Auto parts maker Lear beats Q3 revenue, profit expectations

Lear

31/10/2025 10:42

Overview

Lear Q3 revenue rose 2% to $5.7 bln, beating analyst expectations

Adjusted EPS for Q3 was $2.79, exceeding analyst estimates

Lear repurchased $100 mln in shares, maintaining strategic capital allocation

Outlook

Lear sees full-year 2025 net sales between $22.85 bln and $23.15 bln

Company expects 2025 core operating earnings of $995 mln to $1,055 mln

Lear anticipates 2025 free cash flow of $475 mln to $525 mln

Result Drivers

NEW BUSINESS ADDITIONS - Revenue growth attributed to new business in both Seating and E-Systems segments, despite lower production on key platforms

INVESTMENTS IN AUTOMATION - Strategic investments in automation and digital tools driving operational excellence and margin improvement

E-SYSTEMS AWARDS - Secured $1.1 bln of E-Systems business awards year-to-date, contributing to segment performance

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$5.67 bln
$5.59 bln (10 Analysts)
Q3 Adjusted EPS
Beat
$2.79
$2.72 (12 Analysts)
Q3 EPS
$2.02
Q3 Adjusted Net Income
Beat
$149.80 mln
$143.83 mln (7 Analysts)
Q3 Net Income
$108.20 mln
Q3 Core Operating Earnings
$241.10 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the auto, truck & motorcycle parts peer group is "hold."

Wall Street's median 12-month price target for Lear Corp is $115.00, about 10% above its October 30 closing price of $103.52

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nPnb6h7nha

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)