Lear Corporation
LEA Consumer Cyclical Auto Parts
Lear Corporation’s revenue for fiscal 2025 (year ended December 2025) was $23.3 billion, roughly unchanged from fiscal 2024. In the quarter to June 2026, revenue grew 2.97%, EPS grew 23.9%, free cash flow grew 68.5% and total debt fell 1.69%, each against the same quarter a year earlier. Dividend growth for five consecutive years.
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Lear Corporation (LEA) Altman Z-score
Lear Corporation's Altman Z-score for fiscal 2025 is 2.86, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.86 | (0.09) |
| FY2024 | 2.95 | (0.07) |
| FY2023 | 3.02 | 0.16 |
| FY2022 | 2.86 | (0.23) |
| FY2021 | 3.09 | 0.35 |
| FY2020 | 2.74 | (0.41) |
| FY2019 | 3.15 | (0.50) |
| FY2018 | 3.64 | (0.13) |
| FY2017 | 3.77 | (0.15) |
| FY2016 | 3.92 | 0.08 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.13 | — | 0.16 | |
| Retained earnings / total assets | 0.42 | — | 0.58 | |
| EBIT / total assets | 0.05 | — | 0.17 | |
| Market value of equity / total liabilities | 0.63 | — | 0.38 | |
| Sales / total assets | 1.57 | — | 1.57 | |
| Altman Z-score | Grey zone | 2.86 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 3.16 | ||
Z and Z″ put Lear Corporation in different zones: grey zone by Z, safe zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| GNTX Gentex Corporation compare | 9.3× |
| MBLY Mobileye Global Inc. compare | 8.2× |
| MOD Modine Manufacturing Company compare | 7.1× |
| ALV Autoliv, Inc. compare | 3.0× |
| LEA Lear Corporation | 2.9× |
| LKQ LKQ Corporation compare | 2.6× |
| ALSN Allison Transmission Holdings, Inc. compare | 2.5× |
| APTV Aptiv PLC compare | 2.3× |
| GTX Garrett Motion Inc. compare | 2.0× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets