Lear Corp. (LEA)
NYSE:LEA
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Lear
(NYSE:LEA)
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Rating:72Outperform
Price Target:
$131.00
▲(11.02% Upside)
Action:ReiteratedDate:02/14/26
The score is driven primarily by healthy (though recently softening) financial performance and improving balance-sheet leverage, alongside a strong technical uptrend with positive momentum. Moderating factors are the 2025 margin/FCF step-down and only average valuation support, while the earnings call was net positive due to improving 2026 profitability/cash guidance tempered by production and mix headwinds plus restructuring costs.
Positive Factors
Major OEM program wins
Winning the largest-ever seating award with GM and >$1.4B in E‑Systems awards demonstrates durable program-level revenue visibility and deep OEM relationships. Multi-year vehicle program awards underpin steady production streams and raise content per vehicle, supporting mid-term revenue stability.
Negative Factors
Margin compression
Thin and declining margins reduce earnings sensitivity to volume and cost shocks. Lower gross and net margins constrain reinvestment capacity and increase reliance on program savings and restructuring to sustain returns, raising execution risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Major OEM program wins
Winning the largest-ever seating award with GM and >$1.4B in E‑Systems awards demonstrates durable program-level revenue visibility and deep OEM relationships. Multi-year vehicle program awards underpin steady production streams and raise content per vehicle, supporting mid-term revenue stability.
Read all positive factors
Lear (LEA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.99B
Dividend Yield2.63%
Average Volume (3M)573.45K
Price to Earnings (P/E)14.1
Beta (1Y)0.68
Revenue Growth-1.90%
EPS Growth-13.86%
CountryUS
Employees173,700
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)3.41
Shares Outstanding50,727,455
10 Day Avg. Volume466,434
30 Day Avg. Volume573,448
Financial Highlights & Ratios
PEG Ratio-1.46
Price to Book (P/B)1.22
Price to Sales (P/S)0.26
P/FCF Ratio11.65
Enterprise Value/Market Cap1.57
Enterprise Value/Revenue0.40
Enterprise Value/Gross Profit5.77
Enterprise Value/Ebitda8.02
Forecast
1Y Price Target
$141.91Price Target Upside20.26% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)14.53
Revenue Forecast (FY)$23.63B
Lear Business Overview & Revenue Model
Company Description
Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, A...
How the Company Makes Money
Lear makes money primarily by supplying automotive components to vehicle OEMs under multi-year vehicle program awards, generating revenue largely on a per-vehicle or per-component basis tied to OEM production volumes.
1) Seating segment revenue: ...
Lear Key Performance Indicators (KPIs)
Lear Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 01, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and strategic update: strong cash generation, record net performance ($195M), major new business awards (including the largest-ever seating conquest with GM), robust automation and digital initiatives, and aggressive capital return to shareholders. Offsetting items include volume and mix headwinds (notably in E-Systems and certain Seating programs), industry production pressure, one-time restructuring costs in 2026, and timing delays for some thermal comfort targets. Management expects margin improvement and continued net-performance gains in 2026, but near-term growth is tempered by program roll-offs and production changeovers.Positive Updates
Full-Year Revenue and Core Earnings
Full-year revenue of $23.3 billion with core operating earnings of $1.1 billion (4.6% of net sales). Adjusted EPS for the full year was $12.80, a 1% increase versus 2024 (fifth consecutive year-over-year increase).
Negative Updates
E-Systems Sales and Margin Pressure
Full-year E-Systems sales declined 2% to $6.0 billion (ex-FX/other down ~5%). Adjusted earnings decreased to $293 million (4.9% of sales) from $310 million (5.1% in 2024), reflecting lower volumes on GM EV platforms, Ford Escape/Corsair wind-down and discontinued product lines.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue and Core Earnings
Full-year revenue of $23.3 billion with core operating earnings of $1.1 billion (4.6% of net sales). Adjusted EPS for the full year was $12.80, a 1% increase versus 2024 (fifth consecutive year-over-year increase).
Read all positive updates
Company Guidance
Lear guided 2026 revenue of $23.2–$24.0 billion (midpoint +$351 million, ~+2% vs. 2025; ex-FX/commodities/etc. -1%), core operating earnings of $1.03–$1.20 billion (midpoint ≈+5% YoY), adjusted net income of about $645–$765 million, and company adjusted margins up ~10 bps (Seating ~6.5%, E‑Systems ~5.0%); they expect net performance to contribute ~40 bps in Seating and ~80 bps in E‑Systems, assume global production down ~1% (Lear sales‑weighted), EUR ≈ $1.026 and RMB ≈ 7.1, and plan ~$175 million of restructuring, ~$660 million of capital spending, $1.2–$1.3 billion of operating cash flow, and roughly $600 million of free cash flow at the midpoint with >80% conversion, funding targeted share repurchases of at least $300 million (≈$775 million authorization remaining), while maintaining ~ $3 billion of liquidity and cost of debt <4%; backlog metrics include a two‑year backlog of $1.325 billion, ~$60 million of net new business in 2026, and ~$725 million in 2027 (Seating ~$465M, E‑Systems ~$260M).Lear Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
74
Positive
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 23.26B | 23.30B | 23.46B | 20.88B | 19.26B |
| Gross Profit | 1.50B | 1.84B | 1.75B | 1.57B | 1.49B |
| EBITDA | 725.90M | 1.46B | 1.48B | 1.18B | 1.25B |
| Net Income | 436.80M | 506.60M | 572.50M | 327.70M | 373.90M |
Balance Sheet | |||||
| Total Assets | 14.84B | 14.03B | 14.70B | 13.76B | 13.35B |
| Cash, Cash Equivalents and Short-Term Investments | 1.04B | 1.06B | 1.20B | 1.12B | 1.32B |
| Total Debt | 4.10B | 4.08B | 3.55B | 3.34B | 3.25B |
| Total Liabilities | 9.64B | 9.43B | 9.63B | 8.93B | 8.54B |
| Stockholders Equity | 5.04B | 4.45B | 4.92B | 4.68B | 4.64B |
Cash Flow | |||||
| Free Cash Flow | 527.20M | 561.40M | 622.80M | 383.20M | 85.00M |
| Operating Cash Flow | 1.09B | 1.12B | 1.25B | 1.02B | 670.10M |
| Investing Cash Flow | -516.80M | -543.00M | -761.50M | -830.30M | -646.70M |
| Financing Cash Flow | -618.50M | -693.90M | -419.50M | -387.30M | -13.60M |
Lear Technical Analysis
Negative
118.00
Price Trends
124.42
Negative
118.72
Negative
109.85
Positive
Market Momentum
-1.29
Negative
44.96
Neutral
36.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEA, the sentiment is Negative. The current price of 118 is below the 20-day moving average (MA) of 118.16, below the 50-day MA of 124.42, and above the 200-day MA of 109.85, indicating a neutral trend. The MACD of -1.29 indicates Negative momentum. The RSI at 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 36.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEA.
Lear Risk Analysis
Lear disclosed 30 risk factors in its most recent earnings report. Lear reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lear Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $5.99B | 14.06 | 8.79% | 2.63% | -1.90% | -13.86% | |
72 Outperform | $2.49B | 12.87 | 13.90% | 0.57% | -4.03% | -39.51% | |
69 Neutral | $7.78B | 12.37 | 29.57% | 2.60% | 0.84% | 26.17% | |
68 Neutral | $7.35B | 12.73 | 9.42% | 4.00% | -3.71% | -0.27% | |
62 Neutral | $10.85B | 35.20 | 4.80% | 1.24% | 0.08% | -83.69% | |
62 Neutral | $3.62B | 38.91 | -2.91% | 1.70% | -18.23% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
LEA
Lear
118.00
37.53
46.63%
ALV
Autoliv
104.13
23.25
28.75%
BWA
BorgWarner
52.39
25.88
97.62%
DAN
Dana Incorporated
33.35
21.63
184.63%
LKQ
LKQ
28.81
-11.30
-28.18%
VC
Visteon
92.79
19.68
26.91%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.