Lear Corp Q3 2025 Earnings Call Summary

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

Question: Dan Levy - Barclays Services Corp - Analyst : I appreciate the disclosure for the fourth quarter on the JLR assumptions, and it seems like Nexperia, you're not really assuming anything. Maybe you could just talk about what the impact might be or what's embedded related to the Ford Stellantis Novelis issue and just any other broader supply chain issues when they be seeing does the guide fully reflect these points knowing that Nexperia is a bit of a wild card?

Question: Dan Levy - Barclays Services Corp - Analyst : Great. Thank you. As a follow-up, I wanted to ask about Ray, you made a comment at the end of your prepared remarks about just some early considerations on 26. And specifically on backlog. And I know you'll give us a more defined set of backlog comments when you report 4Q -- but maybe you could just give us a sense, given the moving pieces that we've seen here on how tariffs and reshoring may be shifting some of the production plans or how EV has shifted plans in North America. Is there still opportunity to have a healthy backlog in '26? Or is it possible that given some of these shifts, there's still a bit of an air pocket as automakers figure out their product plans, given the uncertainties here? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 31, 2025 / 1:00PM, LEA.N - Q3 2025 Lear Corp Earnings Call

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : I guess one topic I wanted to start with was around the increased ability to do automated manufacturing in the US and you spoke about just how automated this new facility is. And so as you think about doing more work in the US and hopefully supporting some of these programs that you referred to, could you just talk about the margin implications? I mean, I think clearly, labor costs tend to be higher in the US, but there's so much automation.

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : We'll stay tuned for December 4. Hopefully, I get some news there at the conference. My second question was on net performance. I think Jason, last quarter, you described an expectation that net performance in 2026 could be replicated relative to what you were seeing in '25. And at the time that was $150 million. So you look into '26 and think about net performance, is the $150 million level you've been expecting 90 days ago still reasonable framework at this point or any data that you can share on your net performance thoughts for next year? Thanks.

Question: Colin M. Langan - Wells Fargo Securities LLC - Analyst : Just as we think about '26 margins, you mentioned this year, the starting point, excluding JLR would be 4.7%. And then there's $65 million to $75 million of automation savings. Is that the right way to think about as we step into next year, the baseline is 4.7% and then you have the $70 million-ish of additional help. Any other factors that I should be considering? Or is that the right starting point?

Question: Colin M. Langan - Wells Fargo Securities LLC - Analyst : Got it. And then just lastly on buybacks. I think you commented that there's no big M&A on the table. And the pace in the quarter, just $100 million, I think your commentary implies another $100 million. Is that maybe the pace we should consider that most of the cash flow starts getting allocated to buybacks? Or is that reading too much into the outlook?

Question: Colin M. Langan - Wells Fargo Securities LLC - Analyst : Did you just say $300 million in Q4 in buybacks or $100 million? Maybe I'm not sure if I missed here. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 31, 2025 / 1:00PM, LEA.N - Q3 2025 Lear Corp Earnings Call