Lear Corporation (LEA) SEC Filings & Earnings Calls

Auto production volume decline in Asia and North America

“These increases were partially offset by lower production volumes on Lear platforms in Asia and North America, which reduced net sales by $171 million.” · word for word

Tariff reversal impact

“The reversal of certain 2025 tariff recoveries and the impact of selling price reductions were partially offset by commercial recoveries.” · word for word

Tariff and trade policy uncertainty could impact future results; guidance excludes tariff changes.

“Our outlook excludes any future impact of potential changes to tariffs or Company or industry-wide production disruptions.” · word for word

Global vehicle production flat to slightly down; key Lear platforms saw lower production.

“Global vehicle production was flat compared to a year ago... lower production on key Lear platforms.” · word for word

Tariff Escalation Risk

“Although U.S. tariffs did not have a material impact on our gross profit in the first quarter of 2026, the tariff and trade landscape continues to evolve...” · word for word

Customer Concentration Risk

“The Company's main customers are major automotive manufacturers.” · word for word

Commodity Cost Volatility

“Raw material, energy, commodity and product component costs can be volatile...” · word for word

Global vehicle production down 3% in Q1, with China down 10%.

“In the first quarter, global vehicle production was down 3% compared to a year ago, with North America down 2%, Europe down 1% and China down 10%.” · word for word

Guidance assumes 2% lower industry production on a Lear sales-weighted basis.

“At the midpoint of our guidance range, we have assumed that global industry production will be approximately 2% lower than in 2025 on a Lear sales-weighted basis.” · word for word

Tariff Exposure

“Despite continuing challenging geopolitical and industry conditions, including the imposition of new and increased tariffs, in 2025 Lear achieved a record $195 million of net performance and 26.8% TSR for the year.” · word for word

EV Adoption Slowdown

“slower than anticipated electric vehicle adoption rates, particularly in Europe and North America, our two largest markets.” · word for word

Customer Cybersecurity Incident

“the 2025 Adjusted Pretax Income result was increased by $54 million and the 2025 Adjusted ROIC Improvement was increased from 10.01% to 10.17% to neutralize the impact of second half 2025 production disruptions at a key customer due to a cybersecurity incident impacting the customer.” · word for word

Production Volume Decline

“Despite lower production volumes in our key markets, Lear delivered revenue of $23.3 billion” · word for word

Tariff exposure and supply chain disruption

“Since his inauguration in January 2025, U.S. President Donald J. Trump has announced various tariffs that impact industries around the world, including the automotive industry.” · word for word

Labor contract expirations and potential work stoppages

“Labor agreements covering approximately 67% of our global unionized work force are scheduled to expire in 2026.” · word for word

EV transition uncertainty

“The adoption of such vehicles, particularly electric vehicles, has been slower than anticipated... This has resulted in, among other things, various volume decreases related to, and cancellations of, vehicle programs for which we are a supplier” · word for word

Lower production on key Lear platforms partially offset growth.

“Partially offset by lower production on key Lear platforms.” · word for word

Free cash flow declined significantly in Q4 due to working capital changes.

“Free cash flow of $281 million, compared to $489 million in the prior year quarter.” · word for word

Auto production disruption risk

“Lower production volumes on Lear platforms (including the JLR production disruption) and the winddown and divestiture of certain businesses, which negatively impacted net sales by $234 million and $70 million, respectively.” · word for word

Selling price reduction risk

“Commercial recoveries were partially offset by the impact of selling price reductions.” · word for word

Margin compression risk

“Gross profit and gross margin were $364 million and 6.4% of net sales, respectively, in the third quarter of 2025, as compared to $405 million and 7.3% of net sales, respectively, in the third quarter of 2024.” · word for word

Foreign exchange risk

“In the third quarter of 2025 and 2024, we recognized foreign exchange losses of $9 million and $6 million, respectively, including losses of $4 million in each quarter related to the hyper-inflationary environment and significant currency devaluation in Argentina.” · word for word

Customer production disruption risk: significant lost production at a key customer impacted revenue and operating income outlook.

“but for the significant lost production at a key customer, we would have further raised the midpoint of our full-year revenue and increased our full-year operating income outlook.” · word for word

Tariff and supply chain disruption risk: outlook excludes potential tariff changes and production disruptions due to supplier export constraints.

“Our outlook excludes any future impact of potential changes to tariffs or Company and industry-wide production disruptions due to supplier export constraints.” · word for word

Lower production on key platforms: sales down 1% ex-commodities/FX/tariffs/M&A, reflecting lower production on key Lear platforms.

“Sales were down 1%, reflecting lower production on key Lear platforms and the winddown of our non-core products.” · word for word