Lear Corp
NYSE:LEA
Lear Corp
Lear Corporation's journey began in Detroit in 1917, initially serving the airline industry before pivoting to automobiles, an industry with which it has become synonymous. This strategic shift has seen Lear evolve into a pivotal player within the global automotive supply chain, focusing primarily on seating and electrical systems. Its business model is intricately woven with the complexities of the automotive industry, where innovation, efficiency, and partnerships play crucial roles. Lear designs, manufactures, and supplies seating systems that enhance comfort and safety, aligning with automakers worldwide. Through a combination of cutting-edge technology and design expertise, Lear ensures its products meet the rigorous demands of today's vehicles, catering to a diverse range of global automobile manufacturers.
Driving success through its dual segments—Seating and E-Systems—Lear generates revenue by embedding itself deeply in the production cycles and supply chains of major car manufacturers. The Seating division, responsible for plush, ergonomically designed automotive seats, functions as a stalwart revenue generator, while the E-Systems segment, dealing with complex electrical distribution networks, drives growth through innovation in connectivity and smart vehicle solutions. This integration not only enhances a vehicle's appeal to consumers but also helps manufacturers meet heightened regulatory standards and technological demands. By capitalizing on its expertise in these domains, Lear consistently translates its initiatives into financial results, finding opportunity in the ever-evolving landscape of the automotive industry.
Lear Corporation's journey began in Detroit in 1917, initially serving the airline industry before pivoting to automobiles, an industry with which it has become synonymous. This strategic shift has seen Lear evolve into a pivotal player within the global automotive supply chain, focusing primarily on seating and electrical systems. Its business model is intricately woven with the complexities of the automotive industry, where innovation, efficiency, and partnerships play crucial roles. Lear designs, manufactures, and supplies seating systems that enhance comfort and safety, aligning with automakers worldwide. Through a combination of cutting-edge technology and design expertise, Lear ensures its products meet the rigorous demands of today's vehicles, catering to a diverse range of global automobile manufacturers.
Driving success through its dual segments—Seating and E-Systems—Lear generates revenue by embedding itself deeply in the production cycles and supply chains of major car manufacturers. The Seating division, responsible for plush, ergonomically designed automotive seats, functions as a stalwart revenue generator, while the E-Systems segment, dealing with complex electrical distribution networks, drives growth through innovation in connectivity and smart vehicle solutions. This integration not only enhances a vehicle's appeal to consumers but also helps manufacturers meet heightened regulatory standards and technological demands. By capitalizing on its expertise in these domains, Lear consistently translates its initiatives into financial results, finding opportunity in the ever-evolving landscape of the automotive industry.
Revenue Growth: Lear reported 2025 revenue of $23.3 billion, up 5% year-over-year, and expects 2026 revenue in the range of $23.2–$24 billion.
Profitability: Core operating earnings for 2025 were $1.1 billion, and adjusted EPS increased 1% to $12.80. Free cash flow was $527 million.
Record Net Performance: Lear achieved record net performance savings of $195 million in 2025, surpassing their original target by 56%.
Major Business Wins: The company secured its largest-ever Seating conquest award and continued to win significant new contracts, especially with General Motors and Chinese automakers.
Margin Expansion: E-Systems segment margins improved to 5.3% in Q4, and both divisions are targeting further margin improvements in 2026.
Capital Allocation: Lear returned nearly $500 million to shareholders through buybacks and dividends in 2025, repurchasing $325 million in shares and targeting at least $300 million in repurchases for 2026.
Automation & Digital: Continued investments in automation, AI, and digital tools delivered $70 million in savings in 2025, with more expected in 2026.
Guidance: For 2026, Lear expects increases in revenue, operating income, margins, and free cash flow, with a sales backlog of $1.325 billion supporting future growth.
