We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
LEA delivered Q4 adjusted EPS of $3.41, beating consensus, as quarterly revenues rose 5% to $6 billion.
Lear's Seating and E-Systems segments both beat estimates, with higher sales year over year.
LEA saw revenue growth across regions and ended Q4 with $281 million in free cash flow.
Lear Corp. (LEA - Free Report) reported fourth-quarter 2025 adjusted earnings per share of $3.41, which beat the Zacks Consensus Estimate of $2.67, thanks to better-than-expected revenues from the Seating and E-Systems segments. The bottom line also increased from $2.94 reported in the year-ago quarter. In the reported quarter, revenues increased 5% year over year to $6 billion and surpassed the Zacks Consensus Estimate of $5.80 billion.
Lear Corporation Price, Consensus and EPS Surprise
Sales of the Seating segment totaled $4.41 billion in the reported quarter, up from $4.19 billion generated in the year-ago quarter. The segment’s sales also surpassed the Zacks Consensus Estimate of $4.24 billion. Adjusted segment earnings amounted to $263 million, up from $257 million reported in the corresponding quarter of 2024 and beat the Zacks Consensus Estimate of $243 million. The segment recorded an adjusted margin of 6% of sales, down from 6.1% recorded in the previous year’s quarter.
Sales of the E-Systems segment totaled $1.58 billion, rising from $1.53 billion in the year-ago period and also topping the Zacks Consensus Estimate of $1.53 billion. Adjusted segmental earnings amounted to $83.7 million, up from $76.7 million in the corresponding quarter of 2024. The figure also surpassed the Zacks Consensus Estimate of $70 million. For the E-Systems segment, the adjusted margin was 5.3% of sales, up from 5% in the year-ago quarter.
LEA’s Performance by Region
Sales in the North America region increased 6% year over year to $2.46 billion in the quarter under review and surpassed the Zacks Consensus Estimate of $2.39 billion.
Sales in the Europe and Africa region rose 3% year over year to $2.04 billion, marginally missing the Zacks Consensus Estimate of $2.05 billion.
Sales in the Asia region totaled $1.26 billion in the quarter, which increased 4.5% year over year and surpassed the Zacks Consensus Estimate of $1.16 billion.
Sales in the South America region totaled $232.3 million in the quarter, rising from $213.5 million generated in the year-ago period and exceeding the Zacks Consensus Estimate of $217 million.
Financial Position & Other Tidbits of Lear
The company had $1.03 billion in cash and cash equivalents as of Dec. 31, 2025, compared with $1.05 billion as of Dec. 31, 2024. Long-term debt was $2.71 billion as of Dec. 31, 2025, slightly down from $2.73 billion as of Dec. 31, 2024.
During the quarter under discussion, net cash provided by operating activities totaled $476 million. The company posted an FCF of $281 million in the quarter.
During the quarter, LEA repurchased 1,632,456 shares of its common stock for a total of $175 million. At the end of the quarter, Lear had a remaining share repurchase authorization of nearly $775 million.
LEA Provides 2026 Guidance
Lear projects its full-year net sales in the band of $23,210-$24,010 million compared to $23,259 million reported in 2025. Core operating earnings are envisioned in the range of $1.03-$1.2 billion compared to $1.06 billion in 2025. FCF is projected in the band of $550-$650 million, higher than the $427 million reported in 2025. Capital spending is expected to be $660 million compared to $561 million in 2025. Adjusted EBITDA is expected to be between $1.65 billion and $1.82 billion.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 17.2% and 14.3%, respectively. The EPS estimate for fiscal 2026 has improved a penny in the past 60 days. The EPS estimate for fiscal 2027 has improved 13 cents in the past seven days.
The Zacks Consensus Estimate for F’s 2025 sales implies year-over-year growth of 0.3%. EPS estimates for 2025 and 2026 have improved 7 cents and 11 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 1.1% and 33.4%, respectively. EPS estimates for 2025 and 2026 have improved 47 cents and 66 cents, respectively, in the past 60 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Lear Q4 Earnings Beat Expectations, Revenues Increase Y/Y
Key Takeaways
Lear Corp. (LEA - Free Report) reported fourth-quarter 2025 adjusted earnings per share of $3.41, which beat the Zacks Consensus Estimate of $2.67, thanks to better-than-expected revenues from the Seating and E-Systems segments. The bottom line also increased from $2.94 reported in the year-ago quarter. In the reported quarter, revenues increased 5% year over year to $6 billion and surpassed the Zacks Consensus Estimate of $5.80 billion.
Lear Corporation Price, Consensus and EPS Surprise
Lear Corporation price-consensus-eps-surprise-chart | Lear Corporation Quote
Lear’s Segmental Performance
Sales of the Seating segment totaled $4.41 billion in the reported quarter, up from $4.19 billion generated in the year-ago quarter. The segment’s sales also surpassed the Zacks Consensus Estimate of $4.24 billion. Adjusted segment earnings amounted to $263 million, up from $257 million reported in the corresponding quarter of 2024 and beat the Zacks Consensus Estimate of $243 million. The segment recorded an adjusted margin of 6% of sales, down from 6.1% recorded in the previous year’s quarter.
Sales of the E-Systems segment totaled $1.58 billion, rising from $1.53 billion in the year-ago period and also topping the Zacks Consensus Estimate of $1.53 billion. Adjusted segmental earnings amounted to $83.7 million, up from $76.7 million in the corresponding quarter of 2024. The figure also surpassed the Zacks Consensus Estimate of $70 million. For the E-Systems segment, the adjusted margin was 5.3% of sales, up from 5% in the year-ago quarter.
LEA’s Performance by Region
Sales in the North America region increased 6% year over year to $2.46 billion in the quarter under review and surpassed the Zacks Consensus Estimate of $2.39 billion.
Sales in the Europe and Africa region rose 3% year over year to $2.04 billion, marginally missing the Zacks Consensus Estimate of $2.05 billion.
Sales in the Asia region totaled $1.26 billion in the quarter, which increased 4.5% year over year and surpassed the Zacks Consensus Estimate of $1.16 billion.
Sales in the South America region totaled $232.3 million in the quarter, rising from $213.5 million generated in the year-ago period and exceeding the Zacks Consensus Estimate of $217 million.
Financial Position & Other Tidbits of Lear
The company had $1.03 billion in cash and cash equivalents as of Dec. 31, 2025, compared with $1.05 billion as of Dec. 31, 2024. Long-term debt was $2.71 billion as of Dec. 31, 2025, slightly down from $2.73 billion as of Dec. 31, 2024.
During the quarter under discussion, net cash provided by operating activities totaled $476 million. The company posted an FCF of $281 million in the quarter.
During the quarter, LEA repurchased 1,632,456 shares of its common stock for a total of $175 million. At the end of the quarter, Lear had a remaining share repurchase authorization of nearly $775 million.
LEA Provides 2026 Guidance
Lear projects its full-year net sales in the band of $23,210-$24,010 million compared to $23,259 million reported in 2025. Core operating earnings are envisioned in the range of $1.03-$1.2 billion compared to $1.06 billion in 2025. FCF is projected in the band of $550-$650 million, higher than the $427 million reported in 2025. Capital spending is expected to be $660 million compared to $561 million in 2025. Adjusted EBITDA is expected to be between $1.65 billion and $1.82 billion.
Lear’s Zacks Rank & Key Picks
LEA carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are Modine Manufacturing Company (MOD - Free Report) , Ford Motor Company (F - Free Report) and PHINIA Inc. (PHIN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 17.2% and 14.3%, respectively. The EPS estimate for fiscal 2026 has improved a penny in the past 60 days. The EPS estimate for fiscal 2027 has improved 13 cents in the past seven days.
The Zacks Consensus Estimate for F’s 2025 sales implies year-over-year growth of 0.3%. EPS estimates for 2025 and 2026 have improved 7 cents and 11 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 1.1% and 33.4%, respectively. EPS estimates for 2025 and 2026 have improved 47 cents and 66 cents, respectively, in the past 60 days.