution to meet the needs of our customers. For the most part, volumes are expected to recover within our fiscal year, and we expect to mitigate much of the overall impact of these events. Our revenue for the quarter was up 4% year-over-year, primarily driven by FX tailwinds from Europe. I would also like to thank our customers around the world who continue to recognize Adient as the world's preeminent seating supplier. i would also like to thank our customers around the world who continue to recognize adient as the world's preeminent seating supplier Thank you. thank you Turning to slide 4, which summarizes our first quarter results. turning to slide 4 which summarizes our first quarter results The beginning of the year was filled with uncertainty. the beginning of the year was filled with uncertainty The Novelis fire, the Nexperia shortage, and JLR productions were all unknowns, but as the Adient team does time and time again, we managed through each of these events by leveraging a resilient operating model. the novelis fire the nexperia shortage and jlr productions were all unknowns but as the adient team does time and time again we managed through each of these events by leveraging a resilient operating model Thankfully, the uncertainty of these events is nearly behind us, and we are focused on execution to meet the needs of our customers. thankfully the uncertainty of these events is nearly behind us and we are focused on execution to meet the needs of our customers For the most part, volumes are expected to recover within our fiscal year, and we expect to mitigate much of the overall impact of these events. for the most part volumes are expected to recover within our fiscal year and we expect to mitigate much of the overall impact of these events Our revenue for the quarter was up 4% year-over-year, primarily driven by FX tailwinds from Europe. our revenue for the quarter was up 4% year-over-year primarily driven by fx tailwinds from europe Excluding FX, revenue in China was up significantly as expected, delivering on our growth commitments and more than offsetting production headwinds from North America. We remain laser-focused on new business wins and ensuring we remain our customer supplier of choice. We are supporting our customers' onshoring efforts in North America, both direct and indirect, and continue to view Adient as a net beneficiary of onshoring. While we have no new programs to announce at this time, we remain highly optimistic about the near-term potential for a large domestic OEM program. Our free cash flow generation and balance sheet remain strong, which allowed us to allocate capital in a disciplined manner. We returned an additional $25 million to shareholders through share repurchases this quarter, which Mark will detail further in his section, and we ended the quarter with $855 million in cash. Excluding FX, revenue in China was up significantly as expected, delivering on our growth commitments and more than offsetting production headwinds from North America. excluding fx revenue in china was up significantly as expected delivering on our growth commitments and more than offsetting production headwinds from north america We remain laser-focused on new business wins and ensuring we remain our customer supplier of choice. we remain laser-focused on new business wins and ensuring we remain our customer supplier of choice We are supporting our customers' onshoring efforts in North America, both direct and indirect, and continue to view Adient as a net beneficiary of onshoring. we are supporting our customers' onshoring efforts in north america both direct and indirect and continue to view adient as a net beneficiary of onshoring While we have no new programs to announce at this time, we remain highly optimistic about the near-term potential for a large domestic OEM program. while we have no new programs to announce at this time we remain highly optimistic about the near-term potential for a large domestic oem program Our free cash flow generation and balance sheet remain strong, which allowed us to allocate capital in a disciplined manner. our free cash flow generation and balance sheet remain strong which allowed us to allocate capital in a disciplined manner We returned an additional $25 million to shareholders through share repurchases this quarter, which Mark will detail further in his section, and we ended the quarter with $855 million in cash. we returned an additional $25 million to shareholders through share repurchases this quarter which mark will detail further in his section and we ended the quarter with $855 million in cash Focusing beyond the operations and the quarterly financials, I would like to highlight that we have issued our 2025 sustainability report, which we will talk about in more detail in a few slides. Finally, as we look beyond the quarter to the full year, we are raising our guidance for revenue, Adjusted EBITDA, and free cash flow, which Mark will outline in more detail during his section. Let's turn now to slide 5. As fiscal year 2026 has become another year of transition for the industry, analysts and investors have been asking about fiscal year 2027 and beyond. So we wanted to provide our perspective on this year, as well as some insights on where Adient is heading. We have said a key factor impacting this year's outlook is volume, which is very true. We are a volume-driven business. Focusing beyond the operations and the quarterly financials, I would like to highlight that we have issued our 2025 sustainability report, which we will talk about in more detail in a few slides. focusing beyond the operations and the quarterly financials i would like to highlight that we have issued our 2025 sustainability report which we will talk about in more detail in a few slides Finally, as we look beyond the quarter to the full year, we are raising our guidance for revenue, Adjusted EBITDA, and free cash flow, which Mark will outline in more detail during his section. finally as we look beyond the quarter to the full year we are raising our guidance for revenue adjusted ebitda and free cash flow which mark will outline in more detail during his section Let's turn now to slide 5. let's turn now to slide 5 As fiscal year 2026 has become another year of transition for the industry, analysts and investors have been asking about fiscal year 2027 and beyond. as fiscal year 2026 has become another year of transition for the industry analysts and investors have been asking about fiscal year 2027 and beyond So we wanted to provide our perspective on this year, as well as some insights on where Adient is heading. so we wanted to provide our perspective on this year as well as some insights on where adient is heading We have said a key factor impacting this year's outlook is volume, which is very true. we have said a key factor impacting this year's outlook is volume which is very true We are a volume-driven business. we are a volume-driven business Production volumes are trending higher, particularly in North America, and overall industry volume indicators remain positive. With this production outlook and our resilient operating model, we are confident that we can deliver solid business performance, and as a result, we are able to raise our guidance. But this year is much more, is about much more than just volume. It's about launching several key and complex new programs flawlessly. It's about continuing our drive for automation.... It's about exceeding our customers' expectations with new and innovative products. It's about ensuring that our teams have the tools and the skills to evolve as AI takes hold. These are the things we are focusing on this year that go beyond our drive for operational excellence. Whether it's cross-functional or cross-regional, our teams are collectively working together to ensure Adient is equally focused on operational excellence and growth. Production volumes are trending higher, particularly in North America, and overall industry volume indicators remain positive. production volumes are trending higher particularly in north america and overall industry volume indicators remain positive With this production outlook and our resilient operating model, we are confident that we can deliver solid business performance, and as a result, we are able to raise our guidance. with this production outlook and our resilient operating model we are confident that we can deliver solid business performance and as a result we are able to raise our guidance But this year is much more, is about much more than just volume. but this year is much more is about much more than just volume It's about launching several key and complex new programs flawlessly. it's about launching several key and complex new programs flawlessly It's about continuing our drive for automation.... it's about continuing our drive for automation It's about exceeding our customers' expectations with new and innovative products. it's about exceeding our customers' expectations with new and innovative products It's about ensuring that our teams have the tools and the skills to evolve as AI takes hold. it's about ensuring that our teams have the tools and the skills to evolve as ai takes hold These are the things we are focusing on this year that go beyond our drive for operational excellence. these are the things we are focusing on this year that go beyond our drive for operational excellence Whether it's cross-functional or cross-regional, our teams are collectively working together to ensure Adient is equally focused on operational excellence and growth. whether it's cross-functional or cross-regional our teams are collectively working together to ensure adient is equally focused on operational excellence and growth As a result, this is what we expect for 2027 fiscal year and beyond. We expect our investments in automation to ensure continued positive business performance, as most projects have a payback under 2 years. We are capitalizing on approximately 400,000 units of near-term onshoring opportunities, and we'll support our customers as they continue to reevaluate their manufacturing footprints. Our innovative products and processes, such as Sculpted Trim, will help us win new business as they are expected to improve styling and also reduce costs by nearly double-digit percents. We have accelerated our growth with China domestic OEMs, and will exit this year at 60% of our revenue in China from domestic OEMs. We expect this trend to continue. We expect our growth and cash flow generation to continue to reinforce our disciplined and balanced approach to capital allocation. As a result, this is what we expect for 2027 fiscal year and beyond. as a result this is what we expect for 2027 fiscal year and beyond We expect our investments in automation to ensure continued positive business performance, as most projects have a payback under 2 years. we expect our investments in automation to ensure continued positive business performance as most projects have a payback under 2 years We are capitalizing on approximately 400,000 units of near-term onshoring opportunities, and we'll support our customers as they continue to reevaluate their manufacturing footprints. we are capitalizing on approximately 400,000 units of near-term onshoring opportunities and we'll support our customers as they continue to reevaluate their manufacturing footprints Our innovative products and processes, such as Sculpted Trim, will help us win new business as they are expected to improve styling and also reduce costs by nearly double-digit percents. our innovative products and processes such as sculpted trim will help us win new business as they are expected to improve styling and also reduce costs by nearly double-digit percents We have accelerated our growth with China domestic OEMs, and will exit this year at 60% of our revenue in China from domestic OEMs. we have accelerated our growth with china domestic oems and will exit this year at 60% of our revenue in china from domestic oems We expect this trend to continue. we expect this trend to continue We expect our growth and cash flow generation to continue to reinforce our disciplined and balanced approach to capital allocation. we expect our growth and cash flow generation to continue to reinforce our disciplined and balanced approach to capital allocation It is for all these reasons that Adient is well-positioned for the long-term shareholder value creation. In addition to outlining our expectations, I also want to provide some additional specific context around our growth opportunities. As we have discussed, onshoring in North America remains a clear focus, and we are actively working with all of our customers to support their onshoring activities. To date, we have won approximately 150,000 units of direct onshoring business and hope to be able to provide an update on another significant win in the near term. For clarity, when we talk about onshoring, onshoring for us means business that is produced outside of the borders of the U.S. and is moved within the borders of the U.S. In addition to direct onshoring opportunities, we've also won indirect opportunities, resulting in an incremental 25,000 units for Adient. It is for all these reasons that Adient is well-positioned for the long-term shareholder value creation. it is for all these reasons that adient is well-positioned for the long-term shareholder value creation In addition to outlining our expectations, I also want to provide some additional specific context around our growth opportunities. in addition to outlining our expectations i also want to provide some additional specific context around our growth opportunities As we have discussed, onshoring in North America remains a clear focus, and we are actively working with all of our customers to support their onshoring activities. as we have discussed onshoring in north america remains a clear focus and we are actively working with all of our customers to support their onshoring activities To date, we have won approximately 150,000 units of direct onshoring business and hope to be able to provide an update on another significant win in the near term. to date we have won approximately 150,000 units of direct onshoring business and hope to be able to provide an update on another significant win in the near term For clarity, when we talk about onshoring, onshoring for us means business that is produced outside of the borders of the U.S. and is moved within the borders of the U.S. for clarity when we talk about onshoring onshoring for us means business that is produced outside of the borders of the u.s and is moved within the borders of the u.s In addition to direct onshoring opportunities, we've also won indirect opportunities, resulting in an incremental 25,000 units for Adient. in addition to direct onshoring opportunities we've also won indirect opportunities resulting in an incremental 25,000 units for adient Beyond onshoring, our customers have continued to recognize us as a supplier of choice, resulting in approximately 100,000 units of new and conquest business to the Americas. The collective impact of these wins and anticipated wins is an additional estimated revenue of $500 million, with $300 million impacting fiscal year 2027, and the full $500 million impacting fiscal year 2028. Looking beyond the Americas, the growth outlook for Asia is also solid. We expect China will continue to have double-digit growth through fiscal year 2028, in spite of relatively flat overall vehicle production. In addition, Asia, outside of China, is expected to grow above market in both fiscal year 2027 and 2028. Turning to Europe, our teams continue to win new business in Europe. Beyond onshoring, our customers have continued to recognize us as a supplier of choice, resulting in approximately 100,000 units of new and conquest business to the Americas. beyond onshoring our customers have continued to recognize us as a supplier of choice resulting in approximately 100,000 units of new and conquest business to the americas The collective impact of these wins and anticipated wins is an additional estimated revenue of $500 million, with $300 million impacting fiscal year 2027, and the full $500 million impacting fiscal year 2028. the collective impact of these wins and anticipated wins is an additional estimated revenue of $500 million with $300 million impacting fiscal year 2027 and the full $500 million impacting fiscal year 2028 Looking beyond the Americas, the growth outlook for Asia is also solid. looking beyond the americas the growth outlook for asia is also solid We expect China will continue to have double-digit growth through fiscal year 2028, in spite of relatively flat overall vehicle production. we expect china will continue to have double-digit growth through fiscal year 2028 in spite of relatively flat overall vehicle production In addition, Asia, outside of China, is expected to grow above market in both fiscal year 2027 and 2028. in addition asia outside of china is expected to grow above market in both fiscal year 2027 and 2028 Turning to Europe, our teams continue to win new business in Europe. turning to europe our teams continue to win new business in europe We expect these wins to offset the impact of our planned strategic program actions in the region and also expect these wins to be margin accretive. Now that we have outlined our future, future expectations, let's turn back to the near term and talk about the regions on the next slide on page seven. For the Americas, as we have discussed, the team delivered positive business performance in the first quarter despite the production disruptions, and expect their favorable business performance to continue. In addition, they are focused on executing key launches, including the Kia Telluride and the Rivian R2. Our manufacturing teams are also focused on expanding automation across plants wherever possible. Commercially, the team is laser-focused on growth and onshoring opportunities, which they will continue to aggressively pursue, as we already mentioned. We expect these wins to offset the impact of our planned strategic program actions in the region and also expect these wins to be margin accretive. we expect these wins to offset the impact of our planned strategic program actions in the region and also expect these wins to be margin accretive Now that we have outlined our future, future expectations, let's turn back to the near term and talk about the regions on the next slide on page seven. now that we have outlined our future future expectations let's turn back to the near term and talk about the regions on the next slide on page seven For the Americas, as we have discussed, the team delivered positive business performance in the first quarter despite the production disruptions, and expect their favorable business performance to continue. for the americas as we have discussed the team delivered positive business performance in the first quarter despite the production disruptions and expect their favorable business performance to continue In addition, they are focused on executing key launches, including the Kia Telluride and the Rivian R2. in addition they are focused on executing key launches including the kia telluride and the rivian r2 Our manufacturing teams are also focused on expanding automation across plants wherever possible. our manufacturing teams are also focused on expanding automation across plants wherever possible Commercially, the team is laser-focused on growth and onshoring opportunities, which they will continue to aggressively pursue, as we already mentioned. commercially the team is laser-focused on growth and onshoring opportunities which they will continue to aggressively pursue as we already mentioned In Europe, the overall industry remains challenged by volumes, capacity, and the importing of vehicles from China. This will continue to stretch the industry and the European team, but they remain committed to delivering positive business performance for the remainder of the year, just as they did this quarter. The European team is also focused on a complex launch with a German customer. The team continues to pursue and win new and conquest business, and restructuring activities remain on track as planned. Finally, in Asia, the team is aggressively pursuing innovation and is winning new business as customers recognize Adient as a supplier of choice. This would not happen without Adient's focus on operational excellence, which the team will continue to demonstrate as they launch new programs throughout the year. In China, the team continues to strengthen relationships with both China domestic OEMs and suppliers to drive top-line growth. In Europe, the overall industry remains challenged by volumes, capacity, and the importing of vehicles from China. in europe the overall industry remains challenged by volumes capacity and the importing of vehicles from china This will continue to stretch the industry and the European team, but they remain committed to delivering positive business performance for the remainder of the year, just as they did this quarter. this will continue to stretch the industry and the european team but they remain committed to delivering positive business performance for the remainder of the year just as they did this quarter The European team is also focused on a complex launch with a German customer. the european team is also focused on a complex launch with a german customer The team continues to pursue and win new and conquest business, and restructuring activities remain on track as planned. the team continues to pursue and win new and conquest business and restructuring activities remain on track as planned Finally, in Asia, the team is aggressively pursuing innovation and is winning new business as customers recognize Adient as a supplier of choice. finally in asia the team is aggressively pursuing innovation and is winning new business as customers recognize adient as a supplier of choice This would not happen without Adient's focus on operational excellence, which the team will continue to demonstrate as they launch new programs throughout the year. this would not happen without adient's focus on operational excellence which the team will continue to demonstrate as they launch new programs throughout the year In China, the team continues to strengthen relationships with both China domestic OEMs and suppliers to drive top-line growth. in china the team continues to strengthen relationships with both china domestic oems and suppliers to drive top-line growth As you can see in each of our regions, Adient's resilient operating model is focused on driving value for all of our stakeholders. Turning to page 8, we continue to win new and conquest business in all regions we operate in and have many successful ongoing launches to highlight. Starting in EMEA, as highlighted during our last earnings call, it appeared as if the region was showing signs of stabilization. We have seen customers move forward with some sourcing decisions, which is positive. We have recently won new metals business with Ford on a compact crossover SUV and have other sourcing decisions pending. We expect to see some of these benefits on these programs coming online in late fiscal year 2027 and early 2028. We have also just successfully launched complete seat business on the Mercedes-Benz GLB for the region. As you can see in each of our regions, Adient's resilient operating model is focused on driving value for all of our stakeholders. as you can see in each of our regions adient's resilient operating model is focused on driving value for all of our stakeholders Turning to page 8, we continue to win new and conquest business in all regions we operate in and have many successful ongoing launches to highlight. turning to page 8 we continue to win new and conquest business in all regions we operate in and have many successful ongoing launches to highlight Starting in EMEA, as highlighted during our last earnings call, it appeared as if the region was showing signs of stabilization. starting in emea as highlighted during our last earnings call it appeared as if the region was showing signs of stabilization We have seen customers move forward with some sourcing decisions, which is positive. we have seen customers move forward with some sourcing decisions which is positive We have recently won new metals business with Ford on a compact crossover SUV and have other sourcing decisions pending. we have recently won new metals business with ford on a compact crossover suv and have other sourcing decisions pending We expect to see some of these benefits on these programs coming online in late fiscal year 2027 and early 2028. we expect to see some of these benefits on these programs coming online in late fiscal year 2027 and early 2028 We have also just successfully launched complete seat business on the Mercedes-Benz GLB for the region. we have also just successfully launched complete seat business on the mercedes-benz glb for the region With that said, we are also hearing some mixed signals from customers on near-term volume concerns, and so Europe remains a bit more of a wait and see at this point. In Asia, our momentum continues to build, highlighted by new conquest business with leading domestic OEMs, key replacement business, and the successful launch of the Hyptec HT, which features a zero-gravity passenger seat and showcases the region's ability to deliver innovation at scale. And finally, in the Americas, we continue to strengthen our position with key replacement wins, such as the Honda Pilot and MDX metals business, and we successfully launched the region's first long-distance JIT program with the Chevy Bolt, which we commented on 18 months ago as a conquest win. A clear demonstration of our operational capabilities and our ability to meet customers' evolving needs. With that said, we are also hearing some mixed signals from customers on near-term volume concerns, and so Europe remains a bit more of a wait and see at this point. with that said we are also hearing some mixed signals from customers on near-term volume concerns and so europe remains a bit more of a wait and see at this point In Asia, our momentum continues to build, highlighted by new conquest business with leading domestic OEMs, key replacement business, and the successful launch of the Hyptec HT, which features a zero-gravity passenger seat and showcases the region's ability to deliver innovation at scale. in asia our momentum continues to build highlighted by new conquest business with leading domestic oems key replacement business and the successful launch of the hyptec ht which features a zero-gravity passenger seat and showcases the region's ability to deliver innovation at scale And finally, in the Americas, we continue to strengthen our position with key replacement wins, such as the Honda Pilot and MDX metals business, and we successfully launched the region's first long-distance JIT program with the Chevy Bolt, which we commented on 18 months ago as a conquest win. and finally in the americas we continue to strengthen our position with key replacement wins such as the honda pilot and mdx metals business and we successfully launched the region's first long-distance jit program with the chevy bolt which we commented on 18 months ago as a conquest win A clear demonstration of our operational capabilities and our ability to meet customers' evolving needs. a clear demonstration of our operational capabilities and our ability to meet customers' evolving needs Before we move on, I want to underscore why we continue to win new and conquest business across every region. These wins are not coincidental. They're a direct result of our team's excellence in operational execution and their track record of successful launches and innovation, not only in product design, but also in manufacturing. I'd like to recognize the entire Adient team and the relentless effort and focused execution across the globe in delivering for our customers day in and day out. Customers continue to recognize Adient as a reliable, high-performing partner because we deliver. Our teams consistently meet and often exceed customers' expectations, and that performance builds trust, which translates into new awards, expanded platforms, and increased share with both global and domestic OEMs. Before we move on, I want to underscore why we continue to win new and conquest business across every region. before we move on i want to underscore why we continue to win new and conquest business across every region These wins are not coincidental. these wins are not coincidental They're a direct result of our team's excellence in operational execution and their track record of successful launches and innovation, not only in product design, but also in manufacturing. they're a direct result of our team's excellence in operational execution and their track record of successful launches and innovation not only in product design but also in manufacturing I'd like to recognize the entire Adient team and the relentless effort and focused execution across the globe in delivering for our customers day in and day out. i'd like to recognize the entire adient team and the relentless effort and focused execution across the globe in delivering for our customers day in and day out Customers continue to recognize Adient as a reliable, high-performing partner because we deliver. customers continue to recognize adient as a reliable high-performing partner because we deliver Our teams consistently meet and often exceed customers' expectations, and that performance builds trust, which translates into new awards, expanded platforms, and increased share with both global and domestic OEMs. our teams consistently meet and often exceed customers' expectations and that performance builds trust which translates into new awards expanded platforms and increased share with both global and domestic oems Our success, our success in securing these programs is a reflection of the credibility our operations have earned over time, and it positions us exceptionally well as we look ahead to fiscal 2027 and beyond. These wins set the stage for innovations we're bringing to market that will further enhance our competitive position. For a closer look at one of these innovations, let's move to slide 9. Adient is clearly focused on innovation, and within the last few weeks, we announced the introduction of ModuTec, which showcases Adient's forward-thinking approach to modular manufacturing. This advancement will benefit Adient, our customers, and the ultimate end user greatly. ModuTec is a modular seat design solution that greatly simplifies the seat build process, that opens the door for a higher level of automation across our plants. Our success, our success in securing these programs is a reflection of the credibility our operations have earned over time, and it positions us exceptionally well as we look ahead to fiscal 2027 and beyond. our success our success in securing these programs is a reflection of the credibility our operations have earned over time and it positions us exceptionally well as we look ahead to fiscal 2027 and beyond These wins set the stage for innovations we're bringing to market that will further enhance our competitive position. these wins set the stage for innovations we're bringing to market that will further enhance our competitive position For a closer look at one of these innovations, let's move to slide 9. for a closer look at one of these innovations let's move to slide 9 Adient is clearly focused on innovation, and within the last few weeks, we announced the introduction of ModuTec, which showcases Adient's forward-thinking approach to modular manufacturing. adient is clearly focused on innovation and within the last few weeks we announced the introduction of modutec which showcases adient's forward-thinking approach to modular manufacturing This advancement will benefit Adient, our customers, and the ultimate end user greatly. this advancement will benefit adient our customers and the ultimate end user greatly ModuTec is a modular seat design solution that greatly simplifies the seat build process, that opens the door for a higher level of automation across our plants. modutec is a modular seat design solution that greatly simplifies the seat build process that opens the door for a higher level of automation across our plants For our customers, ModuTec means enhanced seat comfort and craftsmanship, faster and more flexible launch execution, and a lower delivered cost, all while enabling long-distance JIT and a more resilient supply chain solution. These advantages directly support our OEM partners' onshoring priorities and their ability to compete and make vehicles more affordable for the end customer. ModuTec unlocks another level of modularity. The early benefits we are seeing from modularity are compelling, with upwards of 20% total value chain savings, driven by significant labor and freight efficiencies, and nearly a 15% reduction in JIT floor space requirements. No other seat supplier is delivering a modular architecture at this scale. With this level of manufacturability improvement, modularity strengthens our position as a supplier of choice and enhances our ability to win new business, especially as our customers look to optimize their footprint. For our customers, ModuTec means enhanced seat comfort and craftsmanship, faster and more flexible launch execution, and a lower delivered cost, all while enabling long-distance JIT and a more resilient supply chain solution. for our customers modutec means enhanced seat comfort and craftsmanship faster and more flexible launch execution and a lower delivered cost all while enabling long-distance jit and a more resilient supply chain solution These advantages directly support our OEM partners' onshoring priorities and their ability to compete and make vehicles more affordable for the end customer. these advantages directly support our oem partners' onshoring priorities and their ability to compete and make vehicles more affordable for the end customer ModuTec unlocks another level of modularity. modutec unlocks another level of modularity The early benefits we are seeing from modularity are compelling, with upwards of 20% total value chain savings, driven by significant labor and freight efficiencies, and nearly a 15% reduction in JIT floor space requirements. the early benefits we are seeing from modularity are compelling with upwards of 20% total value chain savings driven by significant labor and freight efficiencies and nearly a 15% reduction in jit floor space requirements No other seat supplier is delivering a modular architecture at this scale. no other seat supplier is delivering a modular architecture at this scale With this level of manufacturability improvement, modularity strengthens our position as a supplier of choice and enhances our ability to win new business, especially as our customers look to optimize their footprint. with this level of manufacturability improvement modularity strengthens our position as a supplier of choice and enhances our ability to win new business especially as our customers look to optimize their footprint Ultimately, both ModuTec and modularity drive sustained margin expansion, capital efficiency, and enhanced free cash flow conversion. This is a prime example of how innovation in our product and process drives durable value, not only by lowering our cost structure, but by expanding our competitive advantage and our ability to drive sustainable shareholder value. Turning to slide 10, Adient remains focused on driving sustainable growth into our business and reducing our impact on climate change. We strive for responsible use of natural resources by improving energy efficiency in our operation, reducing the carbon footprint of our finished products, and developing processes that protect our planet's natural resources. Adient is pursuing the use of sustainable materials and products by identifying materials and manufacturing methods that minimize our environmental impact and promote a circular approach to product development. Ultimately, both ModuTec and modularity drive sustained margin expansion, capital efficiency, and enhanced free cash flow conversion. ultimately both modutec and modularity drive sustained margin expansion capital efficiency and enhanced free cash flow conversion This is a prime example of how innovation in our product and process drives durable value, not only by lowering our cost structure, but by expanding our competitive advantage and our ability to drive sustainable shareholder value. this is a prime example of how innovation in our product and process drives durable value not only by lowering our cost structure but by expanding our competitive advantage and our ability to drive sustainable shareholder value Turning to slide 10, Adient remains focused on driving sustainable growth into our business and reducing our impact on climate change. turning to slide 10 adient remains focused on driving sustainable growth into our business and reducing our impact on climate change We strive for responsible use of natural resources by improving energy efficiency in our operation, reducing the carbon footprint of our finished products, and developing processes that protect our planet's natural resources. we strive for responsible use of natural resources by improving energy efficiency in our operation reducing the carbon footprint of our finished products and developing processes that protect our planet's natural resources Adient is pursuing the use of sustainable materials and products by identifying materials and manufacturing methods that minimize our environmental impact and promote a circular approach to product development. adient is pursuing the use of sustainable materials and products by identifying materials and manufacturing methods that minimize our environmental impact and promote a circular approach to product development Some of the highlights for fiscal year 2025 include: We have had a 42% reduction in Scope 1 and Scope 2 emissions since 2019. We are proud to share that 30% of our electricity is now attributable to natural or to renewable resources. Our total water withdrawal was reduced by 6% year-over-year, and 80% of our suppliers have been assessed with a sustainability rating. These accomplishments aren't just environmental milestones. They demonstrate the discipline and execution that underpin Adient's operating model. They show that our teams are embedding sustainability into the way we run our business, strengthening our cost structure through efficiency, reducing long-term risk, and increasing resilience across our global footprint. Just as importantly, they reinforce our position as a trusted supplier to the world's leading OEMs, who are increasingly prioritizing responsible sourcing and measurable climate action. Some of the highlights for fiscal year 2025 include: We have had a 42% reduction in Scope 1 and Scope 2 emissions since 2019. some of the highlights for fiscal year 2025 include we have had a 42% reduction in scope 1 and scope 2 emissions since 2019 We are proud to share that 30% of our electricity is now attributable to natural or to renewable resources. we are proud to share that 30% of our electricity is now attributable to natural or to renewable resources Our total water withdrawal was reduced by 6% year-over-year, and 80% of our suppliers have been assessed with a sustainability rating. our total water withdrawal was reduced by 6% year-over-year and 80% of our suppliers have been assessed with a sustainability rating These accomplishments aren't just environmental milestones. these accomplishments aren't just environmental milestones They demonstrate the discipline and execution that underpin Adient's operating model. they demonstrate the discipline and execution that underpin adient's operating model They show that our teams are embedding sustainability into the way we run our business, strengthening our cost structure through efficiency, reducing long-term risk, and increasing resilience across our global footprint. they show that our teams are embedding sustainability into the way we run our business strengthening our cost structure through efficiency reducing long-term risk and increasing resilience across our global footprint Just as importantly, they reinforce our position as a trusted supplier to the world's leading OEMs, who are increasingly prioritizing responsible sourcing and measurable climate action. just as importantly they reinforce our position as a trusted supplier to the world's leading oems who are increasingly prioritizing responsible sourcing and measurable climate action We view this as progress and as a competitive advantage, a value driver, and a key component of our long-term strategy. Let me leave you with a few takeaways before I hand it over to Mark. The company consistently delivers positive business performance through our focus on operational excellence, which allows us to meet or exceed our stakeholders' expectations and drive margin expansion. Our commitment to innovation and automation is reflected in our products, our processes, and our people, cross-functionally and across regions to deliver value-added solutions to our customers. While the company remains focused on operational excellence, we are also focused on delivering growth by being a supplier of choice with our customers. Adient is committed to being good stewards of capital on behalf of our shareholders through a disciplined approach to balanced capital allocation. Adient is well positioned for growth and committed to delivering long-term shareholder value. We view this as progress and as a competitive advantage, a value driver, and a key component of our long-term strategy. we view this as progress and as a competitive advantage a value driver and a key component of our long-term strategy Let me leave you with a few takeaways before I hand it over to Mark. let me leave you with a few takeaways before i hand it over to mark The company consistently delivers positive business performance through our focus on operational excellence, which allows us to meet or exceed our stakeholders' expectations and drive margin expansion. the company consistently delivers positive business performance through our focus on operational excellence which allows us to meet or exceed our stakeholders' expectations and drive margin expansion Our commitment to innovation and automation is reflected in our products, our processes, and our people, cross-functionally and across regions to deliver value-added solutions to our customers. our commitment to innovation and automation is reflected in our products our processes and our people cross-functionally and across regions to deliver value-added solutions to our customers While the company remains focused on operational excellence, we are also focused on delivering growth by being a supplier of choice with our customers. while the company remains focused on operational excellence we are also focused on delivering growth by being a supplier of choice with our customers Adient is committed to being good stewards of capital on behalf of our shareholders through a disciplined approach to balanced capital allocation. adient is committed to being good stewards of capital on behalf of our shareholders through a disciplined approach to balanced capital allocation Adient is well positioned for growth and committed to delivering long-term shareholder value. adient is well positioned for growth and committed to delivering long-term shareholder value With that, I'll turn it over to Mark to take you through the financials and our outlook. With that, I'll turn it over to Mark to take you through the financials and our outlook. with that i'll turn it over to mark to take you through the financials and our outlook

Speaker 8: Thanks, Jerome. Let's move to the financials on slide 13. Adhering to our typical format, the page shows our reported results on the left side and our adjusted results on the right side. I will focus my commentary on the adjusted results, which exclude special items that we view as either one-time in nature or otherwise skew important trends and underlying performance. While the details of all adjustments for the quarter are listed in the appendix of the presentation for reference, I would like to specifically highlight one adjustment related to our tax expense. You may recall on our fourth quarter call, when we gave our outlook for fiscal year 2026, we mentioned a one-time, non-recurring tax settlement in a non-U.S. jurisdiction. That settlement was recorded this quarter and is the key driver of the GAAP net loss of $22 million. Thanks, Jerome. thanks jerome Let's move to the financials on slide 13. let's move to the financials on slide 13 Adhering to our typical format, the page shows our reported results on the left side and our adjusted results on the right side. adhering to our typical format the page shows our reported results on the left side and our adjusted results on the right side I will focus my commentary on the adjusted results, which exclude special items that we view as either one-time in nature or otherwise skew important trends and underlying performance. i will focus my commentary on the adjusted results which exclude special items that we view as either one-time in nature or otherwise skew important trends and underlying performance While the details of all adjustments for the quarter are listed in the appendix of the presentation for reference, I would like to specifically highlight one adjustment related to our tax expense. while the details of all adjustments for the quarter are listed in the appendix of the presentation for reference i would like to specifically highlight one adjustment related to our tax expense You may recall on our fourth quarter call, when we gave our outlook for fiscal year 2026, we mentioned a one-time, non-recurring tax settlement in a non-U.S. jurisdiction. you may recall on our fourth quarter call when we gave our outlook for fiscal year 2026 we mentioned a one-time non-recurring tax settlement in a non-u.s jurisdiction That settlement was recorded this quarter and is the key driver of the GAAP net loss of $22 million. that settlement was recorded this quarter and is the key driver of the gaap net loss of $22 million Moving to the right side, high level for the quarter. Sales of $3.6 billion were 4% better than first quarter fiscal year 2025, with adjusted EBITDA of $207 million. As Jerome mentioned earlier, there were some temporary customer production disruptions during the quarter, and despite these challenges, the team improved adjusted EBITDA by 10 basis points year-over-year to 5.7%. This improvement continues to demonstrate the resilience of the Adient operating model and the team's ability to efficiently and effectively manage external disruptions. Moving on. Equity income was favorable year-over-year, primarily due to increased sales at our joint ventures. Adient reported adjusted net income of $28 million or $0.35 per share during the quarter. Let's move to the revenue and regional performance versus the market on slide 14. Moving to the right side, high level for the quarter. moving to the right side high level for the quarter Sales of $3.6 billion were 4% better than first quarter fiscal year 2025, with adjusted EBITDA of $207 million. sales of $3.6 billion were 4% better than first quarter fiscal year 2025 with adjusted ebitda of $207 million As Jerome mentioned earlier, there were some temporary customer production disruptions during the quarter, and despite these challenges, the team improved adjusted EBITDA by 10 basis points year-over-year to 5.7%. as jerome mentioned earlier there were some temporary customer production disruptions during the quarter and despite these challenges the team improved adjusted ebitda by 10 basis points year-over-year to 5.7% This improvement continues to demonstrate the resilience of the Adient operating model and the team's ability to efficiently and effectively manage external disruptions. this improvement continues to demonstrate the resilience of the adient operating model and the team's ability to efficiently and effectively manage external disruptions Moving on. moving on Equity income was favorable year-over-year, primarily due to increased sales at our joint ventures. equity income was favorable year-over-year primarily due to increased sales at our joint ventures Adient reported adjusted net income of $28 million or $0.35 per share during the quarter. adient reported adjusted net income of $28 million or $0.35 per share during the quarter Let's move to the revenue and regional performance versus the market on slide 14. let's move to the revenue and regional performance versus the market on slide 14 I'll go through the next few slides relatively quickly, as details for the results are included on the slides, allowing adequate time for Q&A. Adient reported consolidated sales of approximately $3.6 billion in Q1, which was a $149 million increase compared to the same period last year, primarily driven by FX tailwinds and favorable volume and pricing in the quarter. Shifting focus to the regional performance on the right-hand side of the slide. In the Americas, Adient's consolidated sales were generally in line with the broader market. In EMEA, sales trailed the market, reflecting customer mix and deliberate portfolio actions. Asia outperformed, driven by expected significant growth in China as new programs with domestic OEMs ramped throughout the quarter. The remainder of Asia lagged the industry trends, particularly in Japan and India, where our customer presence is more limited. I'll go through the next few slides relatively quickly, as details for the results are included on the slides, allowing adequate time for Q&A. i'll go through the next few slides relatively quickly as details for the results are included on the slides allowing adequate time for q&a Adient reported consolidated sales of approximately $3.6 billion in Q1, which was a $149 million increase compared to the same period last year, primarily driven by FX tailwinds and favorable volume and pricing in the quarter. adient reported consolidated sales of approximately $3.6 billion in q1 which was a $149 million increase compared to the same period last year primarily driven by fx tailwinds and favorable volume and pricing in the quarter Shifting focus to the regional performance on the right-hand side of the slide. shifting focus to the regional performance on the right-hand side of the slide In the Americas, Adient's consolidated sales were generally in line with the broader market. in the americas adient's consolidated sales were generally in line with the broader market In EMEA, sales trailed the market, reflecting customer mix and deliberate portfolio actions. in emea sales trailed the market reflecting customer mix and deliberate portfolio actions Asia outperformed, driven by expected significant growth in China as new programs with domestic OEMs ramped throughout the quarter. asia outperformed driven by expected significant growth in china as new programs with domestic oems ramped throughout the quarter The remainder of Asia lagged the industry trends, particularly in Japan and India, where our customer presence is more limited. the remainder of asia lagged the industry trends particularly in japan and india where our customer presence is more limited In Adient's unconsolidated revenue, year-over-year results declined approximately 3%, adjusted for FX. Results were primarily affected by the joint venture portfolio rationalization action in the Americas that was finalized in late first quarter 2025. While both our EMEA and China unconsolidated businesses experienced growth year-over-year. Turning to Slide 15, we provided a bridge of adjusted EBITDA to show the performance of our segments between the periods. Adjusted EBITDA was up 6% at $207 million versus the same period last year. The primary drivers of the year-over-year comparison are detailed on the page. Business performance improved by $8 million year-over-year, despite the temporary inefficiencies experienced this quarter due to customer disruptions. In Adient's unconsolidated revenue, year-over-year results declined approximately 3%, adjusted for FX. in adient's unconsolidated revenue year-over-year results declined approximately 3% adjusted for fx Results were primarily affected by the joint venture portfolio rationalization action in the Americas that was finalized in late first quarter 2025. results were primarily affected by the joint venture portfolio rationalization action in the americas that was finalized in late first quarter 2025 While both our EMEA and China unconsolidated businesses experienced growth year-over-year. while both our emea and china unconsolidated businesses experienced growth year-over-year Turning to Slide 15, we provided a bridge of adjusted EBITDA to show the performance of our segments between the periods. turning to slide 15 we provided a bridge of adjusted ebitda to show the performance of our segments between the periods Adjusted EBITDA was up 6% at $207 million versus the same period last year. adjusted ebitda was up 6% at $207 million versus the same period last year The primary drivers of the year-over-year comparison are detailed on the page. the primary drivers of the year-over-year comparison are detailed on the page Business performance improved by $8 million year-over-year, despite the temporary inefficiencies experienced this quarter due to customer disruptions. business performance improved by $8 million year-over-year despite the temporary inefficiencies experienced this quarter due to customer disruptions As we've highlighted in the past, commercial recoveries tend to be a bit lumpy throughout the year, and the favorable timing of some recoveries partially offset these inefficiencies, as well as the planned increases in launch costs during the quarter. Equity income was favorable $8 million year-over-year, mainly due to higher sales and favorable business performance in our joint ventures. FX was a $6 million tailwind stemming from a combination of translational and transactional benefits. And finally, volume mix was an $11 million headwind during the quarter, driven by anticipated margin compression in China, as well as unfavorable customer mix due to disruptions with key customers in the Americas. Overall, it was a solid start to the year, and the Adient team did well from an operational perspective, continuing to execute and manage what is within our control. As we've highlighted in the past, commercial recoveries tend to be a bit lumpy throughout the year, and the favorable timing of some recoveries partially offset these inefficiencies, as well as the planned increases in launch costs during the quarter. as we've highlighted in the past commercial recoveries tend to be a bit lumpy throughout the year and the favorable timing of some recoveries partially offset these inefficiencies as well as the planned increases in launch costs during the quarter Equity income was favorable $8 million year-over-year, mainly due to higher sales and favorable business performance in our joint ventures. equity income was favorable $8 million year-over-year mainly due to higher sales and favorable business performance in our joint ventures FX was a $6 million tailwind stemming from a combination of translational and transactional benefits. fx was a $6 million tailwind stemming from a combination of translational and transactional benefits And finally, volume mix was an $11 million headwind during the quarter, driven by anticipated margin compression in China, as well as unfavorable customer mix due to disruptions with key customers in the Americas. and finally volume mix was an $11 million headwind during the quarter driven by anticipated margin compression in china as well as unfavorable customer mix due to disruptions with key customers in the americas Overall, it was a solid start to the year, and the Adient team did well from an operational perspective, continuing to execute and manage what is within our control. overall it was a solid start to the year and the adient team did well from an operational perspective continuing to execute and manage what is within our control As in past quarters, we provided our detailed segment performance slides in the appendix of the presentation for your review. High-level, both the Americas and EMEA continue to drive positive business performance. In Asia, business performance was impacted by the timing of certain growth investments, namely increased engineering spend and launch costs. Before we move to the cash and liquidity section, I'd like to point out that we have provided additional context on how our customer base is distributed across regions. In the appendix, the Adient at a Glance slide provides a helpful view of our customer mix and revenue contribution based on our fiscal year 2025 consolidated revenue, as well as some of our top programs by region. Moving on, let me flip to our cash, liquidity, and capital structure on slides 16 and 17. Starting on Slide 16. As in past quarters, we provided our detailed segment performance slides in the appendix of the presentation for your review. as in past quarters we provided our detailed segment performance slides in the appendix of the presentation for your review High-level, both the Americas and EMEA continue to drive positive business performance. high-level both the americas and emea continue to drive positive business performance In Asia, business performance was impacted by the timing of certain growth investments, namely increased engineering spend and launch costs. in asia business performance was impacted by the timing of certain growth investments namely increased engineering spend and launch costs Before we move to the cash and liquidity section, I'd like to point out that we have provided additional context on how our customer base is distributed across regions. before we move to the cash and liquidity section i'd like to point out that we have provided additional context on how our customer base is distributed across regions In the appendix, the Adient at a Glance slide provides a helpful view of our customer mix and revenue contribution based on our fiscal year 2025 consolidated revenue, as well as some of our top programs by region. in the appendix the adient at a glance slide provides a helpful view of our customer mix and revenue contribution based on our fiscal year 2025 consolidated revenue as well as some of our top programs by region Moving on, let me flip to our cash, liquidity, and capital structure on slides 16 and 17. moving on let me flip to our cash liquidity and capital structure on slides 16 and 17 Starting on Slide 16. starting on slide 16 For the first quarter, the company generated $15 million of free cash flow, defined as operating cash less CapEx. This was higher than our internal expectations leading into the quarter. The team did a lot of good work to drive this number higher. We also benefited from an approximately $20 million timing impact from the previously mentioned non-U.S. jurisdictional tax settlement, which is now expected to be paid out in Q2. On the right side of the slide, we have highlighted the key drivers impacting the free cash flow during the quarter. These include timing and amount of net customer tooling payments, reduced restructuring spend year-over-year in Europe, and higher adjusted earnings compared to the same period last year. These benefits were offset by timing and level of VAT tax payments, timing and level of commercial settlement payments, as well as your typical period-to-period working capital movements. For the first quarter, the company generated $15 million of free cash flow, defined as operating cash less CapEx. for the first quarter the company generated $15 million of free cash flow defined as operating cash less capex This was higher than our internal expectations leading into the quarter. this was higher than our internal expectations leading into the quarter The team did a lot of good work to drive this number higher. the team did a lot of good work to drive this number higher We also benefited from an approximately $20 million timing impact from the previously mentioned non-U.S. jurisdictional tax settlement, which is now expected to be paid out in Q2. we also benefited from an approximately $20 million timing impact from the previously mentioned non-u.s jurisdictional tax settlement which is now expected to be paid out in q2 On the right side of the slide, we have highlighted the key drivers impacting the free cash flow during the quarter. on the right side of the slide we have highlighted the key drivers impacting the free cash flow during the quarter These include timing and amount of net customer tooling payments, reduced restructuring spend year-over-year in Europe, and higher adjusted earnings compared to the same period last year. these include timing and amount of net customer tooling payments reduced restructuring spend year-over-year in europe and higher adjusted earnings compared to the same period last year These benefits were offset by timing and level of VAT tax payments, timing and level of commercial settlement payments, as well as your typical period-to-period working capital movements. these benefits were offset by timing and level of vat tax payments timing and level of commercial settlement payments as well as your typical period-to-period working capital movements As we've mentioned in the past, our cash flow is typically more second half-weighted due to the seasonality of our business. We continue to expect solid cash generation for the full year. In fact, our expectations have increased to $125 million. I'll have more on our outlook in just a minute. As a reminder, as mentioned on our last earnings call, there are a few timing and non-recurring items placing temporary downward pressure on our free cash flow this year, such as the one-time non-recurring tax settlement previously discussed. Beyond fiscal year 2026, we expect free cash flow to return to normalized levels and benefit from our increased sales, earnings in a lower level of cash restructuring. Moving now to Slide 17 for our liquidity and capital structure. As we've mentioned in the past, our cash flow is typically more second half-weighted due to the seasonality of our business. as we've mentioned in the past our cash flow is typically more second half-weighted due to the seasonality of our business We continue to expect solid cash generation for the full year. we continue to expect solid cash generation for the full year In fact, our expectations have increased to $125 million. in fact our expectations have increased to $125 million I'll have more on our outlook in just a minute. i'll have more on our outlook in just a minute As a reminder, as mentioned on our last earnings call, there are a few timing and non-recurring items placing temporary downward pressure on our free cash flow this year, such as the one-time non-recurring tax settlement previously discussed. as a reminder as mentioned on our last earnings call there are a few timing and non-recurring items placing temporary downward pressure on our free cash flow this year such as the one-time non-recurring tax settlement previously discussed Beyond fiscal year 2026, we expect free cash flow to return to normalized levels and benefit from our increased sales, earnings in a lower level of cash restructuring. beyond fiscal year 2026 we expect free cash flow to return to normalized levels and benefit from our increased sales earnings in a lower level of cash restructuring Moving now to Slide 17 for our liquidity and capital structure. moving now to slide 17 for our liquidity and capital structure Total liquidity for the company was $1.7 billion at December 31, 2025, comprised of $855 million of cash on hand and $823 million of undrawn capacity under a revolving line of credit. During the quarter, the company returned a total of $25 million to its shareholders, repurchasing approximately 2.1 million shares, leaving approved authorization of $110 million. In addition, Adient continues to proactively manage our debt maturity and costs. In January, subsequent to the quarter end, we successfully repriced our Term Loan B and achieved a 25 basis point reduction, resulting in an annual savings of approximately $1.5 million. Focusing on our balance sheet, Adient's debt and net debt position totaled approximately $2.4 billion and $1.5 billion, respectively, at December 31, 2025. Total liquidity for the company was $1.7 billion at December 31, 2025, comprised of $855 million of cash on hand and $823 million of undrawn capacity under a revolving line of credit. total liquidity for the company was $1.7 billion at december 31 2025 comprised of $855 million of cash on hand and $823 million of undrawn capacity under a revolving line of credit During the quarter, the company returned a total of $25 million to its shareholders, repurchasing approximately 2.1 million shares, leaving approved authorization of $110 million. during the quarter the company returned a total of $25 million to its shareholders repurchasing approximately 2.1 million shares leaving approved authorization of $110 million In addition, Adient continues to proactively manage our debt maturity and costs. in addition adient continues to proactively manage our debt maturity and costs In January, subsequent to the quarter end, we successfully repriced our Term Loan B and achieved a 25 basis point reduction, resulting in an annual savings of approximately $1.5 million. in january subsequent to the quarter end we successfully repriced our term loan b and achieved a 25 basis point reduction resulting in an annual savings of approximately $1.5 million Focusing on our balance sheet, Adient's debt and net debt position totaled approximately $2.4 billion and $1.5 billion, respectively, at December 31, 2025. focusing on our balance sheet adient's debt and net debt position totaled approximately $2.4 billion and $1.5 billion respectively at december 31 2025 The company's net leverage at December 31 was 1.7 times, comfortably within our target range of 1.5-2 times. Moving now to Slide 18. Let's review our updated expectations for the remainder of the fiscal year. As we highlighted in our Q4 call, when we provided our full year fiscal year 2026 guidance, we anticipated an improvement in production volume environment would be meaningful impact on our results. That said, with North America vehicle production now expected to be in the 15 million unit ballpark for fiscal year 2026, up from the 14.6 million at the time we gave the original guidance, we are raising our outlook for revenue, Adjusted EBITDA, and free cash flow. The company's net leverage at December 31 was 1.7 times, comfortably within our target range of 1.5-2 times. the company's net leverage at december 31 was 1.7 times comfortably within our target range of 1.5-2 times Moving now to Slide 18. moving now to slide 18 Let's review our updated expectations for the remainder of the fiscal year. let's review our updated expectations for the remainder of the fiscal year As we highlighted in our Q4 call, when we provided our full year fiscal year 2026 guidance, we anticipated an improvement in production volume environment would be meaningful impact on our results. as we highlighted in our q4 call when we provided our full year fiscal year 2026 guidance we anticipated an improvement in production volume environment would be meaningful impact on our results That said, with North America vehicle production now expected to be in the 15 million unit ballpark for fiscal year 2026, up from the 14.6 million at the time we gave the original guidance, we are raising our outlook for revenue, Adjusted EBITDA, and free cash flow. that said with north america vehicle production now expected to be in the 15 million unit ballpark for fiscal year 2026 up from the 14.6 million at the time we gave the original guidance we are raising our outlook for revenue adjusted ebitda and free cash flow For the full year, we now expect sales to be approximately $14.6 billion, up from our previous guidance of $14.4 billion. Adjusted EBITDA is now expected to land around $880 million, up from our previous guidance of $845 million. free cash flow, as I indicated earlier, is now expected to be $125 million, up from $90 million in our previous guide. Keep in mind, this revised guidance reflects our current production schedules, FX rates, and assumes no significant changes to the current tariff policies. We continue to expect our overall earnings will be weighted towards the second half of the year. While we don't provide quarterly guidance, it's important to note that our second quarter results are expected to be impacted by the seasonality of the Chinese New Year, as in past quarters. For the full year, we now expect sales to be approximately $14.6 billion, up from our previous guidance of $14.4 billion. for the full year we now expect sales to be approximately $14.6 billion up from our previous guidance of $14.4 billion Adjusted EBITDA is now expected to land around $880 million, up from our previous guidance of $845 million. free cash flow, as I indicated earlier, is now expected to be $125 million, up from $90 million in our previous guide. adjusted ebitda is now expected to land around $880 million up from our previous guidance of $845 million free cash flow as i indicated earlier is now expected to be $125 million up from $90 million in our previous guide Keep in mind, this revised guidance reflects our current production schedules, FX rates, and assumes no significant changes to the current tariff policies. keep in mind this revised guidance reflects our current production schedules fx rates and assumes no significant changes to the current tariff policies We continue to expect our overall earnings will be weighted towards the second half of the year. we continue to expect our overall earnings will be weighted towards the second half of the year While we don't provide quarterly guidance, it's important to note that our second quarter results are expected to be impacted by the seasonality of the Chinese New Year, as in past quarters. while we don't provide quarterly guidance it's important to note that our second quarter results are expected to be impacted by the seasonality of the chinese new year as in past quarters The lower level of production forecast for Q2 versus Q1 will translate into lower consolidated sales, earnings, and equity income for the region. Obviously, regaining momentum and adding it to Q3 and Q4 as production picks up. Given the puts and takes in production across the regions, we'd expect Q2 EBITDA to look very similar to the quarter just completed. For purposes of our analysis, we don't expect any meaningful changes to equity income, interest expense, or cash taxes from our previous guidance, and CapEx is expected to remain at the elevated this year due to customer launch schedules and increased investment in innovation and automation. To summarize, production schedules are normalizing and that improved backdrop is showing up in our execution. The lower level of production forecast for Q2 versus Q1 will translate into lower consolidated sales, earnings, and equity income for the region. the lower level of production forecast for q2 versus q1 will translate into lower consolidated sales earnings and equity income for the region Obviously, regaining momentum and adding it to Q3 and Q4 as production picks up. obviously regaining momentum and adding it to q3 and q4 as production picks up Given the puts and takes in production across the regions, we'd expect Q2 EBITDA to look very similar to the quarter just completed. given the puts and takes in production across the regions we'd expect q2 ebitda to look very similar to the quarter just completed For purposes of our analysis, we don't expect any meaningful changes to equity income, interest expense, or cash taxes from our previous guidance, and CapEx is expected to remain at the elevated this year due to customer launch schedules and increased investment in innovation and automation. for purposes of our analysis we don't expect any meaningful changes to equity income interest expense or cash taxes from our previous guidance and capex is expected to remain at the elevated this year due to customer launch schedules and increased investment in innovation and automation To summarize, production schedules are normalizing and that improved backdrop is showing up in our execution. to summarize production schedules are normalizing and that improved backdrop is showing up in our execution We're carrying momentum into the balance of the year through disciplined cost and commercial management, and we expect solid free cash flow as the operating performance is expected to continue to flow through our bottom line. With that, we can now move to the question-and-answer portion of the call. Operator, can we please have our first question? We're carrying momentum into the balance of the year through disciplined cost and commercial management, and we expect solid f ree cash flow as the operating performance is expected to continue to flow through our bottom line. we're carrying momentum into the balance of the year through disciplined cost and commercial management and we expect solid f ree cash flow as the operating performance is expected to continue to flow through our bottom line With that, we can now move to the question-and-answer portion of the call. with that we can now move to the question-and-answer portion of the call Operator, can we please have our first question? operator can we please have our first question

Speaker 9: Thank you. If you would like to ask a question, please press Star one. To withdraw your question, you may press Star two. Again, Star one to ask a question. The first question today comes from Colin Langan with Wells Fargo. Your line is open. Thank you. thank you If you would like to ask a question, please press Star one. if you would like to ask a question please press star one To withdraw your question, you may press Star two. to withdraw your question you may press star two Again, Star one to ask a question. again star one to ask a question The first question today comes from Colin Langan with Wells Fargo. the first question today comes from colin langan with wells fargo Your line is open. your line is open

Speaker 2: Oh, great! Thanks for taking my questions. There's been some media headlines that there's possible disruption around the maybe, maybe it's a little worse for the F-150 F-Series recovery. Have you seen any impact in your schedule so far? And is there any way, you know, to kind of help frame maybe the, the risk to guidance if there is some hiccups in the recovery? Oh, great! oh great Thanks for taking my questions. thanks for taking my questions There's been some media headlines that there's possible disruption around the maybe, maybe it's a little worse for the F-150 F-Series recovery. there's been some media headlines that there's possible disruption around the maybe maybe it's a little worse for the f-150 f-series recovery Have you seen any impact in your schedule so far? have you seen any impact in your schedule so far And is there any way, you know, to kind of help frame maybe the, the risk to guidance if there is some hiccups in the recovery? and is there any way you know to kind of help frame maybe the the risk to guidance if there is some hiccups in the recovery

Speaker 5: So first of all, Colin, thanks very much for the question. You know, I think as we handled in the what would have been our Q4 call, you know, we're not, we're not going to kind of front run Ford. I think what we have guided to currently represents what we have on, on releases and our, our best information that we have today. You know, when Ford says kind of F-Series, we always have to remember there's going to be this split between F-150, which is the platform we have, and then Super Duty production that they have in Kentucky. And so we don't know if there is going to be a disruption, how that disruption will unfold. So first of all, Colin, thanks very much for the question. so first of all colin thanks very much for the question You know, I think as we handled in the what would have been our Q4 call, you know, we're not, we're not going to kind of front run Ford. you know i think as we handled in the what would have been our q4 call you know we're not we're not going to kind of front run ford I think what we have guided to currently represents what we have on, on releases and our, our best information that we have today. i think what we have guided to currently represents what we have on on releases and our our best information that we have today You know, when Ford says kind of F-Series, we always have to remember there's going to be this split between F-150, which is the platform we have, and then Super Duty production that they have in Kentucky. you know when ford says kind of f-series we always have to remember there's going to be this split between f-150 which is the platform we have and then super duty production that they have in kentucky And so we don't know if there is going to be a disruption, how that disruption will unfold. and so we don't know if there is going to be a disruption how that disruption will unfold Then in terms of framing, you know, what the disruption will be, I think that's why we put into the appendix material, kind of what the split is, what our key platforms are, and how those key platforms break out. I think if they're, you know, once Ford comes out, I think they've said on the 10th, they'll give kind of their guidance and kind of updated figures. You know, if there is something meaningful, we can always circle back with you guys. But as of now, it's kind of best-known information. And I think as we said in the commentary or in my commentary, in the prepared remarks, we kind of anticipate making up any of that production that we lost in Q1, kind of now throughout the back half of the year. Then in terms of framing, you know, what the disruption will be, I think that's why we put into the appendix material, kind of what the split is, what our key platforms are, and how those key platforms break out. then in terms of framing you know what the disruption will be i think that's why we put into the appendix material kind of what the split is what our key platforms are and how those key platforms break out I think if they're, you know, once Ford comes out, I think they've said on the 10th, they'll give kind of their guidance and kind of updated figures. i think if they're you know once ford comes out i think they've said on the 10th they'll give kind of their guidance and kind of updated figures You know, if there is something meaningful, we can always circle back with you guys. you know if there is something meaningful we can always circle back with you guys But as of now, it's kind of best-known information. but as of now it's kind of best-known information And I think as we said in the commentary or in my commentary, in the prepared remarks, we kind of anticipate making up any of that production that we lost in Q1, kind of now throughout the back half of the year. and i think as we said in the commentary or in my commentary in the prepared remarks we kind of anticipate making up any of that production that we lost in q1 kind of now throughout the back half of the year That's what we've tried to reflect in the guide as best we can. That's what we've tried to reflect in the guide as best we can. that's what we've tried to reflect in the guide as best we can

Speaker 2: Got it. No, that's helpful. And maybe if you could just talk a bit on the onshoring opportunity that you flagged. I think it was a couple quarters ago, you said it was $175 million, so we're up to $500 million. And then also in your commentary today, I'm not sure if I heard it right, that there's a significant near-term upside that you're hoping to update us on. So any color on, you know, maybe how quickly some of these wins could come, because I feel like some might start trailing out into 2029 and beyond, or, or are these actually gonna still be things that hit in 2027 and 2028? Got it. got it No, that's helpful. no that's helpful And maybe if you could just talk a bit on the onshoring opportunity that you flagged. and maybe if you could just talk a bit on the onshoring opportunity that you flagged I think it was a couple quarters ago, you said it was $175 million, so we're up to $500 million. i think it was a couple quarters ago you said it was $175 million so we're up to $500 million And then also in your commentary today, I'm not sure if I heard it right, that there's a significant near-term upside that you're hoping to update us on. and then also in your commentary today i'm not sure if i heard it right that there's a significant near-term upside that you're hoping to update us on So any color on, you know, maybe how quickly some of these wins could come, because I feel like some might start trailing out into 2029 and beyond, or, or are these actually gonna still be things that hit in 2027 and 2028? so any color on you know maybe how quickly some of these wins could come because i feel like some might start trailing out into 2029 and beyond or or are these actually gonna still be things that hit in 2027 and 2028

Speaker 5: Yeah. So what I would say is, you know, so the 175 has grown to 500. That includes a conquest win that's in there as well. So we picked up a conquest win. Call that, you know, it's about $100 million-$150 million. So between onshoring and conquest now it's up to $500 million. And the big, you know, the big thing that's still left to get that I think we feel, we feel confident in is a domestic OE who is moving production from Mexico into the U.S. You know, we're in the quote process, kind of the final stages of that right now. Yeah. yeah So what I would say is, you know, so the 175 has grown to 500. so what i would say is you know so the 175 has grown to 500 That includes a conquest win that's in there as well. that includes a conquest win that's in there as well So we picked up a conquest win. so we picked up a conquest win Call that, you know, it's about $100 million-$150 million. call that you know it's about $100 million-$150 million So between onshoring and conquest now it's up to $500 million. so between onshoring and conquest now it's up to $500 million And the big, you know, the big thing that's still left to get that I think we feel, we feel confident in is a domestic OE who is moving production from Mexico into the U.S. and the big you know the big thing that's still left to get that i think we feel we feel confident in is a domestic oe who is moving production from mexico into the u.s You know, we're in the quote process, kind of the final stages of that right now. you know we're in the quote process kind of the final stages of that right now I think we're hopeful that we'll hear something in the next couple weeks on kind of the final decision, and that now makes up kind of the, the gap, of between... You know, we're at what I'd call $250 million of booked, $250-$300 million. That'll make up the gap between the $300-$500 million. So kind of the, if you wanna think of the bridge, last time we gave you an update, we were at $175 million. We're now kind of on the books for $300 million, and we've got another $200 million of wood to chop, and we hope to know about that in the next, I'd say, two weeks or so. I think we're hopeful that we'll hear something in the next couple weeks on kind of the final decision, and that now makes up kind of the, the gap, of between... i think we're hopeful that we'll hear something in the next couple weeks on kind of the final decision and that now makes up kind of the the gap of between You know, we're at what I'd call $250 million of booked, $250-$300 million. you know we're at what i'd call $250 million of booked $250-$300 million That'll make up the gap between the $300-$500 million. that'll make up the gap between the $300-$500 million So kind of the, if you wanna think of the bridge, last time we gave you an update, we were at $175 million. so kind of the if you wanna think of the bridge last time we gave you an update we were at $175 million We're now kind of on the books for $300 million, and we've got another $200 million of wood to chop, and we hope to know about that in the next, I'd say, two weeks or so. we're now kind of on the books for $300 million and we've got another $200 million of wood to chop and we hope to know about that in the next i'd say two weeks or so

Speaker 8: Yep, and then Colin, with regard to your question in terms of what rolls on, right? Assuming that all comes in, you know, we've indicated that about $300 million of that $500 million comes in in 2027, and the other, you know, rest of it, the run rate, full run rate comes in in 2028. Yep, and then Colin, with regard to your question in terms of what rolls on, right? yep and then colin with regard to your question in terms of what rolls on right Assuming that all comes in, you know, we've indicated that about $300 million of that $500 million comes in in 2027, and the other, you know, rest of it, the run rate, full run rate comes in in 2028. assuming that all comes in you know we've indicated that about $300 million of that $500 million comes in in 2027 and the other you know rest of it the run rate full run rate comes in in 2028

Speaker 5: Yeah, I think that's a good point. I mean, we really don't see that, any of that really pushing out into 2029. I mean, it's and some of it's already launching in this year, with a lot of it now coming on in 2028. So it is, you know, known booked revenue. We're spending capital now and launching up now to be able to roll it on in 2027. Yeah, I think that's a good point. yeah i think that's a good point I mean, we really don't see that, any of that really pushing out into 2029. i mean we really don't see that any of that really pushing out into 2029 I mean, it's and some of it's already launching in this year, with a lot of it now coming on in 2028. i mean it's and some of it's already launching in this year with a lot of it now coming on in 2028 So it is, you know, known booked revenue. so it is you know known booked revenue We're spending capital now and launching up now to be able to roll it on in 2027. we're spending capital now and launching up now to be able to roll it on in 2027

Speaker 2: Just to quickly clarify, the win that you're hoping to get from the domestic going from Mexico to the U.S., is that in the $500 already, or is that that would be incremental? Just to quickly clarify, the win that you're hoping to get from the domestic going from Mexico to the U.S., is that in the $500 already, or is that that would be incremental? just to quickly clarify the win that you're hoping to get from the domestic going from mexico to the u.s is that in the $500 already or is that that would be incremental

Speaker 5: Yes. Yes. No, that would be in the $500. That would be the bridge from kind of $300 on the books going to $500. Yes. yes Yes. yes No, that would be in the $500. no that would be in the $500 That would be the bridge from kind of $300 on the books going to $500. that would be the bridge from kind of $300 on the books going to $500

Speaker 2: Okay, got it. Okay. All right. Thanks for taking my questions. Okay, got it. okay got it Okay. okay All right. all right Thanks for taking my questions. thanks for taking my questions

Speaker 5: No, thank you. No, thank you. no thank you

Speaker 9: Thank you. The next question is from Nathan Jones with Stifel. Your line is open. Thank you. thank you The next question is from Nathan Jones with Stifel. the next question is from nathan jones with stifel Your line is open. your line is open

Speaker 10: Good morning, everyone. This is Andres on for Nathan Jones. Thanks for taking my question. Regarding Europe restructuring spend, can you please provide an update as to the progress you're making in restructuring the European business? Good morning, everyone. good morning everyone This is Andres on for Nathan Jones. this is andres on for nathan jones Thanks for taking my question. thanks for taking my question Regarding Europe restructuring spend, can you please provide an update as to the progress you're making in restructuring the European business? regarding europe restructuring spend can you please provide an update as to the progress you're making in restructuring the european business

Speaker 8: Yeah, so, so, you know, what we've indicated in the past and, and what we've guided to looking forward, right? If you look at the elevated spend last year, call it, you know, around that $130 million-ish, most of that was in Europe. This year, 2026. Another, call it $120 million-$130 million in restructuring, primarily Europe. We did indicate that that goes down in fiscal year 2027. Beyond that, we said it's very hard for us to give you a good line of sight because a lot of any type of restructure that goes out beyond 2027 is really dependent on what our customers do with their programs, right? So we're in active discussions with them, just looking to see, you know, end of production for certain programs, what new programs might be rolling into plants. Yeah, so, so, you know, what we've indicated in the past and, and what we've guided to looking forward, right? yeah so so you know what we've indicated in the past and and what we've guided to looking forward right If you look at the elevated spend last year, call it, you know, around that $130 million-ish, most of that was in Europe. if you look at the elevated spend last year call it you know around that $130 million-ish most of that was in europe This year, 2026. this year 2026 Another, call it $120 million-$130 million in restructuring, primarily Europe. another call it $120 million-$130 million in restructuring primarily europe We did indicate that that goes down in fiscal year 2027. we did indicate that that goes down in fiscal year 2027 Beyond that, we said it's very hard for us to give you a good line of sight because a lot of any type of restructure that goes out beyond 2027 is really dependent on what our customers do with their programs, right? beyond that we said it's very hard for us to give you a good line of sight because a lot of any type of restructure that goes out beyond 2027 is really dependent on what our customers do with their programs right So we're in active discussions with them, just looking to see, you know, end of production for certain programs, what new programs might be rolling into plants. so we're in active discussions with them just looking to see you know end of production for certain programs what new programs might be rolling into plants So really, you know, we'd love to be able to tell you what's happening in 2028 and 2029. There's gonna be restructuring. It's just a question of the magnitude of that, and again, it's really relative to what our customer production plans are. So really, you know, we'd love to be able to tell you what's happening in 2028 and 2029. so really you know we'd love to be able to tell you what's happening in 2028 and 2029 There's gonna be restructuring. there's gonna be restructuring It's just a question of the magnitude of that, and again, it's really relative to what our customer production plans are. it's just a question of the magnitude of that and again it's really relative to what our customer production plans are

Speaker 10: Awesome. Thank you. And then just one more. That's helpful. Asia adjusted EBITDA declined $7 million, driven by increased engineering spending for new programs. Should this be expected to continue, sustain? Just trying to get a better idea as to timing there. Awesome. awesome Thank you. thank you And then just one more. and then just one more That's helpful. that's helpful Asia adjusted EBITDA declined $7 million, driven by increased engineering spending for new programs. asia adjusted ebitda declined $7 million driven by increased engineering spending for new programs Should this be expected to continue, sustain? should this be expected to continue sustain Just trying to get a better idea as to timing there. just trying to get a better idea as to timing there

Speaker 8: Yeah, I'd say that overall, APAC, right, if I look at business performance, that's gonna be positive for full year 2026. Clearly, there's gonna be certain quarters where you have increased launch and engineering costs, but again, those are gonna be offset as I go through the quarter with, you know, other ops, you know, other efficiencies that roll on. But we did, you know, indicate that net engineering and launch, we're gonna be higher this year as we continue to grow out and spend for the growth. Yeah, I'd say that overall, APAC, right, if I look at business performance, that's gonna be positive for full year 2026. yeah i'd say that overall apac right if i look at business performance that's gonna be positive for full year 2026 Clearly, there's gonna be certain quarters where you have increased launch and engineering costs, but again, those are gonna be offset as I go through the quarter with, you know, other ops, you know, other efficiencies that roll on. clearly there's gonna be certain quarters where you have increased launch and engineering costs but again those are gonna be offset as i go through the quarter with you know other ops you know other efficiencies that roll on But we did, you know, indicate that net engineering and launch, we're gonna be higher this year as we continue to grow out and spend for the growth. but we did you know indicate that net engineering and launch we're gonna be higher this year as we continue to grow out and spend for the growth

Speaker 10: Gotcha. Thank you. Appreciate it. Thanks for taking my questions. Gotcha. gotcha Thank you. thank you Appreciate it. appreciate it Thanks for taking my questions. thanks for taking my questions

Speaker 8: Thank you. Thank you. thank you

Speaker 9: The next question is from Emmanuel Rosner with Wolfe Research. Your line is open. The next question is from Emmanuel Rosner with Wolfe Research. the next question is from emmanuel rosner with wolfe research Your line is open. your line is open

Speaker 4: Great. Thank you very much. I was hoping to ask you about the commercial settlement. I think it's you mentioned it in a few slides as a factor in terms of at least timing and sometimes magnitudes. Can you just help us understand if, you know, the magnitude of it is beyond what's usual, sort of like this year, if that's sort of like helping the outlook, or if you're just flagging it as essentially a cadence or calendarization impact? Great. great Thank you very much. thank you very much I was hoping to ask you about the commercial settlement. i was hoping to ask you about the commercial settlement I think it's you mentioned it in a few slides as a factor in terms of at least timing and sometimes magnitudes. i think it's you mentioned it in a few slides as a factor in terms of at least timing and sometimes magnitudes Can you just help us understand if, you know, the magnitude of it is beyond what's usual, sort of like this year, if that's sort of like helping the outlook, or if you're just flagging it as essentially a cadence or calendarization impact? can you just help us understand if you know the magnitude of it is beyond what's usual sort of like this year if that's sort of like helping the outlook or if you're just flagging it as essentially a cadence or calendarization impact

Speaker 8: Yeah, Emmanuel, it's a good question, and thanks for the call and question. I'd say it's more of timing and cadence. You know, as you know, our business is a transactional business. There's always, you know, certain commercial negotiations that are planned for the year. So we did have what I'd say a bucket of planned commercial actions that the team had to go out there and get. Obviously, you know, first quarter was benefited from, you know, I'd say, the timing pull forward or certain of those commercial actions. So nothing that I would say is extraordinary versus what we were planning within the original 26 plan. Yeah, Emmanuel, it's a good question, and thanks for the call and question. yeah emmanuel it's a good question and thanks for the call and question I'd say it's more of timing and cadence. i'd say it's more of timing and cadence You know, as you know, our business is a transactional business. you know as you know our business is a transactional business There's always, you know, certain commercial negotiations that are planned for the year. there's always you know certain commercial negotiations that are planned for the year So we did have what I'd say a bucket of planned commercial actions that the team had to go out there and get. so we did have what i'd say a bucket of planned commercial actions that the team had to go out there and get Obviously, you know, first quarter was benefited from, you know, I'd say, the timing pull forward or certain of those commercial actions. obviously you know first quarter was benefited from you know i'd say the timing pull forward or certain of those commercial actions So nothing that I would say is extraordinary versus what we were planning within the original 26 plan. so nothing that i would say is extraordinary versus what we were planning within the original 26 plan

Speaker 4: Okay. And then if we're trying to think about, you know, fiscal 2026 as sort of like a bridge, or like in future years, are there any sort of extra recoveries expected this year that we should be capitalizing, or is that sort of normal course of business? Okay. okay And then if we're trying to think about, you know, fiscal 2026 as sort of like a bridge, or like in future years, are there any sort of extra recoveries expected this year that we should be capitalizing, or is that sort of normal course of business? and then if we're trying to think about you know fiscal 2026 as sort of like a bridge or like in future years are there any sort of extra recoveries expected this year that we should be capitalizing or is that sort of normal course of business

Speaker 8: I'd say normal course of business. I'd say normal course of business. i'd say normal course of business

Speaker 4: Okay, understood. Okay, understood. okay understood

Speaker 8: Help me out with this, because I don't want to do anything wrong. Help me out with this, because I don't want to do anything wrong. help me out with this because i don't want to do anything wrong

Speaker 4: I also wanted to ask you about the Asia business. You know, obviously, you know, joint venture income, you know, trending in the right direction. Can you just remind us when does Adient get the cash from the joint venture? I also wanted to ask you about the Asia business. i also wanted to ask you about the asia business You know, obviously, you know, joint venture income, you know, trending in the right direction. you know obviously you know joint venture income you know trending in the right direction Can you just remind us when does Adient get the cash from the joint venture? can you just remind us when does adient get the cash from the joint venture

Speaker 8: Yeah, so it depends on the joint venture, right? So we have them cadenced throughout the course of the year. So, you know, in the first quarter, we'll get certain dividends in. You know, if you look at, you know, our largest joint venture over there, Keiper, right? That's typically back half weighted in terms of when the dividends come in. Yeah, so it depends on the joint venture, right? yeah so it depends on the joint venture right So we have them cadenced throughout the course of the year. so we have them cadenced throughout the course of the year So, you know, in the first quarter, we'll get certain dividends in. so you know in the first quarter we'll get certain dividends in You know, if you look at, you know, our largest joint venture over there, Keiper, right? you know if you look at you know our largest joint venture over there keiper right That's typically back half weighted in terms of when the dividends come in. that's typically back half weighted in terms of when the dividends come in

Speaker 4: Understood. Thank you. Understood. understood Thank you. thank you

Speaker 8: Thank you for the question, Emmanuel. Thank you for the question, Emmanuel. thank you for the question emmanuel

Speaker 9: Thank you. The next question comes from Joe Spak with UBS. Your line is open. Thank you. thank you The next question comes from Joe Spak with UBS. the next question comes from joe spak with ubs Your line is open. your line is open

Speaker 5: Hi, Joe. Hi, Joe. hi joe

Speaker 6: Thanks. Good morning. Hey, good morning, everyone. Want to just go back to the growth opportunities. You know, and I know you gave a lot of good color here, but it does seem like maybe the pie is also growing, right, versus sort of what you indicated prior. Like, I just want to get your sense of sort of, you know, whether you think most of these reshoring decisions, at least in production, maybe not sort of the sourcing for that production is done more, or if you're continuing to see customers look to move more here, so that could, you know, maybe grow over time, even if it doesn't come in necessarily in a 2027 timeframe. Thanks. thanks Good morning. good morning Hey, good morning, everyone. hey good morning everyone Want to just go back to the growth opportunities. want to just go back to the growth opportunities You know, and I know you gave a lot of good color here, but it does seem like maybe the pie is also growing, right, versus sort of what you indicated prior. you know and i know you gave a lot of good color here but it does seem like maybe the pie is also growing right versus sort of what you indicated prior Like, I just want to get your sense of sort of, you know, whether you think most of these reshoring decisions, at least in production, maybe not sort of the sourcing for that production is done more, or if you're continuing to see customers look to move more here, so that could, you know, maybe grow over time, even if it doesn't come in necessarily in a 2027 timeframe. like i just want to get your sense of sort of you know whether you think most of these reshoring decisions at least in production maybe not sort of the sourcing for that production is done more or if you're continuing to see customers look to move more here so that could you know maybe grow over time even if it doesn't come in necessarily in a 2027 timeframe And then on the EMEA portion, I know you mentioned, you know, a creative balance and balance out, and, you know, that, that's long been part of the plan, but it's been delayed. And are you implying that you now see better line of sight to that really start to kick in in 2027, where margins can start to, to move higher? And then on the EMEA portion, I know you mentioned, you know, a creative balance and balance out, and, you know, that, that's long been part of the plan, but it's been delayed. and then on the emea portion i know you mentioned you know a creative balance and balance out and you know that that's long been part of the plan but it's been delayed And are you implying that you now see better line of sight to that really start to kick in in 2027, where margins can start to, to move higher? and are you implying that you now see better line of sight to that really start to kick in in 2027 where margins can start to to move higher

Speaker 5: Yeah, so, so, first, thanks for the questions, and both are really good questions. On the nearshoring or maybe onshoring, I think, yes, we see an acceleration in the discussion with our customers on onshoring opportunities, and what we've highlighted today are ones that we are actively in the quote process or awarded on, and that's what kind of totals to that $400 million-$500 million, including the Conquest wins. That said, to your point, we are seeing more activity with the, you know, particularly with the Japanese OEMs, where we are very well positioned, given our long-term, you know, partnerships with those customers for additional potential volume growth in the 2028, 2029 timeframe. Whether that be, you know, some of their, you know, vehicles, kind of two- and three-row SUV-type things, that they're looking to move back here. Yeah, so, so, first, thanks for the questions, and both are really good questions. yeah so so first thanks for the questions and both are really good questions On the nearshoring or maybe onshoring, I think, yes, we see an acceleration in the discussion with our customers on onshoring opportunities, and what we've highlighted today are ones that we are actively in the quote process or awarded on, and that's what kind of totals to that $400 million-$500 million, including the Conquest wins. on the nearshoring or maybe onshoring i think yes we see an acceleration in the discussion with our customers on onshoring opportunities and what we've highlighted today are ones that we are actively in the quote process or awarded on and that's what kind of totals to that $400 million-$500 million including the conquest wins That said, to your point, we are seeing more activity with the, you know, particularly with the Japanese OEMs, where we are very well positioned, given our long-term, you know, partnerships with those customers for additional potential volume growth in the 2028, 2029 timeframe. that said to your point we are seeing more activity with the you know particularly with the japanese oems where we are very well positioned given our long-term you know partnerships with those customers for additional potential volume growth in the 2028 2029 timeframe Whether that be, you know, some of their, you know, vehicles, kind of two- and three-row SUV-type things, that they're looking to move back here. whether that be you know some of their you know vehicles kind of two- and three-row suv-type things that they're looking to move back here I do think there is that potential. A lot of it will come down to their capital allocation decisions and long term, where does USMCA set up next generation? So I think, as they make their footprint decisions over the next, possibly 6-8 months, that will then influence their loading of their vehicle assembly plants. And what's key for us is, you know, given those relationships, given where our JIT facilities are, and given how well we service them, we are ideally suited to be able to capitalize on that growth. And so I do think we see a potential tailwind, even beyond what we've talked to today, and there'll be more to come as they make their slotting decisions. So yes, I do think there is potential there. I do think there is that potential. i do think there is that potential A lot of it will come down to their capital allocation decisions and long term, where does USMCA set up next generation? a lot of it will come down to their capital allocation decisions and long term where does usmca set up next generation So I think, as they make their footprint decisions over the next, possibly 6-8 months, that will then influence their loading of their vehicle assembly plants. so i think as they make their footprint decisions over the next possibly 6-8 months that will then influence their loading of their vehicle assembly plants And what's key for us is, you know, given those relationships, given where our JIT facilities are, and given how well we service them, we are ideally suited to be able to capitalize on that growth. and what's key for us is you know given those relationships given where our jit facilities are and given how well we service them we are ideally suited to be able to capitalize on that growth And so I do think we see a potential tailwind, even beyond what we've talked to today, and there'll be more to come as they make their slotting decisions. and so i do think we see a potential tailwind even beyond what we've talked to today and there'll be more to come as they make their slotting decisions So yes, I do think there is potential there. so yes i do think there is potential there On your second question on EMEA, we are getting a greater line of sight on some of the roll-on, roll-off. I think as we look into fiscal year 2027 and 2028, you know, we do see recovery. Mark and I have been talking to you about the recovery, you know, and the balance and balance out. So it's not anything that's going to be above and beyond, you know, what we've been speaking, you know, seeing another, call it, you know, 25-50 basis points as we move out of 2026 into 2027 and just continue to slug through that region there. I just think it's getting the credibility in our customers' ability to launch the programs there. Certainly, the new business that we're bidding, the business that we're rolling on, is coming on at accretive margins. It's just the timing associated with it. On your second question on EMEA, we are getting a greater line of sight on some of the roll-on, roll-off. on your second question on emea we are getting a greater line of sight on some of the roll-on roll-off I think as we look into fiscal year 2027 and 2028, you know, we do see recovery. i think as we look into fiscal year 2027 and 2028 you know we do see recovery Mark and I have been talking to you about the recovery, you know, and the balance and balance out. mark and i have been talking to you about the recovery you know and the balance and balance out So it's not anything that's going to be above and beyond, you know, what we've been speaking, you know, seeing another, call it, you know, 25-50 basis points as we move out of 2026 into 2027 and just continue to slug through that region there. so it's not anything that's going to be above and beyond you know what we've been speaking you know seeing another call it you know 25-50 basis points as we move out of 2026 into 2027 and just continue to slug through that region there I just think it's getting the credibility in our customers' ability to launch the programs there. i just think it's getting the credibility in our customers' ability to launch the programs there Certainly, the new business that we're bidding, the business that we're rolling on, is coming on at accretive margins. certainly the new business that we're bidding the business that we're rolling on is coming on at accretive margins It's just the timing associated with it. it's just the timing associated with it What's really driving the timing of our customers launching programs over there is the different legislation around emissions and, you know, when are they going to phase out the current products, and are their current products competitive or not? And then what's happening, especially in the A and B segment, with respect to Chinese onshoring, are they competitive or aren't they? And they're really evaluating the things that I have in the pipeline. Are they competitive? And if they're not, they're going back to the drawing board, scrapping them, which is leading to delays in their product cycle, which is leading to our delays and our ability to then launch some of these new projects. Hopefully, that answers your question. What's really driving the timing of our customers launching programs over there is the different legislation around emissions and, you know, when are they going to phase out the current products, and are their current products competitive or not? what's really driving the timing of our customers launching programs over there is the different legislation around emissions and you know when are they going to phase out the current products and are their current products competitive or not And then what's happening, especially in the A and B segment, with respect to Chinese onshoring, are they competitive or aren't they? and then what's happening especially in the a and b segment with respect to chinese onshoring are they competitive or aren't they And they're really evaluating the things that I have in the pipeline. and they're really evaluating the things that i have in the pipeline Are they competitive? are they competitive And if they're not, they're going back to the drawing board, scrapping them, which is leading to delays in their product cycle, which is leading to our delays and our ability to then launch some of these new projects. and if they're not they're going back to the drawing board scrapping them which is leading to delays in their product cycle which is leading to our delays and our ability to then launch some of these new projects Hopefully, that answers your question. hopefully that answers your question

Speaker 6: Yeah. No, that it does. I appreciate that. Maybe just as a second question, and Mark, sort of a quick follow-up to your recoveries comment. I just like it does seem like it helped the results in the quarter from an earnings perspective. Can you just help me understand the -$37 million outflow you're showing in the cash from commercial negotiations? Like, is that just timing of when, like, you're booking it versus the cash? Like, I just any color on that would be helpful. Yeah. yeah No, that it does. no that it does I appreciate that. i appreciate that Maybe just as a second question, and Mark, sort of a quick follow-up to your recoveries comment. maybe just as a second question and mark sort of a quick follow-up to your recoveries comment I just like it does seem like it helped the results in the quarter from an earnings perspective. i just like it does seem like it helped the results in the quarter from an earnings perspective Can you just help me understand the -$37 million outflow you're showing in the cash from commercial negotiations? can you just help me understand the -$37 million outflow you're showing in the cash from commercial negotiations Like, is that just timing of when, like, you're booking it versus the cash? like is that just timing of when like you're booking it versus the cash Like, I just any color on that would be helpful. like i just any color on that would be helpful

Speaker 8: It really is, Joe. So again, as I indicated, yes, it did benefit the quarter, helped offset some of those operational inefficiencies, but again, it was pulled ahead either from a Q3 or a Q4 or a Q2 timing right into Q1. So again, over the course of the year, it's no different than what we are expecting from a commercial. And again, whenever we have commercial recoveries, there's always a timing mismatch between what we're trying to recover versus when that expense or when that cost actually hit. Tariffs is a perfect example, right? We'll have a tariff, you know, impact in our financials, but yet we don't get the recovery for that for, you know, several quarters after that, right? So it's normal course, but I'd say timing. It really is, Joe. it really is joe So again, as I indicated, yes, it did benefit the quarter, helped offset some of those operational inefficiencies, but again, it was pulled ahead either from a Q3 or a Q4 or a Q2 timing right into Q1. so again as i indicated yes it did benefit the quarter helped offset some of those operational inefficiencies but again it was pulled ahead either from a q3 or a q4 or a q2 timing right into q1 So again, over the course of the year, it's no different than what we are expecting from a commercial. so again over the course of the year it's no different than what we are expecting from a commercial And again, whenever we have commercial recoveries, there's always a timing mismatch between what we're trying to recover versus when that expense or when that cost actually hit. and again whenever we have commercial recoveries there's always a timing mismatch between what we're trying to recover versus when that expense or when that cost actually hit Tariffs is a perfect example, right? tariffs is a perfect example right We'll have a tariff, you know, impact in our financials, but yet we don't get the recovery for that for, you know, several quarters after that, right? we'll have a tariff you know impact in our financials but yet we don't get the recovery for that for you know several quarters after that right So it's normal course, but I'd say timing. so it's normal course but i'd say timing

Speaker 6: Okay, so that also helps the free cash flow cadence in the back half? What- Okay, so that also helps the free cash flow cadence in the back half? okay so that also helps the free cash flow cadence in the back half What- what-

Speaker 5: Correct. Correct. correct

Speaker 6: Because that's when you expect to get that. Okay. Thank you. Because that's when you expect to get that. because that's when you expect to get that Okay. okay Thank you. thank you

Speaker 9: Thank you. And as a reminder, if you would like to ask a question, please press star one. The next question comes from Andrew Percoco with Morgan Stanley. Your line is open. Thank you. thank you And as a reminder, if you would like to ask a question, please press star one. and as a reminder if you would like to ask a question please press star one The next question comes from Andrew Percoco with Morgan Stanley. the next question comes from andrew percoco with morgan stanley Your line is open. your line is open

Speaker 1: Great. Thanks so much for taking the question this morning. I do just want to come back one more time to the Europe dynamics. You know, it sounds like you're expecting some improvement in that market in 2027. But in your prepared remarks, you talked about how, you know, one of the headwinds is, you know, essentially the China import volumes into that market. But that doesn't seem like something that is maybe going to slow anytime soon. So I guess my question would be, you know, what are you doing to essentially either buffer yourself or manage margins if that continues? And I guess maybe a second part to that question would be: is there an opportunity to support those customers? Great. great Thanks so much for taking the question this morning. thanks so much for taking the question this morning I do just want to come back one more time to the Europe dynamics. i do just want to come back one more time to the europe dynamics You know, it sounds like you're expecting some improvement in that market in 2027. you know it sounds like you're expecting some improvement in that market in 2027 But in your prepared remarks, you talked about how, you know, one of the headwinds is, you know, essentially the China import volumes into that market. but in your prepared remarks you talked about how you know one of the headwinds is you know essentially the china import volumes into that market But that doesn't seem like something that is maybe going to slow anytime soon. but that doesn't seem like something that is maybe going to slow anytime soon So I guess my question would be, you know, what are you doing to essentially either buffer yourself or manage margins if that continues? so i guess my question would be you know what are you doing to essentially either buffer yourself or manage margins if that continues And I guess maybe a second part to that question would be: is there an opportunity to support those customers? and i guess maybe a second part to that question would be is there an opportunity to support those customers Obviously, you're, you've seen some success with the domestic, China OEMs in China, but as they, you know, export more volumes to other markets, I'm just wondering if there's an opportunity to be a supplier of choice there, and that might also help, you know, in terms of the margin improvement in that market. Thank you. Obviously, you're, you've seen some success with the domestic, China OEMs in China, but as they, you know, export more volumes to other markets, I'm just wondering if there's an opportunity to be a supplier of choice there, and that might also help, you know, in terms of the margin improvement in that market. obviously you're you've seen some success with the domestic china oems in china but as they you know export more volumes to other markets i'm just wondering if there's an opportunity to be a supplier of choice there and that might also help you know in terms of the margin improvement in that market Thank you. thank you

Speaker 5: Yeah. So I think there's two, two ways that we think about, you know, addressing that. So the first one is, you know, understanding where the Chinese exports are coming into Europe, what segments they're attacking there, and trying to insulate ourselves from the segment. So primarily, as they're coming into Europe, they're heavy on the A and B segment, and so we've been very focused on going up segment. If you look at, you know, a lot of our conquest wins in the region, you know, they've been with, say, kind of call it, you know, C segment, luxury segment, Porsche vehicles, the higher end segment, Volvo high-end segment type of platforms. And so the business that's rolling on, you know, we talked to, we didn't give the platform name. Yeah. yeah So I think there's two, two ways that we think about, you know, addressing that. so i think there's two two ways that we think about you know addressing that So the first one is, you know, understanding where the Chinese exports are coming into Europe, what segments they're attacking there, and trying to insulate ourselves from the segment. so the first one is you know understanding where the chinese exports are coming into europe what segments they're attacking there and trying to insulate ourselves from the segment So primarily, as they're coming into Europe, they're heavy on the A and B segment, and so we've been very focused on going up segment. so primarily as they're coming into europe they're heavy on the a and b segment and so we've been very focused on going up segment If you look at, you know, a lot of our conquest wins in the region, you know, they've been with, say, kind of call it, you know, C segment, luxury segment, Porsche vehicles, the higher end segment, Volvo high -end segment type of platforms. if you look at you know a lot of our conquest wins in the region you know they've been with say kind of call it you know c segment luxury segment porsche vehicles the higher end segment volvo high -end segment type of platforms And so the business that's rolling on, you know, we talked to, we didn't give the platform name. and so the business that's rolling on you know we talked to we didn't give the platform name We're in the middle of a complex launch with a German OE at the moment, that's on a very high-end segment type of vehicle. And so it's going up segment on vehicles that are insulated at the moment from the Chinese, where the Chinese are succeeding within Europe. So that's one way that we're going about it. Another way that we're going about it is, as the Chinese are localizing within Europe, we're able to win components business there. We're also able to bid on some of the JIT products and win some of the JIT content where possible. That's another avenue that we're able to actually attack and benefit from some of that. We're in the middle of a complex launch with a German OE at the moment, that's on a very high-end segment type of vehicle. we're in the middle of a complex launch with a german oe at the moment that's on a very high-end segment type of vehicle And so it's going up segment on vehicles that are insulated at the moment from the Chinese, where the Chinese are succeeding within Europe. and so it's going up segment on vehicles that are insulated at the moment from the chinese where the chinese are succeeding within europe So that's one way that we're going about it. so that's one way that we're going about it Another way that we're going about it is, as the Chinese are localizing within Europe, we're able to win components business there. another way that we're going about it is as the chinese are localizing within europe we're able to win components business there We're also able to bid on some of the JIT products and win some of the JIT content where possible. we're also able to bid on some of the jit products and win some of the jit content where possible That's another avenue that we're able to actually attack and benefit from some of that. that's another avenue that we're able to actually attack and benefit from some of that Then the last way that we see is, you know, where possible, what vehicles are the Chinese exporting into China from, you know, or exporting into Europe from China, and can we, you know, win share there? In some cases, you know, because the large exporters would be with SAIC, and SAIC is historically one of our competitors' territory, Yanfeng, so that's not, you know, that's not territory that Adient plays in. But when it's a NIO or when it is a, you know, I'll point to, say, Geely as an example, and, you know, we've just recently signed a joint venture with one of Geely's largest seating suppliers that we're able to capitalize on, and that will give us access into that export market. Then the last way that we see is, you know, where possible, what vehicles are the Chinese exporting into China from, you know, or exporting into Europe from China, and can we, you know, win share there? then the last way that we see is you know where possible what vehicles are the chinese exporting into china from you know or exporting into europe from china and can we you know win share there In some cases, you know, because the large exporters would be with SAIC, and SAIC is historically one of our competitors' territory, Yanfeng, so that's not, you know, that's not territory that Adient plays in. in some cases you know because the large exporters would be with saic and saic is historically one of our competitors' territory yanfeng so that's not you know that's not territory that adient plays in But when it's a NIO or when it is a, you know, I'll point to, say, Geely as an example, and, you know, we've just recently signed a joint venture with one of Geely's largest seating suppliers that we're able to capitalize on, and that will give us access into that export market. but when it's a nio or when it is a you know i'll point to say geely as an example and you know we've just recently signed a joint venture with one of geely's largest seating suppliers that we're able to capitalize on and that will give us access into that export market And that's why we were very strategic in signing that joint venture, to be able to gain access into the export market for vehicles that are exported into Europe. And so it really is kind of a three-layered approach into looking at it. You know, insulate ourselves from the segments that are being attacked. Where we can't do that, can we gain components on vehicles that are being produced in there? And then looking at what vehicles are being exported, and can we gain content directly on the export vehicles? And that's why we were very strategic in signing that joint venture, to be able to gain access into the export market for vehicles that are exported into Europe. and that's why we were very strategic in signing that joint venture to be able to gain access into the export market for vehicles that are exported into europe And so it really is kind of a three-layered approach into looking at it. and so it really is kind of a three-layered approach into looking at it You know, insulate ourselves from the segments that are being attacked. you know insulate ourselves from the segments that are being attacked Where we can't do that, can we gain components on vehicles that are being produced in there? where we can't do that can we gain components on vehicles that are being produced in there And then looking at what vehicles are being exported, and can we gain content directly on the export vehicles? and then looking at what vehicles are being exported and can we gain content directly on the export vehicles

Speaker 1: Got it. Okay, that's, that's super helpful context. And, and maybe just continuing on, on the onshoring, debate and, and opportunity, I guess. You know, I'm, I'm curious, and this may be a, a few years out, but, I'm curious to what extent you're hearing or having conversations with the China domestic OEMs in terms of their aspirations to come to the, the U.S. or, or Canada market. Obviously, you know, recently, Canada making a deal, with, with China on reducing tariffs on EVs. I'm just wondering if that's gonna become a bigger opportunity, for you guys going forward, and if you're starting to have those preliminary conversations. Got it. got it Okay, that's, that's super helpful context. okay that's that's super helpful context And, and maybe just continuing on, on the onshoring, debate and, and opportunity, I guess. and and maybe just continuing on on the onshoring debate and and opportunity i guess You know, I'm, I'm curious, and this may be a, a few years out, but, I'm curious to what extent you're hearing or having conversations with the China domestic OEMs in terms of their aspirations to come to the, the U.S. or, or Canada market. you know i'm i'm curious and this may be a a few years out but i'm curious to what extent you're hearing or having conversations with the china domestic oems in terms of their aspirations to come to the the u.s or or canada market Obviously, you know, recently, Canada making a deal, with, with China on reducing tariffs on EVs. obviously you know recently canada making a deal with with china on reducing tariffs on evs I'm just wondering if that's gonna become a bigger opportunity, for you guys going forward, and if you're starting to have those preliminary conversations. i'm just wondering if that's gonna become a bigger opportunity for you guys going forward and if you're starting to have those preliminary conversations

Speaker 5: Yeah, so maybe. So the first thing I would say, and it's, you know, because you had said, you know, on the onshoring debate, it- I mean, I just want to be very, very clear. I mean, there is no debate. Adient will be a net beneficiary from onshoring. I mean, of all the seating suppliers, we will be a net winner from onshoring. It's already being shown today. We will be a net beneficiary, net winner from onshoring. That I mean, that's already shown, and that trend will continue. Secondly, to your question then, as it pertains to, you know, the Chinese kind of coming to, whether it be Canada or Mexico, I think Mexico is another potential, depending on how USMCA plays out and if the U.S. leverages Mexico into putting tariffs on. Yeah, so maybe. yeah so maybe So the first thing I would say, and it's, you know, because you had said, you know, on the onshoring debate, it- I mean, I just want to be very, very clear. so the first thing i would say and it's you know because you had said you know on the onshoring debate it- i mean i just want to be very very clear I mean, there is no debate. i mean there is no debate Adient will be a net beneficiary from onshoring. adient will be a net beneficiary from onshoring I mean, of all the seating suppliers, we will be a net winner from onshoring. i mean of all the seating suppliers we will be a net winner from onshoring It's already being shown today. it's already being shown today We will be a net beneficiary, net winner from onshoring. we will be a net beneficiary net winner from onshoring That I mean, that's already shown, and that trend will continue. that i mean that's already shown and that trend will continue Secondly, to your question then, as it pertains to, you know, the Chinese kind of coming to, whether it be Canada or Mexico, I think Mexico is another potential, depending on how USMCA plays out and if the U.S. leverages Mexico into putting tariffs on. secondly to your question then as it pertains to you know the chinese kind of coming to whether it be canada or mexico i think mexico is another potential depending on how usmca plays out and if the u.s leverages mexico into putting tariffs on I mean, we are working through our China, because there are such strong ties in China, with some of those OEs that may explore a relationship with Canada or with Mexico. So absolutely, we're having those discussions, you know, with the BYDs of the world, with the Geelys of the world on, you know, if they want to go to Canada, or if they want to go to Mexico, we could be there to service them. The question is: What is their real appetite for doing so?... but if they, you know, if they want to explore that, we would absolutely be able to service them. You know, the question is, do they want to? And what are those long-term trade and industrialization ties look like? I mean, we are working through our China, because there are such strong ties in China, with some of those OEs that may explore a relationship with Canada or with Mexico. i mean we are working through our china because there are such strong ties in china with some of those oes that may explore a relationship with canada or with mexico So absolutely, we're having those discussions, you know, with the BYDs of the world, with the Geelys of the world on, you know, if they want to go to Canada, or if they want to go to Mexico, we could be there to service them. so absolutely we're having those discussions you know with the byds of the world with the geelys of the world on you know if they want to go to canada or if they want to go to mexico we could be there to service them The question is: What is their real appetite for doing so?... but if they, you know, if they want to explore that, we would absolutely be able to service them. the question is what is their real appetite for doing so but if they you know if they want to explore that we would absolutely be able to service them You know, the question is, do they want to? you know the question is do they want to And what are those long-term trade and industrialization ties look like? and what are those long-term trade and industrialization ties look like Absolutely, because of our strong, strong relationships in China, we are able and we do have those discussions. Absolutely, because of our strong, strong relationships in China, we are able and we do have those discussions. absolutely because of our strong strong relationships in china we are able and we do have those discussions

Speaker 1: Okay, great. Thank you so much. Okay, great. okay great Thank you so much. thank you so much

Speaker 5: Yeah, thank you for the questions. Yeah, thank you for the questions. yeah thank you for the questions

Speaker 9: Thank you. The next question comes from Dan Levy with Barclays. Your line is open. Thank you. thank you The next question comes from Dan Levy with Barclays. the next question comes from dan levy with barclays Your line is open. your line is open

Speaker 3: Hi. Great, good morning. Thank you for taking the questions. Wanted to first start with a question on your equity income, and specifically the margin dynamics. This quarter was especially, especially strong, higher equity income despite lower revenue. And I think this is interesting in context of our understanding that some of the increased China business was supposed to roll on at lower margins. So maybe you could just talk through what occurred in the first quarter on the China equity income and how we might expect some of the margin dynamics to play out as you get some of this new China business, how margin diluted it is, and what's your confidence that the net profit will in fact be better? Hi. hi Great, good morning. great good morning Thank you for taking the questions. thank you for taking the questions Wanted to first start with a question on your equity income, and specifically the margin dynamics. wanted to first start with a question on your equity income and specifically the margin dynamics This quarter was especially, especially strong, higher equity income despite lower revenue. this quarter was especially especially strong higher equity income despite lower revenue And I think this is interesting in context of our understanding that some of the increased China business was supposed to roll on at lower margins. and i think this is interesting in context of our understanding that some of the increased china business was supposed to roll on at lower margins So maybe you could just talk through what occurred in the first quarter on the China equity income and how we might expect some of the margin dynamics to play out as you get some of this new China business, how margin diluted it is, and what's your confidence that the net profit will in fact be better? so maybe you could just talk through what occurred in the first quarter on the china equity income and how we might expect some of the margin dynamics to play out as you get some of this new china business how margin diluted it is and what's your confidence that the net profit will in fact be better

Speaker 5: Yeah, so maybe a couple of points there, Dan, and thanks for the question. You know, we talk about the new business rolling on in China, which would result in what I'd call manageable compression in our margins over there. That's really the consolidated business, right? So think of that, you know, whether it's business with the Chinese locals that we're funneling through our, you know, consolidated sales, consolidated EBITDA, et cetera, in China. For the equity income piece, that's really derived from our joint ventures, right? Like, with Keiper and certain of the other joint ventures that we have over in EMEA. Those sales, as I mentioned in my prepared comments, were actually higher this quarter. And so again, it drove my performance and my better operating performance at those joint ventures, right? Keiper being one of those joint ventures. Yeah, so maybe a couple of points there, Dan, and thanks for the question. yeah so maybe a couple of points there dan and thanks for the question You know, we talk about the new business rolling on in China, which would result in what I'd call manageable compression in our margins over there. you know we talk about the new business rolling on in china which would result in what i'd call manageable compression in our margins over there That's really the consolidated business, right? that's really the consolidated business right So think of that, you know, whether it's business with the Chinese locals that we're funneling through our, you know, consolidated sales, consolidated EBITDA, et cetera, in China. so think of that you know whether it's business with the chinese locals that we're funneling through our you know consolidated sales consolidated ebitda et cetera in china For the equity income piece, that's really derived from our joint ventures, right? for the equity income piece that's really derived from our joint ventures right Like, with Keiper and certain of the other joint ventures that we have over in EMEA. like with keiper and certain of the other joint ventures that we have over in emea Those sales, as I mentioned in my prepared comments, were actually higher this quarter. those sales as i mentioned in my prepared comments were actually higher this quarter And so again, it drove my performance and my better operating performance at those joint ventures, right? and so again it drove my performance and my better operating performance at those joint ventures right Keiper being one of those joint ventures. keiper being one of those joint ventures So I think it's important to differentiate between each of those buckets, the consolidated piece as well as the unconsolidated piece. So I think it's important to differentiate between each of those buckets, the consolidated piece as well as the unconsolidated piece. so i think it's important to differentiate between each of those buckets the consolidated piece as well as the unconsolidated piece

Speaker 3: Great. Understood. Thank you. And then second, wondering if you could just comment on... One of your competitors who reported this morning pointed to a large conquest win for complete seats on a U.S. automaker's truck program. I know you gave some positive updates here on onshoring, but maybe you could just talk about maybe some of the dynamics within sourcing for large trucks, which we know are a key program for you and also for you know, this competitor as well on some of the other platforms out there. Just if you could comment on that development from them. Great. great Understood. understood Thank you. thank you And then second, wondering if you could just comment on... and then second wondering if you could just comment on One of your competitors who reported this morning pointed to a large conquest win for complete seats on a U.S. automaker's truck program. one of your competitors who reported this morning pointed to a large conquest win for complete seats on a u.s automaker's truck program I know you gave some positive updates here on onshoring, but maybe you could just talk about maybe some of the dynamics within sourcing for large trucks, which we know are a key program for you and also for you know, this competitor as well on some of the other platforms out there. i know you gave some positive updates here on onshoring but maybe you could just talk about maybe some of the dynamics within sourcing for large trucks which we know are a key program for you and also for you know this competitor as well on some of the other platforms out there Just if you could comment on that development from them. just if you could comment on that development from them

Speaker 5: Yeah, I think what you're getting at, did we lose any large truck programs? You know, we haven't lost any large truck programs. I think their win isn't reflective of any Adient losses. So I, you know, I would anticipate that it is something that one of our competitors has lost, which, you guys know the market pretty well, so you can anticipate where that loss would have come from. But I think, you know, stepping back more strategically and saying, you know, what does this mean for the market? First of all, you know, congratulations to Ray and Frank and Jason up there in Southfield, and I mean that. Yeah, I think what you're getting at, did we lose any large truck programs? yeah i think what you're getting at did we lose any large truck programs You know, we haven't lost any large truck programs. you know we haven't lost any large truck programs I think their win isn't reflective of any Adient losses. i think their win isn't reflective of any adient losses So I, you know, I would anticipate that it is something that one of our competitors has lost, which, you guys know the market pretty well, so you can anticipate where that loss would have come from. so i you know i would anticipate that it is something that one of our competitors has lost which you guys know the market pretty well so you can anticipate where that loss would have come from But I think, you know, stepping back more strategically and saying, you know, what does this mean for the market? but i think you know stepping back more strategically and saying you know what does this mean for the market First of all, you know, congratulations to Ray and Frank and Jason up there in Southfield, and I mean that. first of all you know congratulations to ray and frank and jason up there in southfield and i mean that I think more strategically, though, what it means for the market is, and this is what, I think, both they've been saying and we've been saying is, you know, this is a market that needs consolidation. You know, the competitor who had that business, we have been actively conquesting their business. You know, we've conquested a large portion of their other business that sits in, in other portions of the U.S. So we've taken quite a few of their dots off the map. We've taken dots off of their map elsewhere. And, you know, I just think it's representative of a larger symptom of what needs to happen in seating, which is consolidation. I think more strategically, though, what it means for the market is, and this is what, I think, both they've been saying and we've been saying is, you know, this is a market that needs consolidation. i think more strategically though what it means for the market is and this is what i think both they've been saying and we've been saying is you know this is a market that needs consolidation You know, the competitor who had that business, we have been actively conquesting their business. you know the competitor who had that business we have been actively conquesting their business You know, we've conquested a large portion of their other business that sits in, in other portions of the U.S. you know we've conquested a large portion of their other business that sits in in other portions of the u.s So we've taken quite a few of their dots off the map. so we've taken quite a few of their dots off the map We've taken dots off of their map elsewhere. we've taken dots off of their map elsewhere And, you know, I just think it's representative of a larger symptom of what needs to happen in seating, which is consolidation. and you know i just think it's representative of a larger symptom of what needs to happen in seating which is consolidation I think, you know, for them, I think it's, you know, I'll assume it's a good thing, and I think for seating, the more of this that can maybe force through consolidation is generally what needs to occur in the space. But for Adient, it's, you know, no impact. It isn't anything that we had. It's none of our business in terms of anything that we were an incumbent on. I think, you know, for them, I think it's, you know, I'll assume it's a good thing, and I think for seating, the more of this that can maybe force through consolidation is generally what needs to occur in the space. i think you know for them i think it's you know i'll assume it's a good thing and i think for seating the more of this that can maybe force through consolidation is generally what needs to occur in the space But for Adient, it's, you know, no impact. but for adient it's you know no impact It isn't anything that we had. it isn't anything that we had It's none of our business in terms of anything that we were an incumbent on. it's none of our business in terms of anything that we were an incumbent on

Speaker 3: Great, thank you. That's helpful insight. Great, thank you. great thank you That's helpful insight. that's helpful insight

Speaker 9: Great. Thank you, and there are no further questions. Great. great Thank you, and there are no further questions. thank you and there are no further questions

Speaker 7: Perfect. Thanks, Denise. And so in closing, I want to thank everyone once again for your interest in Adient. If you do have any follow-up questions, please feel free to reach out to me. Also, I would like to acknowledge that we will be in New York City next week, participating at the Wolfe Conference, and hope to see many of you then. With that, operator, we can close out the call. Perfect. perfect Thanks, Denise. thanks denise And so in closing, I want to thank everyone once again for your interest in Adient. and so in closing i want to thank everyone once again for your interest in adient If you do have any follow-up questions, please feel free to reach out to me. if you do have any follow-up questions please feel free to reach out to me Also, I would like to acknowledge that we will be in New York City next week, participating at the Wolfe Conference, and hope to see many of you then. also i would like to acknowledge that we will be in new york city next week participating at the wolfe conference and hope to see many of you then With that, operator, we can close out the call. with that operator we can close out the call

Speaker 9: Thank you. This does conclude today's call. We thank you for your participation. At this time, you may disconnect your lines. Thank you. thank you This does conclude today's call. this does conclude today's call We thank you for your participation. we thank you for your participation At this time, you may disconnect your lines. at this time you may disconnect your lines