Lear (NYSE:LEA) Posts Earnings Results, Beats Estimates By $0.74 EPS

Lear (NYSE:LEA) posted its quarterly earnings results on Wednesday. The auto parts company reported $3.41 earnings per share for the quarter, beating analysts’ consensus estimates of $2.67 by $0.74, FiscalAI reports. The company had revenue of $5.99 billion for the quarter, compared to the consensus estimate of $5.78 billion. Lear had a net margin of 1.92% and a return on equity of 13.44%. The firm’s quarterly revenue was up 4.8% compared to the same quarter last year. During the same period last year, the company posted $2.94 EPS.

Here are the key takeaways from Lear’s conference call:

• Largest Seating conquest award won (GM Orion for full-size SUVs/pickups) plus >$1.4B in E-Systems awards in 2025, positioning Lear to capture multi-year revenue from major new programs and onshoring opportunities.
• Record operational gains with $195 million of Net Performance in 2025 and continued IDEA-by-Lear digital/automation initiatives (Palantir, global fellowship) driving ongoing cost savings and expected margin tailwinds in 2026.
• Strong cash generation enabled $527 million free cash flow and $325 million of share repurchases in 2025, with a target to buy back at least $300 million in 2026 and a healthy balance sheet (~$3B liquidity) supporting returns to shareholders.
• Near-term volume and mix headwinds — E-Systems sales down vs. 2024, program roll‑offs (Escape, Corsair, Focus) and an ~$800M drag from volume mix — plus planned ~$175 million of restructuring costs in 2026 that will weigh on near-term results.

Lear Price Performance

Shares of LEA stock traded up $16.13 during trading hours on Wednesday, reaching $135.73. 380,057 shares of the company were exchanged, compared to its average volume of 517,296. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.35 and a quick ratio of 1.05. The company has a market cap of $7.04 billion, a price-to-earnings ratio of 16.67, a P/E/G ratio of 1.36 and a beta of 1.30. The stock’s fifty day moving average is $116.80 and its two-hundred day moving average is $108.17. Lear has a fifty-two week low of $73.85 and a fifty-two week high of $136.36.

Lear Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Shareholders of record on Wednesday, December 10th were paid a $0.77 dividend. The ex-dividend date of this dividend was Wednesday, December 10th. This represents a $3.08 dividend on an annualized basis and a dividend yield of 2.3%. Lear’s payout ratio is currently 37.65%.

Key Lear News

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear beat Q4 estimates with adjusted EPS of $3.41 vs. consensus $2.54 and revenue of $5.99B vs. $5.78B estimated; revenue was up ~4.8% year‑over‑year — the beat on both profit and top line is the primary driver of the rally. Lear Q4 Press Release (MarketBeat)
• Positive Sentiment: Market and media summaries emphasize the outsized EPS beat (+$0.87) and improved margins/ROE metrics; analysts will re‑model 2026 estimates and multiple expansion is likely near term as expectations are updated. Lear Earnings Report: Q4 Overview
• Neutral Sentiment: Lear issued its formal fourth‑quarter and full‑year 2025 release and provided an outlook for full‑year 2026; investors should review the full PR and slide deck to see guidance details and segment outlooks that will determine sustainability of the beat. Lear Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Analyst/valuation pieces are already revisiting Lear after the one‑year share gain; some note the stock may still be attractive but stress re‑rating depends on sustained margin improvement and order trends in Seating and E‑Systems. Is Lear (LEA) Still Attractive After A 33% One Year Share Price Gain
• Negative Sentiment: Lear filed suit seeking to block a former finance executive from joining competing supplier Forvia — a legal dispute that could create distraction or legal costs; monitor for escalation or settlement details. Lear sues to block former finance exec from working at competing auto supplier

Insider Transactions at Lear

In other Lear news, CFO Jason M. Cardew sold 5,000 shares of the business’s stock in a transaction dated Thursday, December 18th. The stock was sold at an average price of $118.17, for a total transaction of $590,850.00. Following the completion of the sale, the chief financial officer directly owned 15,244 shares of the company’s stock, valued at approximately $1,801,383.48. The trade was a 24.70% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Corporate insiders own 0.91% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of LEA. Allworth Financial LP grew its stake in shares of Lear by 62.6% during the 3rd quarter. Allworth Financial LP now owns 309 shares of the auto parts company’s stock worth $31,000 after acquiring an additional 119 shares in the last quarter. Treasurer of the State of North Carolina boosted its holdings in Lear by 0.8% during the second quarter. Treasurer of the State of North Carolina now owns 24,918 shares of the auto parts company’s stock worth $2,367,000 after purchasing an additional 197 shares during the last quarter. Quarry LP grew its position in Lear by 94.9% in the third quarter. Quarry LP now owns 458 shares of the auto parts company’s stock valued at $46,000 after purchasing an additional 223 shares in the last quarter. Orion Porfolio Solutions LLC increased its stake in Lear by 4.0% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 6,307 shares of the auto parts company’s stock valued at $599,000 after buying an additional 242 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its position in Lear by 37.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 968 shares of the auto parts company’s stock worth $92,000 after buying an additional 262 shares in the last quarter. Institutional investors own 97.04% of the company’s stock.

Wall Street Analysts Forecast Growth

LEA has been the topic of a number of recent research reports. Wall Street Zen upgraded shares of Lear from a “buy” rating to a “strong-buy” rating in a research note on Friday, January 23rd. Morgan Stanley reiterated an “equal weight” rating and set a $112.00 target price (down from $115.00) on shares of Lear in a research report on Monday, December 8th. JPMorgan Chase & Co. increased their price target on shares of Lear from $133.00 to $138.00 and gave the stock an “overweight” rating in a research report on Monday, November 3rd. UBS Group lifted their price objective on Lear from $110.00 to $135.00 and gave the company a “neutral” rating in a report on Wednesday, January 14th. Finally, Evercore ISI increased their target price on Lear from $110.00 to $120.00 and gave the stock an “in-line” rating in a report on Monday, November 24th. Two equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat.com, Lear currently has a consensus rating of “Hold” and a consensus target price of $126.20.

Lear Company Profile

Lear Corporation (NYSE: LEA) is a global supplier of automotive seating and electrical distribution systems. The company designs, engineers and manufactures complete seat systems, seat components and power solutions for major vehicle manufacturers. Its electrical business delivers modules and components for battery management, infotainment, body and safety electronics, as well as advanced connectivity and electrification solutions.

The seating division develops lightweight, ergonomic seat structures, trim and mechanisms that address comfort, safety and environmental targets.