Lear CorporationLEA
NYSE•Consumer Cyclical•Auto Parts
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.
Lear Corporation (LEA) reported trailing twelve months revenue of $23.52B as of April 2026, a 2.8% increase year-over-year. Quarterly revenue reached $5.82B, reflecting continued top-line momentum.
Lear Corporation generated $528.40M in TTM net income, with quarterly EBITDA of $404.90M. The operating margin expanded from 3.3% to 4.4%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (4.4%) and net margin (3.0%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 1.5% a year ago, signaling stronger bottom-line efficiency.
LEA trades at a P/E of 13.3x (below the broader market average) and a P/S of 0.3x. The price-to-book ratio of 1.3x reflects a moderate premium to book value.
The company reported negative free cash flow of $-26.50M, indicating cash consumption over the period. The balance sheet shows $15.45B in total assets with $2.71B in long-term debt against $5.28B in stockholders equity for a debt-to-equity ratio of 0.5. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~3.7% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE is positive at ~9.9% on average, adequate but below the threshold typically associated with wide moats.
6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~3.6% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.5 — conservative capital structure with low financial risk.
Revenue has softened, declining in 3 quarters. Monitor for further erosion.
FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.
Shares decreased 10.3% — net buybacks are reducing shares outstanding and boosting per-share value.