Lear Corporation's Q4 2024: Navigating Market Contradictions on Tariffs, Growth, and Automation

These are the key contradictions discussed in Lear Corporation's latest 2024Q4 earnings call, specifically including: Market Assumptions and Tariff Impacts, Seating Market Share Growth, Automation Impact on Margins, and Market Growth Expectations:



Revenue and Financial Performance:
- Lear Corporation reported revenue of $23.3 billion for 2024, with core operating earnings of $1.1 billion, representing 4.7% of net sales.
- The growth was driven by strategic initiatives focused on innovation, automation, and expanding market share with domestic automakers.

Market Share and Growth in China:
- The percentage of total revenue from Chinese domestic automakers increased to 37% in 2025, up from 33% in 2024.
- This growth is due to strong relationships with key customers and strategic wins with companies like BYD, Geely, Shaopeng, and Changan.

Automation and Cost Savings:
- Lear is expecting to realize approximately $75 million of cost savings from automation efforts in 2025, growing to an annualized savings of $150 million.
- The company is investing in automation and efficiency improvements to reduce costs and improve operational margins.

Sales Backlog and Market Uncertainty:
- Lear's 2024 sales backlog declined due to lower-than-expected volumes, particularly on programs like the Volvo EX90 and several GM EVs.
- The slowdown in sourcing activities and awards due to changes in customer demand and potential regulation changes have affected the backlog.