Lear Corporation Reports Second Quarter 2025 Results

Lear Corporation, a global leader in automotive technology specializing in Seating and E-Systems, has released its financial results for the second quarter of 2025. The company reported steady revenue and highlighted several key financial and operational metrics.

Financial Highlights

For the second quarter of 2025, Lear Corporation reported:

• Revenue of $6.0 billion, consistent with the same period in 2024.
• Net income of $165 million, slightly down from $173 million in the second quarter of 2024.
• Adjusted net income of $188 million, compared to $206 million in the previous year.
• Core operating earnings of $292 million, a slight decrease from $302 million in 2024.
• Earnings per share (EPS) of $3.06, up from $3.02 in the same period last year.
• Adjusted earnings per share of $3.47, down from $3.60 in 2024.
• Net cash provided by operating activities of $296 million, compared to $291 million in the previous year.
• Free cash flow of $171 million, marginally up from $170 million in 2024.

Business and Operational Highlights

Lear Corporation demonstrated strong performance across its business segments:

• Seating segment margins were 6.4%, with adjusted margins at 6.7% of sales.
• E-Systems segment margins were 3.5%, with adjusted margins at 4.9% of sales.
• Global vehicle production increased by 3% year-over-year, with notable growth in China (up 9%).
• New business wins included a complete seat program in Asia with BMW and seat component awards with Ford.
• Extended agreement with Palantir Technologies to enhance IDEA capabilities.

Strategic Initiatives and Corporate Developments

Key strategic moves and corporate developments include:

• Refinancing of a $2 billion revolver, extending its maturity through July 2030.
• Repurchase of $25 million worth of shares and payment of $41 million in dividends.
• Restoration of full-year guidance with expected revenue between $22,470 million and $23,070 million.
• Core operating earnings forecasted between $955 million and $1,095 million for the full year.

Management's Perspective

Ray Scott, Lear’s President and CEO, commented on the results: "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. 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."

Future Outlook

Lear Corporation has provided an updated financial outlook for the full year 2025:

• Net sales are expected to range between $22,470 million and $23,070 million.
• Core operating earnings are projected to be between $955 million and $1,095 million.
• Adjusted EBITDA is forecasted between $1,570 million and $1,710 million.
• Free cash flow is anticipated to be between $420 million and $520 million.

SEC Filing: LEAR CORP [ LEA ] - 8-K - Jul. 25, 2025