- Lear Corporation (LEA, Financial) reported Q1 2025 revenue of $5.6 billion, marking a 7% decline year-over-year.
- Lear's net income dropped to $81 million ($1.49 per share) from $110 million ($1.90 per share) in Q1 2024.
- The company secured $750 million in new E-Systems business and strengthened its market presence in China.
Lear Corporation (LEA), a prominent player in the automotive technology sector, announced its financial results for the first quarter of 2025. The company reported a revenue decrease of 7% year-over-year, amounting to $5.6 billion compared to $6.0 billion in the same period last year. Net income also saw a decline to $81 million, or $1.49 per share, down from $110 million, or $1.90 per share, in Q1 2024.
Despite revenue challenges, Lear reported core operating earnings of $270 million, with improved margins in both its Seating and E-Systems segments, reflecting operational efficiencies. The company also executed a share repurchase program of $25 million and distributed $43 million in dividends, continuing its commitment to shareholder returns.
In Q1 2025, Lear achieved significant business milestones, including gaining control over a BYD joint venture in China, winning ComfortFlex programs with automotive giants Volvo and Hyundai, and securing E-Systems contracts potentially generating $750 million in annual sales. Furthermore, Lear expanded its partnerships by securing complete seat programs with leading Chinese automakers such as BYD, FAW, and XPeng, as well as new wire business with Ford and BMW.
Due to ongoing uncertainties in global industry production related to fluctuating tariffs, Lear has withheld its 2025 financial outlook. However, the company remains optimistic about meeting its operational targets for the year, propelled by its strategic improvements in automation and restructuring efforts.
At the end of the quarter, Lear maintained a strong liquidity position with $780 million in cash and total liquidity of $2.8 billion. The company also noted that its first-quarter global vehicle production increased by 1% year-over-year, although it experienced a 5% decline on a sales-weighted basis.
