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Lear Corporation
🏹 Trader: 🎯 Near 52W High | BRS 62 Forming View all →
$6.8B
Market Cap
14.1
P/E
1.11
PEG
11.0%
ROCE
10.8%
ROE
0.67
D/E
4.5%
OPM
-11.5%
% from 52W High
63
α RS
🔍 LEA is showing a notable setup because RS Rating is 63 and it's within 11.5% of its 52-week high. The main caution: rising_margins's Backtest win rate is only 47.4%. Net: Mixed signal stack, not a recommendation. ? RS Rating 52W High Backtest
Sources
RS Rating 63 · 11.5% from 52W high · Backtest win rate 47.4%
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🌏 Global Investor Returns
Currency-adjusted total returns for LEA including FX impact
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📈 Price History
Ratio Health
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By Category
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About

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, Asia, and South America. Its Seating segment offers seat systems, keyseat components, seat trim covers, seat mechanisms, thermal comfort systems such as seat heating, ventilation, active cooling, pneumatic lumbar and massage products, seat cushioning, and headrests, as well as surface materials, such as leather and fabric for light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company’s E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment’s products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, and high voltage switching and power control systems. It also offers software and connected services. In addition, this segment provides cybersecurity software. It offers its products and services under the GUILFORD, EAGLE OTTAWA, THAGORA, IGB AUTOMOTIVE, COMFORTFLEX BY LEARTM, LEAR, CONFIGURE+, FLEXAIR , INTU, RENEWKNIT, SOYFOAM, ProTec, and TeXstyle brands. The company was founded in 1917 and is headquartered in Southfield, Michigan.

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3-Statement Financial Model
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📊 MIXED Lear Q1 2026: Revenue $5.8B, EPS $3.87, strong wins in seating and E-Systems
Revenue & Profitability
Q1 2026 revenue was $5.8 billion, up 5% year-over-year. Core operating earnings were $297 million, up 10%. Adjusted earnings per share were $3.87, a 24% increase from Q1 2025. Operating cash flow improved to $98 million from a use of $128 million in the prior year. Free cash flow improved by $205 million in the quarter.
Outlook
Management expects global vehicle production on a Lear sales-weighted basis to be down less than 2% for 2026. Q2 revenue is forecasted at $6.1-6.2 billion. Despite strong Q1 and Q2 trends, the full-year guidance is maintained due to uncertainty from the Middle East conflict and macroeconomic conditions. The company is tracking between the midpoint and high end of its guidance range.
Growth Drivers
Key growth drivers include business wins with Chinese automakers (Dongfeng, SAIC, Geely, BAIC, FAW Toyota), which generated $280 million in awards across both segments in Q1. Conquest wins in E-Systems include a GM full-size SUV wire harness program and a power distribution module with a North American automaker. The two-year backlog increased by $250 million, with modular seating solutions and new business in China accelerating.
Balance Sheet & CapEx
Not explicitly provided in terms of CapEx guidance. However, approximately 80% of capital is developed and deployed in-house, including 100% of advanced robotics and vision systems. The Rochester Hills Advanced Manufacturing Integration Center showcases innovations. The Stoneshield acquisition contributed wire automation solutions. Management targets free cash flow conversion above 80% for 2026.
Margins
Q1 2026 adjusted operating margins were 6.9% in Seating and 6.1% in E-Systems, benefiting from tariff-related revenue adjustments (20 bps in seating, 40 bps in E-Systems). Full-year guidance calls for 40 basis points of net performance improvement in Seating and 80 bps in E-Systems. For Q2, Seating margins are expected in the mid-6% range and E-Systems in the low-5% range.
Key Risks
Risks flagged include uncertainty in the global macro environment, potential impacts from the Middle East conflict, and changes in tariff policy (IEEPA struck down, Section 232 credits). The reduction in revenue from tariff changes was $385 million vs. the February outlook, but with no earnings impact. Volume declines from program wind-downs (Ford Escape, Focus, Corsair) also pose headwinds. Management protects for potential H2 industry disruptions.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-31
Record first-half revenue and strong margin expansion were driven by new business wins and operational excellence. Full-year guidance was raised despite ongoing China market weakness and platform wind-downs, with robust backlog positioning the company for above-market growth from 2028.
Q1 2026 Q1 2026 2026-05-01
Q1 2026 saw 5% revenue growth, 10% higher core operating earnings, and a 24% jump in adjusted EPS, driven by strong new business wins and operational improvements. Guidance is maintained amid macro uncertainty, with robust cash flow and accelerated share buybacks.
Q4 2025 Q4 2025 2026-02-04
Delivered 5% revenue growth and record net performance in 2025, driven by operational excellence, automation, and major new business wins. 2026 guidance calls for continued growth in revenue, margins, and free cash flow, with strong capital returns and a robust backlog supporting future expansion.
Q3 2025 Q3 2025 2025-10-31
Q3 revenue rose 2% to $5.7B, with strong cash flow and new business wins, despite a major JLR disruption. Full-year guidance was raised for revenue and free cash flow, and automation plus digital investments are driving margin expansion and future growth.
Q2 2025 Q2 2025 2025-07-25
Second quarter results were stable, with $6B in revenue and strong operating performance driven by automation and restructuring. Full-year guidance was restored, with higher net performance and robust liquidity, despite ongoing macro and trade uncertainties.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
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