- Lear’s 2025 net sales forecast ranges from $21.88 billion to $22.88 billion, slightly lower than the estimate of $22.93 billion.
- Adjusted EBITDA for 2025 is expected to be between $1.54 billion and $1.80 billion, with an estimate of $1.7 billion.
- The company’s projected free cash flow for 2025 is between $430 million and $630 million, against an estimate of $614.1 million.
- Fourth-quarter adjusted earnings per share (EPS) stood at $2.94, down from $3.03 year-over-year, yet beating the estimate of $2.58.
- Net sales for the fourth quarter were $5.71 billion, a 2.2% decrease year-over-year, surpassing the expected $5.53 billion.
- Adjusted net income for the quarter was $161.0 million, down 9% from last year, but above the estimate of $146.5 million.
- Free cash flow for the fourth quarter was $488.7 million, a 30% increase year-over-year, exceeding the estimated $476.9 million.
- Capital expenditure during the fourth quarter was $192.1 million, a slight drop of 0.6% year-over-year, and close to the estimate of $196.6 million.
- Seating segment net sales totaled $4.19 billion, a 3.6% decrease year-over-year, but above the estimate of $4.09 billion.
- Seating adjusted margin was 6.1%, down from 6.8% year-over-year, with an expectation of 6.12%.
- Seating adjusted earnings were $257.0 million, a 13% decline year-over-year, but higher than the $250.3 million estimate.
- E-Systems net sales increased by 2% year-over-year to $1.53 billion, beating the estimated $1.45 billion.
- E-Systems adjusted margin was 5%, which is lower than the previous year’s 5.6%, and below the estimated 5.3%.
- E-Systems adjusted earnings declined 8.7% year-over-year to $76.7 million, just short of the $77.4 million estimate.
- The 2025 financial outlook assumes global industry production will be 2% lower compared to 2024, based on a Lear sales weighted basis.
- Lear managed to deliver solid results in 2024, outperforming the market despite macroeconomic and industry challenges.
- Investment analyst ratings consist of 9 buys, 8 holds, and 0 sells for Lear.
Lear Corp on Smartkarma
Analyst coverage on Smartkarma for Lear Corp, provided by Baptista Research, highlights key factors influencing the company’s future price. In their report “Lear Corporation: Geographical Expansion & Local Partnerships in China To Catalyze Growth! – Major Drivers”, Baptista Research assesses Lear Corp‘s resilience in the face of production challenges, with revenue reaching $5.6 billion, driven by new business additions in Seating and E-Systems. The report utilizes a Discounted Cash Flow (DCF) methodology to independently value the company.
Another report by Baptista Research, “Lear Corporation: Expansion in China and Emerging Markets Catalyzing Top-Line Growth! – Major Drivers”, reviews Lear Corp‘s second quarter 2024 earnings. Lear Corp demonstrated strong revenue generation exceeding $6 billion, showcasing growth in both E-Systems and Seating segments that outperformed market rates. These insights provide a balanced view for potential investors evaluating Lear Corp‘s future performance.
A look at Lear Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Lear Corp seems poised for a positive long-term outlook. With strong scores in Value and Dividend at 4, the company appears to offer good value for investors while also providing stable dividend returns. Additionally, Lear Corp‘s Growth, Resilience, and Momentum scores of 3 indicate a company that is steadily growing, resilient in challenging times, and showing positive momentum in the market.
Lear Corporation, a manufacturer of automobile parts, has a solid foundation according to the Smartkarma Smart Scores. With a diverse product line that includes seating systems, wiring harnesses, and electronic components, the company demonstrates its ability to adapt to the changing automotive industry landscape. Investors may find Lear Corp an attractive prospect given its strong performance across key factors essential for long-term success in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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