Lear Corporation's CFO, Jason Cardew, provided an update at the Wells Fargo Industrials and Materials Conference on June 11, 2025, indicating that the second quarter has continued the positive momentum from the first quarter. He highlighted strong operating performance, particularly in areas the company controls, including restructuring efforts and automation.
For the second quarter, Lear expects revenues of $5.9 billion, operating income between $260 million and $270 million, and free cash flow between $50 million and $100 million. The company announced its readiness to restart share repurchases, targeting approximately $25 million in the quarter.
Cardew confirmed that Lear fully expects to reinstate its full-year financial guidance during the second quarter earnings call, citing good visibility into the second half of the year. He also noted that tariff negotiations have progressed well, with the company expecting no significant leakage in the second quarter.
Lear's gross tariff exposure for 2025 is estimated at $200 million without recovery, with Honduras exposure ($100 million) nearly 100% covered by customer agreements. The company has achieved over 90% USMCA compliance for imports from Mexico and Canada, a significant increase from 77% in 2024.
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