Lear Reports Q3 2025 Results

SOUTHFIELD, Mich., Oct. 31, 2025 – Lear Corporation (LEA), a global leader in automotive seating and E-Systems technology, today released its financial results for the third quarter of 2025, revealing a mixed performance amid a dynamic global automotive landscape.

Third Quarter 2025: Key Financial Metrics

Lear reported revenue of $5.7 billion for Q3 2025, a 2% increase compared to $5.6 billion in the same period of 2024. However, net income saw a dip, landing at $108 million versus $136 million year-over-year. Adjusted net income also decreased, from $163 million in Q3 2024 to $150 million this quarter. Core operating earnings followed a similar trajectory, declining from $257 million to $241 million.

Earnings per share (EPS) were reported at $2.02 ($2.79 adjusted), down from $2.41 ($2.89 adjusted) in the preceding year. On a brighter note, operating activities generated $444 million in net cash, leading to a free cash flow of $307 million, a notable rise from $183 million and $51 million, respectively, in the third quarter of 2024. The company maintained a solid financial position with $1.0 billion in cash and cash equivalents and total liquidity of $3.0 billion at the close of the quarter.

Operationally, both the Seating and E-Systems segments demonstrated positive performance. The Seating division achieved roughly 50 basis points, while the E-Systems segment registered approximately 95 basis points.

Strategic Initiatives and Business Developments

Beyond the financials, the company has been actively pursuing initiatives aimed at fostering innovation and growth. Lear launched a pioneering fellowship program with Palantir, designed to accelerate the firm’s capabilities in digital technology and artificial intelligence. These investments signal Lear’s commitment to remaining at the cutting edge of automotive technology.

Lear’s E-Systems secured approximately $1.1 billion in new business awards year-to-date.
The company also won several significant complete seat programs with several Chinese domestic automakers, namely BAIC, Dongfeng, Leapmotor, SAIC and Seres, consolidating its hold in the Chinese market. Likewise, Lear secured four ComfortFlexTM programs, securing BMW, Leapmotor and Seres, including a significant win with Hyundai.

Lear also obtained control of a joint venture in China.

Recognition for quality and sustainability also highlighted Lear’s achievements this quarter. Lear demonstrated excellence in wire programs securing eight programs, including with the Dongfeng Group and JD Power awards.

CEO’s Perspective

“Lear exhibited resilience in Q3, marked by strong cash flow and robust operational execution,” commented Ray Scott, Lear’s President and CEO. “Our strategic investments in automation, digital tools, and restructuring are geared towards enhancing operational efficiency, ultimately improving our financial outlook which was increased at the midpoint regarding free cash flows. The strength and adaptability of our team ensure that we can maintain our dividend, repurchase shares, and grow strategically.”

Market Dynamics and Challenges

Lear’s third-quarter performance unfolded against a backdrop of fluctuating global vehicle production, which showed a 4% increase overall. This growth was driven by a 5% uptick in North America and a 10% surge in China. Europe remained relatively stable with a 1% increase. However, various challenges, including supply chain bottlenecks and inflationary pressures, continue to impact the automotive industry.

Looking ahead, Lear anticipates net sales between $22.85 billion and $23.15 billion and core operating earnings in the range of $995 million to $1.055 billion and free cash flow to be in the range of $475 million to $525 million.

Lear remains focused on executing its strategic priorities, including investing in advanced technologies, optimizing its cost structure, and returning capital to shareholders.