Shares of Adient PLC (ADNT) plunged 21.97% in pre-market trading on Wednesday following the release of its fiscal fourth-quarter earnings report, which fell short of analyst expectations and showed a decline in profitability.

The automotive seating supplier reported adjusted earnings per share of $0.52 for the quarter ended September 30, down from $0.68 in the same period last year and below the $0.57 consensus estimate from analysts polled by FactSet. While net sales increased to $3.69 billion from $3.56 billion a year earlier, surpassing the expected $3.63 billion, the drop in profit margins appears to have spooked investors.

Adding to the negative sentiment, Adient's outlook for fiscal year 2026 failed to impress. The company projected consolidated sales of about $14.4 billion, which is roughly in line with analysts' expectations of $14.43 billion. However, the lack of a more robust growth forecast, coupled with the earnings miss and profit decline, likely contributed to the sharp sell-off. As the market digests this information, investors seem to be reassessing Adient's near-term prospects in the challenging automotive supply chain environment.