Lear Raises Full-Year 2026 Outlook as Q2 Sales Hit $6.2 Billion, Adjusted EPS Jumps 23%
Lear Corporation raised its full-year 2026 outlook after second-quarter sales rose 3% to $6.2 billion and adjusted earnings per share climbed 23% to $4.28.
- $6.2 billion
- $4.28
- $288 million
- $100 million
What Happened
For the second quarter of 2026, Lear reported sales of $6.2 billion, up 3% year over year, while global vehicle production was flat overall and down about 1% on a Lear sales-weighted basis. Excluding the impact of commodities, foreign exchange and tariff recoveries, sales rose 1%, reflecting commercial recoveries and added new business, partially offset by lower production on key Lear platforms. Core operating earnings were $313 million, or 5.0% of sales, up from $292 million, or 4.8% of sales, in 2025. Net income increased 17% to $193 million, adjusted net income rose 16% to $217 million, earnings per share were $3.79 (up 24%) and adjusted earnings per share were $4.28 (up 23%).
$6.2 billionUSD
Up 3% year-over-year versus flat global vehicle production.
In the Seating segment, margins were 6.2% of sales and adjusted margins were 6.7%, down from 6.4% margins and unchanged from 6.7% adjusted margins in 2025. In E-Systems, margins improved to 5.4% and adjusted margins to 5.8%, from 3.5% and 4.9% a year earlier. Net cash provided by operating activities was $461 million, and free cash flow reached $288 million, up from $296 million and $171 million, respectively, in 2025.
“Lear continued its strong start to 2026 despite a dynamic operating environment, delivering improved year-over-year revenue and operating income in both segments - results that give us the confidence to raise our full-year guidance. We continue to win significant new business awards, including key new and conquest program awards with Audi, while accelerating our growth with Chinese automakers, inc”
During the quarter, Lear repurchased 735,873 shares for $100 million, leaving a repurchase authorization of approximately $600 million, representing roughly 8% of its market capitalization. Since beginning the buyback program in 2011, the company has repurchased 63.6 million shares for $6.1 billion at an average price of $95.72 per share, cutting shares outstanding by about 60%.
Lear raised the midpoints and narrowed the ranges of its 2026 financial outlook across most metrics. The guidance assumes global industry production will decrease roughly 2% from 2025 on a Lear sales-weighted basis, using internal estimates, customer production schedules and Mobility Global projections. The outlook excludes any future impact of potential tariff changes or production disruptions and is based on full-year average exchange rates of $1.16 per euro and 6.82 RMB per U.S. dollar.
Previously from Lear Corporation
This report follows a strong first quarter in which Lear posted earnings per share of $3.34, its highest since 2021, and adjusted EPS of $3.87, its highest since 2019. The company also previously won a 2025 PACE Award for its Zone Control Module with Algorithmic Circuit Protection, part of a history of innovation recognition.
- Lear Reports Highest EPS Since 2021 in Q1 2026, Adjusted EPS Highest Since 2019
- Lear Corporation Wins 2025 PACE Award for Smart Power Distribution Technology
Background drawn from MotorClaw's earlier coverage of Lear Corporation's official releases.
Why this matters
As one of the world's largest automotive suppliers, Lear's results offer a signal for the auto supply chain as global vehicle production stays flat. Raising guidance suggests the company expects demand for seating and electronics to hold up, supported by new awards from Audi and Leapmotor. For investors, higher adjusted earnings and free cash flow back a faster share repurchase pace while sustaining the dividend.
Terms in This Story
- Core operating earnings
- A company-computed profit measure that strips out interest, taxes, restructuring charges and other special items to show underlying operating performance.
- Adjusted earnings per share
- Net income per share adjusted for restructuring costs and other special items, providing a cleaner year-over-year comparison.
- Free cash flow
- Cash from operations minus capital expenditures; a measure of a company's ability to fund debt payments, dividends and share buybacks.
- Sales-weighted basis
- A calculation that adjusts global vehicle production growth based on the regional mix of a supplier's sales, giving a more relevant benchmark for its revenue.
Summarised from the linked release; details can be imperfect — always verify against the original source.