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Lear Corporation is a global automotive technology leader in Seating and E-Systems, enabling superior in-vehicle experiences for consumers around the world.
−Removed: We supply complete seat systems, key seat components, complete electrical distribution and connection systems, high-voltage power distribution products, including battery disconnect units ("BDUs"), low-voltage power distribution products and electronic controllers t o all of the world's major automotive manufacturers.
+Added: 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 t o all of the world's major automotive manufacturers.
At Lear, we are Making every drive better TM by providing technology for safer, smarter and more comfortable journeys, while adhering to our values — Be Inclusive.
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We continue to grow our business in every major automotive producing region of the world, both organically and through complementary acquisitions.
−Removed: 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.
+Added: We continue to evaluate our manufacturing footprint to optimize our cost structure.
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 the following financial goals and objectives:
−Removed: • Continue to deliver profitable growth, balancing risks and returns;
+Added: • Continue to deliver profitable growth while balancing risks and returns;
• Invest in product and process innovations to drive business growth and profitability;
• Maintain a strong balance sheet with investment grade credit metrics;
−Removed: • Consistently return capital to our shareholders.
+Added: • Generate strong cash flow and return excess cash to shareholders.
Our business is organized under two reporting segments:
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seat mechanisms;
+Added: seat cushioning;
and thermal comfort systems such as seat heating, ventilation, active cooling, pneumatic lumbar and massage products.
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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.
−Removed: Electrical distribution and connection systems utilize low-voltage and high-voltage wire, high-speed data cables and flat wiring to connect networks and 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.
−Removed: Key components of our electrical distribution and connection systems portfolio include wire harnesses, terminals and connectors, high-voltage battery connection systems and engineered components.
−Removed: battery connection systems include intercell connect boards, bus bars and main battery connection systems.
−Removed: High-voltage power distribution products control the flow and distribution of high-voltage power throughout electrified vehicles and include BDUs which control all electrical energy flowing into and out of high-voltage batteries in electrified vehicles.
+Added: – 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.
+Added: Key components of our electrical distribution and connection systems
+Added: portfolio include wire harnesses, terminals and connectors, high-voltage battery connection systems and engineered components.
+Added: High-voltage battery connection systems include intercell connect boards, bus bars and main battery interface connection systems.
+Added: – 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.
−Removed: Key components of this portfolio include zonal controllers, body domain control modules and low-voltage and high-voltage power distribution modules.
+Added: 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.
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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.
−Removed: 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 quickly, and a unique, customer-focused culture.
+Added: 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.
−Removed: 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.
+Added: 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.
−Removed: 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.
+Added: 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.
+Added: IDEA by Lear TM - Innovative.
+Added: - 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.
+Added: 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.
+Added: We are leveraging our internal capabilities through strategic partnerships (e.g., Palantir Technologies, Inc.
+Added: ("Palantir")) and acquisitions to rapidly develop and deploy automation and AI solutions.
+Added: 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.
+Added: Our new facility in Rochester Hills, Michigan is an industry first site, capable of fully automated manufacturing of ComfortFlex by Lear TM and ComfortMax Seat by Lear TM seating systems.
+Added: These strategic initiatives further advance our leadership in automotive technology and enable greater efficiency, superior quality and faster execution.
Available Information on our Website
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• In April 2017, we acquired Grupo Antolin's automotive seating business for approximately $292 million.
+Added: • In September 2018, we acquired ASI Automation, a privately held supplier of automated storage and retrieval systems, JIT robotics, conveyor integration and shipping systems.
• In March 2021, we acquired M&N Plastics, an injection molding specialist and manufacturer of engineered plastic components for automotive electrical distribution applications.
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This acquisition enhances our seat component capabilities by adding specialized thermal comfort seating solutions and further differentiates our product offerings by improving the seat system's performance and packaging.
−Removed: • In May 2022, we acquired Romanian-based Thagora Technology SRL ("Thagora") to access scalable smart-manufacturing technology.
+Added: • In May 2022, we acquired Romanian-based Thagora Technology SRL ("Thagora") to access scalable smart-manufacturing capabilities that combine advanced vision technology, proprietary algorithms and automated cutting systems.
Thagora's proprietary solutions complement our sustainable manufacturing processes by improving the production yield of our Seating segment's surface materials operations and lowering energy usage during production.
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Our acquisition of WIP further strengthens our robotics and AI-based capabilities, which are important for production efficiency, quality and safety in a modern manufacturing environment.
−Removed: • In February 2025, we acquired StoneShield Engineering ("StoneShield"), a privately held company based in Castelo Branco, Portugal.
+Added: • In February 2025, we acquired StoneShield Engineering ("StoneShield"), a privately held system integrator based in Castelo Branco, Portugal.
StoneShield specializes in the design and development of automation technology for the wire harness industry with expertise in robotics, automated taping applications and high voltage harness assembly.
−Removed: Our acquisition of StoneShield will accelerate the automation of our production processes throughout our E-Systems business, further improving our efficiency and operational excellence.
−Removed: We supply all vehicle segments of the automotive light vehicle original equipment market in every major automotive producing region in the world.
+Added: Our acquisition of StoneShield has accelerated the automation of our production processes throughout our electrical distribution business, further improving our efficiency and operational excellence.
+Added: W e 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.
−Removed: Although 2023 industry production returned to pre-pandemic levels, 2024 industry production remained approximately 6% below 2017 peak levels (based on January 2025 S&P Global Mobility projections), and 2024 industry production in North America and Europe, our two largest markets, remained approximately 9% and 24% , respectively, below prior peak levels (based on January 2025 S&P Global Mobility projections).
−Removed: 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 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.
+Added: 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.
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This will allow us to enhance operational efficiencies, improve the utilization of existing facilities and equipment to reduce future expenditures, and streamline administrative functions.
−Removed: For a description of risks related to macroeconomic events, see Item 1A, "Risk Factors."
−Removed: Details on light vehicle production volumes in certain key regions for 2024 and 2023 are provided below.
−Removed: Our actual results are impacted by the specific volume mix of products within each market, as well as other factors described in Item 1A, "Risk Factors."
+Added: 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.
+Added: Since his inauguration in January 2025, U.S.
+Added: President Donald J.
+Added: Trump has announced various tariffs that impact industries around the world, including the automotive industry.
+Added: As of the date of this Report, many of the tariffs announced, implemented or threatened by the current U.S.
+Added: 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.
+Added: In addition to tariffs, the U.S.
+Added: and foreign governments have implemented sanctions, export controls and other trade restrictions that impact industries around the world, including the automotive industry.
+Added: Although industry production returned to pre-pandemic levels in 2023, industry production in 2025 remained approximately 2% below 2017 peak levels, and 2025 industry production levels in North America and Europe, our two largest markets, remained approximately 10% and 24%, respectively, below prior peak levels.
+Added: Industry production in the second half of 2025 was impacted by production disruptions at Jaguar Land Rover due to a cybersecurity incident.
+Added: Industry production in 2025 increased 4% as compared to 2024 (based on January 2026 S&P Global Mobility projections).
+Added: On a Lear sales-weighted basis (1) , industry production in 2025 increased 1% as compared to 2024.
+Added: (1) The production change on a Lear sales-weighted basis is calculated using Lear's prior year regional sales mix.
+Added: Management believes this provides a more meaningful comparison of our global revenue growth relative to global vehicle production.
+Added: For a description of risks related to macroeconomic events and tariffs, sanctions, export controls and other trade restrictions, see Item 1A, "Risk Factors," included in this Report.
+Added: Global automotive industry production volumes in certain key regions for 2025, as compared to 2024, are shown below.
+Added: Our actual results are impacted by the specific volume mix of products within each market, as well as other factors described in Item 1A, "Risk Factors," included in this Report.
(In thousands of units) 2025 (1)
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Other 1,936.5 1,791.4 8%
−Removed: Total 88,133.9 89,073.7 (1%)
+Added: Global automotive industry production 91,602.2 88,323.1 4%
(1) Production data based on S&P Global Mobility.
(2) Production data for 2024 has been updated from our 2024 Annual Report on Form 10-K to reflect actual production levels.
−Removed: Automotive sales and production can also be affected by the age of the vehicle fleet and related scrappage rates, labor relations issues, labor shortages, fuel prices, regulatory requirements, government initiatives and incentives, trade agreements, tariffs and other non-tariff trade barriers (including recent U.S.
−Removed: tariffs imposed or threatened to be imposed on Mexico, Canada and China, as well as other countries and any retaliatory actions taken by such countries), the availability and cost of credit, the availability and cost of raw materials and critical components, and logistics issues, as well as vehicle affordability and consumer preferences regarding vehicle powertrains (including preferences regarding hybrid and electric vehicles), size, configuration and features, among other factors.
−Removed: The impact of potential tariffs on our business and financial condition, if any, is subject to a number of factors that are not yet known, including the effective date and duration of such tariffs, the scope and nature of any tariffs, the amount of any tariffs, any countermeasures that the target countries may take in response to such tariffs.
−Removed: In light of these uncertainties, we can provide no assurance that any mitigating actions that may become available to us, such as our ability to pass along some or all of the costs of any tariffs to some or all of our customers, will be successful.
−Removed: Our sales and production may be further affected by new entrants to the industry, including domestic automakers in certain regions and non-traditional automakers, and the restructuring actions, including facility closures, of our customers and suppliers.
+Added: Automotive sales and production can also be affected by the age of the vehicle fleet and related scrappage rates, labor relations issues, unforeseen operational disruptions, labor shortages, fuel prices, regulatory requirements, government initiatives and incentives, trade agreements, tariffs and other non-tariff trade barriers (including recent U.S.
+Added: tariffs imposed or threatened to be imposed on Mexico, Canada and China, as well as other countries and any retaliatory actions taken by such countries), the availability and cost of raw materials and critical components, logistics issues, cybersecurity incidents, and the availability and cost of credit, as well as vehicle affordability and consumer preferences regarding vehicle powertrains (including preferences regarding electric and hybrid vehicles), size, configuration and features, among other factors.
+Added: The impact of potential tariffs on our business and financial condition, if any, is subject to a number of factors that are not yet known or are subject to change, including the effective date and duration of such tariffs, the scope and nature of any tariffs, the amount of any tariffs, any countermeasures that the target countries may take in response to such tariffs.
+Added: In light of these uncertainties, we can provide no assurances that any mitigating actions that may become available to us, such as our ability to pass along some or all of the costs of any tariffs to some or all of our customers, will continue to be successful.
+Added: Our sales and production may be further affected by new entrants to the industry, as well as various automakers and suppliers entering or expanding in certain regions, and the restructuring actions, including facility closures, of our customers and suppliers.
Our operating results are also significantly impacted by the overall commercial success of the vehicle platforms for which we supply particular products, as well as the profitability of the products that we supply for these platforms, which is determined, in part, by the level of vertical integration.
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China (non-consolidated) 2,096.2 2,104.0 —%
+Added: Our ability to reduce the risks inherent in certain concentrations of our business, and thereby maintain our financial performance in the future, will depend, in part, on our ability to continue to diversify our sales on a customer, product, platform and geographic basis to better reflect the market overall.
The automotive industry, and our business, continue to be shaped by the broad trend of electrification.
−Removed: Although the adoption of electrified vehicles has been slower than anticipated in certain regions, demand for, and regulatory developments related to, improved energy efficiency and sustainability (e.g., government mandates related to fuel economy and carbon emissions) remain significant drivers of this trend.
+Added: The adoption of electrified vehicles has been slower than anticipated, particularly in the United States.
+Added: Demand for, and regulatory developments related to, improved energy efficiency and sustainability (e.g., government mandates related to fuel economy and carbon emissions) have also had a significant impact on this trend.
In 2026, the battery electric vehicle market is expected to represent 19% of global light vehicle production (based on January 2026 S&P Global Mobility projections), as compared to 16% in 2025 and 13% in 2024.
−Removed: Battery electric vehicle production increased to 11.5 million units in 2024 from 10.5 million units in 2023, primarily driven by growth in China.
−Removed: Increasing demand for electrified vehicles is driven by numerous product offerings from both traditional and non-traditional automotive manufacturers, government requirements and incentives, automotive manufacturers' intern al targets and a growing segment of end consumers who are seeking alternatives to vehicles with traditional ICE architectures.
−Removed: Meeting this demand requires further
−Removed: use of electronically controlled and assisted powertrains and related components to impr ove fuel efficiency;
+Added: Battery electric vehicle production increased to 14.5 million units in 2025 from 11.3 million units in 2024, primarily driven by growth in China and Europe.
+Added: Increasing demand for electrified vehicles is driven by numerous product offerings from traditional automotive manufacturers as well as new entrants to the market, government requirements and incentives, automotive manufacturers' intern al targets and a growing segment of end consumers who are seeking alternatives to vehicles with traditional ICE architectures.
+Added: Meeting this demand requires further use of electronically controlled and assisted powertrains and related components to impr ove fuel efficiency;
the adoption of alternative energy powertrains, such as 48-volt mild hybrid, full hybrid, plug-in hybrid and pure battery electric powertrains that facilitate electrification of the vehicle;
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Crossover and sport utility vehicle production has grown to approximately 49% of total vehicle production in 2025, up from 40% five years ago.
−Removed: Thro ugh our products, processes, technology and strategic initiatives, we are well-positioned to capitalize on business growth opportunities.
+Added: 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.
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• Extend our market leadership position in Seating with priceable features, including modularity and thermal comfort systems;
−Removed: • Transform our E-Systems business through accelerated growth in connection systems and vehicle architecture evolution and electrification;
−Removed: • Build on our reputation for operational excellence through organic and inorganic investments in automation and digital technologies;
−Removed: • Prioritize people and the planet through our sustainability initiatives to drive business growth, cost reductions and improved employee retention.
+Added: • Expand margins in E-Systems through a focused portfolio that leverages our strong operating capabilities and customer relationships;
+Added: • Build on our reputation for operational excellence through organic and inorganic investments, including partnerships, in automation and digital technologies;
+Added: • Prioritize our employee and sustainability initiatives that drive business growth, cost reductions and improved workforce retention.
In our Seating business, our unique product offerings are providing us with an opportunity to offer value added solutions to our customers and to use our leading market position to capture additional market share.
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seat mechanisms;
−Removed: thermal comfort systems such as seat heating, ventilation, active cooling, pneumatic lumbar and massage products;
−Removed: and seat reconfigurability through Configurable Seating Architecture (ConfigurE+ TM ).
+Added: seat cushioning;
+Added: and thermal comfort systems such as seat heating, ventilation, active cooling, pneumatic lumbar and massage products.
Further, we are leveraging our distinct combination of complete seat system, seat component and thermal comfort expertise and capabilities with our ComfortFlex by Lear TM module, an architecture of modular designs combining two or more thermal comfort functions, and our ComfortMax Seat by Lear TM module, the integration of one or more thermal comfort features into the seat trim cover.
−Removed: These ComfortFlex TM and ComfortMax Seat TM modules can reduce sub-components by up to 50% and increase airflow directly to the occupant by up to 40%, as compared to currently available designs.
+Added: These ComfortFlex by Lear TM and ComfortMax Seat by Lear TM modules can reduce sub-components by up to 50% and increase airflow directly to the occupant by up to 40%, as compared to currently available designs.
With our thermal comfort systems expertise, we are poised to capitalize on the market trends in electric vehicles, second and third row comfort, and ride sharing, while also providing greater design, cost, production and energy efficiency for our customers.
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In addition, we have enhanced our vertical integration capabilities in connection systems through the acquisition of M&N Plastics.
−Removed: Our high-voltage power distribution business, including our BDU business, and our low-voltage power distribution business are benefiting from the increased adoption of electrified powertrains and the expansion of longer range, larger format (trucks and SUVs) and higher performance electrified vehicles, where we provide market-leading solutions.
+Added: Our high-voltage power distribution business, including our BDU business, and our low-voltage power distribution business are benefiting from the increased adoption of electrified powertrains.
Differentiation through higher power management capacity, lighter weight solutions, and optimized and vertically integrated manufacturing solutions provide us with a competitive advantage in the electrification market.
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We are focusing future investments on those products where we believe that we have a competitive advantage and we can achieve industry-leading financial returns.
−Removed: IDEA by Lear - Innovative.
−Removed: - supports our strategy to drive growth and improve profitability.
−Removed: IDEA reflects our commitment to continue to strengthen our competitive position in both of our business segments through the development of innovative products and the utilization of process automation and other advanced technologies that improve our profitability through increased efficiency and extend our leadership position in operational excellence.
−Removed: Our investments in these technologies and the digital transformation of both our operations and administrative functions aim to improve profitability through process improvements and further efficiency gains .
−Removed: Our 2022 acquisition of Thagora provides us with scalable smart-manufacturing technology that improves the production yield of our Seating segment's surface materials operations and lowers
−Removed: energy usage during production.
+Added: Our investments in IDEA by Lear TM technologies and the digital transformation of both our operations and administrative functions aim to improve profitability through process improvements and further efficiency gains.
+Added: Our 2018 acquisition of ASI Automation provides us with automated storage and retrieval systems, JIT robotics, conveyor integration and shipping systems.
+Added: Our 2022 acquisition of Thagora provides us with scalable smart-manufacturing capabilities that combine advanced vision technology, proprietary algorithms and automated cutting systems.
+Added: This platform generates both material and labor efficiencies in our surface materials operations and lowers energy usage during production.
Our 2022 acquisition of InTouch provides us with automated end-of-line seat function testing, equipment and software integration capabilities and vision system technologies.
−Removed: Our acquisition of WIP in 2024 further strengthened our robotics and AI- based capabilities which are important for production efficiency, safety and quality in a modern manufacturing environment.
−Removed: Our recent acquisition of StoneShield in 2025 will accelerate the automation of our production processes throughout our E-Systems business.
−Removed: These acquisitions enable us to further our in-house product and process capabilities and strengthen our competitive differentiation.
−Removed: We continue to embed responsible and sustainable principles into our key business processes and operati ons.
−Removed: We have developed products such as FlexAir TM , a 100% recyclable alternative to traditional foam, ReNewKnit TM , a sustainable sueded alternative material that is fully recyclable at its end of life and composed of 100% recycled plastic bottles, and SoyFoam TM , a substitute for certain petroleum-based products.
+Added: Our 2024 acquisition of WIP further strengthens our robotics and AI-based capabilities which are important for production efficiency, safety and quality in a modern manufacturing environment.
+Added: Our 2025 acquisition of StoneShield accelerates the automation of our production processes throughout our electrical distribution business.
+Added: Through the integration of these technologies into our operations, these acquisitions have enabled us to further our in-house product and process capabilities and strengthen our competitive differentiation.
+Added: We continue to embed responsible and sustainable principles into our key business processes and operations.
+Added: We have developed products such as FlexAir ® , a 100% recyclable alternative to traditional foam, ReNewKnit ® , a sustainable sueded alternative material that is fully recyclable at its end of life and composed of 100% recycled plastic bottles, and SoyFoam TM , a substitute for certain petroleum-based products.
We also have improved energy efficiency in our operations and established climate goals to reduce carbon emissions and increase the use of renewable energy.
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seat mechanisms;
+Added: seat cushioning;
and thermal comfort systems such as seat heating, ventilation, active cooling, pneumatic lumbar and massage products.
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We develop seat systems and components for all vehicle segments from compact cars to pick-up trucks and full-size sport utility vehicles.
−Removed: We are the world leader in luxury and performance automotive seating, providing craftsmanship, elegance in design, use of innovative materials and industry-leading technology req uired by premium brands and vehicles, including those produced by Alfa Romeo, Aston Martin, Audi, BMW, Cadillac, Chevrolet, Ferrari, GMC, Jaguar, Lamborghini, Land Rover, Lincoln, Maserati, Mercedes-Benz, NIO, Polestar, Porsche and Volvo.
+Added: We are the world leader in luxury and performance automotive seating, providing craftsmanship, elegance in design, use of innovative materials and industry-leading technology req uired by premium brands and vehicles, including those produced by Alfa Romeo, Audi, BMW, BYD, Cadillac, Chevrolet, Ferrari, GMC, Jaguar, Lamborghini, Land Rover, Lincoln, Maserati, Mercedes-Benz, NIO, Polestar, Porsche, Seres Auto and Volvo.
We are executing on our strategy to extend our leadership position in the market through unique product offerings and selective vertical integration.
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Our acquisition of IGB provided us with capabilities in seat heating, ventilation and active cooling, steering wheel heating, seat sensors and electronic control modules.
−Removed: ConfigurE+ is a wireless powered rail system that allows for easy repositioning of seats within vehicles.
Further, selective vertical integration of key seat components is enhancing growth and increasing profitability, as well as improving quality.
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We are working to improve the sustainability of our operations through identification and reduction of generated waste, reuse of materials whenever possible and recycling.
−Removed: Our sustainability efforts leverage available technology to replace certain petroleum-based products with more sustainable alternatives, such as SoyFoam TM and, more
−Removed: recently, FlexAir TM , our 100% recyclable non-foam alternative that reduces both CO2 emissions and mass and is being integrated into our customized and innovative portfolio of products.
+Added: Our sustainability efforts leverage available technology to replace certain petroleum-based products with more sustainable alternatives, such as SoyFoam TM and, more recently, FlexAir ® , our 100% recyclable non-foam alternative that reduces both CO2 emissions and mass and is being integrated into our customized and innovative portfolio of products.
In addition, we have focused development efforts on commercializing a range of fabrics that contain recycled, renewable or recyclable yarns that reduce our environmental impact.
−Removed: These fabrics include our ReNewKnit TM sustainable sueded alternative material, which is a first-to-market automotive textile that is fully recyclable at its end of life and composed of 100% recycled plastic bottles.
−Removed: ReNewKnit TM fibers are spun from polyester yarn and finished with a foam-free recycled fleece backing.
+Added: These fabrics include our ReNewKnit ® sustainable sueded alternative material, which is a first-to-market automotive textile that is fully recyclable at its end of life and composed of 100% recycled plastic bottles.
+Added: ReNewKnit ® fibers are spun from polyester yarn and finished with a foam-free recycled fleece backing.
Thermal Comfort Systems
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Over the past decade, we have dedicated significant engineering resources to designing, developing and advancing the future of thermal comfort systems.
−Removed: Our recent acquisitions of Kongsberg ICS and IGB further expanded our unique capabilities with experienced engineering and manufacturing leaders to accelerate the execution of our thermal comfort systems strategy and provide purchasing, logistics, administrative and footprint synergies to improve our cost competitiveness.
+Added: Our recent acquisitions of Kongsberg ICS and IGB further expanded our unique capabilities with experienced engineering and
+Added: manufacturing leaders to accelerate the execution of our thermal comfort systems strategy and provide purchasing, logistics, administrative and footprint synergies to improve our cost competitiveness.
Through component modularity efforts, we are innovating and enhancing product design by combining multiple functions that were previously provided across multiple components into modular solutions.
Traditionally, heating, ventilation, lumbar and massage products have been designed as independent systems in a multi-layered model.
−Removed: We are redefining comfort, design and performance through ComfortFlex TM and ComfortMax Seat TM .
+Added: We are redefining comfort, design and performance through ComfortFlex by Lear TM and ComfortMax Seat by Lear TM .
These revolutionary designs further reduce part complexity, mass and package size (allowing for easier adoption in second and third rows) and significantly improves the final seat assembly process by reducing the number of components assembled into our seats in the just-in-time facilities , while providing a more efficient system with improved performance (including reduced time to sensation) and enhanced comfort for the occupant.
−Removed: In addition, our complete thermal comfort module can be supplied to any seat supplier and is compatible with any seat structure with traditional foam or FlexAir TM .
+Added: In addition, our complete thermal comfort module can be supplied to any seat supplier and is compatible with any seat structure with traditional foam or FlexAir ® .
+Added: Our new facility in Rochester Hills, Michigan is an industry first site, capable of fully automated manufacturing of ComfortFlex by Lear TM and ComfortMax Seat by Lear TM seating systems.
We believe that we are the only supplier with the complete capabilities necessary to realize these modular concepts, providing a unique value proposition to our customers.
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The result is a broad portfolio of innovative, sustainable solutions enabling our intelligent seating offerings for consumers.
−Removed: Intelligent Seating (INTU TM Seating)
+Added: Intelligent Seating (INTU ® Seating)
The seat offers a direct connection between the driver, passengers and vehicle systems.
−Removed: Our development of INTU TM technologies provides the driver and passengers with intelligent, intuitive seat system options that offer advanced comfort solutions, including thermal products, as well as configurable seating product technologies.
−Removed: Our extensive knowledge in consumer ergonomics and comfort, in combination with our electronics capabilities, facilitated the development of our INTU TM seat features, which are capable of being programmed to identify certain key occupant inputs and automatically adjust the appropriate seat parameters to provide consumers with a better, highly personalized, in-vehicle experience.
−Removed: Our INTU TM Comfort features were developed to improve comfort throughout long drives.
−Removed: Derived from our research, INTU TM Comfort deploys proprietary technology and in-house developed analytical processes to identify the optimal seat position for the occupant given certain conditions.
+Added: Our development of INTU ® technologies provides the driver and passengers with intelligent, intuitive seat system options that offer advanced comfort solutions, including thermal products, as well as configurable seating product technologies.
+Added: Our extensive knowledge in consumer ergonomics and comfort, in combination with our electronics capabilities, facilitated the development of our INTU ® seat features, which are capable of being programmed to identify certain key occupant inputs and automatically adjust the appropriate seat parameters to provide consumers with a better, highly personalized, in-vehicle experience.
+Added: Our INTU ® Comfort features were developed to improve comfort throughout long drives.
+Added: Derived from our research, INTU ® Comfort deploys proprietary technology and in-house developed analytical processes to identify the optimal seat position for the occupant given certain conditions.
For example, on extended trips, the lumbar support is continuously adjusted for optimal comfort, and seat bolsters automatically adjust during sharp curves to provide the driver with optimal support.
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With respect to fabrics, we have focused development efforts on commercializing a range of fabrics that contain recycled, renewable or recyclable yarns that reduce our environmental impact.
−Removed: These fabrics include our ReNewKnit TM sustainable sueded alternative material that is fully recyclable at its end of life and composed of 100% recycled plastic bottles, which launched with a global automotive manufacturer in 2024.
+Added: These fabrics include our ReNewKnit ® sustainable sueded alternative material that is fully recyclable at its end of life and composed of 100% recycled plastic bottles.
+Added: ReNewKnit ® has launched with three global automotive manufacturers and is generating improved margins when compared to traditional fabrics.
Our branded TeXstyle TM surface material coatings and treatment technologies enhance cleanability by releasing and repelling stains;
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We have developed and launched a zero gravity seat for second row occupants that includes a 65 degree recline, a raising calf rest for lower leg support, an adaptive arm rest and occupant body pressure distribution, together with various comfort features, including integrated pneumatic neck support and heated back massage.
−Removed: • Foam and Comfort – Our FlexAir TM technologies offer a 100% recyclable non-foam alternative to traditional foam.
+Added: • Foam and Comfort – Our FlexAir ® technologies offer a 100% recyclable non-foam alternative to traditional foam.
Our highly engineered low-profile foam, low-emission foam and our first-to-market, U.S.-sourced SoyFoam TM are break-through innovations in comfort, safety and sustainability.
−Removed: Our first production award incorporating this application launched in 2024.
+Added: Our first FlexAir ® production award launched in 2024.
Manufacturing Leadership
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We pioneered just-in-time seat assembly.
−Removed: Typically located adjacent to or near our customers' manufacturing and assembly sites, our just-in-time facilities deliver assembled seats matching our customers' exact build specifications for a particular day,
−Removed: shift and sequence.
+Added: Typically located adjacent to or near our customers' manufacturing and assembly sites, our just-in-time facilities deliver assembled seats matching our customers' exact build specifications for a particular day, shift and sequence.
Our expertise in logistics and lean manufacturing processes enable us to meet our customers' delivery requirements while maintaining inventories at optimum levels.
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We utilize the latest industry innovations and automated technologies to facilitate our continuous improvement efforts.
−Removed: Our recent investments in automation and other advanced manufacturing technologies , including the 2022 acquisitions of Thagora and InTouch and the 2024 acquisition of WIP, have resulted in lower manufacturing costs, improved safety and ergonomics, and higher production reliability.
+Added: We are rapidly developing and deploying automation and AI solutions throughout our Seating operations.
+Added: Through our partnership with Palantir, we have improved our efficiency and quality using a cycle time deviation tool which provides real-time data on shop floor performance.
+Added: Our recent strategic investments in automation and other advanced manufacturing technologies , including the 2018 acquisition of ASI Automation, the 2022 acquisitions of Thagora and InTouch and the 2024 acquisition of WIP, have resulted in lower manufacturing costs, improved safety and ergonomics, and higher production reliability.
+Added: These strategic initiatives further advance our leadership in automotive technology and enable greater efficiency, superior quality and faster execution.
Moreover, we have continued to expand our employee engagement initiatives, achieving global scalability and successfully driving cultural advances.
−Removed: Our initiatives have resulted in improvements in quality, lower employee absenteeism, material cost savings and a reduction in average assembly build times per seat set.
+Added: initiatives have resulted in improvements in quality, lower employee absenteeism, material cost savings and a reduction in average assembly build times per seat set.
+Added: Our global footprint enables us to competitively quote just-in-time and component business opportunities that align with evolving market trends.
+Added: Domestically, we are strategically positioned for growth as the largest U.S.
+Added: headquartered automotive supplier, leveraging our U.S.
+Added: manufacturing presence to support automotive manufacturers seeking to onshore vehicle production.
+Added: We continue to invest in product and process innovation, allowing us to integrate capital required for just-in-time operations at a significant cost advantage.
+Added: This not only accelerates speed to launch but also enhances our ability to competitively quote new and conquest business.
The top five customers of our Seating segment are:
−Removed: General Motors, Mercedes-Benz, Volkswagen, Stellantis and BMW.
−Removed: Our primary competitors in this segment globally are Adient plc, Forvia SE, Magna International Inc., Toyota Boshoku Corporation, TS Tech Co., Ltd.
+Added: General Motors, Mercedes-Benz, Stellantis, Volkswagen and BMW.
+Added: Key competitors in the Seating segment globally include Adient plc, Forvia SE, Magna International Inc., Ningbo Jifeng Auto Parts Co., Ltd.
+Added: / Grammer AG, Toyota Boshoku Corporation, TS Tech Co., Ltd.
and Yanfeng Automotive Systems Co., Ltd., which have varying market presence depending on the region, country or automotive manufacturer.
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hold equity ownership positions in Toyota Boshoku Corporation and TS Tech Co., Ltd., respectively.
−Removed: A limited number of other automotive manufacturers maintain a presence in the seat system market through wholly owned subsidiaries or in-house operations.
+Added: A limited number of other automotive manufacturers maintain a presence in the seat system market through wholly-owned subsidiaries, joint ventures or in-house operations, such as FinDreams Technology Co., Ltd.
+Added: and Nobo Automotive Systems Co., Ltd.
In seat components, we compete with the seat system suppliers identified above, as well as certain suppliers that specialize in particular components.
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high-voltage power distribution products, including BDUs;
−Removed: and low-voltage power distribution products and electronic controllers for light vehicles globally.
+Added: and low-voltage power distribution products and electronic controllers for vehicles globally.
We are a leader in signal distribution and power management within the vehicle for all types of powertrains – from traditional ICE architectures to the full range of electrified powertrains.
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Further, we are de-emphasizing and exiting certain electronics product lines, including audio modules, lighting modules, on-board chargers, telematics control units and niche electronic controllers, where we do not see a path to sustainable risk-adjusted financial returns.
−Removed: In our E-Systems business, the electrification of the vehicle powertrain adds significant content per vehicle for our products, including high-voltage wire harnesses, high-voltage battery connection systems (intercell connect boards, bus bars and main battery connection systems) and BDUs.
−Removed: Higher performance and larger format electrified vehicles, including trucks and SUVs, as well as electrified vehicles with longer range, further increase content per vehicle and aligns favorably with our products, including high power-to-size ratio terminal systems, high performance BDUs and intercell connect boards.
+Added: In our E-Systems business, the electrification of the vehicle powertrain adds significant content per vehicle for our products, including high-voltage wire harnesses, high-voltage battery connection systems (intercell connect boards, bus bars and main battery interface connection systems) and BDUs.
In addition, the continuing evolution of the vehicle electrical architecture is introducing more highly integrated power management and control electro nics (or zonal controllers) and greatly expanding the use of high-speed data within the vehicle.
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Our component designs consider the performance of the complete architecture, creating superior value for our customers.
−Removed: Our investments in electrification over the past sixteen years are providing us with a significant growth opportunity with respect to this trend.
−Removed: Further, electrified vehicle architectures represent a significant content per vehicle expansion opportunity for us.
Electrical Distribution and Connection Systems
Electrical distribution and connection systems route network and electrical signals and manage electrical power within the vehicle for all types of powertrains, including traditional ICE architectures and the full range of electrified powertrains, supporting the current industry trend toward electrification.
−Removed: Key components of electrical distribution and connection systems include wire harnesses, terminals and connectors, high voltage battery connection systems and engineered components for both ICE architectures and electrified powertrains that require management of higher voltage and power.
+Added: Key components of electrical distribution and connection systems
+Added: include wire harnesses, terminals and connectors, high voltage battery connection systems and engineered components for both ICE architectures and electrified powertrains that require management of higher voltage and power.
Wire harness assemblies, together with connection systems, link all of the various electrical and electronic devices within the vehicle to each other and/or to a power source.
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Our connection systems are produced using highly automated processes, including stamping, injection molding and automated assembly processes.
−Removed: In 2021, we entered into a partnership with Hu Lane Associate Inc., a world-class manufacturer of automotive connector products, to expand our business opportunities in connection systems through access to a broader catalog of product-enabling solutions for our customers.
Our connection systems are currently manufactured in Germany, the Czech Republic, Morocco, China and the United States.
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These products are produced using highly automated processes, including stamping, bending, molding and assembly.
−Removed: We leverage our metal stamping capabilities in our Seating business to provide a competitive advantage for these products through vertical integration and supply chain management.
Our established capabilities in connection systems and engineered components facilitate our ability to produce these products.
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In our E-Systems segment, we also design, develop, engineer and manufacture high-voltage power distribution products, including BDUs.
−Removed: These products control the flow and distribution of high-voltage power throughout electrified vehicles and include BDUs which control all electrical energy flowing into and out of high-voltage batteries in electrified vehicles.
+Added: These 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 electric and hybrid vehicles.
More than fifteen years of experience in high-voltage power distribution products, together with our expertise in areas integral to the performance of BDUs, such as power and thermal management and electrical architecture integration, have contributed to our well-established market position and our ability to effectively and competitively supply BDUs.
−Removed: High-voltage power distribution products are applicable to all electrified powertrain vehicles, but the size, complexity and configuration can vary widely
−Removed: dependent upon the power requirements of individual vehicle platforms.
+Added: High-voltage power distribution products are applicable to all electrified powertrain vehicles, but the size, complexity and configuration can vary widely dependent upon the power requirements of individual vehicle platforms.
Our high-voltage power distribution products are currently manufactured in Mexico, China, Spain and Morocco.
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In our E-Systems segment, we also design, develop, engineer and manufacture low-voltage power distribution products and electronic controllers that control various functions and power distribution within the vehicle.
−Removed: Our electronic product offerings include zonal controllers, body domain modules and low-voltage power distribution units.
−Removed: These units are typically purchased with embedded software to manage vehicle functions, control power distribution and ensure vehicle network connection.
−Removed: We assemble these modules using specialized, high-speed surface mount placement equipment and assembly processes in Mexico, Europe, Northern Africa and China.
+Added: Our electronic product offerings include zonal controllers, body domain modules, and smart and passive power distribution units.
+Added: These units are typically
+Added: purchased with embedded software to manage vehicle functions, control power distribution and ensure vehicle network connection.
+Added: We assemble these modules using specialized, high-speed surface mount placement equipment and assembly processes in Mexico, Europe, Morocco and China.
Our complete electrical distribution and connection system design capabilities, coupled with market-leading component technologies, allow early access to our customers' product development teams, which provides an indication of our customers' product needs and enables us to develop system design efficiencies.
−Removed: Our expertise is developed and delivered by approximately 2,100 engineers across fourteen countries and is led by four global technology centers of excellence in China, Germany, Spain and the United States for each of our major product lines in this segment.
+Added: Our expertise is developed and delivered by more than 1,900 engineers across fourteen countries and is led by four global technology centers of excellence in China, Germany, Spain and the United States for each of our major product lines in this segment.
In electrical distribution and connection systems, our technology includes expertise in the design and use of alternative conductor materials, such as aluminum, copper-clad steel and other hybrid alloys.
−Removed: Alternative conductor materials can enable the use of ultra small gauge conductors, which reduce the weight and packaging size of electrical distribution and connection systems.
+Added: Alternative conductor materials can enable weight and packaging size reductions for electrical distribution and connection systems.
We also have developed proprietary manufacturing process technologies, such as our vertical manufacturing system that features three dimensional wire harness assembly boards.
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Our BDU capabilities enable the highest power large-format vehicles by utilizing innovative technologies, including flat-flex wires to quickly dissipate heat.
−Removed: Our product achieves a 20% weight reduction, 32% size reduction and 135% gain in current-carrying capability across 400 volt and 800 volt architectures, as compared to currently available architecture offerings.
These technologies are also scalable to achieve superior performance for vehicles with lower power requirements.
In electronic controllers, we are a market leader in zone control, body domain control and power distribution technology.
−Removed: Further, our expertise in e-fuse technology is leading to new power distribution business awards as new architectures are adopted and functional safety requirements increase.
+Added: In 2025, we were awarded an Automotive News PACE award for our software-based algorithmic circuit protection and modular pin header design, which are used on our zone controller launching in 2026.
+Added: Further, our expertise in e-fuse technology is leading to the adoption of new advanced technologies while supporting functional safety requirement increases.
Software is a critical element of this part of our business.
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Software within the vehicle is rapidly growing as a key element of technological innovation and a cost effective way to provide new features and functions.
−Removed: For additional factors that may impact our E-Systems segment's business, financial condition, operating results and/or cash flows, see Item 1A, "Risk Factors."
+Added: Manufacturing Leadership
+Added: We are leveraging our investments in automation and other advanced manufacturing technologies to build on our reputation for operational excellence.
+Added: We are developing a common operating system in our wiring facilities that will provide significant operating efficiencies.
+Added: Further, our partnership with Palantir has enabled increased digitalization of our operations leading to enhanced visibility, control, efficiency and quality.
+Added: Our unique processes and people-focused culture provide us with a sustainable global competitive advantage.
+Added: Our 2025 acquisition of StoneShield is accelerating the automation of our production processes throughout our electrical distribution business, further improving our efficiency and operational excellence.
+Added: We believe that coupling our world class operations with strategic automation will allow us to proactively navigate labor market dynamics and position us as a preferred solution provider to our customers.
The top five customers of our E-Systems segment are:
Ford, General Motors, Jaguar Land Rover, Geely (including Polestar and Volvo) and Volkswagen.
−Removed: Our major competitors in electrical distribution and connection systems include Aptiv PLC, Leoni AG, Molex Incorporated (a subsidiary of Koch Industries Inc.), Sumitomo Corporation, TE Connectivity and Yazaki Corporation.
−Removed: Our major competitors in BDUs include Contemporary Amperex Technology Co.
−Removed: Limited, Delta Electronics, Inc., LG Energy Systems, Ltd., Panasonic Holdings Corporation and Yazaki Corporation.
−Removed: Our major competitors in electronic controllers include Aptiv PLC, Continental AG, Denso Corporation, Harman International Industries, Incorporated (a subsidiary of Samsung Electronics Co.
−Removed: Ltd.), Hella (a subsidiary of Forvia SE), Robert Bosch GmbH, Valeo S.A.
+Added: Key competitors in electrical distribution and connection systems include Aptiv PLC, Leoni AG, Molex Incorporated (a subsidiary of Koch Industries Inc.), Sumitomo Corporation, TE Connectivity and Yazaki Corporation.
+Added: Key competitors in BDUs include Delta Electronics, Inc., LS E-Mobility, Panasonic Holdings Corporation and Yazaki Corporation.
+Added: Key competitors in electronic controllers include Aumovio SE, Aptiv PLC, Denso Corporation, Harman International Industries, Incorporated (a subsidiary of Samsung Electronics Co.
+Added: Ltd.), Hella (a subsidiary of Forvia SE), Motherson Group, Robert Bosch GmbH, Valeo S.A.
and Visteon Corporation.
+Added: For additional factors that may impact our E-Systems segment's business, financial condition, operating results and/or cash flows, see Item 1A, "Risk Factors," included in this Report.
Sustainability
−Removed: Sustainability initiatives provide the opportunity to gain competitive advantages.
−Removed: For example, we believe that growing customer and consumer demand for sustainable products provides opportunities for growth, and the more efficient use of energy and natural resources provides the potential to lower our operating costs while reducing our impact on the environment.
−Removed: We are continuously working to embed responsible and sustainable principles into our key business processes and operations, including enterprise risk management, innovation, procurement, product and process development, and sales.
−Removed: Our sustainability strategy and initiatives are developed by a cross-functional team of senior subject matter experts, reviewed and approved by senior management and overseen by the Governance and Sustainability Committee of our Board.
−Removed: We actively communicate our goals and activities to our investors in our public disclosures available on our website and in our SEC filings.
−Removed: Our sustainability efforts demonstrate how we live our core value to Get Results the Right Way , which we have reinforced by recommitting to the United Nations Global Compact each year since becoming a participant in 2020.
+Added: For many of our customers and other stakeholders, sustainability is a business consideration.
+Added: We continue to embed sustainable initiatives into our global operations and processes, recognizing that growing customer and consumer demand for sustainable products provides opportunities for growth.
+Added: Furthermore, the more efficient use of energy and natural resources offers the potential to lower our operating costs while reducing our environmental impact.
+Added: We also integrate responsible and sustainable principles into our key business processes, including enterprise risk management, innovation, procurement, product and process development, and sales.
+Added: Our sustainability strategy is developed by a cross-functional team, approved by senior management, and overseen by the Governance and Sustainability Committee of our Board.
+Added: We actively communicate our goals and activities to investors through public disclosures available on our website and in our SEC filings.
+Added: Our sustainability efforts demonstrate how we live our core value to Get Results the Right Way , which we reinforce through our annual recommitment to the United Nations Global Compact.
Energy Efficiency and Carbon Reduction Efforts at Lear
• How We Are Driving Sustainability in Our Production Processes
−Removed: We employ standardized processes globally that are designed to drive the efficient use of energy to reduce energy costs and greenhouse gas emissions, prevention of pollution and use of safe and sustainable production processes.
−Removed: We have published carbon reduction goals that we intend to achieve by 2030, including 100% usage of renewable energy for electric power consumed at our facilities and a 50% reduction in our Scope 1 (direct) and Scope 2 (indirect) carbon emissions at our facilities globally, as well as an aspiration to be carbon neutral by 2050.
+Added: We employ standardized processes developed globally that are designed to optimize energy use, reduce costs, lower greenhouse gas emissions, prevent pollution and ensure safe, sustainable production.
+Added: Our near-term climate goals for 2030 include 100% usage of renewable energy for electricity consumption and a 50% reduction in Scope 1 and 2 carbon emissions at our facilities globally.
+Added: We also aim to achieve a 35% reduction in Scope 3 emissions by 2033.
+Added: In 2024, the Science Based Targets initiative (SBTi) validated our near-term greenhouse gas reduction targets for Scopes 1 and 2, and our Scope 3 emissions.
+Added: We aspire to achieve carbon neutrality by 2050.
We are implementing a multifaceted approach to achieve these goals.
−Removed: In our internal operations, we are focused in large part on increasing our usage of renewable energy, as well as on efforts to reduce energy consumption and use energy more efficiently.
+Added: In our internal operations, we are focused on increasing our usage of renewable energy, as well as on efforts to reduce energy consumption and use energy more efficiently.
In particular, we have developed, and are implementing, a comprehensive renewable energy strategy which includes the following:
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– Virtual power purchase agreements, where viable, to support new renewable energy projects;
−Removed: – Purchasing energy attribution certifications from energy providers, whether bundled with existing energy purchases or unbundled in certain regions.
−Removed: Our operations globally use our Energy Efficiency, Water Usage and Waste Generation Playbooks to promote sustainable practices within our facilities, while at the same time increasing operational efficiency and reducing costs.
+Added: – Purchasing energy attribute certificates, whether bundled with existing energy purchases or unbundled in certain regions;
+Added: – Procuring renewable energy through electric utility programs, if viable.
+Added: Our operations globally use our Energy Efficiency, Water Usage and Waste Reduction Playbooks to promote sustainable practices within our facilities, while at the same time increasing operational efficiency and reducing costs.
In addition, our facilities' specifications for new construction and significant building refurbishments require the consideration of more energy efficient systems, such as heating and cooling systems, wherever practicable.
−Removed: While the foregoing efforts will help us drive toward the elimination of carbon emissions in those areas we directly control (Scope 1 and 2 emissions), we are also progressing toward our longer-term overall goal of carbon neutrality across our value chain (including Scope 3 emissions).
−Removed: In terms of our supply chain, we are communicating our carbon and renewable energy goals, as well as our expectation that our suppliers have, and follow, their own internal policies regarding the conservation and efficient use of natural resources, including energy.
+Added: While the foregoing efforts will help us drive toward the elimination of carbon emissions in those areas we directly control (Scope 1 and 2 emissions), we are also working across our value chain (including Scope 3 emissions).
+Added: We are communicating to our suppliers our carbon and renewable energy goals, as well as our expectation that our suppliers have, and follow, their own internal policies regarding the conservation and efficient use of natural resources, including energy.
• How We Are Driving Sustainable Products
−Removed: The automotive industry remains focused on the development of sustainable transportation solutions, particularly in light of the continued focus on climate change and environmental sustainability among governments, non-governmental
−Removed: organizations, consumers and other stakeholders.
−Removed: This focus is increasing the expectations, and in some cases, leading to regulatory requirements, that the automotive industry reduce the carbon emissions generated by vehicles.
−Removed: Certain of our product offerings are designed to capitalize on these evolving regulatory requirements and consumer preferences, such as electrical distribution and connection systems and BDUs designed for high-voltage applications, providing growth opportunities for our business.
−Removed: Our ComfortFlex TM and ComfortMax Seat TM modules can increase the efficiency of a vehicle's HVAC system and, in turn, potentially facilitate an increased range for electric vehicles.
+Added: Certain of our product offerings are designed to capitalize on regulatory requirements and consumer preferences related to sustainability, such as electrical distribution and connection systems and BDUs designed for high-voltage applications, providing growth opportunities for our business.
+Added: Our ComfortFlex by Lear TM and ComfortMax Seat by Lear TM modules can increase the efficiency of a vehicle's HVAC system and, in turn, potentially facilitate greater fuel efficiency, as well as an increased range for electric vehicles.
In addition, our lightweight components and vertical integration capabilities can facilitate weight reductions and other performance efficiencies in our products, in turn enabling lower emissions and increased battery driving range.
−Removed: Our customers' focus on sustainability is aligned with our efforts to develop products that are more environmentally sustainable and that promote circularity in the automotive industry.
−Removed: These products include, without limitation, FlexAir TM , our 100% recyclable non-foam alternative, and ReNewKnit TM , our sustainable wrap-knit textile alternative that is fully recyclable at its end of life and composed of 100% recycled material.
−Removed: We are also committed to working with our suppliers and customers to source raw materials, including leather, in a sustainable manner.
+Added: We are also developing products that are environmentally sustainable and that promote circularity in line with certain customer expectations and regulatory requirements.
+Added: These products include, without limitation, FlexAir ® , our 100% recyclable non-foam alternative, and ReNewKnit ® , our sustainable wrap-knit textile alternative that is fully recyclable at its end of life and composed of 100% recycled material.
+Added: We are committed to working with our suppliers and customers to source raw materials, including leather, in a sustainable manner.
Our leather operations source cattle hides as a byproduct of the beef industry and are helping to protect forests by working to eliminate purchases of such hides from cattle farms involved in deforestation and forest degradation.
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Human Capital Management
−Removed: Our human capital management strategy is based on our belief that an important factor in delivering the highest quality products and services is to maintain a work environment that prioritizes safety and fosters collaboration, inclusion, tolerance and respect for our 173,700 employees around the world.
−Removed: Our Board and its People and Compensation Committee oversee this strategy.
−Removed: As of December 31, 2024 and 2023, our employment levels worldwide were approximately as follows:
+Added: Our human capital management strategy reflects our belief that delivering the highest quality products and services requires a work environment that prioritizes safety and fosters collaboration, inclusion and respect for our employees worldwide.
+Added: Oversight of this strategy rests with our Board and its People and Compensation Committee.
+Added: As of December 31, 2025 and 2024, our global employment levels were approximately:
Region 2025 2024
5 unchanged sentences
Total 164,300 173,700
−Removed: Our compensation and benefits strategy are designed to be competitive in the countries in which we operate to motivate our employees to perform to the best of their abilities, to achieve our objectives and to align the interests of our employees with the interests of our stakeholders.
−Removed: Our compensation package includes salary and both performance-based and long-term incentive programs, as appropriate for each role.
−Removed: We also provide a multitude of market-competitive benefits, which may include medical, life and disability insurance, contributory retirement savings plan, paid time off, paid parental leave and tuition reimbursement.
+Added: Our compensation and benefits strategy is designed to attract and retain top talent, foster a productive work environment and align employee interests with those of our stakeholders.
+Added: Compensation includes base salary and, as appropriate for each role, performance-based and long-term incentive programs.
+Added: We also offer market-competitive benefits, which may include medical, life and disability insurance, retirement savings plans, paid time off, parental leave and tuition reimbursement.
A substantial number of our employees are members of industrial trade unions or national trade organizations.
−Removed: We have collective bargaining agreements with several North American unions, including the United Auto Workers, Unifor, International Brotherhood of Electrical Workers and Workers United.
−Removed: In the United States and Canada, each of our unionized facilities has a separate collective bargaining agreement with the union that represents the workers at such facility, with each such agreement having an expiration date that is independent of the other agreements.
−Removed: The majority of our employees in Mexico and Europe are members of industrial trade union organizations or confederations within their respective countries.
−Removed: Many of these organizations and confederations operate under national contracts, which are not specific to any one employer.
−Removed: We have infrequently experienced labor disputes at our plants.
−Removed: We have been able to resolve all such labor disputes and believe that our relations with our employees are generally good.
−Removed: See Item 1A, "Risk Factors — A significant labor dispute involving us or one or more of our customers or suppliers or that could otherwise affect our operations could adversely affect our financial performance," and Part II — Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations — Forward-Looking Statements."
+Added: We maintain collective bargaining agreements with several North American unions, including the United Auto Workers, Unifor, International Brotherhood of Electrical Workers and Workers United.
+Added: Each unionized facility in the United States and Canada has its own agreement with independent expiration dates.
+Added: Most employees in Mexico and Europe belong to industrial trade unions or confederations operating under national contracts not specific to any one employer.
+Added: Labor disputes have been infrequent, and we have resolved all such matters promptly.
+Added: We believe our employee relations are generally positive.
+Added: See Item 1A, "Risk Factors — A significant labor dispute involving us or one or more of our customers or suppliers or that could otherwise affect our operations could adversely affect our financial performance," and Part II — Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations — Forward-Looking Statements," included in this Report.
Employee Engagement
−Removed: Launched in 2017, Together We Win ("TWW") is Lear's global employee engagement program designed to drive cultural change in our operations.
−Removed: Plants advance through four segments of the program — leadership, work environment, employee involvement and team empowerment.
−Removed: TWW unites manufacturing employees across the globe in aiming to achieve excellence based on key operational and employee engagement metrics, such as quality, absenteeism, health and safety performance, and operational efficiency.
−Removed: Our approach towards employee engagement focuses on the employee experience through the three main chapters of the employee lifecycle:
−Removed: attract and recruit, learn and grow, and perform and reward.
−Removed: Champions of Lear is a recognition program that celebrates our global operations and our hourly and salaried employees who represent the best-of-the-best in our company.
−Removed: Individuals, teams or plants submit an application which is reviewed by a diverse panel of judges, including Lear leadership.
−Removed: Award categories honor achievements in engagement, customer appreciation, innovation, supply chain, quality, safety, operational excellence, sustainability and continuous improvement.
+Added: Together We Win (TWW) has been our global employee engagement program to continue to enhance our culture.
+Added: Plants progress through four segments — leadership, work environment, employee involvement and team empowerment.
+Added: TWW unites manufacturing employees worldwide to achieve excellence based on metrics such as quality, absenteeism, health and safety, and operational efficiency.
+Added: We are evolving TWW to focus on the Employee Experience (EX) and to improve every stage of the employee lifecycle — from hiring to retirement — through continuous feedback and tailored workplace adjustments based on that feedback.
+Added: EX efficiency will be evaluated by both operating performance indicators and employee metrics at a plant level.
+Added: The program is currently being piloted in plants and administrative offices globally.
+Added: Champions of Lear is a recognition program celebrating teams of employees who demonstrate the highest levels of operational excellence, innovation and cultural leadership in our Company.
+Added: Applications from individuals, teams or plants are reviewed by a diverse panel, including Lear leadership.
Health and Safety
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In addition, we engage an independent third-party conformity assessment and certification vendor to audit selected operations for adherence to our global health and safety standards.
−Removed: Our employees also support healthier lifestyles through our Driving Wellness campaign.
−Removed: Local teams around the world plan activities, such as mental health awareness events, first aid training and on-site physical fitness initiatives, that are focused on promoting increased physical, emotional and mental wellness.
−Removed: This program has been expanded globally since its inception in 2022.
Talent Development and Culture
−Removed: We are committed to the continued development of our employees.
−Removed: In 2023, we delivered more than six million hours of safety, development, leadership, quality, continuous improvement, lean manufacturing, and ISO and IATF certification training.
−Removed: We offer several professional development and leadership programs in the United States, Europe, Asia, Mexico and South America.
−Removed: Our CEO Academy is our premier leadership development opportunity in which a select group of leaders representing diverse functions and backgrounds participate in a week-long leadership immersion event.
−Removed: Our Together We Grow merit-based program helps diverse high-potential future leaders build their networks and careers at Lear with an emphasis on engagement and relationship development.
−Removed: In 2024, we expanded programming to include cohorts in Europe and in Mexico/Honduras.
−Removed: In 2023, we launched our JumpStart "returnship" program in the United States, attracting mid-career professionals who had previously chosen to pause their careers for a variety of reasons.
−Removed: Leveraging our internal referral process, we identified participants that were eager to update their skills and, with support, ready to return to full-time employment.
−Removed: During the 12-
−Removed: week paid pilot program, participants received custom onboarding, attended professional development and technical training workshops, and were assigned a job coach.
−Removed: In 2024, JumpStart expanded globally with programs in Asia, Europe/Africa, Mexico and South America.
−Removed: We strive to build a culture of diversity, equity and inclusion not only through our human resource policies and practices but also by actively monitoring pay equity and working to eliminate discrimination and harassment in all of its forms.
−Removed: In 2024, we enhanced our Expect Respect / Expect Inclusion anti-harassment training for our global workforce, including a significant focus on bystander intervention, equipping our employees with strategies to safely support colleagues who may be experiencing harassment.
−Removed: We expect this training to be completed at all of our locations by the end of the first quarter 2025.
−Removed: We are also proud of our six employee resource groups, representing 23 countries.
−Removed: Each employee-led resource group is supported by an executive sponsor and is open to all employees, with a goal of fostering a culture where everyone in our diverse and global workforce feels engaged, accepted and valued.
−Removed: In 2024, the employee resource groups held more than 400 events globally, including lunch and learns, trainings, and volunteer and social activities.
+Added: We are committed to employee development.
+Added: In 2025, we delivered more than six million hours of training on safety, leadership, quality, continuous improvement, lean manufacturing, and ISO, IATF and other certifications.
+Added: Development opportunities enable employees at all levels to build their competencies and grow their careers and include programs for first-time managers, operational leadership academies and executive MBA scholarships.
+Added: For example, our Global Shop Floor Leadership Program (GREAT) equips plant supervisors with essential leadership skills, while Together We Grow helps high-potential leaders build networks and careers at Lear.
+Added: We promote equal opportunity through human resource policies and practices.
+Added: We value inclusion and diversity of all types.
+Added: Our eight employee resource groups (ERGs) are open to all employees globally and held over 300 global events in 2025 to foster engagement and inclusion.
Ethics and Compliance
−Removed: We are committed to conducting our business with integrity and in compliance with all applicable laws of the cities, states and countries in which we operate, and we have established a Code of Business Conduct and Ethics to assist employees in this regard.
−Removed: In 2022, we updated our Code of Business Conduct and Ethics to include additional or enhanced sections on certain of these topics, as well as on topics such as social media, human rights, and diversity and inclusion.
−Removed: We encourage employees to report concerns through a variety of channels, including a compliance and ethics toll-free number, an online form and a mobile app, each of which allows for anonymous reporting.
−Removed: Our ethics and compliance team reviews every report and, when appropriate, conducts an investigation.
−Removed: We also maintain an Anti-Retaliation Policy such that any employee who reports a concern in good faith is protected from harassment, retaliation or adverse employment consequences.
+Added: We conduct business with integrity and comply with all applicable laws.
+Added: Our Code of Business Conduct and Ethics (the "Code") is the cornerstone of this commitment.
+Added: In 2025, we enhanced the Code with expanded guidance, embedded training refreshers and a "Talk to Us" feature for direct communication with our Ethics & Compliance team.
+Added: We also introduced self-service tools for conflict-of-interest checks and government meeting disclosures.
+Added: Employees can report concerns through multiple channels, including a toll-free helpline, mobile app, online form and dedicated email, with anonymous reporting where permitted.
+Added: Our strict Anti-Retaliation Policy protects employees who report in good faith.
+Added: Oversight of ethics and compliance rests with senior management and the Audit Committee of our Board, which receives regular updates on program effectiveness from our Chief Compliance Officer.
+Added: These measures underscore our commitment to transparency, accountability and ethical practices essential for long-term shareholder value.
In 2025, General Motors, one of the largest automotive and light truck manufacturers in the world, accounted for 22% of our net sales.
−Removed: In addition, Ford, Volkswagen and Mercedes-Benz each accounted for 11% and Jaguar Land Rover and Stellantis each accounted for 9% of our 2024 net sales.
+Added: In addition, Ford accounted for 12%, Mercedes-Benz and Volkswagen each accounted for 10% and Stellantis accounted for 9% of our 2025 net sales.
Through acquisitions and organic growth, we strive to diversify our customer base to be reflective of the evolving regional markets in which we operate.
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The popularity of particular vehicle platforms and segments varies over time and by regional market.
−Removed: We expect to continue to win new business and grow sales at a greater rate than overall automotive industry production.
+Added: We expect to continue to win new business and grow sales in-line with or at a rate greater than overall automotive industry production.
For further information related to our customers and domestic and foreign sales and operations, see Note 13, "Segment Reporting," to the consolidated financial statements included in this Report.
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This measure excludes the sales backlog at our non-consolidated joint ventures and the impact of the wind down of non-core products in our E-Systems business.
−Removed: As of February 2025, our 2025 to 2026 sales backlog is $1.3 billion.
−Removed: Our current sales backlog reflects $0.2 billion related to 2025, of which 11% and 89% are related to our Seating and E-Systems segments, respectively.
+Added: As of February 2026, our 2026 to 2027 sales backlog is $1.3 billion of which 90% and 10% are related to our Seating and E-Systems segments, respectively.
+Added: Our current sales backlog reflects $0.6 billion related to 2026.
In addition, our 2026 to 2027 sales backlog at our non-consolidated joint ventures is approximately $0.6 billion.
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This sales backlog is generally subject to a number of risks and uncertainties, including vehicle production volumes on new and replacement programs and foreign exchange rates, as well as the timing of production launches and changes in customer development plans.
−Removed: For additional information regarding risks that may affect our sales backlog, see Item 1A, "Risk Factors," and Part II — Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations — Forward-Looking Statements."
+Added: For additional information regarding risks that may affect our sales backlog, see Item 1A, "Risk Factors," and Part II — Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations — Forward-Looking Statements," included in this Report.
We receive purchase orders from our customers that generally provide for the supply of a customer's annual requirements for a particular vehicle model and assembly plant, or in some cases, for the supply of a customer's requirements for the life of a particular vehicle model, rather than for the purchase of a specified quantity of products.
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Our agreements with our major customers generally provide for an annual productivity price reduction.
−Removed: Historically, cost reductions through product design changes, increased manufacturing productivity and similar programs with our suppliers have generally offset these customer-imposed price reduction requirements.
−Removed: However, raw material, energy, commodity, product component and labor costs can be volatile.
−Removed: Although we have developed and implemented strategies to mitigate the impact of such costs, these strategies, together with commercial negotiations with our customers and suppliers, do not typically offset all of the adverse impact.
−Removed: Certain of these strategies also may limit our opportunities in a declining price environment.
+Added: In addition, raw material, energy, commodity, product component and labor costs can be volatile.
+Added: Cost reductions through product design changes and improved manufacturing productivity through automation and other advanced technologies, together with similar price reduction programs with our suppliers and commercial negotiations with our customers and suppliers, are designed to more than offset these customer-imposed price reductions and cost increases.
+Added: Certain of these strategies may limit our opportunities in a declining price environment.
In addition, we are exposed to market risk associated with fluctuations in foreign exchange as a result of our low-cost footprint and vertical integration strategies.
−Removed: We use derivative financial instruments to reduce our exposure to fluctuations in foreign exchange rates.
−Removed: For additional information regarding our foreign exchange and commodity price risk, see Part II — Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Commodity Prices" and Item 7A, "Quantitative and Qualitative Disclosures about Market Risk — Market Risk Sensitivity — Foreign Exchange."
+Added: We use derivative financial instruments
+Added: to reduce our exposure to fluctuations in foreign exchange rates.
+Added: For additional information regarding our foreign exchange and commodity price risk, see Part II — Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Commodity Prices," and Item 7A, "Quantitative and Qualitative Disclosures about Market Risk — Market Risk Sensitivity — Foreign Exchange," included in this Report.
Our principal operations are directly related to the automotive industry.
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The principal raw materials used in our seat systems, electrical distribution and connection systems, BDUs and electronic controllers are generally available and obtained from multiple suppliers under various types of supply agreements.
−Removed: Components such as seat trim covers, surface materials such as leather and fabric, seat mechanisms, seat foam, thermal comfort systems such as seat heating, ventilation, active cooling, pneumatic lumbar and massage products, headrests, connection systems and certain other components are either manufactured by us internally or purchased from multiple suppliers under various types of supply agreements (certain of which are sourced by our customers and certain of which are sourced by us).
+Added: Components such as seat trim covers, surface materials such as leather and fabric, seat mechanisms, seat cushioning, thermal comfort systems such as seat heating, ventilation, active cooling, pneumatic lumbar and massage products, headrests, connection systems and certain other components are either manufactured by us internally or purchased from multiple suppliers under various types of supply agreements (certain of which are sourced by our customers and certain of which are sourced by us).
The majority of the steel used in our products is comprised of fabricated components that are integrated into a seat system, such as seat frames, recliner mechanisms, seat tracks and other mechanical components.
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The most important of these marks include LEAR CORPORATION ® (including our stylized version thereof) and LEAR ® , which are widely used in connection with our products and services.
−Removed: Our other principal brands include GUILFORD ® and EAGLE OTTAWA ® .
−Removed: ComfortFlex by Lear TM , ComfortMax Seat by Lear TM , ConfigurE+ TM seating, FlexAir TM non-foam alternative, INTU TM seating, ProTec ® active head restraints, ReNewKnit TM fabrics, SMART JUNCTION BOX TM technology, SoyFoam TM foam substitute and TeXstyle TM fabrics are some of our other trademarks used in connection with certain of our product lines.
+Added: Our other principal brands include GUILFORD ® , EAGLE OTTAWA ® , THAGORA ® and IGB AUTOMOTIVE ® .
+Added: ComfortFlex by Lear TM technology, ComfortMax Seat by Lear TM technology, ConfigurE+ TM seating, FlexAir ® non-foam alternative, INTU ® seating, ProTec ® active head restraints, ReNewKnit ® fabrics, SoyFoam TM foam substitute and TeXstyle TM fabrics are some of our other trademarks used in connection with certain of our product lines.
Government Regulations and Environmental Matters
1 unchanged sentence
Costs incurred to comply with these governmental regulations are not material to our capital expenditures, financial performance or competitive position.
−Removed: Additional information about the impact of government regulations on our business is included in Item 1A, "Risk Factors," under the heading "Legal and Regulatory Risks."
+Added: For additional information about the impact of government regulations on our business, see Item 1A, "Risk Factors — Legal and Regulatory Risks," included in this Report.
We are committed to sustainability in our operations and products.
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To the extent that such laws and regulations ultimately increase or decrease automotive vehicle production, such laws and regulations would likely impact our business.
−Removed: See Item 1A, "Risk Factors."
−Removed: Furthermore, we currently offer products that advance sustainability, such as ReNewKnit TM and FlexAir TM , and are creating technologies that facilitate environmentally friendly transportation alternatives, such as hybrid and electric vehicles.
+Added: See Item 1A, "Risk Factors," included in this Report.
+Added: Furthermore, we currently offer products that advance sustainability, such as ReNewKnit ® and FlexAir ® , and are creating technologies that facilitate environmentally friendly transportation alternatives, such as electric and hybrid vehicles.
Our expertise, capabilities and environmental leadership are allowing us to expand our product offerings in this area.
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In some cases, these joint ventures may be located in North America and used to expand our customer relationships.
−Removed: As of December 31, 2024, we had sixteen operating joint ventures located in five countries.
−Removed: Of these joint ventures, six are consolidated, and ten are accounted for using the equity method of accounting.
−Removed: Fourteen of the joint ventures operate in Asia, and two operate in North America (both of which are dedicated to serving Asian automotive manufacturers).
+Added: As of December 31, 2025, we had eighteen operating joint ventures located in five countries.
+Added: Of these joint ventures, eight are consolidated, and ten are accounted for using the equity method of accounting.
+Added: Sixteen of the joint ventures operate in Asia, and two operate in North America (both of which are dedicated to serving Asian automotive manufacturers).
Net sales of our consolidated joint ventures accounted for approximately 9% of our net sales in 2025.
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United States / Mexico Kyungshin-Lear Sales and Engineering LLC 49
−Removed: India Hyundai Transys Lear Automotive Private Limited 35
+Added: India Hyundai Transys Lear Automotive India Private Limited
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.