Lear Corp

Latest Results (19.11.2025):

Lear Corp reported its third quarter 2025 financial results with solid overall performance despite challenges with key customer production. The company highlighted strong operating cash flows, increased free cash flow outlook, and consistent execution in both its Seating and E-Systems segments, while maintaining a disciplined capital allocation strategy that supports share repurchases and dividends.

Operating Cash Flow

In the third quarter of 2025, Lear Corp generated net cash from operating activities of $444 million and free cash flow of $307 million – one of the highest Q3 operating cash flows in its history.

Sales & Earnings

Sales reached $5.7 billion, a 2% increase year-over-year. Core operating earnings were $241 million (4.2% of sales), compared to $257 million in 2024, with net income at $108 million and earnings per share at $2.02 (adjusted EPS of $2.79).

Segment Performance

The Seating segment delivered margins of 5.6% (adjusted 6.1%), while the E-Systems segment reported margins of 2.9% (adjusted 4.2%), reflecting a balanced performance across Lear Corp’s core businesses.

Global Production Trends

Global vehicle production was up 4% overall, with North America up 5%, Europe up 1%, and China up 10%, underscoring the varied regional dynamics impacting Lear Corp’s sales-weighted performance.

Share Repurchase & Strategic Outlook

During the quarter, Lear repurchased 968,884 shares for $100 million, reinforcing its commitment to returning capital to shareholders. The company also raised the midpoint of its full-year free cash flow outlook while noting that further improvements in revenue and operating income could have been achieved absent a significant production disruption at a key customer.