- Lear reported an adjusted EPS of $3.12 for the first quarter of 2025, surpassing the estimate of $2.69 but slightly lower than the previous year’s $3.18.
- Net sales reached $5.56 billion, slightly exceeding the estimate of $5.55 billion but representing a 7.2% decline year-over-year.
- Adjusted net income was $169.3 million, which, although down 7.6% compared to the previous year, surpassed the estimated $147.6 million.
- Negative free cash flow improved by 56% year-over-year but amounted to negative $231.7 million, significantly higher than the anticipated negative $112.7 million.
- Capital expenditure was recorded at $104.0 million, 8.5% lower compared to the previous year and under the estimate of $150.3 million.
- The Seating segment reported net sales of $4.15 billion, slightly above expectations, despite a year-over-year decline of 7.3%.
- Seating adjusted margin increased to 6.7% from 6.6% the previous year, beating the estimate of 6.07%.
- Seating adjusted earnings dropped by 5.1% year-over-year to $279.9 million but surpassed the forecast of $251.1 million.
- E-Systems net sales were $1.41 billion, narrowly exceeding the estimate, with a 7.1% decline compared to last year.
- E-Systems adjusted margin rose to 5.2% from 5.1% the prior year, beating the projected 4.54%.
- E-Systems adjusted earnings fell by 4.3% year-over-year to $73.8 million, yet exceeded the expected $62.9 million.
- Lear’s CEO, Ray Scott, highlighted the focus on operational improvement, leading to higher margins in both segments despite lower industry production.
- Due to industry uncertainties, Lear did not reaffirm its 2025 financial outlook.
- The current analyst ratings include 7 buys, 9 holds, and no sells.
A look at Lear Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to the Smartkarma Smart Scores, Lear Corp seems to have a positive long-term outlook. With high scores across various factors including Value, Dividend, Growth, and Momentum, the company appears to be in a strong position. Lear Corp, a manufacturer of automobile parts, produces a wide range of products such as seating systems, wiring harnesses, terminals, connectors, and electronics. The company’s respectable scores in Value, Dividend, and Growth indicate solid financial health and potential for future expansion.
While Lear Corp‘s Resilience score is slightly lower, the overall outlook remains optimistic based on the Smartkarma Smart Scores. The company’s momentum score suggests positive market sentiment and potential for continued growth. Investors looking for a company with strong fundamentals and growth prospects might find Lear Corp an attractive option based on these scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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