Lear (LEA) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $6.0 billion, with E-Systems and Seating segments outgrowing the market by 7 and 2 percentage points, respectively.

• Adjusted EPS rose 8% year-over-year to $3.60, supported by higher net income and share repurchases.

• Net income attributable to Lear was $173 million ($3.02 per diluted share) in Q2 2024, up from $169 million ($2.84 per diluted share) in Q2 2023.

• Introduced ComfortFlex and ComfortMax Seat modular thermal comfort solutions, with strong customer adoption and validation underway.

• Closed acquisition of WIP Industrial Automation to accelerate automation and AI-driven manufacturing initiatives.

Financial highlights

• Q2 2024 net sales were $6.0B, core operating earnings $302M, and adjusted EPS $3.60 (up 8% YoY).

• Operating cash flow was $291M, down from $311M last year; free cash flow was $170M, up from $159M in Q2 2023.

• Gross margin for Q2 2024 was 7.5%; net margin was 2.9%.

• Repurchased $60 million in shares and paid $44 million in dividends during the quarter.

• Cash and cash equivalents at quarter end were $950 million; total liquidity $3.0 billion.

Outlook and guidance

• 2024 revenue guidance lowered to $23.23–$23.67 billion, reflecting reduced vehicle production and FX headwinds.

• Core operating earnings outlook now $1.03–$1.2 billion; adjusted EBITDA $1.67–$1.84 billion.

• Free cash flow guidance set at $485–$635 million for 2024; capital expenditures projected at ~$650 million.

• Restructuring costs for 2024 expected at $150 million, with $57 million additional costs anticipated within twelve months.

• Guidance incorporates anticipated further OEM production cuts, especially in EV platforms.