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

Lear (NYSE:LEA) issued its earnings results on Wednesday. The auto parts company reported $3.41 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.67 by $0.74, FiscalAI reports. Lear had a net margin of 1.88% and a return on equity of 13.40%. The company had revenue of $5.99 billion for the quarter, compared to analysts’ expectations of $5.78 billion. During the same period in the prior year, the firm earned $2.94 EPS. Lear’s quarterly revenue was up 4.8% compared to the same quarter last year.

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 Performance

NYSE LEA traded up $2.87 during trading on Friday, reaching $138.92. The company’s stock had a trading volume of 201,594 shares, compared to its average volume of 555,155. The firm has a 50 day moving average price of $117.85 and a 200 day moving average price of $108.53. Lear has a 12 month low of $73.85 and a 12 month high of $138.88. The firm has a market capitalization of $7.21 billion, a price-to-earnings ratio of 17.05, a price-to-earnings-growth ratio of 1.53 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 0.52.

Lear Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, December 30th. Shareholders of record on Wednesday, December 10th were paid a $0.77 dividend. The ex-dividend date was Wednesday, December 10th. This represents a $3.08 annualized dividend and a yield of 2.2%. Lear’s payout ratio is 37.79%.

Trending Headlines about Lear

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear posted Q4 results that topped Street estimates — EPS and revenue beats were highlighted by several outlets, with Seating and E‑Systems growth helping sales rise ~5% year-over-year to roughly $6.0B. This earnings surprise is the primary catalyst for the rally. Lear Q4 Earnings Beat — Zacks
• Positive Sentiment: The stock hit a new 52‑week high following the earnings beat and upbeat commentary — market reaction shows investors are rewarding the stronger-than-expected quarter. 52‑Week High After Strong Earnings
• Positive Sentiment: Management outlined a $1.325B backlog through 2027 and emphasized margin expansion and automation gains, which supports medium-term profitability expectations and investor confidence in structural improvements. Backlog and Margin Expansion
• Positive Sentiment: Recent reporting highlights contract wins and large program awards, adding revenue visibility and supporting the bullish narrative on future sales. Lear Lands Big Contracts
• Neutral Sentiment: Analyst coverage is mixed: Wells Fargo raised its price target to $131 but maintained an “equal weight” rating (their target sits below the recent market price), signaling limited near-term upside from that shop. Wells Fargo Price Target Note
• Neutral Sentiment: Several value/growth writeups (Zacks, MSN) are bullish on LEA as a longer‑term value play, which may attract buy-and-hold investors but not necessarily near-term momentum traders. Why Lear is a Top Value Stock — MSN
• Negative Sentiment: Lear’s FY‑2026 guidance and full‑year revenue range was received with caution — the updated revenue band was roughly in line or slightly below consensus, which could limit upside if investors were expecting a more aggressive outlook. FY‑2026 Guidance Note
• Negative Sentiment: Company full‑year sales were reported down ~2% to $23.3B, a reminder of near‑term top‑line pressure even as margins and backlog improve — this may temper some investor enthusiasm. Annual Sales Update — DBusiness
• Negative Sentiment: There are conflicting/or confusing transcripts published by some outlets that suggest weaker figures (an outlier report claimed a miss); such mixed messaging can create short-term volatility until investors reconcile official filings and the company transcript. Earnings Call Transcript — Seeking Alpha

Insider Activity

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

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. HighTower Advisors LLC lifted its position in Lear by 14.4% during the fourth quarter. HighTower Advisors LLC now owns 4,211 shares of the auto parts company’s stock worth $483,000 after purchasing an additional 530 shares during the period. Allworth Financial LP raised its position in shares of Lear by 62.6% in the 3rd 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. CIBC Private Wealth Group LLC lifted its holdings in shares of Lear by 60.9% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 1,305 shares of the auto parts company’s stock worth $131,000 after acquiring an additional 494 shares during the period. Danske Bank A S acquired a new stake in shares of Lear during the 3rd quarter worth approximately $853,000. Finally, Advisory Services Network LLC bought a new position in Lear in the third quarter valued at approximately $33,000. Institutional investors own 97.04% of the company’s stock.

Analyst Ratings Changes

Several research firms have issued reports on LEA. Weiss Ratings restated a “hold (c)” rating on shares of Lear in a research note on Thursday, January 22nd. Citigroup increased their price target on Lear from $146.00 to $177.00 and gave the company a “buy” rating in a research note on Thursday. Barclays set a $140.00 price target on Lear in a research note on Thursday. Evercore ISI lifted their price objective on shares of Lear from $110.00 to $120.00 and gave the stock an “in-line” rating in a research report on Monday, November 24th. Finally, TD Cowen increased their price objective on shares of Lear from $117.00 to $133.00 and gave the company a “hold” rating in a research report on Thursday. Two investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $135.10.

Lear Company Profile

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.