Lear delivered fourth‐quarter revenue of $6.0 billion, up 5% year-over-year from $5.7 billion in Q4 2024. Adjusted earnings per share reached $3.41, exceeding the prior year’s $2.94 and topping analysts’ consensus. Core operating earnings improved marginally to $259 million (4.3% of sales) versus $258 million (4.5% of sales) a year earlier. Net income was $83 million, compared with $88 million in Q4 2024, while adjusted net income rose to $179 million from $161 million. The Seating segment generated roughly 15 basis points of positive operating leverage, and E-Systems contributed approximately 120 basis points, reflecting strong program launches and commercial recoveries despite lower production on select platforms. Free cash flow totaled $281 million, down from $489 million in Q4 2024, driven by working capital investments.

For the full year, Lear reported flat revenue of $23.3 billion versus $23.3 billion in 2024. Adjusted earnings per share increased for the fifth consecutive year to $12.80, up from $12.62, while core operating earnings were $1.06 billion (4.6% of sales), compared with $1.10 billion (4.7%) in 2024. Net income declined to $437 million from $507 million a year earlier, reflecting lower volumes on non-core products partially offset by new business awards. Operating cash flow was $1.09 billion and free cash flow reached $527 million. Lear repurchased $325 million of shares and paid $165 million in dividends over the year, ending 2025 with $1.0 billion in cash and $3.0 billion in total liquidity.

Lear’s core two-year sales backlog stands at $1.325 billion, excluding wind-down of non-core E-Systems products. In Q4 alone, the company secured its largest seating conquest award ever—complete seat assembly for a major American truck program—and added roughly $1.4 billion of E-Systems business awards, the highest annual total in over a decade. For 2026, Lear assumes global vehicle production will be down 1% on a Lear sales-weighted basis. With expanded automation and AI capabilities from its Palantir-powered Fellowship program and the acquisition of StoneShield Engineering, management expects margin expansion in both segments. The company retains $775 million of share repurchase authorization to further enhance shareholder returns.