Lear Corporation (NYSE:LEA) shares fell Friday despite beating second-quarter earnings and revenue estimates, with sales holding steady year-over-year at $6.03 billion.
Excluding the impact of commodities, foreign exchange, tariff recoveries, and acquisitions and divestitures, sales were down 1%.
In the second quarter, global vehicle production was up 3% compared to a year ago. Production in North America is down 3%; Europe, down 2%; and China, up 9%. Global vehicle production was flat on a Lear sales-weighted basis.
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The firm reported:
- Core operating earnings of $292 million, compared to $302 million in the second quarter of 2024.
- Earnings were impacted by lower production on key Lear platforms, offset by positive operating performance and the addition of new business.
- In the Seating segment, margins and adjusted margins were 6.4% and 6.7% of sales, respectively.
- In the E-Systems segment, margins and adjusted margins were 3.5% and 4.9% of sales, respectively.
- The company exited the quarter with cash and equivalents of $888 million and total liquidity of $2.9 billion.
- Long-term debt at the end of the quarter expanded to $2.760 billion, compared with $2.733 billion as of December 31, 2024.
Outlook: Lear increased its FY2025 sales guidance to $22.47 billion–$23.07 billion, up from the prior range of $21.875 billion–$22.875 billion.
The new forecast exceeds the Street estimate of $22.244 billion.
Price Action: LEA shares are trading lower by 7.58% to $99.98 at last check Friday.
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