Lear Corporation
- Open
- 140.03
- Day high
- 143.90
- Day low
- 138.85
- Prev close
- 143.66
- Volume
- 516K
- Mkt cap
- $7.1B
- P/E (TTM)
- 14.0
- EPS (TTM)
- $10.09
- P/B
- 1.4
- P/S
- 0.3
- Yield
- 2.17%
- Per share
- $3.08
- ▼Insiders net selling -$8.5M over the last 3 months (0 open-market buys, 9 sales)
- 🏛Institutions accumulating (13F)
Lear Corporation (LEA) is a Consumer Cyclical company listed on NYSE. The stock is up 36% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 9 sales (SEC Form 4).
Lear Corporation (LEA) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 7 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
LEA earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 1, 2026 | $3.44 | $3.87 | +12.5% | $5.8B | -0.3% |
| Feb 4, 2026 | $2.67 | $3.41 | +27.7% | $6.0B | +2.7% |
| Oct 31, 2025 | $2.70 | $2.79 | +3.3% | $5.7B | +0.6% |
| Jul 25, 2025 | $3.23 | $3.47 | +7.4% | $6.0B | +8.3% |
| Feb 6, 2025 | $2.50 | $2.94 | +17.6% | $5.7B | +3.3% |
| Oct 24, 2024 | $2.63 | $2.89 | +9.9% | $5.6B | +1.3% |
| Jul 25, 2024 | $3.40 | $3.60 | +5.9% | $6.0B | -0.3% |
| Apr 30, 2024 | $3.04 | $3.18 | +4.6% | $6.0B | -0.1% |
| Oct 26, 2023 | $2.67 | $2.87 | +7.5% | $5.8B | +3.1% |
| Aug 1, 2023 | $3.21 | $3.33 | +3.7% | $6.0B | +2.3% |
| Apr 27, 2023 | $2.58 | $2.78 | +7.8% | $5.8B | +5.6% |
| Feb 2, 2023 | $2.57 | $2.81 | +9.3% | $6.0B | +14.3% |
LEA insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 2, 2026 | LIGOCKI KATHLEENdirector | Option | 53 | — |
| Jun 25, 2026 | SCOTT RAYMOND Edirector, officer: President and CEO | Sell | 3,346 | $137.21 |
| Jun 25, 2026 | SCOTT RAYMOND Edirector, officer: President and CEO | Sell | 22,454 | $135.40 |
| Jun 25, 2026 | SCOTT RAYMOND Edirector, officer: President and CEO | Sell | 16,316 | $134.44 |
| Jun 25, 2026 | SCOTT RAYMOND Edirector, officer: President and CEO | Sell | 7,884 | $136.41 |
| Jun 11, 2026 | MALLETT CONRAD L JRdirector | Sell | 190 | $141.34 |
| Jun 3, 2026 | Orsini Frank Cofficer: EVP and President, Seating | Sell | 5,000 | $148.50 |
| Jun 3, 2026 | Cardew Jason Mofficer: SVP and CFO | Sell | 2,500 | $141.14 |
| Jun 3, 2026 | Cardew Jason Mofficer: SVP and CFO | Sell | 2,000 | $141.14 |
| May 26, 2026 | Roelli Nicholas Jonofficer: SVP and President, E-Systems | Sell | 2,336 | $141.38 |
| May 18, 2026 | SMITH GREG Cdirector | Grant | 2,194 | — |
| May 18, 2026 | Lache Roddirector | Grant | 1,330 | — |
| May 18, 2026 | Halverson Bradley Mdirector | Grant | 1,330 | — |
| May 18, 2026 | SMITH GREG Cdirector | Option | 3,134 | — |
| May 18, 2026 | MALLETT CONRAD L JRdirector | Grant | 1,330 | — |
Source: LEA SEC Form 4 filings, latest Jul 2, 2026. For informational purposes only — not investment advice.
See the full LEA insider & 13F page →Lear Corporation company profile
Overview
Lear Corporation (NYSE:LEA) is a leading automotive supplier founded in 1917 and headquartered in Southfield, Michigan. The company has evolved from its origins as a manufacturer of tubular, welded, and stamped assemblies into one of the world's largest suppliers of automotive seating systems and electrical distribution systems. Lear went public in 2009 and operates globally across North America, Europe, Africa, Asia, and South America, serving major automotive original equipment manufacturers (OEMs). The company has positioned itself as a key player in the automotive industry's transformation toward electrification and advanced vehicle technologies.
Business
Lear Corporation operates in the automotive parts industry through two primary business segments that serve automotive original equipment manufacturers worldwide. The Seating segment represents the company's largest business, generating approximately 74% of total revenue ($17.2 billion in 2024). This division designs, develops, engineers, manufactures, and supplies complete automotive seating systems and components. The product portfolio includes complete seat systems, seat subsystems, key seat components, seat trim covers, seat mechanisms, seat foams, and headrests. The segment also produces surface materials such as leather and fabric for various vehicle types including automobiles, light trucks, compact cars, pickup trucks, and sport utility vehicles. Lear has been expanding its thermal comfort capabilities through products like ComfortFlex modular designs and ComfortMax seat technology, which provide heating, cooling, and massage functions. The E-Systems segment accounts for approximately 26% of revenue ($6.1 billion in 2024) and focuses on electrical distribution and connection systems that manage electrical power and route electrical signals throughout vehicles. This segment's products include wire harnesses, terminals and connectors, engineered components, and junction boxes. The division also produces electronic system products such as body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems essential for electric and hybrid vehicles. Additionally, E-Systems offers software and connected services through its Xevo platform for in-vehicle commerce, cybersecurity software, advanced vehicle positioning for automated driving applications, and communication protocols for vehicle connectivity. The automotive parts industry serves as a critical link between raw material suppliers and vehicle manufacturers, with companies like Lear acting as Tier 1 suppliers that deliver complete systems directly to automotive OEMs' assembly lines. This industry has been experiencing significant transformation due to the shift toward electric vehicles, autonomous driving technologies, and enhanced connectivity features.
Revenue model
Lear Corporation generates revenue primarily through direct sales of automotive components and systems to original equipment manufacturers (OEMs). The company operates under long-term supply contracts with automotive manufacturers, typically spanning the lifecycle of specific vehicle platforms, which can range from 4-7 years. Revenue is recognized when products are delivered to customer assembly plants or when services are performed. The company's business model centers on being a Tier 1 supplier, meaning it supplies complete systems and modules directly to automotive manufacturers rather than individual components. This positioning allows Lear to capture higher value-added content per vehicle and maintain closer relationships with OEMs. The company's customers include major global automakers such as Ford, General Motors, Stellantis, BMW, and increasingly, Chinese domestic manufacturers like BYD and Geely. Several factors significantly impact Lear's profitability and margins. Commodity price fluctuations in materials like steel, aluminum, leather, and plastics directly affect input costs, though the company typically negotiates contractual pass-through mechanisms or commercial adjustments to recover these increases over time. Labor costs and availability represent another major margin driver, particularly as the company operates manufacturing facilities globally where wage inflation and labor shortages can pressure profitability. Lear has been investing heavily in automation through its "IDEA by Lear" initiative to offset rising labor costs and improve operational efficiency. Vehicle production volumes and mix significantly influence financial performance, as higher production levels provide better absorption of fixed costs. The recent slowdown in electric vehicle adoption has impacted some of Lear's newer program launches, though the company has been working with customers to extend internal combustion engine programs to backfill volume shortfalls. Currency fluctuations also affect results given Lear's global footprint, while trade policies and tariffs create both risks and opportunities, particularly regarding the company's significant manufacturing presence in Mexico and sourcing relationships in Asia. The company's margin profile benefits from its focus on higher-value integrated systems rather than commoditized components, its vertical integration capabilities, and its growing presence in electric vehicle technologies where content per vehicle is typically higher than traditional vehicles.
Competitive moat
Lear Corporation possesses a moderate competitive moat built primarily on operational scale, customer relationships, and technical expertise, though the automotive supply industry remains highly competitive with limited pricing power. The company's strongest competitive advantages stem from its scale and global manufacturing footprint. As one of the world's largest automotive seating suppliers with approximately 28% market share, Lear benefits from economies of scale in purchasing, manufacturing, and R&D investments that smaller competitors cannot match. The company's global presence with manufacturing facilities strategically located near major automotive assembly plants creates logistical advantages and reduces transportation costs, which is critical in the automotive industry's just-in-time manufacturing environment. Long-term customer relationships and program lifecycle contracts provide some stability and switching costs. Once Lear wins a program during the vehicle development phase, it typically supplies that platform throughout its 4-7 year lifecycle. The integration complexity of seating systems and electrical architectures creates some customer stickiness, as changing suppliers mid-program would require significant re-engineering and validation costs. However, Lear's moat faces several limitations. The automotive supply industry is characterized by intense price competition during program sourcing, with OEMs regularly conducting competitive bidding processes that pressure margins. Customers maintain significant bargaining power and often require annual price reductions regardless of input cost inflation. The company must continuously invest in new technologies and capabilities to remain competitive, particularly as the industry transitions toward electrification and autonomous driving. Competitive threats come from both traditional automotive suppliers like Adient in seating and Aptiv in electrical systems, as well as new entrants from the technology sector as vehicles become more software-defined. Chinese suppliers are also gaining capabilities and market share, particularly in the growing Chinese domestic market where Lear is expanding. The shift toward electric vehicles creates both opportunities and risks, as new EV manufacturers may prefer working with newer, more specialized suppliers rather than traditional automotive parts companies. While Lear's scale and customer relationships provide some defensive characteristics, the company operates in a structurally challenging industry with limited pricing power and constant pressure to innovate and reduce costs.
Risks & safety
Lear Corporation demonstrates adequate financial stability with manageable debt levels and reasonable liquidity, though cyclical cash flow patterns create some volatility. **Liquidity and Debt Position:** - Cash and short-term investments: $780 million (Q1 2025) - Current ratio: 1.32, indicating sufficient short-term liquidity - Debt-to-equity ratio: 0.59, representing moderate leverage - Total debt obligations manageable relative to EBITDA generation **Cash Flow Dynamics:** - Operating cash flow can be volatile due to working capital swings and cyclical production - Q1 2025 showed negative $128 million operating cash flow and negative $232 million free cash flow, typical of seasonal patterns - Full year 2024 generated positive $1.12 billion operating cash flow and $561 million free cash flow - Company targets 80% free cash flow conversion rate **Valuation Metrics:** - Trading at 14.7x P/E ratio based on recent earnings - EV/EBITDA of 5.4x, reasonable for cyclical industrial company - Price-to-book ratio of 1.02, suggesting shares trade near book value **Other Considerations:** - Cyclical automotive industry creates earnings volatility - Exposure to trade policy changes and tariff risks - Geographic diversification provides some stability - Ongoing restructuring costs and headcount reductions indicate operational challenges
Recent development
Over the past few years, Lear Corporation has pursued several key strategic initiatives to position itself for the automotive industry's transformation toward electrification and enhanced vehicle connectivity. The company has significantly expanded its thermal comfort capabilities through the acquisition of IGB and development of innovative products like ComfortFlex modular seating solutions and ComfortMax seat technology. These products integrate heating, cooling, and massage functions directly into seat systems, representing higher-value content that differentiates Lear from traditional seating suppliers. The company has secured validation agreements with major customers like Ford for ComfortMax technology and is targeting broader market adoption. Lear has accelerated its automation and digitization efforts through the "IDEA by Lear" initiative, developing in-house automation technologies and acquiring companies like WIP Industrial Automation. This strategy aims to offset rising labor costs, improve manufacturing efficiency, and reduce capital requirements. The company expects to achieve $75 million in automation savings growing to $150 million annually, while reducing global headcount by over 15,000 employees in 2024. In the E-Systems segment, Lear has focused on electrification capabilities, winning over $1 billion in new business awards for three consecutive years. The company has expanded its portfolio to include high-voltage switching systems, integrated power modules, and battery disconnect units essential for electric vehicles. Additionally, Lear has been developing software and connectivity solutions through its Xevo platform for in-vehicle commerce and cybersecurity applications. The company has pursued an aggressive expansion strategy in China, targeting relationships with domestic automakers like BYD and Geely. Lear expects revenue from Chinese domestic manufacturers to grow to $6 billion by 2027, representing 50% of its China revenue. This geographic diversification reduces dependence on traditional Western automakers while capturing growth in the world's largest automotive market. Recent challenges have included managing trade policy uncertainties, particularly potential tariffs on Mexican imports where Lear has significant manufacturing operations. The company has been developing mitigation strategies including diversifying manufacturing locations and working with customers to address cost recovery mechanisms.
LEA company profile · for informational purposes only — not investment advice.
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