Financial Data and Key Metrics Changes - The company reported revenue of $5.6 billion for the first quarter of 2025, with core operating earnings of $270 million and operating margins improving to 4.9% [6][32] - Adjusted earnings per share were $3.12, down from $3.18 a year ago, while operating cash flow was a use of $128 million in the first quarter [6][32] Business Line Data and Key Metrics Changes - In the Seating segment, sales were $4.2 billion, a decrease of 7% year-over-year, with adjusted operating margins at 6.7% [33] - The E Systems segment reported sales of $1.4 billion, also down 7% year-over-year, with adjusted earnings of $74 million and operating margins at 5.2% [34] Market Data and Key Metrics Changes - Global vehicle production increased by 1% year-over-year, but Lear's sales-weighted production declined by 5%, with North America down 5% and Europe down 7% [28][30] - In China, production volumes increased by 12%, but Lear's business lagged industry growth estimates by 5% [30] Company Strategy and Development Direction - The company aims to extend its leadership in Seating, expand margins in E Systems, and support sustainable value creation through disciplined capital allocation [7][8] - The company is focusing on operational excellence and innovation, particularly through its ComfortFlex modules, which have received positive recognition [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted that the ongoing international trade negotiations have introduced significant uncertainty, particularly regarding tariffs and production volumes [35][36] - The company remains confident in recovering the costs associated with tariffs and is adjusting its capital spending in response to the weaker industry production outlook [38][39] Other Important Information - The company has paused share repurchase activities to maintain liquidity during uncertain times, with plans to resume once visibility improves [40][41] - The company has reduced its global hourly headcount by nearly 19,000 since the end of 2023, contributing to operational efficiency [17][18] Q&A Session Summary Question: Have you seen any meaningful changes to production schedules? - Management acknowledged that changes have been announced but noted the environment remains dynamic, leading to the decision to withdraw guidance due to uncertainty [48][49] Question: Is there a way to get your customers to be the importer of record for tariff reimbursements? - Management confirmed they are discussing options with customers regarding who will be the importer of record and are considering moving production around [55][56] Question: What is the lower end of your outlook contemplating as far as LVP by region? - Management indicated that the February guidance anticipated a 1% global production decline, with significant uncertainty remaining, particularly in North America [69][70] Question: What drove the better-than-expected margin performance? - Management attributed the improved margins to better-than-expected production and a strong finish in March, along with strong operating performance across both business segments [96][97] Question: Are you pausing the buyback while figuring out the outlook for free cash flow? - Management confirmed they are pausing share repurchases temporarily until there is more visibility on production plans [91][92]

Financial Data and Key Metrics Changes - The company reported revenue of $5.6 billion for Q1 2025, with core operating earnings of $270 million and operating margins improving to 4.9% [6][12][31] - Adjusted earnings per share were $3.12, down from $3.18 a year ago, and operating cash flow was a use of $128 million in the first quarter [6][31] Business Line Data and Key Metrics Changes - In the Seating segment, sales decreased by 7% year-over-year to $4.2 billion, with adjusted operating margins at 6.7% [31][32] - The E Systems segment also saw a 7% decline in sales to $1.4 billion, with adjusted earnings of $74 million, reflecting a slight increase in operating margins to 5.2% [32][33] Market Data and Key Metrics Changes - Global vehicle production increased by 1% year-over-year, but Lear's sales-weighted production was down 5%, with North America and Europe seeing declines of 5% and 7% respectively, while China experienced a 12% increase [26][27] - Lear's sales growth in Europe outperformed industry production by 2 percentage points, while North America lagged by 2 percentage points [27][28] Company Strategy and Development Direction - The company aims to extend its leadership in Seating, expand margins in E Systems, and support sustainable value creation through disciplined capital allocation [7][12] - Recent awards in Seating and E Systems, including significant contracts with major automakers, highlight the company's focus on innovation and operational excellence [8][11][41] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing uncertainty in the automotive industry due to international trade negotiations and tariff impacts, leading to a withdrawal of full-year guidance [34][35] - Despite challenges, the company remains confident in recovering tariff costs and achieving operational performance improvements [35][36] Other Important Information - The company has paused share repurchases to maintain liquidity during uncertain times, with plans to resume once visibility improves [39][86] - A strong balance sheet with no near-term debt maturities and $2.8 billion in available liquidity positions the company well for future challenges [38][39] Q&A Session Summary Question: Have you seen any meaningful changes to production schedules? - Management acknowledged some changes in production schedules but noted the environment remains dynamic, leading to the decision to withdraw guidance due to uncertainty [46][48] Question: Is there a way to get customers to be the importer of record for tariff reimbursements? - Management confirmed they are discussing options with customers regarding who will be the importer of record to maximize tariff reimbursement opportunities [52][53] Question: What is the lower end of your outlook contemplating as far as LVP by region? - Management indicated that the original guidance anticipated a 1% global production decline, with potential adjustments based on foreign exchange rates and market conditions [64][66] Question: How are you starting to see performance separate from competitors? - Management highlighted strong operational performance and innovation as key factors in gaining market share, particularly in E Systems [72][75] Question: Will you be able to offset indirect tariff impacts with accelerated restructuring benefits? - Management expressed confidence in achieving additional net performance from increased restructuring investments, despite dialing back capital spending [78][79]