LEAMEDIUM SIGNALFINANCIAL10-K

LEA shows declining profitability with net income down 13.8% and operating income down 12.4%, while increasing debt load by 18.7% despite maintaining operational expansion.

The combination of falling profitability and rising debt suggests margin pressure and increased financial leverage during a period of business expansion. The shift from "restructuring" to "evaluating" manufacturing footprint language indicates a more cautious approach to cost optimization, which may signal challenges in maintaining operational efficiency.

Comparing 2026-02-13 vs 2025-02-14View on EDGAR →
FINANCIAL ANALYSIS

LEA's financial performance deteriorated with both net income (-13.8%) and operating income (-12.4%) declining significantly, while total debt increased substantially (+18.7%) to $2.3B. Despite the profitability headwinds, stockholders' equity grew 13.1% to $5.0B and the company reduced share buybacks by 22% to $325.2M, suggesting management is prioritizing balance sheet strength over shareholder returns. The overall picture indicates a company facing operational challenges and margin pressure while taking on additional debt, though maintaining a solid equity base.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
-22%
$416.7M→$325.2M

Buyback activity reduced 22% — capital being redeployed elsewhere or cash conservation underway.

Total Debt
Balance Sheet
+18.7%
$2.0B→$2.3B

Debt rose 18.7% — additional borrowing for investment or operations; monitor coverage ratios.

Net Income
P&L
-13.8%
$506.6M→$436.8M

Net income declined 13.8% — review whether driven by operations, interest costs, or non-recurring items.

Stockholders Equity
Balance Sheet
+13.1%
$4.5B→$5.0B

Equity base grew 13.1% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Operating Income
P&L
-12.4%
$887.7M→$777.3M

Operating profitability softening — costs rising faster than revenue, watch for margin recovery plan.

LANGUAGE CHANGES
NEW — 2026-02-13
PRIOR — 2025-02-14
ADDED
The closing price of the common stock on June 28, 2025, as reported on the New York Stock Exchange, was $94.32 per share.
Management's discussion and analysis of financial condition and results of operations 37 ITEM 7A.
We have 258 manufacturing, engineering and administrative locations in 36 countries.
We continue to evaluate our manufacturing footprint to optimize our cost structure.
High-voltage battery connection systems include intercell connect boards, bus bars and main battery interface connection systems.
Key components of this portfolio include zonal controllers, body domain control modules, and smart and passive power distribution modules.
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.
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.
- 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 Lear TM 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.
REMOVED
The closing price of the common stock on June 29, 2024, as reported on the New York Stock Exchange, was $114.21 per share.
Management's discussion and analysis of financial condition and results of operations 35 ITEM 7A.
We have 255 manufacturing, engineering and administrative locations in 37 countries.
We continue to restructure our manufacturing footprint to optimize our cost structure with 68% of our manufacturing facilities and 86% of our employees located in low-cost countries.
Key components of our electrical distribution and connection systems portfolio include wire harnesses, terminals and connectors, high-voltage battery connection systems and engineered components.
Key components of this portfolio include zonal controllers, body domain control modules and low-voltage and high-voltage power distribution modules.
These functions include health and safety, logistics, quality, supply chain management and all major administrative functions, such as corporate finance, executive administration, human resources, information technology and legal.
It involves the integration of new technologies, such as Industrial Internet of Things (IIoT), cloud computing, artificial intelligence (AI), machine learning and advanced automation, into production facilities and business operations.
History Lear was founded in Detroit in 1917 as American Metal Products, a manufacturer of seating assemblies and other components for the automotive and aircraft industries, and was incorporated in Delaware in 1987.
In May 2022, we acquired Romanian-based Thagora Technology SRL ("Thagora") to access scalable smart-manufacturing technology.
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