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Sep 27, 2025
Lear Q3 2025 Earnings Report
Lear delivered solid third quarter 2025 results with revenue growth and strong cash flow generation despite industry disruptions.
Key Takeaways
Lear Corporation reported Q3 2025 revenue of $5.68 billion, up 2% year-over-year. The company posted net income of $108 million and adjusted net income of $150 million. Operating cash flow reached $444 million, the second highest for a third quarter in company history, and free cash flow totaled $307 million. Both business segments achieved positive margins, with improvements in operating performance and cost efficiency.
Revenue increased 2% year-over-year to $5.68 billion.
Net income was $108 million, with adjusted net income of $150 million.
Free cash flow reached $307 million, up from $51 million a year earlier.
Both Seating and E-Systems segments delivered positive margins despite production challenges.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Lear reaffirmed its 2025 guidance, raising the midpoint of free cash flow outlook to approach an 80% conversion target, while maintaining strong liquidity and operational execution amid production disruptions.
Positive Outlook
- Raised midpoint of 2025 free cash flow outlook to $475–$525 million.
- Maintained total liquidity of $3 billion.
- Core operating earnings expected between $995 million and $1.055 billion.
- Adjusted EBITDA guidance between $1.605 billion and $1.665 billion.
- Strong capital discipline with $100 million in share repurchases.
Challenges Ahead
- Lost production at a key customer limited higher revenue guidance.
- Lower segment margins in both Seating and E-Systems versus prior year.
- Impact from JLR cyberattack reduced sales and operating earnings.
- Continued restructuring costs expected at ≈$235 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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