Lear(US:LEA)2025-10-31 11:02Financial Performance - Revenue for Q3 2025 was $5.7 billion, a 2% increase from $5.6 billion in Q3 2024[4] - Net income was $108 million, down from $136 million in Q3 2024, with adjusted net income at $150 million compared to $163 million[4] - Core operating earnings were $241 million, representing 4.2% of sales, down from $257 million or 4.6% of sales in Q3 2024[8] - Net sales for the three months ended September 27, 2025, were $5,679.8 million, an increase of 1.7% compared to $5,584.4 million for the same period in 2024[27] - Consolidated net income attributable to Lear for the three months ended September 27, 2025, was $108.2 million, down 20.4% from $135.8 million in the prior year[27] - Net income attributable to Lear for the nine months ended September 27, 2025, was $354.1 million, down from $418.5 million in the same period of 2024, representing a decrease of approximately 15.4%[39] - Adjusted net income attributable to Lear for the nine months ended September 27, 2025, was $506.9 million, compared to $551.8 million in the prior year, reflecting a decline of about 8.1%[39] - Diluted net income per share attributable to Lear for the three months ended September 27, 2025, was $2.02, down from $2.41 in the same period last year[27] - Diluted net income per share available to Lear common stockholders for the nine months ended September 27, 2025, was $6.56, down from $7.33 in the same period of 2024, a decline of approximately 10.5%[39] - Adjusted earnings per share for the nine months ended September 27, 2025, were $9.39, compared to $9.67 in the prior year, indicating a decrease of about 2.9%[39] Cash Flow and Shareholder Returns - Free cash flow for the quarter was $307 million, significantly up from $51 million in Q3 2024[4] - Operating cash flow for Q3 2025 was the second-highest in Lear's history, at $444 million[4] - Free cash flow for the three months ended September 27, 2025, was $307.0 million, significantly higher than $50.5 million in the same period last year[33] - Lear repurchased $100 million worth of shares during the quarter, with a remaining authorization of approximately $0.9 billion[12] Sales and Market Performance - Global vehicle production increased by 4% year-over-year, with North America up 5% and China up 10%[6] - North America net sales for the three months ended September 27, 2025, were $2,581.0 million, up 7.4% from $2,403.4 million in the prior year[33] - The estimated impact of the JLR cyberattack on sales was a reduction of $111 million for the three months ended September 27, 2025[33] Segment Performance - Total net sales for the Seating segment in the nine months ended September 27, 2025, were $12,874.6 million, a slight decrease from $13,036.4 million in the same period of 2024, indicating a reduction of approximately 1.2%[43] - Adjusted segment earnings for the Seating segment were $839.8 million for the nine months ended September 27, 2025, compared to $858.5 million in the prior year, a decrease of about 2.2%[43] - E-Systems segment net sales for the nine months ended September 27, 2025, were $4,395.9 million, down from $4,555.0 million in the same period of 2024, representing a decline of approximately 3.5%[43] - Adjusted segment earnings for the E-Systems segment were $209.3 million for the nine months ended September 27, 2025, compared to $233.5 million in the prior year, reflecting a decrease of about 10.4%[43] - Segment margins for the Seating segment were 5.6% for the three months ended September 27, 2025, compared to 5.9% in the same period of 2024[41] - Adjusted segment margins for the E-Systems segment were 4.2% for the three months ended September 27, 2025, down from 5.0% in the same period of 2024[41] Outlook and Future Initiatives - The full-year 2025 financial outlook projects net sales between $22.85 billion and $23.15 billion[14] - The company launched the Lear fellowship program with Palantir to enhance digital and AI capabilities[4] Assets and Liabilities - Total assets increased to $15,157.7 million as of September 27, 2025, compared to $14,027.5 million as of December 31, 2024[31] - Total liabilities increased to $9,188.2 million as of September 27, 2025, compared to $9,426.5 million as of December 31, 2024[31] - The weighted average number of diluted shares outstanding decreased to 53.7 million for the three months ended September 27, 2025, from 56.4 million in the same period last year[35]