Lear Corporation (NYSE:LEA) Q2 2024 Earnings Call July 25, 2024 9:00 AM ET

Company Participants

Tim Brumbaugh - Vice President, Investor Relations
Ray Scott - President and Chief Executive Officer
Jason Cardew - Senior Vice President and Chief Financial Officer

Conference Call Participants

John Murphy - Bank of America
Joe Spak - UBS
Dan Levy - Barclays
James Picariello - BNP Paribas
Itay Michaeli - Citi
Mark Delaney - Goldman Sachs

Operator

Good morning, everyone and welcome to the Lear Corporation Second Quarter 2024 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please also note today’s event is being recorded. At this time, I’d like to turn the floor over to Tim Brumbaugh, Vice President, Investor Relations. Sir, please go ahead.

Tim Brumbaugh

Thanks, Jamie. Good morning, everyone and thank you for joining us for Lear’s second quarter 2024 earnings call. Presenting today are Ray Scott, Lear President and CEO; and Jason Cardew, Senior Vice President and CFO. Other members of Lear’s senior management team have also joined us on the call. Following prepared remarks, we will open the call for Q&A. You can find a copy of the presentation that accompanies these remarks at ir.lear.com.

Before Ray begins, I’d like to take this opportunity to remind you that as we conduct this call, we will be making forward-looking statements to assist you in understanding Lear’s expectations for the future. As detailed in our Safe Harbor statement on Slide 2, our actual results could differ materially from these forward-looking statements. Due to many factors discussed in our latest 10-Q and other periodic reports. I also want to remind you that during today’s presentation, we will refer to non-GAAP financial metrics. You are directed to the slides in the appendix of our presentation for the reconciliation of non-GAAP items to the most directly comparable GAAP measures.

The agenda for today’s call is on Slide 3. First, Ray will review highlights from the quarter and provide a business update. Jason will then review our second quarter financial results and full year financial guidance. Finally, Ray will offer some concluding remarks. Following the formal presentation, we would be happy to take your questions.

Now I’d like to invite Ray to begin.

Ray Scott

Thanks, Tim. Nice Job. Please turn to Slide 5 which highlights key financial metrics for the second quarter of 2024. Lear continued its positive momentum, delivering modestly higher revenue in the second quarter compared to last year, exceeding $6 billion. Core operating earnings were flat at $302 million. Adjusted earnings per share, was $3.60, an increase of 8% driven by higher adjusted net income and the benefit of our share repurchase program. Operating cash flow was $291 million in the second quarter and free cash flow was $170 million, an increase of 8% compared to last year.