Financial Performance - Q2 2025 - Sales remained flat at $6 billion compared to Q2 2024[9] - Core operating earnings decreased to $292 million from $302 million in Q2 2024[9] - Adjusted earnings per share decreased to $3.47 from $3.60 in Q2 2024[9] - Operating cash flow increased to $296 million from $291 million in Q2 2024[9] Full Year 2025 Outlook - Revenue is expected to be between $22470 million and $23070 million[12] - Core operating earnings are projected to be between $955 million and $1095 million[12] Segment Performance - Q2 2025 - Seating sales increased slightly to $4474 million from $4447 million in Q2 2024[30] - E-Systems sales decreased to $1557 million from $1565 million in Q2 2024[35] Tariff Impact - Approximately $63 million in tariff recovery was achieved in H1 2025[46] - Gross tariff exposure is approximately $210 million[46]

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]