Lear Corporation reported revenues of $5.6 billion for the third quarter of 2024, a decrease of 3% year-over-year, as the automotive industry faced challenging production conditions. Despite this, Lear's results were better than the overall market, outperforming industry production by 3 percentage points. In the E-Systems segment, revenue exceeded market performance by 5 percentage points, while Seating achieved a 3 percentage point lead over the market. The company’s core operating earnings stood at $257 million, maintaining a solid operating margin of 4.6%. Adjusted earnings per share rose slightly by 1% to $2.89, benefitting from an aggressive share repurchase strategy, which is expected to drive future EPS growth.

Revenue performance varied by region, with North America showing a notable increase of 7 percentage points over the market due to strong demand for GM's full-size trucks and SUVs. This strong performance was complemented by successful new business wins in China, with Lear forming strategic relationships with domestic automakers that accounted for approximately 30% of its total revenue in 2024. The gradual shift towards domestic producers is expected to drive further growth in the Chinese market, projecting an increase in revenue to about $6 billion by 2027.

Source: Alphaspread