Lear Corporation (0JTQ.L) Q2 2025 Earnings Report

- Lear reported QQ2 2025 revenue of $6.030 billion, up 8.0% year-over-year and 8.45% quarter-over-quarter, underscoring continued demand in its two main segments: Seating and E-Systems. Gross profit reached $439.1 million with a gross margin of 7.28%, while operating income was $288.9 million, yielding an operating margin of 4.79% and an EBITDA of $391.1 million. Net income stood at $165.2 million, translating to a net margin of 2.74% and EPS (diluted) of $3.06–$3.07.
- The company generated solid operating cash flow of $296.2 million and free cash flow of $170.8 million for the quarter, supporting deleveraging and shareholder return capacity despite a leveraged balance sheet. Cash balance was $893.3 million at period end, with total debt of $3.551 billion and net debt of $2.658 billion, yielding a current ratio of 1.342 and a cash ratio of 0.146.
- While revenue and near-term cash flow were robust, operating margins remained modest by some peers due to mix and ongoing SG&A investments. Lear’s valuation appears attractive on an earnings basis (P/E ~7.7) and a price-to-book near parity, supported by durable cash flow, a diversified product portfolio, and a global manufacturing footprint. The key strategic question is the pace of margin expansion and leverage reduction as auto production cycles and EV content shifts unfold.