Adient Increases Share Repurchase Authorization by $400 Million and Adopts Tax Benefits Preservation Plan

Adient (NYSE: ADNT) has announced a $400 million increase to its share repurchase authorization, bringing the total program amount to $1 billion. This move follows the company's previous repurchases of $565 million since November 2022 and is intended to signal management's confidence in future cash flow generation and long-term business outlook. Simultaneously, the Board of Directors adopted a Tax Benefits Preservation Plan to protect approximately $3.5 billion in net operating loss carryforwards and other tax attributes from being limited by Section 382 of the U.S. Internal Revenue Code. The plan includes a mechanism where shareholders receive rights to purchase preferred shares if an entity acquires more than 4.95% of outstanding shares without board approval, thereby safeguarding assets that reduce future cash tax payments.

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