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SEC filingLear Corporation reported solid financial results for the fiscal year ended December 31, 2025, with net sales reaching $23.26 billion. The company demonstrated operational resilience, generating a consolidated net income of $527.1 million, with $436.8 million attributable to Lear shareholders. Diluted earnings per share stood at $8.00. Gross profit totaled $1.51 billion, resulting in a gross margin of approximately 6.5%. The company maintained strong cash generation, with net cash provided by operating activities of $1.09 billion. After capital expenditures of $561.6 million, free cash flow remained robust. The balance sheet reflects total assets of $14.84 billion against total liabilities of $9.65 billion, culminating in total equity of $5.20 billion. Lear actively returned capital to shareholders, repurchasing $325.2 million of common stock and paying $164.8 million in dividends. The company ended the period with a strong liquidity position, holding $1.03 billion in cash and cash equivalents.
Lear Corporation delivered solid financial performance for the fiscal year ending December 31, 2025. The company reported total net sales of $23.26 billion. Cost of sales was $21.75 billion, resulting in a gross profit of $1.51 billion. Selling, general and administrative expenses totaled $707.6 million. After accounting for interest expense of $100.8 million and other expenses, consolidated net income reached $527.1 million. Net income attributable to Lear Corporation stood at $436.8 million. Diluted earnings per share were reported at $8.00, based on 53.6 million average diluted shares outstanding. The effective tax rate was approximately 24% ($150.0M provision on $625.1M pre-tax income).
The company reported consolidated net sales of $23.26 billion for the fiscal year. While specific segment breakdowns or geographic revenue splits were not detailed in the provided financial data, the top-line figure reflects the company's operational scale in the automotive components industry. The cost of sales of $21.75 billion indicates the high cost structure typical of the automotive supply sector. No specific growth drivers or product line contributions were disclosed in the provided data sections.
Lear Corporation's gross margin for the period was approximately 6.5%, calculated from gross profit of $1.51 billion on $23.26 billion sales. Operating income, derived as gross profit less SG&A ($707.6M) and amortization ($19.5M), was approximately $782.9 million, yielding an operating margin of roughly 3.4%. The company managed interest expenses effectively at $100.8 million. Equity in net income of affiliates contributed $52.0 million to profitability, bolstering the bottom line.
The company demonstrated strong cash generation capabilities. Net cash provided by operating activities was $1.09 billion. Capital expenditures (additions to property, plant and equipment) totaled $561.6 million, implying free cash flow of approximately $528.4 million. The balance sheet remains healthy with total assets of $14.84 billion and total equity of $5.20 billion. Total debt (short-term borrowings, current portion of long-term debt, and long-term debt) amounted to approximately $2.74 billion. The company held $1.03 billion in cash and cash equivalents.
The provided financial data does not contain specific forward-looking statements, management guidance, or strategic priorities for the upcoming fiscal year. Investors should refer to the complete 10-K filing's Management's Discussion and Analysis (MD&A) section for detailed insights into future outlook, risk factors, and strategic initiatives. The company's capital allocation strategy focused on shareholder returns, with $325.2 million in share repurchases and $164.8 million in dividends paid.