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Lear (LEA) AI Stock Analysis
Lear
(NYSE:LEA)
The score is driven primarily by solid (but margin-constrained) financial performance and a constructive earnings update highlighting improving earnings, strong business awards, and higher restructuring savings. Attractive valuation (low P/E with a ~2.6% yield) supports the rating, while weaker technical momentum and the call’s near-term risks (China softness, reduced revenue outlook, and cash-flow variability) temper upside.
Lear Key Performance Indicators (KPIs)
Net Sales By SegmentReveals revenue contributions from various business segments, helping investors understand which areas are performing well and which might need strategic adjustments.
Seating is the clear growth engine—consistent wins, backlog expansion and net‑performance/automation are driving most of Lear’s sales momentum and margin gains—whereas E‑Systems is delivering only modest top‑line growth but improving profitability as operational fixes take hold. Management’s Q1 awards and backlog underpin upside, but tariff-related revenue reductions and China/EV production timing mean reported sales understate underlying demand; the stock’s upside depends on converting late‑cycle program launches and sustaining margin improvements, not just headline sales figures.
Lear (LEA) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $5.50B
- Dividend Yield
- 2.70%
- Average Volume (3M)
- 573.07K
- Price to Earnings (P/E)
- 9.9
- Beta (1Y)
- 0.56
- Revenue Growth
- 3.52%
- EPS Growth
- 40.59%
- Country
- US
- Employees
- 164,300
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Auto - Parts
Lear Business Overview & Revenue Model
Company Description
Lear Corporation, established in 1917 and headquartered in Southfield, Michigan, stands as a premier global supplier to the automotive industry. The company specializes in the conceptualization, development, engineering, manufacturing, and assembly o...
How the Company Makes Money
Lear makes money by supplying automotive components and systems to vehicle manufacturers under awarded vehicle programs, generating revenue largely from the sale of (1) seating systems and components and (2) vehicle electrical distribution and connec...
Lear Earnings Call Summary
The call was strongly positive overall. Lear reported year-over-year growth in sales, core operating earnings, adjusted EPS and margins despite lower global vehicle production, secured approximately $3.9 billion of year-to-date awards, increased its restructuring savings outlook and maintained full-year core operating earnings guidance. The principal challenges were deteriorating China demand, reduced revenue guidance, lower quarterly operating cash flow, production declines, restructuring investment and commodity-related pressures, but management stated that savings and operational execution were expected to offset these factors.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For 2026, the midpoint of the guidance range assumes global industry production will be down 1% on a Lear sales weighted basis compared to 2025, an average euro exchange rate of $1.15 per euro and an average Chinese RMB exchange rate of 6.80 RMB for the dollar; the revenue midpoint was reduced by approximately $225 million, restructuring cost outlook was increased by $25 million, and the company is maintaining its full year outlook for core operating earnings while adjusting its outlook for operating cash flow and free cash flow. Restructuring savings guidance increased from $80 million to $95 million, Seating is expected to deliver a full year target of 40 basis points, and E-Systems is expected to deliver positive net performance in the fourth quarter. For 2027, 40 and 80 basis points in net performance in Seating and E-Systems respectively are still tracking or right on track, with the company expecting to do a little better than that in both segments this year; typical conversion rates are 20% range for wind down, 10% range for backlog, and 15% to 25% rate for volume and mix. By 2029, the company sees significant growth above market, with both segments returning to the historical targeted range of 3% to 4% in seating and 4% to 6% in these systems.
Lear Financial Statement Overview
Summary
Fundamentals are solid but not standout: revenue and net income are improving in TTM, leverage is moderate and trending better (debt-to-equity ~0.70), and operating/free cash flow are positive. The main constraints are thin and drifting-lower margins (gross margin ~7%, EBITDA margin ~5.5%) and a notable decline in TTM free cash flow (~-17.5%), which increases sensitivity to cyclical volume and cost swings.
Income Statement
72PositiveBalance Sheet
74PositiveCash Flow
63Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.79B | 23.26B | 23.30B | 23.46B | 20.88B | 19.26B |
| Gross Profit | 1.68B | 1.91B | 1.84B | 1.75B | 1.57B | 1.49B |
| EBITDA | 1.32B | 1.38B | 1.46B | 1.48B | 1.18B | 1.25B |
| Net Income | 584.40M | 436.80M | 506.60M | 572.50M | 327.70M | 373.90M |
Balance Sheet | ||||||
| Total Assets | 15.27B | 14.84B | 14.03B | 14.70B | 13.76B | 13.35B |
| Cash, Cash Equivalents and Short-Term Investments | 889.40M | 1.04B | 1.06B | 1.20B | 1.12B | 1.32B |
| Total Debt | 3.51B | 4.10B | 4.08B | 3.55B | 3.34B | 3.25B |
| Total Liabilities | 10.13B | 9.64B | 9.43B | 9.63B | 8.93B | 8.54B |
| Stockholders Equity | 5.00B | 5.04B | 4.45B | 4.92B | 4.68B | 4.64B |
Cash Flow | ||||||
| Free Cash Flow | 700.80M | 527.20M | 561.40M | 622.80M | 383.20M | 85.00M |
| Operating Cash Flow | 1.36B | 1.09B | 1.12B | 1.25B | 1.02B | 670.10M |
| Investing Cash Flow | -645.50M | -516.80M | -543.00M | -761.50M | -830.30M | -646.70M |
| Financing Cash Flow | -848.60M | -618.50M | -693.90M | -419.50M | -387.30M | -13.60M |
Lear Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEA, the sentiment is Negative. The current price of 114.10 is below the 20-day moving average (MA) of 118.32, below the 50-day MA of 121.58, and below the 200-day MA of 127.34, indicating a bearish trend. The MACD of -1.18 indicates Negative momentum. The RSI at 39.80 is Neutral, neither overbought nor oversold. The STOCH value of 29.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEA.
Lear Risk Analysis
Lear disclosed 30 risk factors in its most recent earnings report. Lear reported the most risks in the "Production" category.
Latest Risks Added
0 New RisksLear Peers Comparison
Overall Rating
LEA69Neutral
ALV67Neutral
VC59Neutral
GNTX53Neutral
ADNT48Neutral
APTV47Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 69Neutral | $5.72B | 9.94 | 11.52% | 2.70% | 3.52% | 40.59% | |
| 67Neutral | $9.05B | 14.82 | 24.54% | 2.81% | 4.26% | -13.85% | |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| 59Neutral | $1.98B | 20.88 | 6.44% | 1.81% | 1.94% | -67.19% | |
| 53Neutral | $4.39B | 10.92 | 15.85% | 2.38% | 7.71% | 9.67% | |
| 48Neutral | $1.33B | -71.13 | -1.00% | ― | 4.36% | 93.02% | |
| 47Neutral | $8.76B | 11.28 | 8.55% | ― | -5.40% | -75.68% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| LEA | Lear Corp. | 114.10 | 8.66 | 8.22% | |
| ALV | Autoliv | 124.03 | 5.34 | 4.50% | |
| APTV | Aptiv PLC | 40.85 | -29.09 | -41.59% | |
| GNTX | Gentex Corp | 20.21 | -2.61 | -11.45% | |
| VC | Visteon | 77.48 | -28.30 | -26.75% | |
| ADNT | Adient plc | 17.07 | -2.65 | -13.44% |
Lear Corporate Events
Lear Announces Planned Chief Financial Officer Transition
PositiveOn October 19, 2026, Lear Corporation announced a planned chief financial officer transition following a succession process, underscoring the company’s focus on leadership continuity and financial discipline. Longtime executive Jason Cardew, CF...
Lear boosts share repurchase authorization, affirms cash strategy
PositiveOn September 24, 2026, Lear Corporation announced that its board approved an increase of the company’s share repurchase authorization to $1.5 billion and extended the program’s term to December 31, 2029. The move reflects the board’...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 31, 2026