Lear Corporation (LEA) saw its stock plummet 5.21% in pre-market trading on Tuesday following the release of its first-quarter 2025 financial results and the withdrawal of its full-year outlook. The global automotive technology company, specializing in seating, driving technology, and power management, reported lower earnings and revenue compared to the same period last year, citing reduced production on key platforms.

For the first quarter of 2025, Lear reported net income of $80.7 million, or $1.49 per share, down from $109.6 million, or $1.90 per share, in the previous year. However, on an adjusted basis, earnings per share came in at $3.12, surpassing analysts' expectations of $2.70. The company's net sales declined to $5.56 billion from $5.99 billion a year earlier, slightly beating the market estimate of $5.53 billion.

The most significant factor contributing to the stock's sharp decline appears to be Lear's decision to withdraw its 2025 financial outlook. President and CEO Ray Scott explained, "Changes to global tariffs have created uncertainty for the automotive industry, making it difficult to forecast global production and impacting the cost structure of the global supply chain." This move has likely unsettled investors, raising concerns about the company's near-term performance amidst an evolving trade environment. Lear stated it would provide updates as visibility on industry production improves, leaving the market in a state of uncertainty regarding the company's full-year prospects.