# LEAR CORP (LEA)

Informational only - not investment advice.

CIK: 0000842162
SIC: 3714 Motor Vehicle Parts & Accessories
SIC breadcrumb: [Manufacturing](/division/D/) > [Transportation Equipment](/major-group/37/) > [SIC 3714 Motor Vehicle Parts & Accessories](/industry/3714/)
Latest 10-K filed: 2026-02-13
SEC page: https://www.sec.gov/edgar/browse/?CIK=842162
Filing source: https://www.sec.gov/Archives/edgar/data/842162/000084216226000011/lear-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-13 · accession 0000842162-26-000011 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000842162.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 23,259,100,000 USD | 2025 | verified |
| Net income | 436,800,000 USD | 2025 | verified |
| Assets | 14,843,100,000 USD | 2025 | verified |
| Free cash flow | 527,200,000 USD | 2025 | computed |
| Net margin | 1.88% | 2025 | computed |
| Operating margin | 3.34% | 2025 | computed |
| Revenue YoY | -0.20% | 2025 | computed |
| ROE | 8.68% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | LEA | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 1.9% | 3.3% | 32 | 23 |
| Operating margin | 3.3% | 7.1% | 16 | 20 |
| Revenue growth | -0.2% | 3.3% | 22 | 24 |
| FCF margin | 2.3% | 5.4% | 23 | 23 |
| ROE | 8.7% | 8.6% | 52 | 22 |
| ROA | 2.9% | 3.2% | 48 | 24 |
| Liabilities / equity | 1.95 | 1.60 | 62 | 22 |
| Current ratio | 1.35 | 2.01 | 22 | 24 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 3714 Motor Vehicle Parts & Accessories, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 23259100000 | USD | 2025 | 2026-02-13 |
| Net income | 436800000 | USD | 2025 | 2026-02-13 |
| Assets | 14843100000 | USD | 2025 | 2026-02-13 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000842162.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 18,557,600,000 | 20,467,000,000 | 21,148,500,000 | 19,810,300,000 | 17,045,500,000 | 19,263,100,000 | 20,891,500,000 | 23,466,900,000 | 23,306,000,000 | 23,259,100,000 |
| Net income | 975,100,000 | 1,313,400,000 | 1,149,800,000 | 753,600,000 | 158,500,000 | 373,900,000 | 327,700,000 | 572,500,000 | 506,600,000 | 436,800,000 |
| Operating income | 1,461,400,000 | 1,608,300,000 | 1,654,100,000 | 1,070,200,000 | 454,100,000 | 675,400,000 | 654,300,000 | 933,200,000 | 887,700,000 | 777,300,000 |
| Gross profit |  |  |  |  |  |  | 1,409,900,000 | 1,710,400,000 | 1,639,300,000 | 1,504,400,000 |
| Diluted EPS | 13.33 | 18.59 | 17.22 | 12.75 | 2.62 | 6.19 | 5.47 | 9.68 | 8.97 | 8.15 |
| Operating cash flow | 1,619,300,000 | 1,783,100,000 | 1,779,800,000 | 1,284,300,000 | 663,100,000 | 670,100,000 | 1,021,400,000 | 1,249,300,000 | 1,120,100,000 | 1,088,800,000 |
| Capital expenditures | 528,300,000 | 594,500,000 | 677,000,000 | 603,900,000 | 452,300,000 | 585,100,000 | 638,200,000 | 626,500,000 | 558,700,000 | 561,600,000 |
| Dividends paid | 88,800,000 | 137,700,000 | 186,300,000 | 186,300,000 | 67,300,000 | 106,700,000 | 185,500,000 | 181,900,000 | 173,700,000 | 164,800,000 |
| Share buybacks | 658,800,000 | 450,500,000 | 704,900,000 | 384,700,000 | 70,000,000 | 100,300,000 | 100,300,000 | 296,500,000 | 416,700,000 | 325,200,000 |
| Assets | 9,900,600,000 | 11,945,900,000 | 11,600,700,000 | 12,680,700,000 | 13,198,600,000 | 13,352,400,000 | 13,763,000,000 | 14,695,500,000 | 14,027,500,000 | 14,843,100,000 |
| Stockholders' equity | 3,057,200,000 | 4,150,500,000 | 4,200,700,000 | 4,349,700,000 | 4,467,300,000 | 4,643,400,000 | 4,678,800,000 | 4,918,800,000 | 4,451,700,000 | 5,035,100,000 |
| Cash and cash equivalents | 1,271,600,000 | 1,500,400,000 | 1,493,200,000 | 1,487,700,000 | 1,306,700,000 | 1,318,300,000 | 1,114,900,000 | 1,196,300,000 | 1,052,900,000 | 1,033,000,000 |
| Free cash flow | 1,091,000,000 | 1,188,600,000 | 1,102,800,000 | 680,400,000 | 210,800,000 | 85,000,000 | 383,200,000 | 622,800,000 | 561,400,000 | 527,200,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 5.25% | 6.42% | 5.44% | 3.80% | 0.93% | 1.94% | 1.57% | 2.44% | 2.17% | 1.88% |
| Operating margin | 7.87% | 7.86% | 7.82% | 5.40% | 2.66% | 3.51% | 3.13% | 3.98% | 3.81% | 3.34% |
| Return on equity | 31.90% | 31.64% | 27.37% | 17.33% | 3.55% | 8.05% | 7.00% | 11.64% | 11.38% | 8.68% |
| Return on assets | 9.85% | 10.99% | 9.91% | 5.94% | 1.20% | 2.80% | 2.38% | 3.90% | 3.61% | 2.94% |
| Liabilities / equity | 2.24 | 1.88 | 1.76 | 1.92 | 1.95 | 1.88 | 1.94 | 1.99 | 2.15 | 1.95 |
| Current ratio | 1.35 | 1.36 | 1.40 | 1.37 | 1.33 | 1.42 | 1.35 | 1.35 | 1.32 | 1.35 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/LEA/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-31. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000842162.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-10-01 |  |  | 1.54 | reported discrete quarter |
| 2023-Q1 | 2023-04-01 |  |  | 2.41 | reported discrete quarter |
| 2023-Q2 | 2023-07-01 |  |  | 2.84 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 5,781,000,000 | 132,900,000 | 2.25 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 5,841,200,000 | 127,300,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-30 | 5,994,600,000 | 109,600,000 | 1.90 | reported discrete quarter |
| 2024-Q2 | 2024-06-29 | 6,012,400,000 | 173,100,000 | 3.02 | reported discrete quarter |
| 2024-Q3 | 2024-09-28 | 5,584,400,000 | 135,800,000 | 2.41 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 5,714,600,000 | 88,100,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-29 | 5,560,300,000 | 80,700,000 | 1.49 | reported discrete quarter |
| 2025-Q2 | 2025-06-28 | 6,030,400,000 | 165,200,000 | 3.06 | reported discrete quarter |
| 2025-Q3 | 2025-09-27 | 5,679,800,000 | 108,200,000 | 2.02 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 5,988,600,000 | 82,700,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-04-04 | 5,822,800,000 | 172,300,000 | 3.34 | reported discrete quarter |
| 2026-Q2 | 2026-07-04 | 6,209,400,000 | 192,800,000 | 3.79 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from LEA's latest 10-K: [/company/LEA/business/](/company/LEA/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from LEA's latest 10-K: [/company/LEA/risk-factors/](/company/LEA/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/842162/000084216226000068/lear-20260704.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-31
Report date: 2026-07-04

ITEM 2 — MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

EXECUTIVE OVERVIEW

Lear Corporation is a global automotive technology leader in Seating and E-Systems, enabling superior in-vehicle experiences for consumers around the world. We supply complete seat systems, key seat components, complete electrical distribution and connection systems, high-voltage power distribution products, including battery disconnect units ("BDUs"), and low-voltage power distribution products and electronic controllers to all of the world's major automotive manufacturers.

Lear is built on a strong foundation and culture of innovation, operational excellence, and engineering and program management capabilities. We use our product and process design and technological expertise, as well as our global reach and competitive manufacturing footprint, to achieve our financial goals and objectives. These financial goals and objectives include continuing to deliver profitable growth while balancing risks and returns, investing in product and process innovations to drive business growth and profitability, maintaining a strong balance sheet with investment grade credit metrics, and generating strong cash flow and returning excess cash to shareholders. Further, we have aligned our strategy with key trends affecting our business. At Lear, we are Making every drive betterTM by providing technology for safer, smarter and more comfortable journeys, while adhering to our values — Be Inclusive. Be Inventive. Get Results the Right Way.

Our business is organized under two reporting segments: Seating and E-Systems. Each of these segments has a varied product and technology portfolio across a number of component categories. Further, we continuously evaluate this portfolio, aligning it with industry trends while balancing risk-adjusted returns, which allows us to offer value-added solutions to our customers.

Our Seating business consists of the design, development, engineering and manufacture of complete seat systems and key seat components. Our capabilities in operations and supply chain management enable synchronized assembly and just-in-time delivery of complex complete seat systems at high volumes to our customers. As the most vertically integrated global seat supplier, our key seat component product offerings include seat trim covers; surface materials such as leather and fabric; seat mechanisms; seat cushioning; headrests; and thermal comfort systems such as seat heating, ventilation, active cooling, pneumatic lumbar and massage products. All of these products are compatible with traditional internal combustion engine ("ICE") architectures and electrified powertrains, including the full range of hybrid, plug-in hybrid and battery electric architectures. Our thermal comfort systems are facilitated by our seat system, component and integration capabilities, together with our competencies in electronics, sensors, software and algorithms.

Our E-Systems business consists of the design, development, engineering and manufacture of complete electrical distribution and connection systems; high-voltage power distribution products, including BDUs; and low-voltage power distribution products and electronic controllers. These capabilities enable us to provide our customers with customizable solutions with optimized designs at competitive costs for both low-voltage and high-voltage vehicle architectures.

•Electrical distribution and connection systems utilize low-voltage and high-voltage wire and high-speed data cables to connect networks' electrical signals and manage electrical power within the vehicle for all types of powertrains – from traditional ICE architectures to the full range of electrified powertrains that require management of higher voltage and power. Key components of our electrical distribution and connection systems portfolio include wire harnesses, terminals and connectors, high-voltage battery connection systems and engineered components. High-voltage battery connection systems include intercell connect boards, bus bars and main battery interface connection systems.

•High-voltage power distribution products control the flow and distribution of high-voltage power throughout electric and hybrid vehicles and include BDUs, which control all electrical energy flowing into and out of high-voltage batteries in electrified vehicles.

•Low-voltage power distribution products and electronic controllers facilitate signal, data and/or power management within the vehicle and include the associated software required to facilitate these functions. Key components of this portfolio include zonal controllers, body domain control modules, and smart and passive power distribution modules. Our software offerings include embedded control, cybersecurity software and software to control hardware devices. Our customers traditionally have sourced our electronic hardware together with the software that we integrate and embed in it.

We serve all of the world's major automotive manufacturers through both our Seating and E-Systems businesses, and we have automotive content on more than 500 vehicle nameplates worldwide as of December 31, 2025. It is common for us to have both seating and electrical and/or electronic content on the same vehicle platform.

Our businesses benefit globally from leveraging common operating standards and disciplines, including world-class product development and manufacturing processes, as well as common customer support and regional infrastructures, all of which

36

Table of Contents

contribute to our reputation for operational excellence. Our core capabilities are shared across component categories and include high-precision manufacturing and assembly with short lead times, complex, global supply chain management, global engineering and program management, the agility to establish and/or transfer production between facilities, and a unique, customer-focused culture. In select instances, we are able to manufacture both Seating and E-Systems components in the same facility. Our businesses also utilize proprietary, industry-specific processes and standards, leverage common low-cost engineering centers and share centralized operating support functions. These functions include logistics, as well as all major administrative functions, such as corporate finance, executive administration, health and safety, human resources, information technology and legal.

We continue to build on our reputation for operational excellence through organic and inorganic investments in automation and other advanced manufacturing technologies and the digital transformation of both our operations and administrative functions. These investments and transformation involve the integration of new technologies, such as artificial intelligence ("AI"), machine learning and advanced automation, into production facilities and business operations. These technologies enable smart and automated machines and smart factories to communicate, analyze and optimize products and processes, resulting in higher efficiency, quality and responsiveness to customers.

IDEA by LearTM - Innovative. Digital. Engineered. Automated. - reflects our commitment to continue to strengthen our competitive position in both of our business segments and to enhance the efficiency of our administrative functions. IDEA by LearTM supports our strategy to drive growth and improve profitability through the development of innovative products and the utilization of advanced technologies and process automation that increase efficiency and extend our leadership position in operational excellence. We are leveraging our internal capabilities through strategic partnerships (e.g., Palantir Technologies, Inc.) and acquisitions to rapidly develop and deploy automation and AI solutions. Our strategic acquisitions of ASI Automation, InTouch Automation, StoneShield Engineering, Thagora Technology SRL and WIP Industrial Automation are further enhancing our automation system integration expertise. Our advanced manufacturing integration center in Rochester Hills, Michigan showcases our industry-leading capabilities in automation and digital tools, including fully automated ComfortFlex by LearTM, ComfortMax Seat by LearTM and FlexAir® assembly lines, as well as automated end-of-line testing, sewing and wire taping capabilities. These strategic initiatives further advance our leadership in automotive technology and enable greater efficiency, superior quality and faster execution.

Through our products, processes, technology and strategic initiatives, we are well-positioned to capitalize on business growth opportunities. We are focused on profitably growing our businesses and have implemented a strategy designed to deliver industry-leading, long-term financial returns. This strategy is based on the following four pillars designed to drive growth and profitability in both of our business segments:

•Extend our market leadership position in Seating through differentiated product offerings and industry-leading vertical integration capabilities;

•Expand margins in E-Systems through a focused portfolio that leverages our strong operating capabilities and customer relationships;

•Build on our reputation for operational excellence through organic and inorganic investments, including partnerships, in automation and digital technologies; and

•Prioritize our employee and sustainability initiatives that drive business growth, cost reductions and improved workforce retention.

For further information related to our strategy, see Item 1, "Business," in our Annual Report on Form 10-K for the year ended December 31, 2025.

Industry Overview

We supply all vehicle segments of the automotive light vehicle original equipment market in every major automotive producing region in the world. Our sales are driven by the number of vehicles produced by the automotive manufacturers and our content per vehicle.

Since 2020, the global economy, as well as the automotive industry, have been influenced directly and indirectly by macroeconomic events resulting in unfavorable conditions, including the imposition of or increases in tariffs, shortages of semiconductor chips and other components, elevated inflation levels on commodities and labor, higher interest rates and energy shortages in certain markets. Certain of these factors, among others, continue to impact consumer demand. Our strategy to mitigate these impacts encompasses our comprehensive cost management process, including cost technology optimization, actions to further align our manufacturing capacity to the current industry production environment and investments in automation and other advanced manufacturing technologies, as well as commercial recovery mechanisms. This is designed to allow us to enhance operational efficiencies, improve the utilization of existing facilities and equipment to reduce future expenditures, and streamline administrative functions.

37

Table of Contents

Due to the interconnectedness of the global economy, policy changes in one area of the world can have an immediate and material impact on markets around the world. Since his inauguration in January 2025, U.S. President Donald J. Trump has announced various tariffs that impact industries around the world, including the automotive industry. As of the date of this Report, many of the tariffs announced, implemented or threatened by the current U.S. administration apply to (a) the countries in which we do business or from which we purchase, either directly or indirectly, materials or components, including Mexico, Canada and China, and (b) the materials or components that we purchase, either directly or indirectly, or produce, including steel, aluminum and automobile parts, among others, and therefore could adversely impact our business by increasing our operating costs, requiring us to incur costs to transition to alternative suppliers if o

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/842162/000084216226000011/lear-20251231.htm
Complete FY 2025 MD&A: /company/LEA/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-13
Report date: 2025-12-31

ITEM 7 – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Executive Overview

Lear Corporation is a global automotive technology leader in Seating and E-Systems, enabling superior in-vehicle experiences for consumers around the world. We supply complete seat systems, key seat components, complete electrical distribution and connection systems, high-voltage power distribution products, including battery disconnect units ("BDUs"), and low-voltage power distribution products and electronic controllers to all of the world's major automotive manufacturers.

Lear is built on a foundation and strong culture of innovation, operational excellence, and engineering and program management capabilities. We use our product and process design and technological expertise, as well as our global reach and competitive manufacturing footprint, to achieve our financial goals and objectives. These include continuing to deliver profitable growth while balancing risks and returns, investing in product and process innovations to drive business growth and profitability, maintaining a strong balance sheet with investment grade credit metrics, and generating strong cash flow and returning excess cash to shareholders. Further, we have aligned our strategy with key trends affecting our business. At Lear, we are Making every drive betterTM by providing technology for safer, smarter and more comfortable journeys, while adhering to our values — Be Inclusive. Be Inventive. Get Results the Right Way.

Our business is organized under two reporting segments: Seating and E-Systems. Each of these segments has a varied product and technology portfolio across a number of component categories. Further, we continuously evaluate this portfolio, aligning it with industry trends while balancing risk-adjusted returns, which allows us to offer value-added solutions to our customers.

Our Seating business consists of the design, development, engineering and manufacture of complete seat systems and key seat components. Our capabilities in operations and supply chain management enable synchronized assembly and just-in-time delivery of complex complete seat systems at high volumes to our customers. As the most vertically integrated global seat supplier, our key seat component product offerings include seat trim covers; surface materials such as leather and fabric; seat mechanisms; seat cushioning; headrests; and thermal comfort systems such as seat heating, ventilation, active cooling, pneumatic lumbar and massage products. All of these products are compatible with traditional internal combustion engine ("ICE") architectures and electrified powertrains, including the full range of hybrid, plug-in hybrid and battery electric architectures. Our thermal comfort systems are facilitated by our seat system, component and integration capabilities, together with our competencies in electronics, sensors, software and algorithms.

Our E-Systems business consists of the design, development, engineering and manufacture of complete electrical distribution and connection systems; high-voltage power distribution products, including BDUs; and low-voltage power distribution products and electronic controllers. These capabilities enable us to provide our customers with customizable solutions with optimized designs at competitive costs for both low-voltage and high-voltage vehicle architectures.

•Electrical distribution and connection systems utilize low-voltage and high-voltage wire and high-speed data cables to connect networks' electrical signals and manage electrical power within the vehicle for all types of powertrains – from traditional ICE architectures to the full range of electrified powertrains that require management of higher voltage and power. Key components of our electrical distribution and connection systems portfolio include wire harnesses, terminals and connectors, high-voltage battery connection systems and engineered components. High-voltage battery connection systems include intercell connect boards, bus bars and main battery interface connection systems.

•High-voltage power distribution products control the flow and distribution of high-voltage power throughout electric and hybrid vehicles and include BDUs, which control all electrical energy flowing into and out of high-voltage batteries in electrified vehicles.

•Low-voltage power distribution products and electronic controllers facilitate signal, data and/or power management within the vehicle and include the associated software required to facilitate these functions. Key components of this portfolio include zonal controllers, body domain control modules, and smart and passive power distribution modules. Our software offerings include embedded control, cybersecurity software and software to control hardware devices. Our customers traditionally have sourced our electronic hardware together with the software that we integrate and embed in it.

We serve all of the world's major automotive manufacturers through both our Seating and E-Systems businesses, and we have automotive content on more than 500 vehicle nameplates worldwide. It is common for us to have both seating and electrical and/or electronic content on the same vehicle platform.

Our businesses benefit globally from leveraging common operating standards and disciplines, including world-class product development and manufacturing processes, as well as common customer support and regional infrastructures, all of which contribute to our reputation for operational excellence. Our core capabilities are shared across component categories and include high-precision manufacturing and assembly with short lead times, complex, global supply chain management, global

37

Table of Contents

engineering and program management, the agility to establish and/or transfer production between facilities, and a unique, customer-focused culture. In select instances, we are able to manufacture both Seating and E-Systems components in the same facility. Our businesses also utilize proprietary, industry-specific processes and standards, leverage common low-cost engineering centers and share centralized operating support functions. These functions include logistics, as well as all major administrative functions, such as corporate finance, executive administration, health and safety, human resources, information technology and legal.

We continue to build on our reputation for operational excellence through organic and inorganic investments in automation and other advanced manufacturing technologies and the digital transformation of both our operations and administrative functions. These investments and transformation involve the integration of new technologies, such as artificial intelligence ("AI"), machine learning and advanced automation, into production facilities and business operations. These technologies enable smart and automated machines and smart factories to communicate, analyze and optimize products and processes, resulting in higher efficiency, quality and responsiveness to customers.

IDEA by LearTM - Innovative. Digital. Engineered. Automated. - reflects our commitment to continue to strengthen our competitive position in both of our business segments and to enhance the efficiency of our administrative functions. IDEA by LearTM supports our strategy to drive growth and improve profitability through the development of innovative products and the utilization of advanced technologies and process automation that increase efficiency and extend our leadership position in operational excellence. We are leveraging our internal capabilities through strategic partnerships (e.g., Palantir Technologies, Inc. ("Palantir")) and acquisitions to rapidly develop and deploy automation and AI solutions. Our strategic acquisitions of ASI Automation, InTouch Automation, StoneShield Engineering, Thagora Technology SRL and WIP Industrial Automation are further enhancing our automation system integration expertise. Our new facility in Rochester Hills, Michigan is an industry first site, capable of fully automated manufacturing of ComfortFlex by LearTM and ComfortMax Seat by LearTM seating systems. These strategic initiatives further advance our leadership in automotive technology and enable greater efficiency, superior quality and faster execution.

Through our products, processes, technology and strategic initiatives, we are well-positioned to capitalize on business growth opportunities. We are focused on profitably growing our businesses and have implemented a strategy designed to deliver industry-leading, long-term financial returns. This strategy is based on the following four pillars designed to drive growth and profitability in both of our business segments:

•Extend our market leadership position in Seating with priceable features, including modularity and thermal comfort systems;

•Expand margins in E-Systems through a focused portfolio that leverages our strong operating capabilities and customer relationships;

•Build on our reputation for operational excellence through organic and inorganic investments, including partnerships, in automation and digital technologies; and

•Prioritize our employee and sustainability initiatives that drive business growth, cost reductions and improved workforce retention.

For further information related to our strategy, see Part 1 — Item 1, "Business — Industry" and "— Strategy," included in this Report.

Industry Overview

We supply all vehicle segments of the automotive light vehicle original equipment market in every major automotive producing region in the world. Our sales are driven by the number of vehicles produced by the automotive manufacturers and our content per vehicle.

Since 2020, the global economy, as well as the automotive industry, have been influenced directly and indirectly by macroeconomic events resulting in unfavorable conditions, including increases in tariffs, a customer cybersecurity incident, shortages of semiconductor chips and other components, elevated inflation levels on commodities and labor, higher interest rates, and labor and energy shortages in certain markets. Certain of these factors, among others, continue to impact consumer demand. Our strategy to mitigate these impacts encompasses our comprehensive cost management process, including cost technology optimization, actions to further align our manufacturing capacity to the current industry production environment and investments in automation and other advanced manufacturing technologies, as well as commercial recovery mechanisms. This will allow us to enhance operational efficiencies, improve the utilization of existing facilities and equipment to reduce future expenditures, and streamline administrative functions.

38

Table of Contents

Due to the interconnectedness of the global economy, policy changes in one area of the world can have an immediate and material impact on markets around the world. Since his inauguration in January 2025, U.S. President Donald J. Trump has announced various tariffs that impact industries around the world, including the automotive industry. As of the date of this Report, many of the tariffs announced, implemented or threatened by the current U.S. administration apply to (a) the countries in which we do business or from which we purchase, either directly or indirectly, materials or components, including China, Mexico and Canada, and (b) the materials or components that we purchase, either directly or indirectly, or produce, including steel, aluminum and automobile parts, among others, and therefore could adversely impact our business by increasing our operating costs, requiring us to incur significant costs to transition to alternative suppliers if our mitigation efforts are unsuccessful, or negatively impacting our customers' production. In addition to tariffs, the U.S. and foreign governments have implemented sanctions, export controls and o

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/LEA/mda/fy2025/
All MD&A years: /company/LEA/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/LEA/mda/fy2024/): filed 2025-02-14; accession 0000842162-25-000010 (https://www.sec.gov/Archives/edgar/data/842162/000084216225000010/lear-20241231.htm)
- [FY 2023 MD&A](/company/LEA/mda/fy2023/): filed 2024-02-08; accession 0000842162-24-000008 (https://www.sec.gov/Archives/edgar/data/842162/000084216224000008/lear-20231231.htm)
- [FY 2022 MD&A](/company/LEA/mda/fy2022/): filed 2023-02-09; accession 0000842162-23-000011 (https://www.sec.gov/Archives/edgar/data/842162/000084216223000011/lear-20221231.htm)
- [FY 2021 MD&A](/company/LEA/mda/fy2021/): filed 2022-02-10; accession 0000842162-22-000009 (https://www.sec.gov/Archives/edgar/data/842162/000084216222000009/lear-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3714 Motor Vehicle Parts & Accessories) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/LEA.md · JSON record: /company/LEA.json · verified financials: /company/LEA/financials.json / /company/LEA/financials.csv · machine TOC for the whole site: /llms.txt