Lear Corporation Reports Slight Decline in Net Sales and Profitability for Q2 and First Half of 2025

Lear Corporation reported its financial results for the second quarter and first half of 2025, revealing a slight decline in net sales and profitability compared to the same period in 2024. For the three months ended June 28, 2025, the company generated net sales of $6.03 billion, a marginal increase from $6.01 billion in the prior year. However, net income attributable to Lear decreased to $165.2 million, or $3.06 per diluted share, down from $173.1 million, or $3.02 per diluted share, in the same quarter of 2024. For the first half of 2025, net sales totaled $11.59 billion, down from $12.01 billion in the first half of 2024, with net income attributable to Lear at $245.9 million compared to $282.7 million in the previous year.

The company's financial performance was impacted by several factors, including lower production volumes on Lear platforms in North America, Europe, and Asia, which negatively affected net sales by approximately $638 million. Additionally, the winddown of certain business operations and foreign exchange fluctuations contributed to the decline. Despite these challenges, new business in Asia and the Americas provided a positive offset, adding $135 million to net sales. Lear's gross profit for the second quarter was $439 million, representing a gross margin of 7.3%, down from 7.5% in the prior year.

In terms of operational developments, Lear completed the acquisition of StoneShield Engineering in February 2025, which is expected to enhance automation in its E-Systems business. The company also reported restructuring costs of $118 million in the first half of 2025, compared to $84 million in the same period of 2024. These restructuring actions are aimed at aligning manufacturing capacity with market conditions and improving operational efficiency. Lear's total assets increased to $15.32 billion as of June 28, 2025, up from $14.03 billion at the end of 2024, driven by higher accounts receivable and inventory levels.

Looking ahead, Lear Corporation anticipates continued challenges due to fluctuating production volumes and ongoing market conditions, including the impact of tariffs and supply chain disruptions. The company plans to implement additional restructuring actions to further align its operations with prevailing automotive production levels. Despite these challenges, Lear remains focused on maintaining its market leadership in both the Seating and E-Systems segments, with a commitment to innovation and operational excellence. The company has also reaffirmed its intention to return capital to shareholders through dividends and share repurchases, with a remaining authorization of $1 billion under its share repurchase program.