Lear Corporation, 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 in the second quarter, in line with $6.0 billion in the second quarter of 2024
- Net income of $165 million and adjusted net income of $188 million, compared to $173 million and $206 million, respectively, in the second quarter of 2024
- Core operating earnings of $292 million, compared to $302 million in the second quarter of 2024
- Earnings per share of $3.06 and adjusted earnings per share of $3.47, compared to $3.02 and $3.60, respectively, in the second quarter of 2024
- Net cash provided by operating activities of $296 million and free cash flow of $171 million, compared to $291 million and $170 million, respectively, in the second quarter of 2024
- Cash and cash equivalents of $888 million and total liquidity of $2.9 billion at quarter end
- 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 to $23,070 million and core operating earnings of $955 to $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 revolver, extending its maturity through July 2030
- Repurchased $25 million of shares and paid $41 million in dividends
- 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.”
In the second quarter, global vehicle production was up 3% compared to a year ago, with North America down 3%, Europe down 2% and China up 9%. Global vehicle production was flat on a Lear sales-weighted basis(2).
Sales in the second quarter were $6.0 billion, flat year-over-year. Excluding the impact of commodities, foreign exchange, tariff recoveries, and acquisitions and divestitures, sales were down 1%, reflecting lower production on key Lear platforms, partially offset by the addition of new business in both of our business segments.
Core operating earnings were $292 million, or 4.8% of sales, as compared to $302 million, or 5.0% of sales, in 2024. Earnings were impacted by lower production on key Lear platforms, offset by positive operating performance and the addition of new business. Net income was $165 million, as compared to $173 million in 2024.
In the Seating segment, margins and adjusted margins were 6.4% and 6.7% of sales, respectively. In the E-Systems segment, margins and adjusted margins were 3.5% and 4.9% of sales, respectively.
Earnings per share were $3.06 and adjusted earnings per share were $3.47, as compared to $3.02 and $3.60, respectively, a year ago.
In the second quarter of 2025, net cash from operating activities was $296 million, and free cash flow(1) was $171 million.
(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 $25 million. At the end of the second quarter, we had a remaining share repurchase authorization of approximately $1.0 billion, which reflects approximately 18% of our total market capitalization at current market prices.
Since initiating the share repurchase program in 2011, we have repurchased 59.6 million shares of our common stock for a total of $5.6 billion at an average price of $94.53 per share. This represents a reduction of approximately 57% of our shares outstanding since the time we began the program.
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 2% lower than in 2024 on a Lear sales-weighted basis, consistent with our prior guidance. The industry volume assumptions underlying Lear’s 2025 financial outlook are derived from several sources, including internal estimates, customer production schedules and the most recent S&P Global Mobility production estimates for Lear’s vehicle platforms. We have updated our foreign exchange rate assumptions to better reflect the weakening U.S. dollar.
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.
