Adient Announces $400M Stock Buyback Increase To Total Authorization Of $1B, With $435M Remaining

Company's share repurchase authorization and adopted a Tax Benefits Preservation Plan intended to protect the value of Adient's significant U.S. tax attributes for the benefit of all shareholders.

The board authorized a $400M increase in its share repurchase authorization, reflecting confidence in Adient's business outlook, cash flow generation and disciplined capital allocation framework. The new authorization increases the company's existing repurchase program launched in November 2022, under which the company has repurchased $565 million of shares. The new authorization brings the total share repurchase authorization to $1 billion with a current remaining authorization of $435 million and provides additional flexibility to continue returning capital to shareholders while maintaining investment in strategic priorities.

In addition, the board adopted a Tax Benefits Preservation Plan designed to reduce the likelihood of an unintended ownership change under Section 382 of the U.S. Internal Revenue Code that could limit Adient's ability to utilize its valuable net operating loss carryforwards and other tax attributes. These tax attributes represent a significant asset that may reduce future cash tax payments and enhance long-term shareholder value. The terms of the Tax Benefits Preservation Plan are generally consistent with plans established by other U.S. listed companies to preserve valuable tax assets.