LEA LEAR CORP

Overview and Growth

LEAR CORP generated $23.26B of revenue in fiscal 2025, with net income of $436.80M and an operating cash inflow of $1.09B. The $23.26B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line contracted 0.2% from $23.31B in fiscal 2024; this top-line contraction left the company with a smaller revenue base. Diluted earnings per share were $8.15, translating the period’s attributable earnings into the amount reported for each diluted share. Diluted EPS decreased by 9.1% from $8.97 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. The revenue-to-assets relationship was 1.57x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $1.50B as gross profit before recognizing operating expenses and other items. Gross margin was 6.5%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operating income was $777.30M, the earnings remaining from reported operations after the company’s recognized operating cost structure. Operating margin measured 3.3%, showing the portion of revenue preserved after the full set of operating costs. The bottom-line result was net income of $436.80M, after the operating, financing, tax, and other items recognized for the period. Measured against reported revenue, net income produced a 1.9% margin after operating costs and the remaining recognized items. The earnings statement records $625.10M of pretax income, the profit base against which the reported tax provision can be assessed. Measured against revenue, pretax income equaled 2.7%, adding a pre-tax profitability layer between revenue and net income. Income tax expense totaled $150.00M, providing the reported tax component that separates pretax and after-tax earnings. The income-tax provision equaled 24.0% of pretax income, showing the tax burden absorbed by the year’s earnings. The relationship between net income and period-end equity was 8.4%, indicating the profitability achieved on book capital.

Liquidity and Capital Structure

At period end, the $14.84B asset base was financed through $9.64B of liabilities and $5.20B of equity. Current assets were $7.66B against $5.67B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. Current assets covered current liabilities by 1.35x, leaving a positive buffer for near-term obligations. Reported cash and equivalents were $1.03B, separating immediately recognizable cash resources from the rest of the current-asset base. The cash balance equaled 18.2% of current liabilities, showing how much near-term coverage came from cash alone. Relative to total assets, liabilities measured 65.0%, complementing the separate equity-based view of the company’s capital structure. Measured against total assets, cash and equivalents represented 7.0%, a balance-sheet composition measure rather than a liquidity forecast. The asset base changed 5.8% from $14.03B in fiscal 2024, leaving current total assets higher year over year.

Cash Flow and Earnings Quality

The company reported $1.09B of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 2.49x, comparing cash generated by operations with the bottom-line earnings result. Capital spending was $561.60M, absorbing part of the cash generated from operations before free cash flow. Capital spending absorbed 51.6% of operating cash flow, quantifying the share of cash from operations directed to investment. The combination of operating cash flow and capital spending produced $527.20M of positive free cash flow for the period. The free-cash-flow margin was 2.3%, measuring cash remaining after capital spending against revenue. Measured against total assets, free cash flow represented 3.6%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.