Lear(US:LEA)2025-05-06 11:00Financial Performance - Revenue for Q1 2025 was $5.6 billion, a decrease of 7% compared to $6.0 billion in Q1 2024[4] - Net income for Q1 2025 was $81 million, down from $110 million in Q1 2024, with adjusted net income at $169 million compared to $183 million[4] - Core operating earnings were $270 million, representing 4.9% of sales, compared to $280 million or 4.7% of sales in Q1 2024[6] - Earnings per share were $1.49, down from $1.90 in Q1 2024, while adjusted earnings per share were $3.12 compared to $3.18[10] - Total net sales for Q1 2025 were $5,560.3 million, a decrease of 7.2% compared to $5,994.6 million in Q1 2024[29] - North America net sales decreased to $2,248.8 million from $2,475.9 million, representing a decline of 9.2%[29] - Seating segment net sales were $4,151.1 million, down from $4,477.6 million, a decrease of 7.3%[33] - E-Systems segment net sales decreased to $1,409.2 million from $1,517.0 million, a decline of 7.1%[33] Cash Flow and Operating Activities - Net cash used in operating activities was $(128) million, and free cash flow was $(232) million, compared to $(35) million and $(148) million in Q1 2024[10] - Free cash flow for Q1 2025 was $(231.7) million, compared to $(148.2) million in Q1 2024, indicating a worsening cash flow situation[29] Business Operations and Market Conditions - Operating margins increased year-over-year for both Seating and E-Systems segments, with approximately 125 basis points in Seating and approximately 155 basis points in E-Systems[4] - Awarded business in E-Systems totaling over $750 million in average annual sales[4] - Global vehicle production was up 1% year-over-year, with North America down 5%, Europe down 7%, and China up 12%[6] Shareholder Actions - Lear repurchased $25 million of shares during Q1 2025, with a remaining share repurchase authorization of approximately $1.1 billion[11] Financial Outlook - The company did not reaffirm its 2025 financial outlook due to uncertainty in industry production caused by evolving tariff environments[13] Assets and Liabilities - Total assets increased to $14,623.3 million in Q1 2025 from $14,027.5 million in Q4 2024, an increase of 4.3%[27] - Total liabilities and equity also rose to $14,623.3 million in Q1 2025 from $14,027.5 million in Q4 2024, reflecting a 4.3% increase[27] Adjusted Financial Metrics - Adjusted net income for Q1 2025 was $169.3 million, compared to $183.2 million in Q1 2024, a decline of 7.9%[31] - Diluted net income per share available to Lear decreased to $1.49 from $1.90, a drop of 21.6% year-over-year[31] - Core operating earnings for Q1 2025 were $270.4 million, down from $279.8 million in Q1 2024, reflecting a decrease of 5.0%[29]