Lear Reports Second Quarter 2025 Results
Rhea-AI Summary
Lear Corporation (NYSE: LEA), a global automotive technology leader, reported its Q2 2025 financial results. The company delivered revenue of $6.0 billion, flat compared to Q2 2024. Net income was $165 million ($3.06 per share), down from $173 million in Q2 2024, while adjusted earnings were $3.47 per share.
The company demonstrated strong operational performance with margin improvements in both segments: ≈45 basis points in Seating and ≈70 basis points in E-Systems. Lear restored its full-year guidance, expecting revenue between $22,470-$23,070 million and core operating earnings of $955-$1,095 million. The company maintained shareholder returns through $25 million in share repurchases and $41 million in dividends.
Notable achievements include refinancing a $2 billion revolver through July 2030, winning conquest programs with BMW and Ford, and securing new business with Chinese EV makers.
Positive
- Strong operational performance with margin improvements in both Seating (≈45 bps) and E-Systems (≈70 bps)
- Secured multiple conquest awards including complete seat program with BMW and wire business with global EV automaker
- Successfully refinanced $2 billion revolver, extending maturity to 2030
- Maintained strong liquidity position with $888 million cash and total liquidity of $2.9 billion
- Increased total company full year net performance by ≈$25 million
Negative
- Net income decreased to $165.2 million from $173.1 million year-over-year
- Core operating earnings declined to $292 million (4.8% of sales) from $302 million (5.0% of sales)
- Global vehicle production expected to be 2% lower than 2024 on a Lear sales-weighted basis
- Sales decreased 1% excluding impact of commodities, foreign exchange, and other factors
News Market Reaction
On the day this news was published, LEA declined 8.09%, reflecting a notable negative market reaction. Argus tracked a trough of -4.1% from its starting point during tracking. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $509M from the company's valuation, bringing the market cap to $5.78B at that time.
Data tracked by StockTitan Argus on the day of publication.
SOUTHFIELD, Mich., July 25, 2025 /PRNewswire/ -- Lear Corporation (NYSE: LEA), a global automotive technology leader in Seating and E-Systems, today reported results for the second quarter 2025.
Second Quarter 2025 Highlights
- Delivered revenue of
$6.0 billion $6.0 billion - Net income of
$165 million $188 million $173 million $206 million - Core operating earnings of
$292 million $302 million - Earnings per share of
$3.06 $3.47 $3.02 $3.60 - Net cash provided by operating activities of
$296 million $171 million $291 million $170 million - Cash and cash equivalents of
$888 million $2.9 billion - Delivered strong operating performance in both segments, generating ≈45 basis points in Seating and ≈70 basis points in E-Systems
- Restoring full year guidance with expectation for revenue of
$22,470 $23,070 million $955 $1,095 million - Increasing total company full year net performance by ≈
$25 million , while offsetting the dilutive effect on margins from tariff recoveries - Refinanced our
$2 billion - Repurchased
$25 million $41 million - Extended agreement with Palantir Technologies to continue enhancing IDEA capabilities
- Awarded a conquest complete seat program in
Asia with BMW and two conquest awards for seat components with Ford - Awarded conquest wire business with a global EV automaker for two key programs launching in late 2025
- One ComfortMax SeatTM and two ComfortFlexTM awards, including key programs with a luxury EV automaker, combining heat, ventilation, and pneumatic lumbar and massage
- Awarded complete seat programs with key Chinese domestic automakers: conquest business with FAW and new business with Leapmotor and XPeng
"Lear continued its momentum from the start of the year through the second quarter, with strong operating performance driving solid margins in both business segments," said Ray Scott, Lear's President and CEO. "Our investments in automation and restructuring will extend our industry leadership in operational excellence and drive sustainable margin improvement that will allow us to continue returning capital to shareholders through share repurchases and dividends."
Second Quarter Financial Results | |||
2025 | 2024 | ||
Reported | |||
Sales | |||
Net income | |||
Earnings per share | |||
Adjusted(1) | |||
Core operating earnings | |||
Adjusted net income | |||
Adjusted earnings per share | |||
In the second quarter, global vehicle production was up
Sales in the second quarter were
Core operating earnings were
In the Seating segment, margins and adjusted margins were
Earnings per share were
In the second quarter of 2025, net cash from operating activities was
(1) For more information regarding our non-GAAP financial measures, see "Non-GAAP Financial Information" below.
(2) The global and regional production changes are based on S&P Global estimates. The production change on a Lear sales-weighted basis is calculated using Lear's prior year regional sales mix and second quarter fiscal calendar. Management believes this provides a more meaningful comparison of the Company's global revenue growth relative to global vehicle production.
Share Repurchase Program
During the second quarter of 2025, Lear repurchased 271,117 shares of our common stock for a total of
Since initiating the share repurchase program in 2011, we have repurchased 59.6 million shares of our common stock for a total of
2025 Financial Outlook
We are restoring full year 2025 financial guidance. Below is our updated outlook. At the midpoint of our guidance range, we have assumed that global industry production will be
Contractual agreements allowed us to recover substantially all of the costs associated with new tariffs incurred in the first half of the year. Our full year financial outlook assumes the continuation of these recovery agreements through the second half of the year.
Full Year 2025 Financial Outlook | |||
Net Sales | |||
Core Operating Earnings | |||
Adjusted EBITDA | |||
Restructuring Costs | ≈ | ||
Operating Cash Flow | |||
Capital Spending | ≈ | ||
Free Cash Flow |
The financial outlook is based on a full year average exchange rate of
Certain of the forward-looking financial measures above are provided on a non-GAAP basis. The Company does not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with GAAP because to do so would be potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items in any future period. The magnitude of these items, however, may be significant.
Second Quarter 2025 Conference Call and Webcast Information
A conference call and webcast will be held to discuss Lear's second quarter 2025 financial results and related matters on July 25, 2025, at 9:00 a.m. EDT. The webcast link for the conference call will be available through Lear's investor relations webpage at ir.lear.com. In addition, the conference call can be accessed by dialing 1-877-883-0383 (domestic) or 1-412-902-6506 (international) with Conference I.D. 9523449. The webcast replay will be available two hours following the call.
Non-GAAP Financial Information
In addition to the results reported in accordance with accounting principles generally accepted in
Management believes the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company's financial position and results of operations. In particular, management believes that core operating earnings, adjusted EBITDA, adjusted net income and adjusted earnings per share are useful measures in assessing the Company's financial performance by excluding certain items that are not indicative of the Company's core operating performance or that may obscure trends useful in evaluating the Company's continuing operating activities. Management also believes that these measures provide improved comparability between fiscal periods. Management believes that free cash flow is useful to both management and investors in their analysis of the Company's ability to service and repay its debt. Further, management uses these non-GAAP financial measures for planning and forecasting future periods.
Core operating earnings, adjusted EBITDA, adjusted net income, adjusted earnings per share and free cash flow should not be considered in isolation or as a substitute for net income attributable to Lear, diluted net income per share attributable to Lear, cash provided by operating activities or other income statement or cash flow statement data prepared in accordance with GAAP or as a measure of profitability or liquidity. In addition, the calculation of free cash flow does not reflect cash used to service debt and, therefore, does not reflect funds available for investment or other discretionary uses. Also, these non-GAAP financial measures, as determined and presented by the Company, may not be comparable to related or similarly titled measures reported by other companies. Set forth below are reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated financial results and liquidity. The words "will," "may," "designed to," "outlook," "believes," "should," "anticipates," "plans," "expects," "intends," "estimates," "forecasts" and similar expressions identify certain of these forward-looking statements. The Company also may provide forward-looking statements in oral statements or other written materials released to the public. All statements contained or incorporated in this press release or in any other public statements that address operating performance, events or developments that the Company expects or anticipates may occur in the future are forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements are discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, its Quarterly Report on Form 10-Q for the quarter ended March 29, 2025, and its other Securities and Exchange Commission filings. Future operating results will be based on various factors, including actual industry production volumes, supply chain disruptions, labor disruptions, commodity prices, changes in foreign exchange rates, the impact of, and our ability to mitigate the effects of, international trade policies, including trade policies such as tariffs and any changes to such tariffs, the impact of restructuring actions and the Company's success in implementing its operating strategy.
Information in this press release relies on assumptions in the Company's core sales backlog. The Company's core sales backlog reflects anticipated net sales from formally awarded new programs less lost and discontinued programs and excludes the impact of non-core products winding down in our E-Systems business. The Company enters into contracts with its customers to provide production parts generally at the beginning of a vehicle's life cycle. Typically, these contracts do not provide for a specified quantity of production, and many of these contracts may be terminated by the Company's customers at any time. Therefore, these contracts do not represent firm orders. Further, the calculation of the core sales backlog does not reflect customer price reductions on existing or newly awarded programs. The core sales backlog may be impacted by various assumptions embedded in the calculation, including vehicle production levels on new programs, foreign exchange rates and the timing of major program launches.
The forward-looking statements in this press release are made as of the date hereof, and the Company does not assume any obligation to update, amend or clarify them to reflect events, new information or circumstances occurring after the date hereof.
About Lear Corporation
Lear Corporation (NYSE: LEA) is a global automotive leader in Seating and E-Systems. The company designs, manufactures, and delivers advanced technologies to the world's major automakers. Building on more than 100 years of heritage, Lear is the largest
Lear Corporation and Subsidiaries | ||||
Three Months Ended | ||||
June 28, | June 29, | |||
Net sales | $ 6,030.4 | $ 6,012.4 | ||
Cost of sales | 5,591.3 | 5,563.6 | ||
Selling, general and administrative expenses | 186.3 | 175.3 | ||
Amortization of intangible assets | 4.7 | 12.7 | ||
Interest expense | 25.4 | 26.9 | ||
Other expense, net | 5.2 | 7.4 | ||
Consolidated income before income taxes and equity in net income of | 217.5 | 226.5 | ||
Income taxes | 41.6 | 46.2 | ||
Equity in net income of affiliates | (16.0) | (14.1) | ||
Consolidated net income | 191.9 | 194.4 | ||
Net income attributable to noncontrolling interests | 26.7 | 21.3 | ||
Net income attributable to Lear | $ 165.2 | $ 173.1 | ||
Diluted net income per share attributable to Lear | $ 3.06 | $ 3.02 | ||
Weighted average number of diluted shares outstanding | 54.1 | 57.2 | ||
Lear Corporation and Subsidiaries | ||||
Six Months Ended | ||||
June 28, | June 29, | |||
Net sales | $ 11,590.7 | $ 12,007.0 | ||
Cost of sales | 10,792.4 | 11,160.1 | ||
Selling, general and administrative expenses | 358.7 | 361.8 | ||
Amortization of intangible assets | 9.9 | 27.8 | ||
Interest expense | 51.2 | 53.0 | ||
Other expense, net | 25.6 | 20.9 | ||
Consolidated income before income taxes and equity in net income of | 352.9 | 383.4 | ||
Income taxes | 86.8 | 86.7 | ||
Equity in net income of affiliates | (28.3) | (24.6) | ||
Consolidated net income | 294.4 | 321.3 | ||
Net income attributable to noncontrolling interests | 48.5 | 38.6 | ||
Net income attributable to Lear | $ 245.9 | $ 282.7 | ||
Diluted net income per share available to Lear common stockholders | $ 4.54 | $ 4.92 | ||
Weighted average number of diluted shares outstanding | 54.1 | 57.4 | ||
Lear Corporation and Subsidiaries | ||||
June 28, | December 31, | |||
(Unaudited) | (Audited) | |||
ASSETS | ||||
Current: | ||||
Cash and cash equivalents | $ 887.9 | $ 1,052.9 | ||
Accounts receivable | 4,532.8 | 3,589.3 | ||
Inventories | 1,684.0 | 1,601.1 | ||
Other | 1,110.7 | 940.8 | ||
8,215.4 | 7,184.1 | |||
Long-Term: | ||||
PP&E, net | 2,918.8 | 2,833.4 | ||
Goodwill | 1,761.1 | 1,699.2 | ||
Other | 2,426.8 | 2,310.8 | ||
7,106.7 | 6,843.4 | |||
Total Assets | $ 15,322.1 | $ 14,027.5 | ||
LIABILITIES AND EQUITY | ||||
Current: | ||||
Short-term borrowings | $ 27.2 | $ 26.7 | ||
Accounts payable and drafts | 3,748.9 | 3,250.5 | ||
Accrued liabilities | 2,342.5 | 2,167.6 | ||
Current portion of long-term debt | 3.6 | 2.2 | ||
6,122.2 | 5,447.0 | |||
Long-Term: | ||||
Long-term debt | 2,760.6 | 2,733.3 | ||
Other | 1,228.6 | 1,246.2 | ||
3,989.2 | 3,979.5 | |||
Equity | 5,210.7 | 4,601.0 | ||
Total Liabilities and Equity | $ 15,322.1 | $ 14,027.5 | ||
Lear Corporation and Subsidiaries | ||||
Three Months Ended | ||||
June 28, | June 29, | |||
Net Sales | ||||
$ 2,519.3 | $ 2,552.5 | |||
2,163.2 | 2,171.6 | |||
1,144.6 | 1,074.4 | |||
203.3 | 213.9 | |||
Total | $ 6,030.4 | $ 6,012.4 | ||
Content per Vehicle 1 | ||||
$ 634 | $ 623 | |||
$ 480 | $ 472 | |||
Free Cash Flow 2 | ||||
Net cash used in operating activities | $ 296.2 | $ 291.2 | ||
Capital expenditures | (125.4) | (120.8) | ||
Free cash flow | $ 170.8 | $ 170.4 | ||
Core Operating Earnings 2 | ||||
Net income attributable to Lear | $ 165.2 | $ 173.1 | ||
Interest expense | 25.4 | 26.9 | ||
Other expense, net | 5.2 | 7.4 | ||
Income taxes | 41.6 | 46.2 | ||
Equity in net income of affiliates | (16.0) | (14.1) | ||
Net income attributable to noncontrolling interests | 26.7 | 21.3 | ||
Restructuring costs and other special items - | ||||
Costs related to restructuring actions | 33.9 | 33.7 | ||
Acquisition costs | — | 0.4 | ||
Impairments (recoveries) related to Fisker Inc., net | (0.5) | 0.3 | ||
Recoveries related to Russian operations, net of costs | (0.1) | (0.3) | ||
Other | 10.4 | 7.1 | ||
Core operating earnings | $ 291.8 | $ 302.0 | ||
Lear Corporation and Subsidiaries | ||||
Three Months Ended | ||||
June 28, | June 29, | |||
Adjusted Net Income and Adjusted Earnings Per Share 2 | ||||
Net income attributable to Lear | $ 165.2 | $ 173.1 | ||
Restructuring costs and other special items - | ||||
Costs related to restructuring actions | 32.1 | 32.1 | ||
Acquisition costs | — | 0.4 | ||
Term loan refinancing | 0.5 | — | ||
Impairments (recoveries) related to Fisker Inc., net | (0.5) | 0.3 | ||
Recoveries related to Russian operations, net of costs | (0.1) | (0.3) | ||
Foreign exchange losses due to foreign exchange rate volatility related | — | 1.0 | ||
Other | 6.2 | 9.6 | ||
Tax impact of special items and other net tax adjustments 3 | (15.6) | (10.4) | ||
Adjusted net income | $ 187.8 | $ 205.8 | ||
Weighted average number of diluted shares outstanding | 54.1 | 57.2 | ||
Diluted net income per share available to Lear | $ 3.06 | $ 3.02 | ||
Adjusted earnings per share | $ 3.47 | $ 3.60 | ||
Lear Corporation and Subsidiaries | ||||
Six Months Ended | ||||
June 28, | June 29, | |||
Net Sales | ||||
$ 4,768.1 | $ 5,028.4 | |||
4,225.3 | 4,425.4 | |||
2,216.2 | 2,134.1 | |||
381.1 | 419.1 | |||
Total | $ 11,590.7 | $ 12,007.0 | ||
Content per Vehicle 1 | ||||
$ 622 | $ 623 | |||
$ 473 | $ 474 | |||
Free Cash Flow 2 | ||||
Net cash provided by operating activities | $ 168.5 | $ 256.6 | ||
Capital expenditures | (229.4) | (234.4) | ||
Free cash flow | $ (60.9) | $ 22.2 | ||
Core Operating Earnings 2 | ||||
Net income attributable to Lear | $ 245.9 | $ 282.7 | ||
Interest expense | 51.2 | 53.0 | ||
Other expense, net | 25.6 | 20.9 | ||
Income taxes | 86.8 | 86.7 | ||
Equity in net income of affiliates | (28.3) | (24.6) | ||
Net income attributable to noncontrolling interests | 48.5 | 38.6 | ||
Restructuring costs and other special items - | ||||
Costs related to restructuring actions | 121.3 | 88.0 | ||
Acquisition costs | 0.1 | 0.5 | ||
Disposal costs | 0.6 | — | ||
Impairments (recoveries) related to Fisker Inc., net | (0.9) | 14.8 | ||
Impairments (recoveries) related to Russian operations, net | (1.5) | 1.1 | ||
Other | 12.9 | 20.1 | ||
Core operating earnings | $ 562.2 | $ 581.8 | ||
Lear Corporation and Subsidiaries | ||||
Six Months Ended | ||||
June 28, | June 29, | |||
Adjusted Net Income Attributable to Lear 2 | ||||
Net income attributable to Lear | $ 245.9 | $ 282.7 | ||
Restructuring costs and other special items - | ||||
Costs related to restructuring actions | 119.8 | 86.4 | ||
Acquisition costs | 0.1 | 0.5 | ||
Loss on disposal of non-core business | 3.3 | — | ||
Disposal costs | 0.6 | — | ||
Term loan refinancing | 0.5 | — | ||
Impairments (recoveries) related to Fisker Inc., net | (0.9) | 14.8 | ||
Impairments (recoveries) related to Russian operations, net | (1.5) | 1.1 | ||
Foreign exchange losses due to foreign exchange rate volatility related | 2.9 | 1.0 | ||
Loss related to affiliate | — | 2.2 | ||
Other | 10.6 | 23.4 | ||
Tax impact of special items and other net tax adjustments 3 | (24.2) | (23.1) | ||
Adjusted net income attributable to Lear | $ 357.1 | $ 389.0 | ||
Weighted average number of diluted shares outstanding | 54.1 | 57.4 | ||
Diluted net income per share available to Lear common stockholders | $ 4.54 | $ 4.92 | ||
Adjusted earnings per share | $ 6.60 | $ 6.78 | ||
Diluted Shares Outstanding at End of Period 4 | 53,841,222 | 56,928,966 | ||
1 Content per Vehicle for 2024 has been updated to reflect actual production levels. | ||||
2 See "Non-GAAP Financial Information" included in this press release. | ||||
3 Represents the tax effect of restructuring costs and other special items, as well as several discrete tax items. | ||||
4 Calculated using stock price at end of quarter. | ||||
Lear Corporation and Subsidiaries | ||||
Three Months Ended | ||||
June 28, | June 29, | |||
Adjusted Segment Earnings | ||||
Seating | ||||
Net sales | $ 4,473.9 | $ 4,447.0 | ||
Segment earnings | $ 284.5 | $ 276.0 | ||
Restructuring costs and other special items - | ||||
Costs related to restructuring actions | 14.1 | 22.9 | ||
Recoveries related to Russian operations, net of costs | (0.1) | (0.3) | ||
Other | 0.4 | 3.5 | ||
Adjusted segment earnings | $ 298.9 | $ 302.1 | ||
Segment margins | 6.4 % | 6.2 % | ||
Adjusted segment margins | 6.7 % | 6.8 % | ||
E-Systems | ||||
Net sales | $ 1,556.5 | $ 1,565.4 | ||
Segment earnings | $ 55.2 | $ 69.5 | ||
Restructuring and other special items - | ||||
Costs related to restructuring actions | 18.1 | 10.0 | ||
Impairments (recoveries) related to Fisker Inc., net | (0.5) | 0.3 | ||
Other | 3.0 | 2.4 | ||
Adjusted segment earnings | $ 75.8 | $ 82.2 | ||
Segment margins | 3.5 % | 4.4 % | ||
Adjusted segment margins | 4.9 % | 5.3 % | ||
Lear Corporation and Subsidiaries | ||||
Six Months Ended | ||||
June 28, | June 29, | |||
Adjusted Segment Earnings | ||||
Seating | ||||
Net sales | $ 8,625.0 | $ 8,924.6 | ||
Segment earnings | $ 500.2 | $ 517.6 | ||
Costs related to restructuring actions | 78.6 | 66.6 | ||
Impairments related to Fisker Inc. | — | 2.3 | ||
Impairments (recoveries) related to Russian operations, net | (1.5) | 1.1 | ||
Other | 1.5 | 9.4 | ||
Adjusted segment earnings | $ 578.8 | $ 597.0 | ||
Segment margins | 5.8 % | 5.8 % | ||
Adjusted segment margins | 6.7 % | 6.7 % | ||
E-Systems | ||||
Net sales | $ 2,965.7 | $ 3,082.4 | ||
Segment earnings | $ 110.7 | $ 123.6 | ||
Costs related to restructuring actions | 34.9 | 18.8 | ||
Impairments (recoveries) related to Fisker Inc., net | (0.9) | 12.5 | ||
Other | 4.9 | 4.4 | ||
Adjusted segment earnings | $ 149.6 | $ 159.3 | ||
Segment margins | 3.7 % | 4.0 % | ||
Adjusted segment margins | 5.0 % | 5.2 % | ||
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SOURCE Lear Corporation
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