Lear Increases Share Repurchase Authorization and Declares Quarterly Dividend

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Lear Corporation, a global leader in automotive technology specializing in Seating and E-Systems, has announced significant actions approved by its Board of Directors. The Board has decided to increase the Company’s share repurchase authorization to $1.5 billion and extend the authorization period until December 31, 2026. Additionally, Lear’s Board has declared a quarterly cash dividend of $0.77 per share on the Company’s common stock.

Gregory C. Smith, Lear’s Non-Executive Chairman, emphasized the Board’s confidence in the Company’s future prospects and its ability to generate free cash flow, leading to the shareholder actions announced today. Smith highlighted Lear’s capital allocation priorities, which aim to maximize long-term shareholder value through strategic investments for growth, maintaining a robust balance sheet, and consistently returning excess cash to shareholders.

As of the end of 2023, Lear had $916 million remaining on its share repurchase authorization. With the Board’s decision, the total share repurchase authorization now stands at $1.5 billion, representing approximately 19% of the Company’s total market capitalization at current market prices. Since the inception of its share repurchase program in 2011, Lear has returned approximately $5.2 billion to shareholders, including repurchasing approximately 53% of the Company’s outstanding shares.

Lear may utilize various methods for share repurchases under its authorization, including open market purchases, accelerated share repurchase programs, privately negotiated transactions, and structured repurchase transactions. The Company will exercise discretion regarding alternative uses of capital, taking into account prevailing financial, market, and industry conditions.