Lear (NYSE:LEA) Releases Quarterly Earnings Results, Beats Expectations By $0.74 EPS

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

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 Trading Up 1.2%

Shares of NYSE:LEA traded up $1.53 during trading on Thursday, hitting $133.98. 180,225 shares of the company’s stock were exchanged, compared to its average volume of 541,080. The firm has a 50-day moving average price of $117.29 and a two-hundred day moving average price of $108.34. Lear has a 1-year low of $73.85 and a 1-year high of $136.78. The firm has a market cap of $6.95 billion, a P/E ratio of 16.37, a PEG ratio of 1.38 and a beta of 1.30. The company has a current ratio of 1.35, a quick ratio of 1.05 and a debt-to-equity ratio of 0.53.

Lear Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, December 30th. Investors of record on Wednesday, December 10th were given a dividend of $0.77 per share. This represents a $3.08 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend was Wednesday, December 10th. Lear’s payout ratio is presently 37.65%.

Wall Street Analyst Weigh In

A number of research firms have weighed in on LEA. The Goldman Sachs Group reiterated a “neutral” rating and issued a $121.00 target price on shares of Lear in a research note on Thursday, January 15th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Lear in a report on Thursday, January 22nd. Barclays set a $140.00 price target on shares of Lear in a report on Thursday. Wall Street Zen raised shares of Lear from a “buy” rating to a “strong-buy” rating in a report on Friday, January 23rd. Finally, Morgan Stanley increased their target price on shares of Lear from $112.00 to $123.00 and gave the stock an “equal weight” rating in a research note on Thursday. Two research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $130.40.

Lear News Summary

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear’s official release showed a quarterly beat — revenue of $5.99B and what management reported as strong EPS results, and the company provided a full Q4 presentation and slide deck that investors can review. This drove the initial market lift after the print. Lear Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Lear outlined a $1.325B backlog through 2027 and emphasized margin expansion and automation gains, and press reports note recent large contract wins — all items that support medium-term revenue visibility and margin improvement. Lear outlines $1.325B backlog
• Neutral Sentiment: FY?2026 revenue guidance was updated to a range of roughly $23.2B–$24.0B, which is near consensus — this sets expectations but is not a clear catalyst by itself. See the company materials and earnings summary for details. Lear Q4 earnings summary and materials
• Neutral Sentiment: Lear reported full?year 2025 sales of about $23.3B, down ~2% versus 2024 — a modest revenue decline that investors will watch but that management is framing against backlog and margin initiatives. Lear in Southfield Posts $23.3B in 2025 Sales
• Negative Sentiment: Some transcripts and outlets published conflicting accounts of the quarter (one transcript headline claims an EPS miss), creating confusion that can produce short-term volatility as investors parse which numbers/reporting are correct. Lear Q4 2025 Earnings Call Transcript (InsiderMonkey)
• Negative Sentiment: Lear filed litigation aimed at restricting a former finance executive from joining a competitor (Forvia), which introduces legal risk and potential distraction—another factor that can cap investor enthusiasm. Lear sues to block former finance exec

Insider Activity

In related news, CFO Jason M. Cardew sold 5,000 shares of the stock in a transaction on Thursday, December 18th. The shares were sold at an average price of $118.17, for a total transaction of $590,850.00. Following the completion of the transaction, the chief financial officer owned 15,244 shares in the company, valued at approximately $1,801,383.48. This represents a 24.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.91% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lear

Hedge funds have recently modified their holdings of the stock. WealthCollab LLC acquired a new position in Lear during the second quarter valued at approximately $28,000. Allworth Financial LP grew its stake in shares of Lear by 62.6% in the third quarter. Allworth Financial LP now owns 309 shares of the auto parts company’s stock valued at $31,000 after buying an additional 119 shares in the last quarter. Advisory Services Network LLC acquired a new position in Lear during the third quarter worth $33,000. Quarry LP raised its position in Lear by 94.9% during the third quarter. Quarry LP now owns 458 shares of the auto parts company’s stock worth $46,000 after acquiring an additional 223 shares in the last quarter. Finally, EverSource Wealth Advisors LLC lifted its stake in Lear by 37.1% in the second quarter. EverSource Wealth Advisors LLC now owns 968 shares of the auto parts company’s stock valued at $92,000 after acquiring an additional 262 shares during the last quarter. Institutional investors own 97.04% of the company’s stock.

About Lear

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.