Lear Corp Q2 2025 Earnings Call Summary

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

Question: Dan Levy - Barclays Services Corp - Analyst : Hi, good morning. Thanks for taking the questions. I wanted to first start with a question on the outlook. As there is a meaningful deceleration in the margins in the second half. And I get it, the majority of that is coming from weaker volume. But the decrementals are a bit higher. Can you just talk about performance, which had been particularly strong in the first half, but maybe isn't contributing the same amount in the second half.

Question: Dan Levy - Barclays Services Corp - Analyst : And just to be clear, the second half number, which I think in the past you said would be the right sort of exit rate jumping off point for '26. That's probably not correct now or probably be too low for the jumping off rate.

Question: Dan Levy - Barclays Services Corp - Analyst : Okay. Great. Second question is on your awards and specifically, in Seating, if you could double-click on the award you got from Ford. Is that just on the components, or is there any [ gist ] there? And maybe you could just talk broadly about the modularity. It seems like GM, someone else is doing the TCS there. So what is the uptake? And does reshoring at all changed any of the way that TCS plays into the strategy?

Question: Dan Levy - Barclays Services Corp - Analyst : Great. Thank you.

Question: Joseph Spak - UBS AG - Analyst : Thanks. Good morning. Maybe, Ray and Jason, just to go back to some of the performance commentary. I just want to make sure I understand because you're saying now over $150 million for the year. I think you raised that $25 million, but it looks like you done by my math, $100 million or so or maybe more in the first half. So I just want to confirm that, that's sort of correct. And like of that $25 million that you raised is that all in the back half? Or was some of that already realized maybe in the second quarter?

Question: Joseph Spak - UBS AG - Analyst : Okay. And then just the -- to follow up on Dan's questions on some of the F150 announcement. Is that a mid-cycle change or that the next generation of the program? And Ray, earlier in the year, you sort of -- when you gave that sort of initial backlog, you did sort of talk about an updated backlog at some point during the year. And I know you mentioned there's been delays in sourcing, but it does also seem like there's been some progress and update. So I was wondering when we could expect an update to your backlog outlook.

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Yes, good morning. Thank you for taking the questions. I was hoping you could speak a bit more on your volume and sales outlook. The industry production environment has generally improved a little bit year-to-date volume mix and wind-downs are $1.3 billion

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Very helpful, Jason. My other question was around the Conquest award that you picked up in wiring. Nice to see that come through. Can you help us better understand for the Conquest award with the EV OEM that you spoke about this morning. How much revenue should we think about as that business ramps either in 2026 or 2027? Thanks.

Question: James Picariello - Exane Bnp Paribas - Analyst : Just to follow on Mark's question with respect to core sales. The organic comp now runs a point lower versus the prior guide despite unchanged LVP. Can you just share what's assumed for the business wind-down piece within E-Systems? Year-to-date, it's $120 million. I believe the original guide had embedded just $75 million for the full year. So curious what's slated for the second half? And does this headwind completely neutralize for next year?

Question: James Picariello - Exane Bnp Paribas - Analyst : Understood. That's helpful. And then my follow-on, are there any updated thoughts on the backlog with respect to the out years, like particularly for the introduction of what 2027 might look like at this point?

Question: Colin Langan - Wells Fargo - Analyst : Questions. Maybe you can start just to clarify the I think I followed most of it, but the puts and takes and the change from the prior to the current operating income guidance. I think $25 million is performance. It looks like something like $10 million is FX improvement offset by $55 million-ish in sort of lower volume impacts from the prior guide. Is that right? And then if that's right, the $55 million seems like a pretty low decremental on the sales decline. Is -- are this the right thesis, I guess?

Question: Colin Langan - Wells Fargo - Analyst : Got it. And then with the recent trade deal with Japan is sort of a growing view that we might end up at something like 15%. If that's the rate for your business in Honduras, would that be enough of a decline to make it sort of competitive, or would you have to consider relocating. Any thoughts or color there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 25, 2025 / 1:00PM, LEA.N - Q2 2025 Lear Corp Earnings Call

Question: Colin Langan - Wells Fargo - Analyst : Got it. All right, thanks for taking my question.