Lear's Q1 Earnings & Revenues Surpass Estimates, Decline Y/Y

Core Viewpoint - Lear Corp. reported adjusted earnings per share of $3.12 for Q1 2025, exceeding the Zacks Consensus Estimate of $2.64, driven by strong performance in the Seating segment, although it decreased from $3.18 in the same quarter last year [1] Financial Performance - Total revenues for Lear Corp. decreased by 7.24% year over year to $5.56 billion, slightly surpassing the Zacks Consensus Estimate of $5.55 billion [1] - The Seating segment generated sales of $4.15 billion, down from $4.48 billion year over year, but exceeded the Zacks Consensus Estimate by 1.1% [2] - The E-Systems segment reported sales of $1.41 billion, a decline of 7.12% year over year, missing the Zacks Consensus Estimate by 0.5% [3] Segment Performance - Adjusted earnings for the Seating segment were $280 million, down from $294.9 million year over year, but beat the Zacks Consensus Estimate by 16.2% [2] - The E-Systems segment's adjusted earnings were $73.8 million, down from $77.1 million in the same quarter last year, yet surpassed the Zacks Consensus Estimate by 25.4% [3] Regional Performance - North America sales fell by 9.2% year over year to $2.25 billion, missing the Zacks Consensus Estimate by 2.43% [4] - Sales in Europe and Africa decreased by 8.5% year over year to $2.06 billion, beating the Zacks Consensus Estimate by 7.28% [4] - Asia region sales totaled $1.07 billion, an increase of 1.12% year over year, but missed the Zacks Consensus Estimate by 0.5% [4] - South America sales were $177.8 million, down from $205.2 million year over year, missing the Zacks Consensus Estimate by 18.35% [5] Financial Position - As of March 29, 2025, Lear Corp. had $779.9 million in cash and cash equivalents, down from $1.05 billion at the end of 2024 [6] - Long-term debt remained unchanged at $2.73 billion as of March 29, 2025 [6] - The company reported a negative free cash flow of $231.7 million for the quarter [6] Share Repurchase and Guidance - During the quarter, Lear Corp. repurchased 263,003 shares for a total of $25 million, with a remaining share repurchase authorization of nearly $1.1 billion [7] - The company has not reaffirmed its full year 2025 guidance due to uncertain macroeconomic conditions [7]