Lear Corporation reported first quarter 2025 net sales of $5.6 billion, a 7% decrease year-over-year, with net income at $80.7 million, down from $109.6 million in 2024. Core operating earnings were $270.4 million, or 4.9% of sales, compared to $279.8 million in the prior year.
Adjusted earnings per share for the quarter was $3.12, down from $3.18 a year ago. The company reported net cash used in operating activities of $(128) million and free cash flow of $(232) million, impacted by the timing of customer receipts and higher cash restructuring costs.
Lear announced it is not reaffirming its 2025 financial outlook due to uncertainty in industry production caused by the evolving tariff environment. The company stated it would provide updates as visibility on industry production improves, while remaining confident in its operating performance commitments.
The company detailed its direct tariff exposure, primarily in Mexico and Honduras, with approximately $2.8 billion of components imported from Mexico to the U.S., 94% of which are USMCA compliant. Approximately $625 million of components from Honduras are subject to Section 232 tariffs, with over 90% covered by customer commitments. Lear's strategy is to recover 100% of all tariffs from customers.
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