Adient Formed a Joint Venture with SCI to Drive Growth in China

Rhea-AI Summary

Adient (NYSE:ADNT) completed acquisition of a 49% equity stake in SCI (Zhangjiakou) Co., Ltd. and formed a strategic joint venture on Dec. 8, 2025.

The JV will develop and manufacture automotive seating solutions for the China market with a focus on serving key Chinese OEMs. The partnership combines Adient's global technology with SCI's local insights to accelerate development and mass production, expand market share, and strengthen Adient's local footprint in China.

Positive

• Acquired 49% equity stake in SCI (Zhangjiakou) on Dec. 8, 2025
• Joint venture dedicated to development and mass production of seating for China OEMs
• Combines Adient global technology with SCI local insights to accelerate product rollout

Negative

• None.

Key Figures

Equity stake 49% Adient acquisition in SCI joint venture

Q4 GAAP net income $18M Q4 fiscal 2025 results

Q4 adjusted EBITDA $226M Q4 fiscal 2025 results

FY25 free cash flow $204M Full-year fiscal 2025

Gross debt $2.4B Balance sheet at Sept. 30, 2025

Cash balance $958M Balance sheet at Sept. 30, 2025

FY25 revenue guidance ~$14.4B Raised FY25 outlook

FY25 adj. EBITDA guidance ~$875M Raised FY25 outlook

Market Reality Check

Volume Volume 962,855 is at 0.76x the 20-day average of 1,263,318 shares. normal

Technical Price 18.52 is trading below the 200-day MA of 19.15 before the JV news.

Peers on Argus

ADNT was down 2.37% while peers were mixed: GT up 1.18%, PHIN up 0.28%, but DAN down 4.24%, GTX down 1.07%, and ATMU down 1.12%, indicating stock-specific dynamics rather than a unified sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 05	Earnings results	Positive	-16.7%	Reported Q4 and full-year results with guidance for FY26.
Oct 13	Product collaboration	Positive	+0.5%	Co-developed dynamic seat safety solution ready for mass production.
Oct 01	Earnings call notice	Neutral	+1.3%	Scheduled Q4 FY2025 earnings conference call and webcast details.
Aug 13	Leadership change	Neutral	+4.8%	Appointed new VP of FP&A and Investor Relations with auto experience.
Aug 06	Earnings results	Positive	+3.5%	Strong Q3 2025 results and raised FY25 guidance with higher EBITDA.

Pattern Detected

Recent news has mostly seen aligned, modestly positive reactions, with a notable -16.72% divergence on the latest earnings release.

Recent Company History

Over the last few months, Adient reported strong Q3 and solid Q4/FY25 results, including $226M in adjusted EBITDA and higher FY25 guidance, but the November Q4 release saw a sharp -16.72% reaction. Other updates, like the Autoliv safety collaboration and leadership changes, drew small positive moves. Against this backdrop, the new China-focused joint venture extends Adient’s strategy of partnerships and regional strength, particularly building on its highlighted leadership position in China.

Market Pulse Summary

This announcement highlights Adient’s continued investment in China through a new joint venture built on a 49% equity stake in SCI. It complements earlier collaborations and follows FY25 free cash flow of $204M and raised guidance. Investors may watch how quickly the venture scales with Chinese OEMs and how it contributes to revenue and margins relative to existing China operations and prior partnership initiatives.

Key Terms

joint venture financial

"completed the acquisition of a 49% equity stake in SCI ... establishing a new strategic joint venture."

A joint venture is when two or more companies team up to work on a specific project or business idea, sharing both the risks and the rewards. It’s like friends starting a lemonade stand together—each contributes resources and they split the profits, making it easier to succeed than going alone.

OEMs technical

"focus on serving key Chinese OEMs."

OEMs, or Original Equipment Manufacturers, are companies that produce the main components or products that other companies use to build finished goods. For investors, OEMs are important because their performance can influence the supply chain, manufacturing costs, and overall market trends in industries like technology, automotive, and electronics. Their success often reflects broader economic health and consumer demand.

AI-generated analysis. Not financial advice.

SHANGHAI, Dec. 8, 2025 /PRNewswire/ -- Recently, Adient, a global leader in automotive seating, completed the acquisition of a 49% equity stake in SCI (Zhangjiakou) Co., Ltd., a local Chinese supplier under Zhejiang Yoening Technology Group, officially establishing a new strategic joint venture. This joint venture will be dedicated to developing and manufacturing innovative and exceptional automotive seating solutions for the rapidly evolving China market, with a particular focus on serving key Chinese OEMs.

This collaboration represents another strategic move for Adient in strengthening its presence in China. Through win-win collaboration, the partnership aims to drive business growth, expand market share, and enhance local footprint to deliver agile service to customers.

The new joint venture will combine Adient's global technology expertise with SCI's local insights to accelerate the development and mass production of innovative seating products. Together, the companies will provide industry-leading automotive seating solutions that cater to both local and global trends for OEMs.

This joint venture marks an important milestone in Adient's continued investment and commitment to the China market. Looking ahead, we will continue to focus on creating value for OEMs and end-users, actively expand our world-class partnerships in China, and grow together with China's automotive industry.

About Adient:
Adient (NYSE: ADNT) is a global leader in automotive seating. With more than 65,000 employees in 29 countries, Adient operates ~200 manufacturing/assembly plants worldwide. We produce and deliver automotive seating for all major OEMs. From complete seating systems to individual components, our expertise spans every step of the automotive seat-making process. We take our products from research and design to engineering and manufacturing — and into millions of vehicles every year.  For more information on Adient, please visit www.adient.com.

View original content:https://www.prnewswire.com/news-releases/adient-formed-a-joint-venture-with-sci-to-drive-growth-in-china-302634743.html

SOURCE Adient

FAQ

What did Adient announce on Dec. 8, 2025 about its China strategy (ADNT)?

Adient acquired a 49% stake in SCI (Zhangjiakou) and formed a joint venture to serve Chinese OEMs.

How will the ADNT–SCI joint venture affect Adient's manufacturing in China?

The JV is aimed at accelerating development and mass production of automotive seating tailored for China OEMs.

What is the ownership percentage Adient took in SCI (Zhangjiakou)?

Adient acquired a 49% equity stake in SCI (Zhangjiakou).

Which customers will the ADNT joint venture primarily target in China?

The joint venture will focus on serving key Chinese OEMs with innovative seating solutions.

What advantages does Adient expect from the joint venture with SCI for stock symbol ADNT?

Adient expects to strengthen its China presence, expand market share, and leverage combined technology and local insights.