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Lear posted Q3 adjusted EPS of $2.79, topping estimates despite a year-over-year decline.
Seating revenues rose to $4.25B, while E-Systems revenues declined to $1.43 billion.
The firm raised 2025 sales and FCF guidance, with capital spending now expected to be slightly lower.
Lear Corp. (LEA - Free Report) reported third-quarter 2025 adjusted earnings per share of $2.79, which beat the Zacks Consensus Estimate of $2.69, thanks to better-than-expected revenues from the Seating segment. The bottom line, however, decreased from $2.89 reported in the year-ago quarter. In the reported quarter, revenues increased 2% year over year to $5.7 billion and surpassed the Zacks Consensus Estimate by 0.09%.
Segmental Performance
Sales of the Seating segment totaled $4.25 billion in the reported quarter, up from $4.11 billion generated in the year-ago quarter. The segment’s sales surpassed the Zacks Consensus Estimate of $4.22 billion. Adjusted segment earnings amounted to $261 million, flat year over year and marginally beat the Zacks Consensus Estimate of $260 million. The segment recorded an adjusted margin of 6.1% of sales, down from 6.4% recorded in the previous year’s quarter.
Sales of the E-Systems segment totaled $1.43 billion, declining from $1.47 billion in the year-ago period and also missing the Zacks Consensus Estimate of $1.48 billion. Adjusted segmental earnings amounted to $59.7 million, down from $74.2 million in the corresponding quarter of 2024. The figure, however, surpassed the Zacks Consensus Estimate of $41 million. For the E-Systems segment, the adjusted margin was 4.2% of sales, down from 5% in the year-ago quarter.
Lear Corporation Price, Consensus and EPS Surprise
Sales in the North America region increased 7.4% year over year to $2.58 billion in the quarter under review and surpassed the Zacks Consensus Estimate of $2.43 billion.
Sales in the Europe and Africa region fell 6.7% year over year to $1.76 billion, missing the Zacks Consensus Estimate of $1.98 billion.
Sales in the Asia region totaled $1.08 billion in the quarter, which increased 3% year over year but missed the Zacks Consensus Estimate of $1.09 billion.
Sales in the South America region totaled $251 million in the quarter, rising from $234 million generated in the year-ago period and exceeding the Zacks Consensus Estimate of $230 million.
Financial Position & Other Tidbits
The company had $1 billion in cash and cash equivalents as of Sept. 27, 2025, compared with $1.05 billion as of Dec. 31, 2024. Long-term debt was $2.76 billion as of Sept 27, 2025, up from 2024-end levels.
During the quarter under discussion, net cash provided by operating activities totaled $444 million. The company posted an FCF of $307 million in the quarter.
During the quarter, LEA repurchased 968,884 shares of its common stock for a total of $100 million. At the end of the quarter, Lear had a remaining share repurchase authorization of nearly $900 million.
2025 Guidance
Lear projects its full-year net sales in the band of $22.85-$23.15 billion, up from the prior forecast of $22.47-$23.07 billion. Core operating earnings are envisioned in the range of $955-$1,055 million, compared with the prior range of $955-$1,095 million. FCF is projected in the band of $475-$525 million, higher than the previous guided range of $420-$520 million. Capital spending is now estimated to be $560 million, below the previous view of $590 million. Adjusted EBITDA is expected to be between $1.60 billion and $1.66 billion, compared with the prior outlook of $1.57-$1.71 billion.
Oshkosh Corporation (OSK - Free Report) reported third-quarter 2025 adjusted earnings of $3.20 per share, beating the Zacks Consensus Estimate of $3.12. The bottom line also surpassed $2.93 recorded in the year-ago quarter. Consolidated net sales fell 1.9% year over year to $2.69 billion. The top line also missed the Zacks Consensus Estimate of $2.82 billion.The company now expects its 2025 adjusted earnings per share to be between $10.50 and $11, compared with the previous guidance of $11. Full-year net sales are projected to be between $10.3 billion and $10.4 billion, down from the prior estimate of $10.6 billion.
Allison Transmission Holdings (ALSN - Free Report) reported third-quarter 2025 earnings of $1.63 per share, which missed the Zacks Consensus Estimate of $1.95 and fell 28% year over year. Quarterly revenues of $693 million declined 16% from the year-ago quarter and missed the Zacks Consensus Estimate of $756 million. The company now anticipates net sales between $2,975 million and $3,025 million compared with the previous projection of $3,075-$3,175 million. Net income is expected in the range of $620 million to $650 million compared with the prior estimation of $640 to $680 million.
BorgWarner (BWA - Free Report) reported adjusted earnings of $1.24 per share for the third quarter of 2025, which surpassed the Zacks Consensus Estimate of $1.16 and increased from $1.09 recorded in the prior-year quarter. Net sales of $3.59 billion were up 4.1% year over year. The figure, however, missed the Zacks Consensus Estimate of $3.63 billion.For full-year 2025, the company now anticipates net sales in the band of $14.1-$14.3 billion compared with the previous estimate of $14-$14.4 billion. Adjusted operating margin is expected in the band of 10.3-10.5%, up from 10.1-10.3% guided earlier.
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Lear Q3 Earnings Top Estimates, '25 Sales & FCF View Lifted
Key Takeaways
Lear Corp. (LEA - Free Report) reported third-quarter 2025 adjusted earnings per share of $2.79, which beat the Zacks Consensus Estimate of $2.69, thanks to better-than-expected revenues from the Seating segment. The bottom line, however, decreased from $2.89 reported in the year-ago quarter. In the reported quarter, revenues increased 2% year over year to $5.7 billion and surpassed the Zacks Consensus Estimate by 0.09%.
Segmental Performance
Sales of the Seating segment totaled $4.25 billion in the reported quarter, up from $4.11 billion generated in the year-ago quarter. The segment’s sales surpassed the Zacks Consensus Estimate of $4.22 billion. Adjusted segment earnings amounted to $261 million, flat year over year and marginally beat the Zacks Consensus Estimate of $260 million. The segment recorded an adjusted margin of 6.1% of sales, down from 6.4% recorded in the previous year’s quarter.
Sales of the E-Systems segment totaled $1.43 billion, declining from $1.47 billion in the year-ago period and also missing the Zacks Consensus Estimate of $1.48 billion. Adjusted segmental earnings amounted to $59.7 million, down from $74.2 million in the corresponding quarter of 2024. The figure, however, surpassed the Zacks Consensus Estimate of $41 million. For the E-Systems segment, the adjusted margin was 4.2% of sales, down from 5% in the year-ago quarter.
Lear Corporation Price, Consensus and EPS Surprise
Lear Corporation price-consensus-eps-surprise-chart | Lear Corporation Quote
Performance by Region
Sales in the North America region increased 7.4% year over year to $2.58 billion in the quarter under review and surpassed the Zacks Consensus Estimate of $2.43 billion.
Sales in the Europe and Africa region fell 6.7% year over year to $1.76 billion, missing the Zacks Consensus Estimate of $1.98 billion.
Sales in the Asia region totaled $1.08 billion in the quarter, which increased 3% year over year but missed the Zacks Consensus Estimate of $1.09 billion.
Sales in the South America region totaled $251 million in the quarter, rising from $234 million generated in the year-ago period and exceeding the Zacks Consensus Estimate of $230 million.
Financial Position & Other Tidbits
The company had $1 billion in cash and cash equivalents as of Sept. 27, 2025, compared with $1.05 billion as of Dec. 31, 2024. Long-term debt was $2.76 billion as of Sept 27, 2025, up from 2024-end levels.
During the quarter under discussion, net cash provided by operating activities totaled $444 million. The company posted an FCF of $307 million in the quarter.
During the quarter, LEA repurchased 968,884 shares of its common stock for a total of $100 million. At the end of the quarter, Lear had a remaining share repurchase authorization of nearly $900 million.
2025 Guidance
Lear projects its full-year net sales in the band of $22.85-$23.15 billion, up from the prior forecast of $22.47-$23.07 billion. Core operating earnings are envisioned in the range of $955-$1,055 million, compared with the prior range of $955-$1,095 million. FCF is projected in the band of $475-$525 million, higher than the previous guided range of $420-$520 million. Capital spending is now estimated to be $560 million, below the previous view of $590 million. Adjusted EBITDA is expected to be between $1.60 billion and $1.66 billion, compared with the prior outlook of $1.57-$1.71 billion.
LEA currently carries a Zacks Rank #3 (Hold).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
Oshkosh Corporation (OSK - Free Report) reported third-quarter 2025 adjusted earnings of $3.20 per share, beating the Zacks Consensus Estimate of $3.12. The bottom line also surpassed $2.93 recorded in the year-ago quarter. Consolidated net sales fell 1.9% year over year to $2.69 billion. The top line also missed the Zacks Consensus Estimate of $2.82 billion.The company now expects its 2025 adjusted earnings per share to be between $10.50 and $11, compared with the previous guidance of $11. Full-year net sales are projected to be between $10.3 billion and $10.4 billion, down from the prior estimate of $10.6 billion.
Allison Transmission Holdings (ALSN - Free Report) reported third-quarter 2025 earnings of $1.63 per share, which missed the Zacks Consensus Estimate of $1.95 and fell 28% year over year. Quarterly revenues of $693 million declined 16% from the year-ago quarter and missed the Zacks Consensus Estimate of $756 million. The company now anticipates net sales between $2,975 million and $3,025 million compared with the previous projection of $3,075-$3,175 million. Net income is expected in the range of $620 million to $650 million compared with the prior estimation of $640 to $680 million.
BorgWarner (BWA - Free Report) reported adjusted earnings of $1.24 per share for the third quarter of 2025, which surpassed the Zacks Consensus Estimate of $1.16 and increased from $1.09 recorded in the prior-year quarter. Net sales of $3.59 billion were up 4.1% year over year. The figure, however, missed the Zacks Consensus Estimate of $3.63 billion.For full-year 2025, the company now anticipates net sales in the band of $14.1-$14.3 billion compared with the previous estimate of $14-$14.4 billion. Adjusted operating margin is expected in the band of 10.3-10.5%, up from 10.1-10.3% guided earlier.