Lear Corporation delivered fourth-quarter revenue of $6.0 billion, a 5% increase year-over-year, driven by higher volume in both Seating and E-Systems. Adjusted earnings per share reached $3.41, topping consensus estimates of $3.25, while GAAP EPS came in at $1.58 versus $1.61 a year earlier. Adjusted net income rose to $179 million from $161 million, reflecting improved operational leverage and a lower effective tax rate. Core operating earnings held steady at $259 million, representing 4.3% of sales, compared with 4.5% in the prior-year period, despite production declines on select legacy platforms.

In the Seating segment, revenue growth was underpinned by the award of the company’s largest-ever complete seat assembly contract on a major truck program with an American OEM, as well as new program launches in China with Changan, Dongfeng and Leapmotor. Seating operating margin excluding special items widened to 6.0% of sales. E-Systems delivered 120 basis points of incremental margin, driven by the largest annual E-Systems awards backlog in over a decade—approximately $1.4 billion—including wire harness and electronics programs with BAIC, Geely, SAIC and the VW Group. Adjusted E-Systems margins improved to 5.3%.

Lear generated net cash from operations of $476 million in Q4 and free cash flow of $281 million, supporting $175 million of share repurchases and $39 million in dividend payments. Since the buyback program’s inception in 2011, the company has returned $5.9 billion to shareholders through the repurchase of 62.2 million shares, reducing share count by 59%. Year-end liquidity stood at $3.0 billion, including $1.0 billion of cash and equivalents, providing flexibility for continued capital allocation to dividends, buybacks and targeted investments in automation and AI.

Lear’s core two-year sales backlog for 2026–2027 is $1.325 billion, offering visibility into future revenue streams. For fiscal 2026, management expects global vehicle production on a Lear sales-weighted basis to decline by 1%, and has guided full-year adjusted EPS in a range that reflects continued margin expansion from restructuring actions and digital automation initiatives. The forecast assumes sustained demand from North America full-size pickups and SUVs, incremental contributions from newly awarded Chinese programs, and efficiency gains in E-Systems production.