Lear beats Q1 estimates, pulls 2025 guidance amid tariff uncertainty

Published 06/05/2025, 11:42
Lear beats Q1 estimates, pulls 2025 guidance amid tariff uncertainty

Investing.com - Lear Corp. (NYSE:LEA) reported first quarter earnings on Tuesday that surpassed analyst expectations, but withdrew its full-year guidance due to uncertainties surrounding global tariffs.

The auto parts supplier’s stock slipped 1.09% following the announcement.

Lear posted adjusted earnings per share of $3.12 for Q1 2025, beating the analyst consensus of $2.70 by $0.42. Revenue came in at $5.6 billion, topping estimates of $5.51 billion.

However, sales declined 6.7% YoY from $6.0 billion in the same quarter last year.

The company cited improved operational performance in both its Seating and E-Systems segments, with operating margins increasing YoY.

Seating margins rose by approximately 125 basis points, while E-Systems margins improved by about 155 basis points.

However, Lear withdrew its 2025 financial outlook, citing uncertainty in industry production due to evolving tariff environments.

The company stated it would provide updates as visibility on industry production improves.

Lear reported net cash used in operating activities of $(128) million and free cash flow of $(232) million for the quarter.

The company maintained a strong liquidity position with $780 million in cash and cash equivalents and total liquidity of $2.8 billion at quarter-end.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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