Adient Eyes 2027 Margin Growth as Onshoring Wins and Automation Build Momentum

Adient executives said the automotive seating supplier expects to finish fiscal 2026 in line with commitments and enter fiscal 2027 with continued revenue growth, improving business performance and margin expansion, supported by Americas onshoring wins, China growth and automation investments.

Speaking at the JPMorgan conference, Executive Vice President and Chief Financial Officer Mark Oswald said external pressures during fiscal 2026 included Middle East disruptions and higher input costs, but described those challenges as temporary. He said the company’s operating model and regional execution have remained resilient.

“We are entering 2027 from a position of strength,” Oswald said, pointing to expected growth above market in the Americas and China, restructuring benefits in Europe and ongoing automation efforts. However, he said the company still needs to assess year-end inventory levels, the resulting impact on 2027 vehicle production, potential European restructuring needs and capital spending requirements.

Americas growth and manufacturing initiatives Jim Conklin, Adient’s executive vice president for the Americas region, said the region generates approximately $7 billion in revenue and operates more than 40 plants across North and South America. He said Adient expects more than $400 million of incremental conquest and onshoring business over the next several years. Conklin cited recent launches involving Kia Telluride and Rivian R2 seats, as well as recently announced business wins tied to Dodge Durango, Volkswagen, South American conquest programs and replacement business such as the Ford Mustang.

He characterized the Dodge Durango award as strategically favorable because the vehicle will be built at Stellantis’ Toledo Assembly Complex, where Adient already supplies Jeep seating. The Durango program is expected to use an existing Jeep production line, allowing the company to increase revenue and profitability while limiting new investment, he said.

For a General Motors win in the Kansas City area, Conklin said Adient combined long-distance subassembly deliveries, sourcing from lower-cost markets where possible, and automation commitments. He said the company’s Mexican network can provide components including trim and foam while metals are sourced separately.

Adient is also reducing third-party metals business, which Conklin said will lower Americas revenue by roughly $100 million in the next fiscal year. The company intends to retain metals work involving customers that value its integrated manufacturing capabilities.

To manage fixed costs while adding new business, Conklin said Adient plans to consolidate four Americas plants over the next two years. Some consolidation efforts have begun, while other actions have not yet been announced. He said proceeds from asset sales may help fund restructuring and growth investments.

Automation focus and returns Conklin said automation is a major priority as Adient seeks to reduce labor costs, address labor availability and lower vehicle costs for customers. The company initially targeted non-value-added work, such as product testing and material movement, before expanding its efforts toward automation of component installation on assembly lines. He said Adient generally targets automation projects with payback periods of less than two years. Examples include moving materials from storage to assembly lines, installing headrests and fitting plastic side shields and seat controls. He said certain pilots are operating in plants and can be expanded across the network.