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

Lear (NYSE:LEA) posted its quarterly earnings data on Wednesday. The auto parts company reported $3.41 EPS for the quarter, topping the consensus estimate of $2.67 by $0.74, FiscalAI reports. Lear had a net margin of 1.92% and a return on equity of 13.44%. The business had revenue of $5.99 billion for the quarter, compared to analyst estimates of $5.78 billion. During the same quarter in the previous year, the firm 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 Stock Up 12.4%

LEA stock traded up $14.85 during midday trading on Wednesday, reaching $134.45. 459,586 shares of the company’s stock traded hands, compared to its average volume of 518,787. Lear has a 52 week low of $73.85 and a 52 week high of $136.78. The company has a market cap of $6.97 billion, a price-to-earnings ratio of 16.44, a P/E/G ratio of 1.36 and a beta of 1.30. The company has a quick ratio of 1.05, a current ratio of 1.35 and a debt-to-equity ratio of 0.53. The firm’s fifty day moving average price is $116.80 and its 200-day moving average price is $108.17.

Lear Dividend Announcement

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

Insiders Place Their Bets

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

Institutional Trading of Lear

Hedge funds and other institutional investors have recently modified their holdings of the business. Mercer Global Advisors Inc. ADV lifted its position in Lear by 16.2% during the third quarter. Mercer Global Advisors Inc. ADV now owns 4,876 shares of the auto parts company’s stock valued at $491,000 after purchasing an additional 681 shares in the last quarter. Brooklyn Investment Group boosted its holdings in shares of Lear by 83.0% in the 3rd quarter. Brooklyn Investment Group now owns 2,311 shares of the auto parts company’s stock worth $233,000 after purchasing an additional 1,048 shares during the period. WINTON GROUP Ltd bought a new stake in shares of Lear in the 3rd quarter valued at about $473,000. Orion Porfolio Solutions LLC raised its stake in Lear by 4.0% in the second quarter. Orion Porfolio Solutions LLC now owns 6,307 shares of the auto parts company’s stock worth $599,000 after buying an additional 242 shares in the last quarter. Finally, Cerity Partners LLC lifted its holdings in Lear by 9.5% during the second quarter. Cerity Partners LLC now owns 4,296 shares of the auto parts company’s stock worth $408,000 after buying an additional 372 shares during the period. 97.04% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on LEA shares. Morgan Stanley restated an “equal weight” rating and set a $112.00 price target (down previously from $115.00) on shares of Lear in a report on Monday, December 8th. Citigroup increased their price target on Lear from $136.00 to $146.00 and gave the company a “buy” rating in a research note on Monday, December 15th. TD Cowen upped their price target on Lear from $115.00 to $117.00 and gave the stock a “hold” rating in a report on Monday, November 3rd. Weiss Ratings reissued a “hold (c)” rating on shares of Lear in a research note on Thursday, January 22nd. Finally, UBS Group increased their price objective on shares of Lear from $110.00 to $135.00 and gave the stock a “neutral” rating in a research report on Wednesday, January 14th. Two equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $126.20.

Key Headlines Impacting Lear

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

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.