Lear Reports Record Operating Performance in 2025, Unveils 2026 Outlook
Lear Corporation closed 2025 with record operating performance and its fifth consecutive year of adjusted earnings growth, despite lower production in key markets.
$6.0 billion
$12.80
$175 million
What Happened
Lear Corporation reported fourth quarter 2025 sales of $6.0 billion, up 5% year-over-year, and full year sales of $23.3 billion, flat compared to 2024. Adjusted earnings per share reached $3.41 in Q4 and $12.80 for the full year, both increases from the prior year. The company achieved record operating performance despite lower production on key platforms.
$3.41per share
Up from $2.94 in Q4 2024, reflecting lower share count and effective tax rate.
“Despite lower volume in our two key markets, Lear finished 2025 with significant momentum, delivering record operating performance and our fifth consecutive year of adjusted earnings per share growth while securing approximately $1.4 billion of E-Systems business awards and the largest seating conquest award in our history, positioning us for sustained future growth.”
$175 million
Lear repurchased 1.63 million shares in Q4, leaving $775 million remaining under authorization.
For 2026, Lear expects global industry production to be 1% lower on a sales-weighted basis and provided a financial outlook that excludes future tariff impacts. The company's 2026-2027 core sales backlog stands at $1.325 billion, which is expected to drive revenue growth and diversification.
Why this matters
The results show how a major automotive supplier is navigating market headwinds through new business wins and cost savings, while returning cash to shareholders via buybacks and dividends.
Terms in This Story
- Adjusted earnings per share
- A non-GAAP measure that excludes restructuring costs and other special items to show a company's core profitability.
- Core operating earnings
- A non-GAAP measure of pretax income before equity income, interest, other expense, restructuring costs, and other special items.
- Free cash flow
- Net cash from operating activities minus capital expenditures, indicating cash available for debt repayment or investments.
- Sales backlog
- Anticipated future revenue from formally awarded new programs, excluding lost or discontinued programs.
Summarised from the linked release; details can be imperfect — always verify against the original source.