Lear (NYSE:LEA) Announces Earnings Results

Lear (NYSE:LEA) posted its quarterly earnings results on Friday. The auto parts company reported $3.87 EPS for the quarter, topping analysts’ consensus estimates of $3.51 by $0.36, Briefing.com reports. The business had revenue of $5.82 billion during the quarter, compared to analysts’ expectations of $5.84 billion. Lear had a net margin of 1.88% and a return on equity of 13.40%. The business’s quarterly revenue was up 4.7% on a year-over-year basis. During the same period last year, the company posted $3.12 earnings per share.

Here are the key takeaways from Lear’s conference call:

• Lear reported a strong quarter with sales up 5% to $5.8B, core operating earnings up 10%, and adjusted EPS of $3.87 (up 24%), alongside improved operating cash flow and $75M of share repurchases in Q1.
• Significant commercial wins broadened the backlog — including a GM full‑size SUV wire harness award, power distribution/module wins (and an Audi high‑voltage PDU), plus large China seating and harness awards that increased the two‑year backlog by about $250M (three‑year impact ~ $400M).
• Recent U.S. tariff changes produced a one‑time revenue reversal that reduces 2026 revenue by roughly $285M YoY (and about $385M vs. the February outlook) but management says there is no corresponding earnings impact due to passthroughs and recoveries.
• Productivity and automation under IDEA by Lear and recent acquisitions delivered ~$70M of savings in Q1 and are expected to yield ~$75M this year, supporting net‑performance targets of +40 bps (Seating) and +80 bps (E‑Systems).
• Management maintained full‑year guidance (citing macro and geopolitical caution) while noting Q2 is trending toward the midpoint‑to‑high end of the range and the company remains on pace to repurchase at least $300M of stock in 2026.

Lear Stock Up 4.0%

Lear stock traded up $5.11 during midday trading on Friday, hitting $132.24. 1,091,424 shares of the stock were exchanged, compared to its average volume of 572,323. Lear has a 52-week low of $82.88 and a 52-week high of $142.84. The stock has a market capitalization of $6.70 billion, a price-to-earnings ratio of 16.23, a price-to-earnings-growth ratio of 0.79 and a beta of 1.24. The business’s 50-day moving average price is $122.88 and its 200-day moving average price is $117.74. The company has a quick ratio of 1.05, a current ratio of 1.35 and a debt-to-equity ratio of 0.52.

Lear Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, March 25th. Investors of record on Thursday, March 5th were issued a dividend of $0.77 per share. The ex-dividend date was Thursday, March 5th. This represents a $3.08 annualized dividend and a yield of 2.3%. Lear’s payout ratio is 37.79%.

Insider Activity at Lear

In other Lear news, SVP Alicia J. Davis sold 6,630 shares of Lear stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $132.98, for a total value of $881,657.40. Following the sale, the senior vice president owned 9,972 shares of the company’s stock, valued at approximately $1,326,076.56. The trade was a 39.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Harry Albert Kemp sold 7,000 shares of Lear stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $136.31, for a total transaction of $954,170.00. Following the completion of the sale, the senior vice president directly owned 17,423 shares in the company, valued at approximately $2,374,929.13. This represents a 28.66% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 25,264 shares of company stock worth $3,400,687. Insiders own 1.02% of the company’s stock.

Institutional Trading of Lear

Several hedge funds have recently added to or reduced their stakes in LEA. UMB Bank n.a. grew its holdings in Lear by 15.0% during the 4th quarter. UMB Bank n.a. now owns 676 shares of the auto parts company’s stock worth $77,000 after acquiring an additional 88 shares in the last quarter. Inspire Advisors LLC grew its holdings in Lear by 4.5% during the 4th quarter. Inspire Advisors LLC now owns 2,147 shares of the auto parts company’s stock worth $246,000 after acquiring an additional 92 shares in the last quarter. Allworth Financial LP grew its holdings in Lear by 62.6% during the 3rd quarter. Allworth Financial LP now owns 309 shares of the auto parts company’s stock worth $31,000 after acquiring an additional 119 shares in the last quarter. Advisors Asset Management Inc. grew its holdings in Lear by 2.1% during the 4th quarter. Advisors Asset Management Inc. now owns 5,899 shares of the auto parts company’s stock worth $676,000 after acquiring an additional 121 shares in the last quarter. Finally, Richwood Investment Advisors LLC grew its holdings in Lear by 4.9% during the 4th quarter. Richwood Investment Advisors LLC now owns 2,889 shares of the auto parts company’s stock worth $331,000 after acquiring an additional 135 shares in the last quarter. Institutional investors own 97.04% of the company’s stock.

Analysts Set New Price Targets

A number of research firms have commented on LEA. Barclays set a $140.00 price target on shares of Lear in a report on Thursday, February 5th. Royal Bank Of Canada began coverage on shares of Lear in a report on Thursday, March 12th. They issued a “sector perform” rating and a $135.00 price target for the company. UBS Group reduced their price target on shares of Lear from $145.00 to $135.00 and set a “neutral” rating for the company in a report on Tuesday, April 14th. The Goldman Sachs Group reduced their price target on shares of Lear from $129.00 to $115.00 and set a “neutral” rating for the company in a report on Tuesday, April 14th. Finally, Wall Street Zen upgraded shares of Lear from a “buy” rating to a “strong-buy” rating in a report on Friday, January 23rd. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and eleven have assigned a Hold rating to the stock. According to data from MarketBeat.com, Lear has a consensus rating of “Hold” and a consensus target price of $134.92.

Key Lear News

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Q1 EPS beat and profit jump — Lear reported adjusted EPS of $3.87, topping consensus and marking its highest adjusted EPS since 2019 (and highest GAAP EPS since 2021); management cited strong demand in Seating and E‑Systems driving a roughly 24% profit increase. Lear Corp Crushes Earnings: Seating, E-Systems Drive 24% Profit Jump
• Positive Sentiment: Company press release and outlook — Lear’s PR stated Q1 results were the highest EPS levels in years and the company reaffirmed its FY2026 financial outlook, which supports upside sentiment. Lear Reports First Quarter 2026 Results; The Highest EPS Since 2021 And The Highest Adjusted EPS Since 2019
• Positive Sentiment: Analyst and media confirmation — Multiple outlets (Zacks, MarketBeat) highlight the EPS beat and rising profits; at least one analyst set a $134.92 price target ahead of the print, adding support to the rally. Lear (LEA) Q1 Earnings Surpass Estimates
• Neutral Sentiment: Revenue roughly flat to estimates — Revenue rose 4.7% year-over-year to $5.82B but narrowly missed the consensus (~$5.84B), so top-line momentum is positive but not materially stronger than expected. Lear earnings release / transcript
• Negative Sentiment: Margins and net income context — Despite higher EPS, Lear’s reported net margin was modest (~1.9%), indicating profits are sensitive to mix, costs and lower industry vehicle output; this could cap enthusiasm if auto production weakens. Lear 1Q Profit, Revenue Rise Despite Lower Auto Output

Lear Company Profile

Lear Corporation (NYSE: LEA) is a global supplier of automotive seating and electrical distribution systems. The company designs, engineers and manufactures complete seat systems, seat components and power solutions for major vehicle manufacturers. Its electrical business delivers modules and components for battery management, infotainment, body and safety electronics, as well as advanced connectivity and electrification solutions.

The seating division develops lightweight, ergonomic seat structures, trim and mechanisms that address comfort, safety and environmental targets.