Lear Corp. Increases Share Repurchase Program to $1.5 Billion, Extends to 2029

Lear Corporation (NYSE: LEA) announced a significant expansion of its capital return program, with its Board of Directors increasing the company's share repurchase authorization to $1.5 billion and extending it through 2029. The news sent shares up 1.3% in after-hours trading on Thursday.

Expanded Authorization

The newly approved program replaces a previous plan that had approximately $600 million remaining and was set to expire on December 31, 2026. The company stated the new authorization is extended through December 31, 2029.

Key details of the program include:

• New Authorization Total: $1.5 billion
• New Expiration Date: December 31, 2029
• Significance: Represents approximately 26% of Lear's current market capitalization.

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The automotive seating and electrical systems supplier may conduct the repurchases through various methods, such as open market purchases, accelerated share repurchase programs, and privately negotiated transactions.

Context and Company Rationale

Lear's board said the decision reflects its confidence in the company's business outlook and its ability to generate strong free cash flow. Share buybacks can increase earnings per share and signal management's belief that the company's stock is undervalued.

This move continues a long-standing policy of returning capital to shareholders. Since launching its share repurchase program in 2011, Lear has bought back 63.6 million shares of its common stock for a total of $6.1 billion as of the end of the second quarter of 2026. This has reduced its total shares outstanding by approximately 60% since the program's inception.