LEA
Lear Corporation115.51
-0.56-0.48%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Conquest details, Q1 strength, targets firm
Q&A unpacked Lear's historic seating conquest win—largest ever—as innovation and modularity earned unanimous OEM approval, launching late 2028 beyond the backlog, validating a decade of tech bets. Management recommitted to 29% seating share via a $1.5B pipeline, with E-Systems adding $600M conquest potential. Q1 starts strong at ~$6B revenue, $260M operating income. Thermal comfort's $1B/10% target holds but slips on EV delays; EV cancellation recoveries baked into 2026 guide. Volumes conservatively shade low. Onshoring sits in the fourth inning. Watch backlog launches, sustained 40/80bps net performance.
Key Stats
Market Cap
6.15BP/E (TTM)
14.09Basic EPS (TTM)
8.20Dividend Yield
0.03%Recent Filings
10-K
FY2025 results
Lear held FY2025 net sales flat at $23.3B despite 1% Lear-weighted industry growth, as lower volumes (including Jaguar Land Rover cybersecurity disruptions) offset new wins and FX tailwinds. Seating sales edged up 0.4% to $17.3B on Asia ramps, while E-Systems dipped 2% to $6.0B amid non-core wind-downs; Q4 momentum faltered with Europe/North America production down 1% y/y. Gross margins slipped to 6.5% from 7.0% on pricing and higher restructuring ($253M vs $139M), yet operating cash flow stayed robust at $1.1B. Share repurchases hit $325M with $775M authorized remaining; $2.7B debt and $2.0B revolver availability signal liquidity strength. New $1.3B backlog eyes 2026-27 growth. Cyclical production swings threaten quarterly momentum.
8-K
Lear's Q4 revenue up 5%
Lear reported Q4 2025 revenue of $6.0B, up 5% from $5.7B, with adjusted EPS rising to $3.41 from $2.94 amid flat full-year sales of $23.3B. Record operating performance delivered $195M, fueled by Seating's largest conquest award ever and $1.4B E-Systems wins. Momentum strong. 2026 outlook eyes $23.2B-$24.0B sales, $1.03B-$1.20B core earnings despite expected 1% production dip.
10-Q
Q3 FY2025 results
Lear's Q3 sales edged up 2% y/y to $5.7B, buoyed by North American volume gains and FX tailwinds, yet Europe and Asia production dips, including a Jaguar Land Rover cyber snag, trimmed momentum. Gross margins slipped to 6.4% from 7.3%, squeezed by lower volumes and price cuts, while restructuring costs jumped to $38M from $24M; operating income fell 16% y/y to $159M (derived), and diluted EPS dropped 16% to $2.02 on 53.7M shares. Cash stood at $1.0B with $2.0B revolver availability and $2.8B long-term debt at blended 4.0% rates; free cash flow hit $246M y/y (derived from $613M OCF less $367M capex). February's StoneShield buy for automation closed with undisclosed cash terms, recognizing no new goodwill. Tariffs loom as a supply chain wildcard.
8-K
Lear's Q3 revenue up 2%
Lear Corporation reported third-quarter 2025 revenue of $5.7 billion, up 2% from last year, with core operating earnings at $241 million despite a $111 million sales hit from a JLR cyberattack. Adjusted EPS dipped to $2.79, yet free cash flow soared to $307 million, the second-highest Q3 ever. Cash flow rocketed. The company raised its full-year free cash flow midpoint to $475-525 million, backed by new awards and restructuring gains, while disruptions at key customers pose risks.
8-K
Lear extends $2B credit facility
Lear Corporation extended its $2.0 billion unsecured revolving credit facility to July 24, 2030, through a second amended and restated credit agreement signed on July 24, 2025, with JPMorgan Chase Bank as administrative agent and other major banks. Interest rates range from 0.925% to 1.450% for benchmark loans, with a 1.125% margin as of June 28, 2025, plus a facility fee of 0.075% to 0.20%. The deal imposes leverage limits and debt restrictions, yet Lear remains fully compliant. This bolsters liquidity amid market volatility.
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