Lear posts $5.8 billion in Q3 2026 sales and 26% net income growth, hitting its $350 million buyback target
Lear's third-quarter sales rose 2% to $5.8 billion and net income jumped 26%, keeping the supplier on track for its full-year earnings guidance even as global vehicle production fell.
- $5.8 billion
- $256 million
- $137 million (up 26%)
- $2.74 (up 36%)
What Happened
Lear reported third-quarter 2026 sales of $5.8 billion, up 2% from a year earlier, and core operating earnings of $256 million, or 4.4% of sales, compared with $241 million, or 4.2% of sales, in 2025. The improvement came despite a 2% decline in global vehicle production, which fell 5% in North America, rose 1% in Europe and dropped 7% in China; on a Lear sales-weighted basis, global production was down about 2%. Sales excluding the impact of commodities, foreign exchange and tariff recoveries were also up 2%, reflecting new business and commercial recoveries, partly offset by lower production on key Lear platforms and the wind-down of non-core electronics programs. Net income was $137 million, an increase of 26% from $108 million, and adjusted net income was $185 million, up 23% from $150 million. Earnings per share were $2.74 versus $2.02 a year ago, a 36% increase, and adjusted earnings per share were $3.71 versus $2.79, a 33% increase, reflecting higher earnings and the benefit of the share repurchase program.
$256 million
4.4% of sales in Q3 2026, up from $241 million, or 4.2% of sales, a year earlier.
- 5.5% / 6.3% (2025: 5.6% / 6.1%)
- 3.5% / 4.8% (2025: 2.9% / 4.2%)
“Lear delivered improved year-over-year revenue and core operating earnings for the fourth consecutive quarter despite lower industry production. These results keep us on track to deliver our full-year earnings guidance.”
- Complete seats for two important programs with a North American automaker
- Its largest complete seat award in India, with Mahindra & Mahindra, where Lear says it is the market leader
- Complete seats for future programs with a Chinese luxury EV automaker and with BYD
- A conquest electronics award on a commercial and passenger van in Europe
- Both conquest and new wire awards with multiple customers in China
Earnings were helped by commercial recoveries, restructuring and IDEA by Lear savings, partly offset by lower production on key Lear platforms and increases in engineering and launch costs. Net cash provided by operating activities was $329 million and free cash flow was $158 million, down from $444 million and $307 million respectively in 2025. Lear repurchased 1,375,917 shares for $175 million in the quarter, reaching its full-year share repurchase target of $350 million, and its remaining authorization of about $1.5 billion equals roughly 26% of its market capitalization at current prices. Since starting the program in 2011, Lear has repurchased 64.9 million shares for $6.3 billion at an average price of $96.38, a reduction of about 62% of shares outstanding. For the full year, Lear maintained its core operating earnings outlook, assuming global industry production about 1% lower than 2025 on a Lear sales-weighted basis, excluding any future tariff changes or production disruptions, at average exchange rates of $1.15 per euro and 6.80 RMB per dollar.
Lear repurchases 1,375,917 shares for $175 million, taking it to its full-year target of $350 million.
Conference call and webcast at 9:00 a.m. EDT to discuss the third-quarter results.
Lear's complete seat facility in Orion, Michigan, described as its most sophisticated plant, is on track to launch.
Lear's expanded share repurchase authorization of $1.5 billion runs to this date.
Previously from Lear Corporation
Lear raised its full-year 2026 outlook in July after second-quarter sales rose 3% to $6.2 billion and adjusted earnings per share climbed 23% to $4.28. In May, Lear reported first-quarter 2026 earnings per share of $3.34, its highest since 2021, and adjusted earnings per share of $3.87, its highest since 2019.
- Lear Raises Full-Year 2026 Outlook as Q2 Sales Hit $6.2 Billion, Adjusted EPS Jumps 23%
- Lear Reports Highest EPS Since 2021 in Q1 2026, Adjusted EPS Highest Since 2019
Background drawn from MotorClaw's earlier coverage of Lear Corporation's official releases.
Why this matters
Lear is the largest U.S.-based automotive supplier, so its quarter shows how a parts maker can lift sales and profit while global vehicle production falls, by winning new programs and recovering costs from customers. The results matter to Lear's investors, its plant workers and the automakers that buy its seats and electrical systems.
Terms in This Story
- Core operating earnings
- A non-GAAP profit measure that excludes equity income, interest, other expense, restructuring costs and other special items, used to show underlying operating performance.
- Free cash flow
- Cash provided by operating activities minus capital expenditures, a non-GAAP measure of cash left after investing in the business.
- Adjusted earnings per share
- Net income per diluted share adjusted for restructuring costs and other special items, including their tax effect.
- Share repurchase authorization
- A board-approved limit on how much of a company's own stock it may buy back, which reduces the number of shares outstanding.
Summarised from the linked release; details can be imperfect — always verify against the original source.