Lear Corp

Latest Results (03.04.2026):

Lear Corporation — fourth quarter 2025 (also reporting full year 2025): Lear finished Q4 2025 with revenue growth, solid cash generation and record operating performance despite softer volume on key platforms. Q4 sales rose to $6.0 billion (+5% YoY), core operating earnings were $259 million (4.3% of sales), and adjusted EPS continued its multi‑year climb; full‑year 2025 showed flat sales of $23.3 billion with $1.06 billion in core operating earnings and strong free cash flow generation.

Q4 Sales and Volume

Q4 2025 sales were $6.0 billion, up 5% year‑over‑year; on a constant basis (ex-commodities, FX, tariffs, M&A) sales rose ~2%. Global vehicle production was +1% YoY (Lear sales‑weighted +1%). Full‑year 2025 sales were $23.3 billion, flat vs. 2024.

Profitability and Margins

Q4 core operating earnings were $259 million (4.3% of sales) vs. $258M (4.5%) a year ago. Full‑year core operating earnings were $1,062 million (4.6% of sales) vs. $1,096M (4.7%) in 2024. Management cites automation/AI and restructuring savings as 2026 margin drivers.

Segment Performance

Seating (Q4) margins 4.8% (adjusted 6.0%). E‑Systems (Q4) margins 2.2% (adjusted 5.3%). Full‑year Seating margins 5.5% (adjusted 6.4%); E‑Systems 3.1% (adjusted 4.9%).

Net Income and EPS

Q4 net income was $83 million (vs. $88M in Q4 2024). Q4 adjusted net income was $179 million. Q4 EPS was $1.58 and adjusted EPS $3.41 (vs. $1.61 and $2.94 a year ago). Full‑year GAAP EPS was $8.15 and adjusted EPS $12.80 (vs. $8.97 and $12.62 in 2024).

Cash Flow and Liquidity

Q4 net cash from operating activities was $476 million and free cash flow was $281 million. Full‑year operating cash flow was $1,089 million and free cash flow $527 million.

Capital Allocation — Share Repurchases

During Q4 2025 Lear repurchased 1,632,456 shares for $175 million. Remaining repurchase authorization ~ $775 million (~13% of market cap). Since 2011 Lear has repurchased 62.2 million shares for $5.9 billion.

Backlog and Awards

Lear secured approximately $1.4 billion of E‑Systems awards and its largest seating conquest award in company history. The consolidated two‑year (2026‑2027) core sales backlog is $1.325 billion, supporting future revenue diversification.

2026 Outlook

At the midpoint of guidance, Lear assumes global industry production 1% lower than 2025 on a Lear sales‑weighted basis. Guidance uses exchange rates of $1.16/€ and 7.10 RMB/$. Management notes the outlook excludes potential tariff changes or production disruptions and that certain forward‑looking measures are non‑GAAP.