Executive snapshot: Lear Corporation posted Q1 2025 revenue of $5.5603 billion, a year-over-year decline of approximately 7.5% and a quarterly drop of about 2.7% versus the prior quarter. Gross profit was $359.2 million, yielding a gross margin of 6.46%. Operating income reached $276.9 million (operating margin ~4.98%), with EBITDA of $308.9 million (EBITDA margin ~5.56%). Net income was $80.7 million, or $1.50 per basic share and $1.49 per diluted share. The quarter featured notable working capital pressure: change in working capital of -$404.5 million, and accounts receivable reduction of -$566.1 million, contributing to a negative operating cash flow of -$127.7 million and negative free cash flow of -$231.7 million.
Balance sheet remains sizable, with total assets of $14.623 billion and total liabilities of $9.980 billion. Cash and equivalents stood at $0.780 billion, while year-end net debt was approximately $1.982 billion (total debt $2.762 billion). Despite a strong liquidity cushion, Lear’s near-term cash generation was pressured by working capital dynamics, and the company carried a modest net income margin of ~1.45% for the quarter. Management commentary (where available in the provided data) did not include explicit full-year guidance; investors should monitor OEM demand trends, production volumes, and higher-value ESystems and Xevo software initiatives as potential catalysts for improved profitability and cash flow over time.