#USA #Southfield #Lear Corporation #E-Systems #ComfortMax Seat

Lear Corporation Reports Fourth Quarter and Full Year 2024 Results

On February 6, 2025, Lear Corporation (NYSE: LEA), a noted leader in automotive technology focusing on Seating and E-Systems, announced its financial results for the fourth quarter and the entirety of 2024. The results provide insight into the company’s performance amidst a challenging economic landscape, revealing essential growth strategies and outlooks for the future.

Fourth Quarter 2024 Highlights

In the fourth quarter of 2024, Lear reported

• - Revenue: $5.7 billion, slightly down from $5.8 billion in Q4 2023.
• - Net Income: $88 million, with adjusted net income reported at $161 million.
• - Core Operating Earnings: $258 million compared to $288 million a year prior.
• - Earnings Per Share (EPS): $1.61 reported, against $2.18 in the previous year’s fourth quarter.

The company successfully generated $681 million in net cash from operations and attained a free cash flow of $489 million. Lear also made significant capital returns by repurchasing $101 million worth of shares and distributing $42 million in dividends during this quarter. This commitment reflects Lear’s focus on maintaining robust shareholder returns despite facing market challenges.

In a notable industry achievement, Lear secured a new business award to supply its INTUTM radar and software technology to a prominent European luxury automaker, underscoring Lear’s innovative capabilities.

Full Year 2024 Overview

Looking at the full year, Lear achieved a revenue of $23.3 billion, a minor decrease from $23.5 billion in 2023. The company reported a net income of $507 million, down from $573 million in the previous year, but adjusted net income was slightly increased to $713 million.

Despite facing a slight decline in overall revenue, Lear's growth in E-Systems outperformed the broader industry, demonstrating a proactive strategy of expanding into profitable segments.

Financial Performance Breakdown

The company achieved:

• - Core Operating Earnings of $1.1 billion, reflecting consistent profitability.
• - Earnings Per Share increased to $8.97 from $9.68 in 2023, emphasizing Lear's strategic share repurchase program.

At year-end, cash and cash equivalents stood at approximately $1.1 billion, supporting a total liquidity of $3.1 billion, positioning the corporation favorably for future investments and growth initiatives.

#### Innovations and Market Expansion

In a significant development, Lear launched the ComfortFlexTM module, the first of its kind, integrating heating, ventilation, and massage features, in collaboration with Volvo. Moreover, the company has made strides in integrating the ComfortMax SeatTM into select GM vehicles, set to launch by mid-2025. This demonstrates Lear’s commitment to enhancing driver and passenger experiences through innovative seating technologies.

Furthermore, strategic acquisitions such as StoneShield Engineering aim to enhance Lear’s automation capabilities, bolstering efficiency in wire harness production and supporting its E-Systems division.

Outlook for 2025

Looking ahead, Lear's financial outlook for 2025 anticipates a decline in global industry production of approximately 2%. The company projects revenues between $21.9 billion and $22.9 billion. By continuing to focus on automation, customer diversification, and strategic market expansions, Lear aims to counteract potential market headwinds.

Conclusion

Despite ongoing economic challenges, Lear Corporation exhibits resilience through strategic innovations, solid performance metrics, and a clear pathway for future growth. The company's focus on expanding its product portfolio and enhancing operational efficiency, coupled with a commitment to shareholder returns, ensures a promising outlook for 2025 and beyond.

As the automotive landscape continues to evolve, Lear Corporation remains poised at the forefront, delivering superior in-vehicle technology solutions that promise to enhance every drive.