- Lear Corporation increases its full-year net sales forecast to a range of $22.85 billion to $23.15 billion, up from the previous $22.47 billion to $23.07 billion, with an estimate of $23 billion.
- The company projects adjusted EBITDA between $1.61 billion and $1.67 billion, previously anticipated at $1.57 billion to $1.71 billion, with an estimated $1.65 billion.
- Free cash flow guidance is raised to $475 million to $525 million, from the prior $420 million to $520 million, against an estimate of $506.1 million.
- Third quarter adjusted EPS reported at $2.79, compared to $2.89 year-over-year, beating the estimate of $2.74.
- Quarterly net sales reached $5.68 billion, marking a 1.7% year-over-year increase and slightly above the estimate of $5.67 billion.
- Adjusted net income for the third quarter stood at $150 million, a 7.9% decrease year-over-year, yet above the estimate of $146.2 million.
- Free cash flow in the third quarter was a significant $307.0 million, compared to $50.5 million year-over-year, exceeding the estimate of $288 million.
- Capital expenditure for the quarter was $137.4 million, a 3.9% increase year-over-year, but below the estimate of $172.9 million.
- Seating net sales rose by 3.4% year-over-year to $4.25 billion, surpassing the estimate of $4.15 billion.
- Seating adjusted margin slightly declined to 6.1% versus 6.4% year-over-year, yet above the estimate of 6.01%.
- E-Systems net sales dropped 2.9% year-over-year to $1.43 billion, under the estimate of $1.5 billion.
- Lear targets nearly 80% conversion of operating cash flow, with the third quarter results showing one of its highest operating cash flows historically, despite disruptions at key customers.
- The company enjoys solid momentum with strong performance across both business segments, as stated by Ray Scott, Lear’s President and CEO.
- Analyst recommendations include 6 buys, 9 holds, and no sells.
Lear Corp on Smartkarma
Analysts on Smartkarma, like Baptista Research, are closely tracking Lear Corp, providing valuable insights into the company’s recent performance and strategic maneuvers. In a report titled “Lear Corporation: An Insight Into Its Recent Adaptation to Volume & Trade Dynamics & Its Strategy Shielding Its Global Supply Chain!” Baptista Research highlights that Lear Corp‘s second-quarter 2025 results showed stability with revenue remaining at $6 billion. The report indicates a balanced mix of positive developments and areas of concern, with core operating earnings reaching $292 million, reflecting an operating margin of 4.8%.
Furthermore, in another report titled “Lear Corporation: Market Adaptation & Share Strategy to Enhance Its Regional & Global Footprint!”, Baptista Research delves into Lear Corp‘s first-quarter 2025 performance. Despite industry complexities, the company demonstrated resilience with revenue hitting $5.6 billion and core operating earnings of $270 million, translating to an operating margin of 4.9%. This performance showcases progress towards their targeted goals amidst challenging production environments, underscoring Lear Corp‘s effective execution of strategic priorities across its business units.
A look at Lear Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
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
Analyzing the Smartkarma Smart Scores for Lear Corp, the company’s future outlook appears promising. With high scores in Growth, Value, Dividend, and Momentum, Lear Corp is positioned well for long-term success. The company’s strong growth prospects, solid value proposition, stable dividend payments, and positive momentum in the market indicate a robust foundation for continued performance.
Lear Corporation, a leading manufacturer of automobile parts, stands out for its innovative products such as seating systems, wiring harnesses, terminals, connectors, and more. Despite facing some resilience challenges, Lear Corp‘s exceptional scores across key factors paint a positive picture of its long-term prospects in the automotive industry.
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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