Lear Corporation delivered a Q3 2024 performance that reflects the cyclicality of the global auto market, with revenue of approximately $5.58 billion, down 6.8% year over year but displaying margin resilience through cost discipline and mix benefits. Despite softer topline, the company posted a net income of $135.8 million and earnings per share of $2.42, up roughly 26.7% year over year, underscoring margin stability in an inflationary environment and ongoing efficiency initiatives. Free cash flow was $50.5 million, supported by $182.7 million of operating cash flow and $132.2 million in capital expenditures, signaling a deliberate investment approach in high-value platforms such as seating systems and ESystems, including Xevo software capabilities.
From a balance sheet perspective, Lear maintained a prudent liquidity profile with $766 million of cash and equivalents and a net debt position of about $2.20 billion. Leverage remains moderate (debt to capitalization around 38%), and interest coverage stands at roughly 9x, enabling continued capital allocation flexibility. The quarter reflects a disciplined dividend and capital return posture (dividends paid of $42.8 million and share repurchases of $204 million) alongside ongoing investments aimed at sustaining competitive positioning in seating and high-voltage electronics, which are central to the EV and advanced vehicle programs.
Management communications emphasize a continued focus on cash generation, deleveraging, and capital returns, while acknowledging that near-term revenue will remain sensitive to global vehicle production trends and input-cost dynamics. The opportunity set remains anchored in higher-content vehicle architectures, software-enabled services, and the broader shift to electric and automated powertrain configurations. Investors should monitor production trends, supply chain costs, and margin trajectory as indicators of Lear's ability to translate its diversified portfolio and software ecosystem into sustainable profitability and shareholder value.