A Business at a Glance
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LEAR CORP
LEA
$7.7B
Mkt Cap
$143.60
+0.82%
LEAR CORP (LEA) has a current P/E ratio of 17.6, compared to its historical median P/E of 12.1. The stock is currently considered Fair based on its historical valuation range.
LEAR CORP (LEA) has a 5-year average return on invested capital (ROIC) of 9.6%. This is below average and may indicate limited pricing power.
LEAR CORP (LEA) has a market capitalization of $9.3B. It is classified as a mid-cap stock.
Yes, LEAR CORP (LEA) pays a dividend with a trailing twelve-month yield of 1.77%. The company also returns capital through share buybacks, with a buyback yield of 4.05%.
Based on historical P/E analysis, LEAR CORP (LEA) appears fair. The current P/E of 17.6 is 46% above its historical median of 12.1. The estimated fair value CAGR (P/E method) is -0.6%.
LEAR CORP (LEA) operates in the Motor Vehicle Parts & Accessories industry, within the Consumer Cyclical sector.
LEAR CORP (LEA) reported annual revenue of $23.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
Lear Corporation is a global automotive technology leader supplying complete seat systems and electrical distribution solutions to all major automotive manufacturers across 258 locations in 36 countries. The company operates through two segments: Seating, which designs and manufactures complete seat systems and key components including trim covers, mechanisms, cushioning, headrests, and thermal comfort systems compatible with traditional and electrified powertrains; and E-Systems, which provides electrical distribution and connection systems, high-voltage power distribution products including battery disconnect units, and low-voltage power distribution products and electronic controllers. Lear's business model is built on vertical integration in seating with synchronized assembly and just-in-time delivery capabilities, while E-Systems leverages customizable solutions with optimized designs for both low-voltage and high-voltage vehicle architectures. The company generates revenue through direct supply relationships with global automotive manufacturers, serving customers across North America, Europe, China, and other major automotive producing regions. Lear's competitive advantages include its global manufacturing footprint, operational excellence capabilities, investments in automation and digital tools through its IDEA by Lear framework, and engineering expertise in both traditional and electrified vehicle technologies.
【Margin expansion and backlog growth】 Management expects continued margin expansion in 2026, with Seating targeting 40 basis points and E-Systems targeting 80 basis points of net performance improvement, supported by ongoing benefits from IDEA by Lear automation initiatives and restructuring actions. The company's two-year backlog of approximately $1.325 billion, strengthened by recent business wins with Chinese domestic automakers and new program launches, positions Lear for sustainable revenue growth into 2027 and beyond. Strong free cash flow generation above 80% conversion is expected to support disciplined capital allocation, including share repurchases of more than $300 million and continued investments in automation and footprint optimization. Management remains focused on executing its strategic priorities of extending global leadership in Seating, expanding E-Systems margins, and driving operational excellence while navigating near-term macro uncertainties.
| Metric | Target | Period |
|---|---|---|
| Revenue | $23.2 billion–$24.0 billion | FY2026 |
| Core Operating Earnings | $1.03 billion–$1.2 billion | FY2026 |
| Adjusted Net Income | $645 million–$765 million | FY2026 |
| Operating Cash Flow | $1.2 billion–$1.3 billion | FY2026 |
| Free Cash Flow | $600 million | FY2026 |
| Capital Spending | approximately $660 million | FY2026 |
| Seating Net Performance | 40 basis points | FY2026 |
| E-Systems Net Performance | 80 basis points | FY2026 |
| Share Repurchases | more than $300 million | FY2026 |
Revenue (FY2026): “Our revenue is expected to be in the range of $23.2 billion-$24 billion.”
Core Operating Earnings (FY2026): “Core operating earnings are expected to be in the range of $1.03 billion-$1.2 billion.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 23.5B | 23.3B | 23.3B | 23.5B | 20.9B | 19.3B |
| Net Income | 528M | 437M | 507M | 573M | 328M | 374M |
| EPS | $8.18 | $8.15 | $8.97 | $9.68 | $5.47 | $6.19 |
| Free Cash Flow | 732M | 527M | 561M | 623M | 383M | 85M |
| ROIC | 9.6% | 9.2% | 10.4% | 11.3% | 8.0% | 9.1% |
| Gross Margin | 6.8% | 6.5% | 7.0% | 7.3% | 6.7% | 7.2% |
| Debt/Equity | 0.54 | 0.54 | 0.62 | 0.56 | 0.56 | 0.56 |
| Dividends/Share | $2.54 | $3.07 | $3.08 | $3.08 | $3.10 | $1.77 |
| Operating Income | 851M | 777M | 888M | 933M | 654M | 675M |
| Operating Margin | 3.6% | 3.3% | 3.8% | 4.0% | 3.1% | 3.5% |
| ROE | 10.4% | 9.2% | 10.8% | 11.9% | 7.0% | 8.2% |
| Shares Outstanding | 65M | 54M | 56M | 59M | 60M | 60M |
LEAR CORP passes 3 of 9 quality checks, indicating weak fundamentals.
LEAR CORP trades at 17.6x trailing earnings, compared to its 15-year median P/E of 12.1x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 13.8x vs a median of 11.2x. The company's 5-year average ROIC is 9.6% with a gross margin of 7.0%. Total shareholder yield (dividends + buybacks) is 5.8%. At current prices, the estimated annualized return to fair value is +1.3%.
LEAR CORP (LEA) has a net profit margin of 1.9%. This is a modest margin.
LEAR CORP (LEA) generated $527 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
LEAR CORP (LEA) has a debt-to-equity ratio of 0.54. This indicates moderate leverage.
LEAR CORP (LEA) reported earnings per share (EPS) of $8.15 in its most recent fiscal year.
LEAR CORP (LEA) has a return on equity (ROE) of 9.2%. This indicates moderate shareholder returns.
LEAR CORP (LEA) has a 5-year average gross margin of 7.0%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 15 years of financial data for LEAR CORP (LEA), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
LEAR CORP (LEA) has a book value per share of $93.95, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued margin expansion in 2026, with Seating targeting 40 basis points and E-Systems targeting 80 basis points of net performance improvement, supported by ongoing benefits from IDEA by Lear automation initiatives and restructuring actions. The company's two-year backlog of approximately $1.325 billion, strengthened by recent business wins with Chinese domestic automakers and new program launches, positions Lear for sustainable revenue growth into 2027 and beyond. Strong free cash flow generation above 80% conversion is expected to support disciplined capital allocation, including share repurchases of more than $300 million and continued investments in automation and footprint optimization. Management remains focused on executing its strategic priorities of extending global leadership in Seating, expanding E-Systems margins, and driving operational excellence while navigating near-term macro uncertainties.
Based on recent SEC filings and earnings calls, LEAR CORP (LEA) has provided the following forward guidance: Revenue: $23.2 billion–$24.0 billion (FY2026); Core Operating Earnings: $1.03 billion–$1.2 billion (FY2026); Adjusted Net Income: $645 million–$765 million (FY2026); Operating Cash Flow: $1.2 billion–$1.3 billion (FY2026); Free Cash Flow: $600 million (FY2026), plus 4 additional metrics.
Adjusted Net Income (FY2026): “Adjusted net income is expected to be in the range of $645 million-$765 million.”
Operating Cash Flow (FY2026): “Our outlook for operating cash flow for the year is expected to be in the range of $1.2 billion-$1.3 billion”
Free Cash Flow (FY2026): “our free cash flow is expected to be $600 million at the midpoint of our guidance.”
Capital Spending (FY2026): “Capital spending is expected to be approximately $660 million to fund our new vehicle launches and investments in automation.”
Seating Net Performance (FY2026): “In 2026, we expect to deliver 40 basis points of net performance in Seating”
E-Systems Net Performance (FY2026): “80 basis points in E-Systems”