Lear Corp

Latest Results (15.05.2026):

Lear Corporation (Lear) reported strong results for the first quarter of 2026 (Q1 2026), delivering $5.8 billion in sales (up 5% year-over-year) and the highest quarterly adjusted earnings per share since 2019. The company posted improved margins in both Seating and E‑Systems, reported adjusted EPS of $3.87 (up 24% YoY) and reaffirmed its full‑year 2026 guidance while continuing active share repurchases.

Sales

Q1 2026 sales were $5.8 billion, a 5% increase versus Q1 2025. Sales excluding commodities, FX, tariffs, acquisitions/divestitures rose about 3%, driven by increased production on key platforms and new business wins.

Profitability and Margins

Core operating earnings were $297 million (5.1% of sales) vs. $270 million (4.9%) in 2025. Seating adjusted margin rose to 6.9% (from 6.7%) and segment margin to 6.3% (from 5.2%). E‑Systems adjusted margin improved to 6.1% (from 5.2%) and segment margin to 5.2% (from 3.9%).

Net Income and EPS

Net income was $172 million vs. $81 million a year earlier. Adjusted net income was $200 million (up 18%). GAAP EPS was $3.34 and adjusted EPS was $3.87, compared with $1.49 and $3.12 a year ago, with adjusted EPS up 24% YoY—helped by higher earnings, lower share count and a lower effective tax rate.

Cash Flow

Net cash from operating activities was $98 million in Q1 2026 (vs. $(128) million in Q1 2025). Free cash flow improved to $(27) million (vs. $(232) million a year ago), reflecting better operating cash generation though still negative for the quarter.

Capital Allocation - Share Repurchases

During Q1 2026 Lear repurchased 630,804 shares for $75 million. Remaining repurchase authorization was about $700 million (≈11% of market cap). Since 2011 the company has repurchased 62.8 million shares for ~$6.0 billion (≈60% reduction in shares outstanding since program inception).

Market Context & Backlog

Global vehicle production was down ~3% YoY (North America -2%, Europe -1%, China -10%), while Lear’s sales-weighted global production rose ~3% due to its fiscal calendar and platform mix. Management noted significant new-business awards and increased backlog, including momentum from a major Seating conquest win.

Outlook

Lear reaffirmed its full‑year 2026 financial outlook across all metrics, assuming industry production about 2% lower on a Lear sales-weighted basis. Guidance uses FX assumptions of $1.17/Euro and 6.91 RMB/$; the company cautioned that forward-looking non‑GAAP measures are not reconciled to GAAP.