Lear Corp at Goldman Sachs Industrials & Autos Week Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Let's jump into the questions. And I thought with an industry question, we could start off, and Jason, I can direct this one to you perhaps. There's been a lot of volatility in the industry around potential supply chain disruptions and customer-specific events such as the cyberattack on JLR and the Novelis fire. And given that backdrop, can you share your current views on how the quarter is shaping up?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : That's some great news. Thank you for sharing those updates and glad to hear how the quarter is developing. And maybe we could pick up on that and talk a bit more on production trends by region. Have there been any surprises relative to your expectations? And any early views you'd want to share on 2026, including the extent to which customer production impacts that you've seen in '25 may be recovered?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : And Mike, just to make sure I understood what you were referring to when you talk about volume mix, you mean kind of just the types of vehicles that OEMs are making? Or do you just meant your OEM exposure?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Okay. Helpful. Maybe we could talk about automation. I mean it's been such an important focus for Lear. You've acquired a number of companies to enhance your automation efforts, including StoneShield and WIP. You're also partnering with Palantir. Could you speak to where the company is on the journey of its automation efforts, including where it's making progress, what's to come? And what might be hard to automate at least with current technology?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : No, those are some fantastic examples and really helps to illustrate all the discussions you guys have had on this broader topic for a while now. So thanks for that. Maybe we could just double-click with one more on this. And you mentioned the $65 million to $75 million of savings annually from these broader set of initiatives. Anything you can share in terms of typical payback period on those investments?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Very helpful. Maybe we can speak more on the Seating business, and the company has spoken about how automation as well as your regionalization efforts are potential drivers of Conquest business in Seating. What is Lear seeing on its ability to convert on these opportunities? And has the total Conquest opportunity of $3 billion changed?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Thank you for all those updates on the Seating business. And I think in your opening comments, Jason, you talked about some awards you've seen even just in this quarter, I think maybe you said three. Please correct me if I had that number wrong. Were those more new programs? Or were those some of the Conquest business you just spoke to?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Okay. And you actually were just referring to some momentum in China. So that I know has been a big focus for a number of suppliers, including Lear. Maybe you can put that into perspective for us. You've been targeting to reach 50% of China revenue from domestics in 2027. Just kind of level set us where you stand with some of the progress and some of the momentum you just spoke about.

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : That's helpful. And on the China opportunity, the company had consolidated two of its Seating joint ventures in China this year. How is Lear thinking about further consolidation going forward? And what impact might that have on margins in Seating?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Okay. And then just on a global perspective, TCS has been an important part of the opportunity for Lear. You already spoke about some of the progress the company has seen there. But as you think about ComfortFlex and ComfortMax, just any more comments around how that product has progressed?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : That's great. Thank you for all those updates on Thermal Comfort. Maybe we could have a couple of questions on the E-Systems segment. The company commented on its third quarter call that it expects E-Systems to have a negative $100 million backlog in 2026 compared to the February outlook of positive $170 million. What's the driver of that? Lear has also spoken about the impact to E-Systems from wind-down electronics business. How much additional revenue headwind would investors expect from this aspect?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Okay. And that's all very helpful context and some revenue headwind. But maybe we can talk about margins in E-Systems. To what extent do you think the company can see some margin expansion in part given some of the focus and automation efforts? And just any more color on the margin trajectory you see in E-Systems over the next couple of years? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 04, 2025 / 10:15AM, LEA.N - Lear Corp at Goldman Sachs Industrials & Autos Week

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Very helpful. Maybe we could finish up with capital allocation. How should investors think about Lear's capital allocation priorities?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Well, unfortunately, we are out of time. I'd like to give a big thank you to the entire Lear team, Jason, Mike and Jared, I really appreciate you joining the conference.