Lear (LEA)
NYSEConsumer DiscretionaryAuto - PartsSnapshot 2026-09-04
$134.68+2.77%
Close 2026-09-04 · 1-day change
NYSEConsumer DiscretionaryAuto - PartsSnapshot 2026-09-04
QuarterlyIQ Insights · LEA
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within consumer discretionary on a research-validated quality screen. As of 2026-09-04.
The screen ranks LEA against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Consumer Discretionary names rated strong grew net income 63% of the time over the next year (vs 50% for the rest of the cohort, n=5213).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Maintain and increase the midpoints and narrow ranges of full-year 2026 financial outlook across key metrics including revenue, core operating earnings, and free cash flow.
Stated as a priority in 3 of last 3 quarters. Lear maintained its 2026 financial outlook in 2026-Q1 and 2025-Q4, then raised the midpoints and narrowed ranges in 2026-Q2, with revenue guidance increasing from $23.21B-$24.01B to $23.54B-$24.01B and free cash flow guidance rising from $550M-$650M to $590M-$690M. This reflects delivering and improving on prior outlooks.
“Lear raised the midpoints of its financial outlook for the full year 2026.”
“We have maintained our financial outlook for 2026 across all metrics.”
“Provided its financial outlook for the full year 2026.”
Continue accelerating share repurchases to reduce share count while maintaining dividend payments at $0.77 per share.
Stated in 3 of last 3 quarters. Lear consistently repurchased shares each quarter, $175M in 2025-Q4, $75M in 2026-Q1, and $100M in 2026-Q2, while maintaining dividends at $0.77 per share. This shows ongoing delivery on capital return priorities with an accelerating repurchase pace.
“Repurchased $100 million of shares and paid $39 million in dividends.”
Grow core Seating and E-Systems segments through significant new and conquest awards globally, including with Audi, Leapmotor, GM, and Chinese automakers.
Stated in 2 of last 3 quarters. Management highlighted multiple new and conquest awards in Seating and E-Systems segments, including major wins with Audi, Leapmotor, GM, and Chinese automakers. These awards support growth but no specific revenue or backlog dollar amounts were disclosed this quarter, indicating ongoing progress but limited quantified delivery.
Invest in automation and digital tools and implement restructuring actions to improve margins and operational efficiency in Seating and E-Systems.
Stated in 3 of last 3 quarters. Management consistently emphasized investments in automation, digital tools, and restructuring to improve margins. While core operating earnings margins showed modest improvement in 2026-Q1 and 2026-Q2, the evidence is more qualitative with limited direct margin expansion quantification, indicating ongoing efforts with early signs of delivery.
Management continues to reaffirm its financial outlook for the full year 2026 across all metrics.
Over the trailing year it converted 1.03x of net income into operating cash flow. Historically, Consumer Discretionary names rated neutral grew net income 49% of the time over the next year (vs 49% for the rest of the cohort, n=4864).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
2 material management or governance events in the past 24 months, led by executive changes. Historically, Consumer Discretionary names rated stable grew net income 47% of the time over the next year (vs 53% for the rest of the cohort, n=1906).
Not investment advice. As of 2026-09-04.
“Repurchased $75 million of shares and paid $43 million in dividends.”
“Repurchased $175 million of shares and paid $39 million in dividends.”
“Expanded Seating leadership with new awards from Audi, Leapmotor, and GM; grew E-Systems with new awards including Chinese automakers.”
“Growing core E-Systems products with key wins including GM, SAIC, Geely, and expanding Seating with Toyota, Audi, BMW awards.”
“Opened Advanced Manufacturing Integration Center showcasing automation and digital tools.”
“Targeted investments in automation and digital tools support long-term growth and margin expansion.”
“Expanded automation and AI leadership combined with cost savings from restructuring will catalyze margin expansion.”