Lear Corp. (LEA)
NYSE:LEA
Want to see LEA full AI Analyst Report?
Top Page
Lear
(NYSE:LEA)
Select Model
Select Model
Rating:74Outperform
Price Target:
$165.00
â–²(31.59% Upside)
Action:Reiterated
Date:05/15/26
LEA scores well on improving cash generation, attractive valuation (low P/E with a dividend), and supportive price momentum (above key moving averages with positive MACD). The main offsets are thin margins and a mid-tier balance-sheet profile, plus management’s cautious stance on guidance amid tariff-related reported-revenue headwinds and broader macro uncertainty.
Positive Factors
Strong cash generation and FCF conversion
Sustained operating cash flow and materially higher free cash flow provide structural financial flexibility. Durable FCF supports program ramp investments, share repurchases, and funding for net-performance initiatives without needing incremental debt, improving resilience across industry cycles.
Negative Factors
Thin underlying profit margins
Low absolute margins leave limited buffer against commodity, labor, and mix shocks typical in automotive supply. With narrow margins, cyclical downturns, pass‑through timing lags, or program missteps can quickly compress earnings and constrain reinvestment capacity over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and FCF conversion
Sustained operating cash flow and materially higher free cash flow provide structural financial flexibility. Durable FCF supports program ramp investments, share repurchases, and funding for net-performance initiatives without needing incremental debt, improving resilience across industry cycles.
Read all positive factors
Lear Key Performance Indicators (KPIs)
Lear (LEA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.21B
Dividend Yield2.63%
Average Volume (3M)621.38K
Price to Earnings (P/E)13.7
Beta (1Y)0.70
Revenue Growth2.86%
EPS Growth17.30%
CountryUS
Employees173,700
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)10.09
Shares Outstanding50,095,100
10 Day Avg. Volume620,758
30 Day Avg. Volume621,379
Financial Highlights & Ratios
PEG Ratio-1.57
Price to Book (P/B)1.21
Price to Sales (P/S)0.26
P/FCF Ratio11.56
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue0.42
Enterprise Value/Gross Profit5.77
Enterprise Value/Ebitda6.09
Forecast
1Y Price Target
$144.73Price Target Upside15.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)14.86
Revenue Forecast (FY)$23.73B
Lear Business Overview & Revenue Model
Company Description
Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, A...
How the Company Makes Money
Lear makes money primarily by supplying automotive OEMs under production supply agreements and program awards tied to specific vehicle platforms. The company’s revenue is largely generated from (1) the Seating segment, which sells complete seat sy...
Lear Earnings Call Summary
Earnings Call Date:May 01, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a positive operational and commercial momentum: solid top-line growth (+5%), meaningful profitability gains (core operating earnings +10%, adjusted EPS +24%), multiple strategic commercial awards (including major GM and Chinese wins), and substantial net-performance/automation savings driving margin expansion. Offsetting items include sizable tariff-driven revenue adjustments (no earnings hit but material to reported revenue), residual operational fixes in parts of E-Systems, commodity pass-through timing, and macro/geopolitical uncertainty that prompted conservative full-year guidance. On balance, the company demonstrated strong execution and rising competitiveness while acknowledging manageable external headwinds.Positive Updates
Revenue Growth
Total sales increased 5% year-over-year to $5.8 billion in Q1 2026, with organic sales up 3% driven by higher volumes on Lear platforms and new Seating business.
Negative Updates
Tariff Policy-Driven Revenue Reduction
Changes in U.S. tariff policy and a one-time reversal related to IEEPA resulted in significant revenue impacts: a one-time $175 million Y/Y revenue reduction in Q1 and management now expects a $285 million year-over-year revenue reduction for the full year (a $385 million reduction versus February assumptions). Management notes these have no corresponding earnings impact but materially reduce reported revenue.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total sales increased 5% year-over-year to $5.8 billion in Q1 2026, with organic sales up 3% driven by higher volumes on Lear platforms and new Seating business.
Read all positive updates
Company Guidance
Lear maintained its full‑year 2026 outlook while noting Q1 strength that puts results between the midpoint and high end of guidance if current trends hold: Q1 sales were $5.8B (up 5%), core operating earnings $297M (up 10%), adjusted EPS $3.87 (up 24%), operating cash flow $98M, and $75M of share repurchases (on pace for >$300M in 2026) as free cash flow conversion is targeted at >80%. Near‑term guidance includes Q2 revenue of $6.1–$6.2B (≈+2% y/y, ≈$100M), Seating margins in the mid‑6% range and E‑Systems in the low‑5% range, and full‑year net‑performance expansion targets of +40 basis points (Seating) and +80 basis points (E‑Systems); assumptions include sales‑weighted global production down <2% at midpoint and FX of $1.17/€ and 6.91 RMB/$. The company also flagged tariff‑related revenue headwinds—a $285M year‑over‑year reduction for 2026 (about $385M versus its February outlook)—offset in part by FX, commodity pass‑throughs, and a roughly $250M increase to the 2026–27 two‑year backlog (≈$400M over three years).Lear Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
60
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.52B | 23.26B | 23.30B | 23.46B | 20.88B | 19.26B |
| Gross Profit | 1.70B | 1.91B | 1.84B | 1.75B | 1.57B | 1.49B |
| EBITDA | 1.61B | 1.63B | 1.46B | 1.48B | 1.18B | 1.25B |
| Net Income | 528.40M | 436.80M | 506.60M | 572.50M | 327.70M | 373.90M |
Balance Sheet | ||||||
| Total Assets | 15.45B | 14.84B | 14.03B | 14.70B | 13.76B | 13.35B |
| Cash, Cash Equivalents and Short-Term Investments | 889.10M | 1.04B | 1.06B | 1.20B | 1.12B | 1.32B |
| Total Debt | 3.52B | 4.10B | 4.08B | 3.55B | 3.34B | 3.25B |
| Total Liabilities | 10.18B | 9.64B | 9.43B | 9.63B | 8.93B | 8.54B |
| Stockholders Equity | 5.09B | 5.04B | 4.45B | 4.92B | 4.68B | 4.64B |
Cash Flow | ||||||
| Free Cash Flow | 732.40M | 527.20M | 561.40M | 622.80M | 383.20M | 85.00M |
| Operating Cash Flow | 1.31B | 1.09B | 1.12B | 1.25B | 1.02B | 670.10M |
| Investing Cash Flow | -568.50M | -516.80M | -543.00M | -761.50M | -830.30M | -646.70M |
| Financing Cash Flow | -672.10M | -618.50M | -693.90M | -419.50M | -387.30M | -13.60M |
Lear Technical Analysis
Positive
125.39
Price Trends
130.23
Positive
127.18
Positive
116.59
Positive
Market Momentum
4.05
Negative
56.45
Neutral
45.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEA, the sentiment is Positive. The current price of 125.39 is below the 20-day moving average (MA) of 139.10, below the 50-day MA of 130.23, and above the 200-day MA of 116.59, indicating a bullish trend. The MACD of 4.05 indicates Negative momentum. The RSI at 56.45 is Neutral, neither overbought nor oversold. The STOCH value of 45.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lear Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $7.21B | 13.67 | 10.41% | 2.63% | 2.86% | 17.30% | |
74 Outperform | $3.25B | 19.06 | 11.08% | 0.57% | -2.04% | -43.19% | |
72 Outperform | $9.76B | 13.44 | 27.78% | 2.60% | 6.14% | 7.30% | |
71 Outperform | $15.80B | 41.19 | 6.34% | 1.24% | 2.36% | 34.03% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $6.44B | 12.46 | 7.93% | 4.00% | -1.37% | -24.48% | |
53 Neutral | $3.97B | -23.99 | -12.67% | 1.70% | -23.37% | -131.29% |
* Consumer Cyclical Sector Average
LEA
Lear
141.50
55.29
64.12%
ALV
Autoliv
127.56
25.05
24.43%
BWA
BorgWarner
72.63
40.76
127.87%
DAN
Dana Incorporated
35.37
18.41
108.51%
LKQ
LKQ
25.22
-12.30
-32.77%
VC
Visteon
117.46
34.95
42.35%
Lear Corporate Events
Executive/Board ChangesShareholder Meetings
Lear Shareholders Back Board, Pay and Incentive Plan
Positive
May 14, 2026
On May 14, 2026, Lear Corporation held its 2026 Annual Meeting of Shareholders, where investors voted on the election of directors and several key governance items. All nominated directors, including Julian G. Blissett, Raymond E. Scott, and other...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.