This article first appeared on GuruFocus.
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Full Year Revenue: $23.3 billion.
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Core Operating Earnings: $1.1 billion or 4.6% of net sales.
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Adjusted Earnings Per Share: $12.80, a 1% increase from 2024.
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Free Cash Flow: $527 million.
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Share Repurchases: $325 million in 2025.
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Seating Segment Sales: $17.3 billion for 2025, a 0.4% increase from 2024.
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E-Systems Segment Sales: $6 billion for 2025, a 2% decrease from 2024.
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Fourth Quarter Sales: $6 billion, a 5% increase year over year.
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Fourth Quarter Core Operating Earnings: $259 million.
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Fourth Quarter Adjusted Earnings Per Share: $3.41.
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2026 Revenue Outlook: $23.2 billion to $24 billion.
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2026 Core Operating Earnings Outlook: $1.03 billion to $1.2 billion.
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2026 Free Cash Flow Outlook: $600 million at the midpoint.
Release Date: February 04, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Lear Corp (NYSE:LEA) achieved a record $1.4 billion in E-Systems business awards, marking the second highest annual total in the company’s history.
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The company secured significant new business awards, including the largest seating conquest award in its history from a major American automaker.
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Lear Corp (NYSE:LEA) reported a 1% increase in adjusted earnings per share to $12.80, marking the fifth consecutive year of year-over-year growth.
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The company repurchased $325 million in shares during 2025, significantly exceeding its initial $250 million target, and returned almost $500 million to shareholders.
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Lear Corp (NYSE:LEA) achieved $195 million in net performance savings, 56% above its original target, contributing to improved margins in both Seating and E-Systems segments.
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Lear Corp (NYSE:LEA) experienced a 2% decline in E-Systems sales for 2025, driven by lower volumes on Lear platforms and the wind down of discontinued product lines.
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The company faced lower operating margins in the Seating segment due to reduced volumes and mix of production by program.
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Lear Corp (NYSE:LEA) anticipates a headwind of about $140 million in E-Systems for 2026, primarily due to the roll-off of certain Ford and GM programs.
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The company expects restructuring costs of approximately $175 million in 2026 to support footprint rationalization and improve manufacturing costs.
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Lear Corp (NYSE:LEA) projects a 1% decline in revenue for 2026 when excluding the impact of foreign exchange, commodities, tariff recoveries, acquisitions, and divestitures.
Q: Can you discuss the significance of the recent Conquest win and its impact on Lear’s seating market share goals? A: Raymond Scott, President and CEO, highlighted that the recent Conquest win was the largest in Lear’s history, driven by innovation and technology. The win was unanimous across all functional groups within the OEM, validating Lear’s strategy focused on modularity and manufacturing integration. Lear remains committed to achieving a 29% market share in seating, leveraging its technology and innovation to grow with both traditional and domestic Chinese automakers.
Q: How does Lear view the potential for net performance improvements in 2026 and beyond? A: Jason Cardew, CFO, stated that Lear expects to maintain similar levels of net performance improvements in 2026 as seen in 2025, with a focus on automation and digital savings under the IDEA initiative. The company anticipates continued growth in savings from digital and automation projects, supporting ongoing margin improvements.
Q: What is the expected cadence of earnings throughout 2026, considering potential production downtime? A: Jason Cardew indicated that the first quarter of 2026 is off to a strong start, with revenues and operating income expected to be similar to Q4 2025. While there may be some production downtime in the third quarter due to changeovers, Lear does not anticipate a significant impact on its full-year guidance.
Q: Can you provide details on the impact of onshoring and Conquest awards on future growth? A: Jason Cardew explained that the Orion award will benefit 2027, contributing $75 million to the Seating backlog. While additional onshoring opportunities are expected to impact 2028 and 2029, Lear is strategically targeting opportunities that offer reliable production volumes and good returns.
Q: How is Lear addressing the impact of commodity prices, particularly copper, on its financials? A: Jason Cardew noted that Lear has indexing and pass-through agreements in place for commodities, minimizing the impact on earnings. While copper prices are assumed at $5.25 for 2026, any fluctuations would primarily affect revenue rather than earnings.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.