Lear Corporation Increases Share Repurchases and Declares Quarterly Dividend

Lear Corporation (NYSE: LEA), a global automotive technology leader, has announced an increase in its share repurchase authorization to $1.5 billion and an extension of the authorization period until December 31, 2026. The company's board of directors has also declared a quarterly cash dividend of $0.77 per share on the company’s common stock, payable on March 27, 2024, to shareholders of record at the close of business on March 8, 2024.

Gregory C. Smith, Lear’s non-executive chairman, expressed confidence in the company's outlook and its ability to generate free cash flow, stating, “The confidence Lear’s board has in the company’s outlook and its ability to generate free cash flow allows for the shareholder actions announced today. The board fully supports the company's capital allocation priorities, which are designed to maximize long-term shareholder value by making organic and inorganic investments to drive profitable growth and improve competitiveness, maintaining a strong and flexible balance sheet, and consistently returning excess cash to shareholders.”

At the end of 2023, Lear had $916 million remaining on its share repurchase authorization. The total share repurchase authorization is now $1.5 billion, reflecting approximately 19% of its total market capitalization at current market prices.

Since the company began its share repurchase program in 2011, Lear has returned approximately $5.2 billion to shareholders, including the repurchase of approximately 53% of the company's shares outstanding as of the commencement of its share repurchase program.

Investors shrugged off the news. Lear’s shares have moved -0.6% today, and are currently trading at a price of $135.42.

The company's full 8-K submission is available here.

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