Lear(US:LEA)2026-02-04 12:06Financial Performance - Delivered revenue of $6.0 billion in Q4 2025, a 5% increase from $5.7 billion in Q4 2024[3] - Net income for Q4 2025 was $83 million, with adjusted net income at $179 million, compared to $88 million and $161 million in Q4 2024, respectively[10] - Full year 2025 revenue was $23.3 billion, flat compared to 2024, with adjusted earnings per share increasing for the fifth consecutive year to $12.80[7][13] - Net sales for Q4 2025 reached $5,988.6 million, an increase of 4.8% compared to $5,714.6 million in Q4 2024[32] - Consolidated net income attributable to Lear for Q4 2025 was $82.7 million, down from $88.1 million in Q4 2024, representing a decrease of 6.1%[32] - Total net sales for Lear Corporation in 2025 were $23,259.1 million, a slight decrease of 0.2% from $23,306.0 million in 2024[39] - Net income attributable to Lear for 2025 was $436.8 million, a decline of 13.8% compared to $506.6 million in 2024[41] - Adjusted net income attributable to Lear for 2025 was $686.1 million, slightly down from $712.8 million in 2024, representing a decrease of 3.0%[41] Cash Flow and Share Repurchase - Repurchased $175 million of shares in Q4 2025, with a remaining share repurchase authorization of approximately $775 million[14] - Free cash flow for Q4 2025 was $281.1 million, a decline of 42.5% from $488.7 million in Q4 2024[37] - Free cash flow for 2025 was $527.2 million, down from $561.4 million in 2024, reflecting a decrease of 6.1%[39] - Operating cash flow for 2026 is expected to be between $1.21 billion and $1.31 billion, with free cash flow projected at $550 million to $650 million[18] Operating Performance - Achieved core operating earnings of $1,062 million for the full year 2025, representing 4.6% of sales, down from 4.7% in 2024[12] - The company reported a core operating earnings of $258.6 million for Q4 2025, compared to $257.7 million in Q4 2024, showing a marginal increase[37] - Core operating earnings for 2025 were $1,061.9 million, a decrease of 3.1% from $1,096.1 million in 2024[39] Sales Backlog and Future Outlook - Secured approximately $1.4 billion in E-Systems business awards, the largest annual total in over a decade[7] - The consolidated two-year 2026-2027 core sales backlog is $1.325 billion, expected to drive continued revenue growth[16] - 2026 financial outlook projects net sales between $23.21 billion and $24.01 billion, with core operating earnings estimated at $1.03 billion to $1.20 billion[18] Segment Performance - Seating segment net sales for 2025 reached $17,283.0 million, a marginal increase from $17,222.1 million in 2024[46] - E-Systems segment net sales for 2025 were $5,976.1 million, down from $6,083.9 million in 2024, indicating a decrease of 1.8%[46] Assets and Liabilities - Total assets increased to $14,843.1 million in 2025 from $14,027.5 million in 2024, reflecting a growth of 5.8%[36] - Total liabilities and equity increased to $14,843.1 million in 2025 from $14,027.5 million in 2024, marking a rise of 5.8%[36] Cybersecurity Impact - The estimated impact of the JLR cyberattack resulted in a sales loss of $217 million and a core operating earnings loss of $54 million[39] Earnings Per Share - The diluted net income per share attributable to Lear for Q4 2025 was $1.58, slightly down from $1.61 in Q4 2024[32] - Diluted net income per share for 2025 was $8.15, down from $8.97 in 2024, reflecting a decrease of 9.1%[41] - Adjusted earnings per share for 2025 were $12.80, slightly up from $12.62 in 2024, marking an increase of 1.4%[41] Digital and AI Initiatives - Completed the first cohort of the Lear Fellowship program with Palantir to enhance digital and AI capabilities[3]