Lear Corporation (LEA) AI Stock Analysis

Lear Corporation operates as a global supplier of automotive seating and electrical distribution systems to original equipment manufacturers. Its Seating segment designs and produces comprehensive seat systems, subsystems, mechanisms, trim covers, foam, and headrests across vehicles ranging from compact cars to heavy-duty trucks. The E-Systems segment specializes in electrical distribution, wire harnesses, terminals, connectors, junction boxes, high-voltage systems, and electronic control modules. Lear also offers software solutions such as Xevo Market for connected services and vehicle cybersecurity, operating under brands including XEVO, Eagle Ottawa, Aventino, and Guilford.

Lear's revenue grew at a 5-year CAGR of 6.4% from FY2020 through FY2025, reaching $23.26B in FY2025 after peaking at $23.46B in FY2023. Gross margin increased to 8.2% in FY2025, up from 7.4% in FY2023, while operating margin expanded to 4.4%. Net income for FY2025 was $436.8M, compared with $506.6M in FY2024. For the trailing twelve months, revenue was $23.70B with an operating margin of 4.2% and EPS of $10.74. In the latest quarter ended June 30, 2026, quarterly revenue grew 3.0% year-over-year, while quarterly earnings grew 23.9%.

As of June 30, 2026, Lear held $1.01B in cash and short-term investments against total debt of $3.52B, resulting in net debt of $2.51B. The debt-to-equity ratio was 0.68, and the current ratio was 1.31. In FY2025, operating cash flow reached $1.09B and free cash flow was $527.2M. The company deployed this capital into $561.6M of capital expenditures, $325.2M in share buybacks, and $164.8M in dividends paid, contributing to a 15.1% reduction in share count over five years.

At a closing price of $120.01, Lear has a market capitalization of $5.92B and an enterprise value of $7.75B. The stock trades at a trailing P/E of 11.2x and a forward P/E of 6.9x, both below the US-listed Consumer Cyclical peer group medians of 18.0x and 14.1x, respectively. Its EV/EBITDA stands at 5.4x compared to the peer median of 11.1x, while price-to-sales is 0.2x versus 0.7x. Over the past year, the stock returned 22.5%, outperforming the S&P 500 (SPY) return of 16.8%, but its 5-year return of -24.2% trails the index return of 83.0%.

Lear pays a quarterly dividend totaling $3.08 annually per share, reflecting a dividend yield of 2.57% and a payout ratio of 21.5%. The company has paid dividends for 16 consecutive years, delivering a 5-year annualized dividend growth rate of 24.7%. Its last ex-dividend date occurred on September 2, 2026.

Wall Street analysts carry 4 Strong Buy, 1 Buy, and 11 Hold ratings on Lear, with no Sell recommendations. The mean price target is $147.43, representing a 22.8% premium to the last closing price of $120.01. Analysts project FY2026 EPS of $14.97 on revenue of $23.80B, followed by FY2027 EPS of $16.68 on revenue of $24.05B. Lear beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is scheduled for October 30, 2026.

This page is an AI-written research summary of Lear Corporation (LEA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: LEA income statement, LEA balance sheet, LEA key metrics, LEA analyst forecast, LEA chart. See the LEA stock overview for the latest quote and news.