- Lear’s second-quarter adjusted earnings per share (EPS) at $3.47 beat estimates of $3.30, but showed a slight decline from $3.60 year-over-year (y/y).
- Net sales increased by 0.3% y/y to $6.03 billion, surpassing the estimate of $5.93 billion.
- Adjusted net income stood at $188 million, a decrease of 8.6% y/y, but it exceeded the estimate of $178.4 million.
- Free cash flow rose slightly by 0.2% y/y to $170.8 million, outperforming the projected $119.7 million.
- Capital expenditure was $125.4 million, slightly up by 3.8% y/y, though below the expected $143.4 million.
- Seating division net sales reached $4.47 billion, up 0.6% y/y, above the $4.4 billion estimate.
- Seating adjusted margin was 6.7%, slightly down from 6.8% y/y, but better than the estimated 6.41%.
- Seating adjusted earnings decreased by 1.1% y/y to $298.9 million, surpassing the $282 million estimate.
- E-Systems net sales fell by 0.6% y/y to $1.56 billion, but still exceeded the $1.54 billion estimate.
- E-Systems adjusted margin was 4.9%, down from 5.3% y/y, yet above the anticipated 4.71%.
- E-Systems adjusted earnings decreased by 7.8% y/y to $75.8 million, surpassing the $72 million expectation.
- The full-year forecast projects net sales between $22.47 billion to $23.07 billion, with estimates at $22.66 billion.
- Adjusted EBITDA for the year is expected to range from $1.57 billion to $1.71 billion, close to the $1.65 billion estimate.
- Free cash flow is forecasted to be between $420 million to $520 million, compared to an estimate of $505 million.
- The company has restored its 2025 full-year financial guidance.
- Current analyst consensus includes 7 “buys,” 9 “holds,” and no “sells” for Lear’s stock.
Lear Corp on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are closely following Lear Corp‘s market performance. In a recent report titled “Lear Corporation: Market Adaptation & Share Strategy to Enhance Its Regional & Global Footprint!”, Baptista Research highlighted the company’s first-quarter 2025 results. Lear Corp‘s revenue for the quarter reached $5.6 billion, with core operating earnings hitting $270 million. Despite facing challenges in the automotive industry, Lear Corp maintained a total operating margin of 4.9%, showcasing progress towards its strategic goals.
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 Smartkarma Smart Scores, Lear Corp is positioned favorably for long-term growth and stability in the automotive industry. With strong ratings across Value, Dividend, Growth, and Momentum, Lear Corp showcases a promising outlook for investors. The company’s focus on manufacturing automobile parts, including seating systems, wiring harnesses, and electronics, positions it well for sustained growth and resilience in the market.
Lear Corp‘s above-average scores in key areas such as Value and Growth indicate a solid foundation for future profitability and expansion. Additionally, the company’s robust Dividend and Momentum scores suggest a potential for consistent returns and market performance. Despite a slightly lower Resilience score, Lear Corp‘s diversified product portfolio and technological innovations place it in a strong position to navigate industry challenges and capitalize on opportunities for sustained success.
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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