Adient plc (NYSE:ADNT) reported its Q1 results, with adjusted EBITDA coming in at $146 million, well above the Street estimate of $93 million, as the impact from ongoing supply chain constraints was partly offset by a lower-than-anticipated hit from commodity inflation due to better commercial recoveries from customers. Quarterly revenue was $3.5 billion, compared to the consensus estimate of $3.1 billion, helped by an improved vehicle mix including new EV entrant programs in Asia.

Despite strong results, the company left its initial full 2022-year guidance unchanged, calling for EBITDA modestly down compared to 2021’s $810 million.

Analysts at Deutsche Bank provided their views on the company following the results, stating that they now see upside to the unchanged 2022 outlook. The analysts continue to expect considerable EBITDA growth in 2023 and later, and with 2022 de-risked, view the company as one of the best plays in the US supplier group for a multi-year industry volume rebound, capitalizing on its operating leverage from large improvement in revenue, materially reduced inefficiencies from higher capacity utilization, and recovery of commodities headwinds.