By Adriano Marchese

Lear profit slid in the fourth quarter, despite higher auto production stemming primarily from China which boosted sales.

The autoparts maker posted on Wednesday a decrease in net income to $82.7 million, or $1.58 a share, compared with $88.1 million, or $1.61 a share, in the same quarter a year ago.

Selling, general and administrative expenses were $182.5 million, up from $166.6 million.

Adjusted earnings were $3.41 a share. According to FactSet, analysts were expecting $2.81 a share.

Net sales rose to $5.99 billion from $5.71 billion, topping expectations of a more modest rise of $5.8 billion. The company noted that when excluding the effects of commodity prices, foreign exchange, tariff recovers and other one-offs, sales were up 2%.

In the quarter, global vehicle production was up 1% compared to a year ago, thanks largely to a 2% growth in China, while North America was flat, and Europe fell 2%.

Looking ahead to 2026, the company expects net sales of between $23.21 billion and $24.01 billion, compared with $23.26 billion in 2025, and analyst expectations of $23.07 billion.

Lear also expects core operating earnings of $1.03 billion to $1.20 billion.

Adjusted earnings before interest, taxes, depreciation and amortization is forecasted to be $1.65 billion to $1.82 billion.

Free cash flow is expected to be between $550 million and $650 million in the year.

Chief Executive Ray Scott said Lear's expanded automation and artificial intelligence position, combined with the savings from its restructuring initiatives, will be catalysts for margin expansion across its two segments, E-Systems and Seating.

Scott also said that its strong cash generation outlook and the strength of its balance sheet will allow the company to deliver higher returns to investors through dividends and share repurchases.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

February 04, 2026 07:01 ET (12:01 GMT)

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