#USA #Southfield #Lear Corporation #Automotive #E-Systems

Lear Corporation's Third Quarter 2025 Results

In a compelling showcase of performance, Lear Corporation (NYSE: LEA), a prominent player in automotive technology, recently published its financial results for the third quarter of 2025. The Southfield, Michigan-based company, known for its advancements in Seating and E-Systems, reported a revenue of $5.7 billion, reflecting a 2% increase compared to the same quarter last year. This growth underscores Lear's ability to navigate a challenging market environment, characterized by production disruptions at key customers.

Financial Highlights

The third-quarter performance brought significant financial metrics:

• - Net Income: Lear recorded a net income of $108 million, a slight decrease from $136 million in Q3 2024.
• - Adjusted Net Income: The adjusted figure stood at $150 million, down from $163 million, yet demonstrating resilience in operational efficiency.
• - Core Operating Earnings: At $241 million, these earnings represented 4.2% of sales compared to $257 million in the previous year.
• - Earnings Per Share: The company reported earnings of $2.02 per diluted share, adjusted to $2.79, reflecting a change from $2.41 and $2.89 during the same period in 2024.

The figures generated an impressive $444 million in net cash from operating activities, alongside a free cash flow of $307 million, a stark contrast to the previous year, where it was just $51 million. This achievement of generating the second-highest Q3 operating cash flow in Lear’s history highlights the company’s robust financial health.

Segment Performance

Both of Lear’s business segments displayed positive operating performance with:

• - Seating Segment: Margins offered a glimpse into how well the segment is managing costs. The adjusted margins rose to 6.1%, showcasing effective operational strategies.
• - E-Systems Segment: Encountered challenges with margins at 2.9% but still contributed significantly to Lear’s overall performance. The segment secured approximately $1.1 billion in new business awards to date, underpinning future growth prospects.

Investment in Innovation

Amidst fluctuating market conditions, Lear has remained steadfast in its dedication to innovation. The company recently initiated the Lear fellowship program with Palantir, marking a significant step towards advancing its digital and AI capabilities. This strategic investment highlights Lear's commitment to enhancing its technological edge in the automotive field.

With the launch of several new ComfortFlexTM programs and completion of significant seat programs with leading Chinese automakers, Lear is poised to expand its market presence further. Notably, the company has received commendations for quality and innovation, such as the Ferrari Fearless Organization award and the Nissan Global Quality Award.

Future Outlook

Reflecting on the financial outlook for the remainder of 2025, Lear has adjusted the midpoint of its full-year free cash flow prediction, emphasizing operational excellence and disciplined capital allocation. The company anticipates full-year net sales ranging between $22.85 billion and $23.15 billion, including core operating earnings of $995 million to $1.055 billion.

In closing, Lear Corporation's ability to generate solid revenue growth, maintain strategic investments, and innovate amidst industry challenges positions it well for the future. The ongoing commitment to excellence in operational achievement is likely to bolster its market position as the automotive industry evolves. As Lear continues navigating these challenges, its strategic initiatives will be crucial in determining long-term success.

For further insights, investors are invited to join the upcoming conference call on October 31, 2025, at 9:00 AM EDT, where management will delve into detailed discussions regarding the Q3 results and future strategies.