Core Insights - Lear Corporation reported strong operating performance in Q2 2025, with solid margins across both business segments, driven by investments in automation and restructuring [3][4][5] - The company restored its full-year financial guidance, expecting revenue between $22.47 billion and $23.07 billion, and core operating earnings between $955 million and $1.095 billion [11][14] Financial Performance - Q2 2025 sales were $6.03 billion, slightly up from $6.01 billion in Q2 2024, while net income decreased to $165.2 million from $173.1 million year-over-year [4][5][26] - Adjusted net income for Q2 2025 was $187.8 million, down from $205.8 million in Q2 2024, with adjusted earnings per share at $3.47 compared to $3.60 [5][29] - Core operating earnings were $291.8 million, or 4.8% of sales, compared to $302 million, or 5.0% of sales in the previous year [6][29] Segment Performance - In the Seating segment, margins were 6.4% of sales, while adjusted margins were 6.7% [7][33] - The E-Systems segment reported margins of 3.5% and adjusted margins of 4.9% [7][33] Cash Flow and Liquidity - Net cash provided by operating activities was $296 million, with free cash flow at $171 million, compared to $291 million and $170 million, respectively, in Q2 2024 [5][7] - At the end of Q2 2025, cash and cash equivalents totaled $888 million, with total liquidity of $2.9 billion [5][7] Shareholder Returns - The company repurchased $25 million worth of shares during Q2 2025 and paid $41 million in dividends [5][9] - Since the initiation of the share repurchase program in 2011, Lear has repurchased 59.6 million shares for a total of $5.6 billion [10] Market Outlook - Global vehicle production increased by 3% year-over-year, with North America down 3%, Europe down 2%, and China up 9% [4][5] - Lear's financial outlook assumes a 2% decrease in global industry production compared to 2024 on a sales-weighted basis [11][14]

Analysts forecast 'Net Sales- E-Systems' to reach $1.52 billion. The estimate indicates a year-over-year change of -2.9%. Based on the collective assessment of analysts, 'Net Sales- Seating' should arrive at $4.37 billion. The estimate points to a change of -1.7% from the year-ago quarter. The consensus among analysts is that 'Geographic Net Sales- South America' will reach $235.04 million. The estimate points to a change of +9.9% from the year-ago quarter. The upcoming report from Lear (LEA) is expected to ...

Core Insights - Lear (LEA) has a strong track record of beating earnings estimates, particularly in the last two quarters with an average surprise of 15.85% [1][5] - The most recent earnings report showed a surprise of 18.18%, with actual earnings of $2.64 per share compared to an expected $3.12 per share [2] - The previous quarter also saw a positive surprise of 13.51%, with actual earnings of $2.94 per share against an estimate of $2.59 per share [2] Earnings Estimates and Predictions - Estimates for Lear have been trending higher, supported by its history of earnings surprises [5] - The stock has a positive Zacks Earnings ESP of +5.50%, indicating bullish sentiment among analysts regarding its earnings prospects [8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat [8] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7] - The next earnings report for Lear is expected to be released on July 25, 2025 [8]

Wall Street expects a year-over-year decline in earnings on lower revenues when Lear (LEA) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 25, might help the stock move higher if these key numbers are better than expectations. On the ot ...

Group 1: Company Performance - Lear shares increased by 3.2% to close at $106, with a notable volume of shares traded, reflecting a 13.6% gain over the past four weeks [1] - The company is expected to report quarterly earnings of $3.03 per share, representing a year-over-year decline of 15.8%, with revenues projected at $5.62 billion, down 6.6% from the previous year [2] - The consensus EPS estimate for Lear has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [4] Group 2: Industry Context - Lear operates within the Zacks Automotive - Original Equipment industry, where another company, Westport Innovations, saw a 1.3% increase in its stock price, closing at $3.22, with a 10.6% return over the past month [5] - Westport's consensus EPS estimate has also remained unchanged at -$0.29, reflecting a 32.6% improvement compared to the previous year [6] Group 3: Strategic Developments - Lear's stock surge is attributed to new program wins and strong partnerships with Chinese automakers, including a joint venture that is expected to contribute approximately $70 million to its 2025 revenues [1]

SOUTHFIELD, Mich., July 8, 2025 /PRNewswire/ -- Lear Corporation will hold a conference call to review the company's second quarter 2025 financial results and related matters on July 25, 2025, at 9:00 a.m. EDT.To participate in the conference call: Webcast link: click here Toll-free calls: 877-883-0383 International calls: 412-902-6506The conference code is 9523449.You also may listen to the live audio webcast of the call, in listen-only mode, on Lear's Investor Relations website at ir.lear.com. The webcas ...

Analyst’s Disclosure:I/we have a beneficial long position in the shares of LEA, MGA, BMWKY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give finan ...

Lear (LEA) 2025 Conference Summary Company Overview - Lear Corporation is a leading supplier of seating and electronics in the automotive industry, recognized for its strong margin performance and operational efficiency [1][2]. Key Financial Highlights - **Q2 Financial Expectations**: - Projected revenues of $5.9 billion - Operating income between $260 million to $270 million, indicating an operating margin in the mid-4% range - Free cash flow expected between $50 million to $100 million - Plans to restart share repurchases targeting around $25 million in the quarter [3][4][5]. - **Guidance**: - The company plans to reinstate guidance during the Q2 earnings call, with visibility into the second half of the year [6][7]. Operational Performance - **Restructuring and Automation**: - Continued progress on restructuring efforts and automation initiatives, contributing to strong operational performance [2][3]. - **Wire Business**: - Strong performance from the wire business in Mexico, which had previously struggled [2][3]. Market Dynamics - **Tariff Negotiations**: - Successful tariff negotiations with expectations of minimal leakage in Q2 [4]. - Gross tariff exposure for 2025 estimated at $200 million, with significant recoverability agreements in place [17][19]. - **Production Environment**: - Modest changes in customer production plans, with no significant disruptions noted [8][10]. Margin Insights - **Variable Margins**: - Seating variable margins range from 15% to 20%, influenced by vertical integration levels [11][12]. - E Systems margins typically range from 20% to 25%, with regional variations impacting performance [13][14]. Strategic Focus - **Capital Allocation**: - Prioritization of capital investments in business segments and returning excess cash to shareholders through share repurchases [38][39]. - **M&A Opportunities**: - Interest in tuck-in acquisitions, particularly in the wiring and seating components sectors, to enhance competitive positioning [40][41]. Innovation and Growth - **Product Innovation**: - Continued focus on product innovation, with significant awards and contracts in thermal comfort and zonal control technologies [66][68]. - **Market Share Growth**: - Confidence in increasing market share in seating due to superior competitive positioning and ongoing investments [47][50]. Risks and Opportunities - **Economic Resilience**: - Potential volume opportunities if the U.S. economy continues to show strength, despite risks from trade negotiations and material costs [52][54]. - **Material Costs**: - Increased pass-through protection for steel and copper, with current coverage at 90% for steel [62][63]. Regional Insights - **China Market**: - Progress in increasing revenue from Chinese domestic OEMs, with expectations to reach 40% by year-end [72][73]. - **U.S. Production Trends**: - Anticipation of increased U.S. production due to recent announcements from General Motors, which is expected to positively impact Lear [28][29]. Conclusion - Lear Corporation is positioned for continued growth through operational efficiencies, strategic capital allocation, and a focus on innovation, while navigating challenges related to tariffs and market dynamics. The company remains optimistic about its ability to capture new business opportunities and expand margins in the coming years [50][84].

Company Overview - Lear's shares have increased by approximately 2.9% since the last earnings report, which is underperforming compared to the S&P 500 [1] - Recent estimates for Lear have trended downward over the past month, indicating a negative outlook [2] Performance Metrics - Lear has an average Growth Score of C, a Momentum Score of A, and a Value Score of A, placing it in the top 20% for the value investment strategy [3] - The aggregate VGM Score for Lear is A, which is significant for investors not focused on a single strategy [3] Outlook - The downward trend in estimates suggests a negative shift in expectations for Lear, resulting in a Zacks Rank of 4 (Sell) [4] - A below-average return is anticipated for Lear in the upcoming months [4] Industry Comparison - Lear is part of the Zacks Automotive - Original Equipment industry, where Magna (MGA) has seen an 8.6% increase in shares over the past month [5] - Magna reported revenues of $10.07 billion for the last quarter, reflecting a year-over-year decline of 8.2%, with EPS dropping from $1.08 to $0.78 [5] - For the current quarter, Magna is expected to report earnings of $1.14 per share, indicating a 15.6% decrease from the previous year [6] - The Zacks Consensus Estimate for Magna has seen a slight increase of 0.9% over the last 30 days, resulting in a Zacks Rank of 3 (Hold) [6]

Group 1 - Lear Corporation is a global automotive technology leader specializing in Seating and E-Systems, aiming to enhance in-vehicle experiences for consumers worldwide [2][3] - The company operates in 37 countries and is committed to innovation, operational excellence, and sustainability, with a mission to make every drive better [2] - Lear serves every major automaker globally and ranks 174 on the Fortune 500 list [2] Group 2 - Lear Corporation will participate in a fireside chat at the Wells Fargo Industrials and Materials Conference on June 11, 2025, in Chicago [1] - The live webcast of the event will start at 11:15 AM EDT and is expected to last approximately 35 minutes [1]